Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 266

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 266
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 “Conversion Price”)
shall equal the Market Price (as defined in this Note), subject to adjustment as provided in this Note. “Market Price” shall
mean 75% of the lowest closing bid price of the Common Stock on the Principal Market during the fifteen (15) Trading Day period immediately
preceding the respective Conversion Date.

The
interest on the convertible redeemable notes was $11,056 and $11,056 for the three months and six months ended September 30, 2025 ($NIL
and $NIL for the three months and six months ended September 30, 2024 which has been recognized in the Condensed Consolidated Statements
of Operations for their respective periods.

(This
space has been left intentionally blank)

34

ZOOMCAR
HOLDINGS, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

15Unsecured
convertible note (‘Atalaya Note’)

The
following is a summary of the Company’s Atalaya Note payable for which it elected fair value option as on September 30, 2025 and
March 31, 2025:

    (In USD) As at 
    September 30,  2025  
    March 31,  2025 
  
    Atalaya Note 
    $6,272,911  
    $6,002,269 
  
    Total 
    $6,272,911  
    $6,002,269 

The
Atalaya Note was initially recorded at the fair value of $10,167,194 on issuance. The Atalaya Note was issued at 7.5% discount on principal
amounting to $632,596 and bears an interest of 8% and an additional interest on default of 8% compounded monthly.

During
the year ended March 31, 2025, partial liability was settled by issue of 6,257 shares to the Atalaya Note holders for a settlement of
$2,324,696.

Further
during the year ended March 31, 2025, the Company received notices from Atalaya regarding equity line transactions and incurring debt
without the Purchaser’s consent. Atalaya filed a case against the Company seeking relief from the above mentioned defaults. On
March 28, 2025, the Supreme Court of the state of New York ordered the Company to pay the outstanding principal amount along with