Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 22

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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with the vehicle, and whether it has discretion in establishing the prices for the vehicles booked. The Company determined that it does
not establish pricing for vehicles listed on its platform and does not control the right to use the host’s vehicle at any time
before, during, or after completion of a trip booked on the Company’s platform. Accordingly, the Company has concluded that it
is acting in an agent capacity, and revenue is presented net reflecting the facilitation fees received from the Marketplace service.
The customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs. Revenue
is recognized ratably over the trip period. The Company recognizes facilitation revenue from these performance obligations on a straight-line
basis over the duration of the rental trip using the output method as its performance obligation is satisfied over time. The Company
uses the output method based on rental hours or days, where revenue is calculated based on the percentage of total time elapsed in relation
to total estimated rental period. In the event a user books a trip extension, at the time the extension is booked, the service revenue
is recognized on a straight-line basis over the duration of the extension period.

During the nine months ended December
31, 2024, the Company launched the Fleet Management Program as an additional service for hosts, offering parking spaces for their vehicles.
The Company charges a fixed fee to the hosts for this service, which is recognized under ‘Other Operating Revenue’ in the Condensed Consolidated
Statements of Operations.

The Company offers vehicle listing
incentive programs to hosts. The incentives are recorded in accordance with ASC 606- 10-32-25 and ASC 606-10-32-27 as a reduction to
revenue and in cases where the amount of incentive paid to the Host are above the facilitation fees earned from that Host on cumulative
basis, the excess of the revenue amount is recorded as a marketing expense in the Condensed Consolidated Statements of Operations. These
incentives are offered as part of overall marketing strategy of the Company and incentivize the hosts to refer the platform. No incentives
were paid during the three and nine months ended December 31, 2024.

12

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Loyalty program

The Company offers loyalty program,
Z-Points, wherein customers are eligible to earn loyalty points that are redeemable for payment towards facilitation fees. Under ASC
606,