Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 38

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 an uncured default under either of the Bridge notes, the holder
has the right to elect to convert the outstanding amount (includes principal, accrued interest, default interest, and other fees as applicable)
into the Company’s Common stock at a conversion price equal to 75% of the lowest trading price of the Company’s Common stock
during the fifteen trading days immediately prior to the applicable conversion date.

The interest on the Bridge Notes was $4,231 and $NIL
for the three months ended June 30, 2025 and for the three months ended June 30, 2024 which has been recognized in the Condensed Consolidated
Statements of Operations for their respective periods.

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29

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 June 30, 2025 and March 31, 2025:

    (In USD)
    As at 
    June 30, 
    2025  
    March 31,
    2025 
  
    Atalaya Note 
    $6,136,851  
    $6,002,269 
  
    Total 
    $6,136,851  
    $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 interest accrued till date amounting to $5,997,833.