Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2223

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7A
Chunk 2223
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 were converted
into 4,215 shares (84,286 prior to the Second Reverse Stock Split and 8,428,621 shares prior to the First Reverse Stock Split) of the
Company’s Common Stock.

The SSCPN and Notes were adjusted
for their carrying value through Consolidated Statements of Operations as on date of Reverse Recapitalization and credited at carrying
value to the capital accounts upon conversion to reflect the stock issued.

During the year ended March 31, 2024,
the Company issued an unsecured convertible note (“Atalaya Note) which had features similar to that of SSCPN and were accounted
accordingly as enumerated above.

xxiv.Net profit/(loss) per share attributable to common stockholders

The Company computes net profit/(loss)
per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders
for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends
as if all the income for the period had been distributed. The Company’s convertible preferred stock is participating security. The
holders of the convertible preferred stock would be entitled in preference to common shareholders, at specified rate, if declared.

Then any remaining earnings would
be distributed to the holders of common stock and convertible preferred stock on a pro-rata basis assuming conversion of all convertible
preferred stock into common stock. This participating security do not contractually require the holders of such shares to participate
in the Company’s losses. As such, net losses for the periods presented were not allocated to the Company’s participating securities.

The Company’s basic profit/(loss)
per share is computed using the weighted-average number of ordinary shares outstanding during the period. The diluted profit/(loss) per
share is computed by considering the impact of potential issuance of common stock on the weighted average number of shares outstanding
during the period, except where the results would be anti-dilutive.

xxv.Provisions and accrued expenses

A provision is recognized in the Consolidated
Balance Sheets when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an
outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are recognized at present
value by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money.

Provisions for onerous contracts are
recognized when the expected benefits to be derived by the Company from a contract