Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1616

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 5
Chunk 1616
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ations. 

We also require our Guests to choose one of the
three trip protection options. A per-trip amount (included in the booking fee) is charged for trip protection, which is collected upon
the booking. We recognize revenue from trip protection charges over the trip completion period.

Recorded revenue from services
is reduced by the portion of those incentives and credits paid to our Hosts and Guests that cannot be directly attributable to distinct
services performed by the Hosts and Guests. These incentives are treated as contra-revenue and reduce our net Revenue recorded in each
period. Those incentive costs that can be attributed to a distinct service (e.g., referral bonuses paid to referrer) are included in
sale and marketing expenses.

Others

We exclude from revenue
the taxes assessed by governmental authorities that are imposed on specific revenue- producing transactions and collected from customers/subscribers.

Cost of Revenue

Cost of revenue primarily
consists of, (1) personnel-related compensation costs of local operations teams and teams that provide phone, email and chat support
to users, (2) repair and maintenance expenses of vehicles, (3) payment gateway charges, (4) depreciation of devices for keyless entry
system and GPS which are installed in the vehicles of Hosts, (5) software support and maintenance, and (6) other direct expenses. We
expect that the cost of revenue will continue to increase on an absolute dollar basis for the foreseeable future to the extent that we
continue to see growth on the platform. However, cost of revenue may vary as a percentage of revenue from period to period based on activity
on the platform.

Technology and Development

Technology and development
expenses primarily consist of personnel-related compensation expenses for technology, product, and engineering teams, as well as expenses
associated with our information technology and data science platforms. We expect that our technology and development expenses will increase
on an absolute dollar basis but vary from period to period as a percentage of net revenue for the foreseeable future as we continue to
invest in technology and development activities relating to ongoing improvements to and maintenance of our platform, including the potential
hiring of additional personnel to support these efforts. 

67

Sales and Marketing

Sales and marketing expenses
primarily consist of online marketing expenses, marketing promotion expense, marketing partnerships with third parties, sales and marketing
personnel compensation expenses and certain incentives and referral bonuses paid to Hosts (reflecting the portion of incentive costs
not adjusted against net revenue). Sales and marketing expenses also include allocated overhead