Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 37

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 30, 2024 - $198,521). Further, the Company has recorded
penal interest expense amounting to $19,701 and $14,327 for the three months ended June 30, 2025 and June 30, 2024, respectively.

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left intentionally blank)

28

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

14A
Unsecured notes

The following is a summary of the Company’s
notes payable as of June 30, 2025 and March 31, 2025:

    Outstanding 
  
    (In USD)
    As at 
    June 30,
 2025  
    March 31,
 2025 
  
    Bridge notes - Balance payable 
    $402,925  
    $           - 
  
    Less: Discount and debt issuance cost on issuance, net of amortization 
     (94,194) 
     - 
  
    Total 
    $308,731  
    $- 

On June 23, 2025, the Company entered
into Securities Purchase Agreements with certain institutional accredited investors pursuant to which the Company issued Bridge notes
for a total principal amount of $402,000 with an initial issue discount of $42,000. The net proceeds disbursed to the Company were $350,000
after deduction of legal and due diligence fees of $10,000. Additionally, $45,500 (i.e., 13% of net proceeds) is due to the placement
agent relating to the issuance of these bridge notes which is directly attributable to the loan raised, thereby bringing the total debt
issuance costs to $55,500.

The discount and issuance cost on bridge notes have been amortized
over the contractual period using the effective interest method. The unamortized discount and issuance cost have been presented as net
of the bridge notes liability.

Terms of Bridge notes

The Bridge notes have a maturity date of March 30, 2026, and bear interest at an
annual rate of 12%. The notes include scheduled monthly installment repayments and interest payments starting November 30, 2025 and may
be prepaid in part or full, by the Company at a discount to the outstanding balance. The notes are subject to default interest rate of
22% per annum and include customary events of default.

In the event of