Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 668

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1B
Chunk 668
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 stock-based awards to be recognized over the requisite service period. The Company includes a forfeiture
estimate in the amount of compensation expense being recognized based on the Company’s estimate of equity instruments that will
eventually vest. The fair value of stock-based awards, granted or modified, is determined on the grant date at fair value, using appropriate
valuation techniques.

For stock options or restricted stock units
with service-based vesting conditions only, the valuation model, typically the Black-Scholes option-pricing model, incorporates
various assumptions including expected stock price volatility, expected term, and risk-free rates. For stock options or restricted
stock units with graded vesting, the fair- value-based measure is estimated of the entire award by using a single weighted-average
expected term. The Company estimated the volatility of common stock on the date of the grant based on weighted-average historical
stock price volatility of comparable publicly traded companies in its industry group. The risk-free rate is based on the U.S.
Treasury yield curve in effect at the time of grant with a term equal to the expected term. The Company estimates the term based on
the simplified method for employee stock options considered to be “plain vanilla” options as the Company’s
historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. The
expected dividend yield is 0.0% as the Company has not paid and does not anticipate paying dividend on its common stock.

The Company estimates a forfeiture
rate on an annual basis for the purpose of computation of stock-based compensation expense. The rate is used consistently across the subsequent
interim periods during the year.

In case of cancellation of stock-based
awards with no concurrent grant of a replacement award or other valuable consideration, any unrecognized compensation cost is recognized
immediately on the cancellation date.

xxi.Debt

The debt instruments of the Company
consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic prepayments of
scheduled instalments and the same has been accounted for under ASC 470-50.

F-16

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

Redeemable Promissory Notes

During the year ended March 31, 2025,
the Company has issued Redeemable Promissory Notes which are repayable at the principal value on maturity date and has been accounted
for under ASC