Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1105

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 2
Chunk 1105
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 the agreement, the exercise price of the warrants shall be adjusted to equal the lower of the exercise price and the Reset Price. Upon such reset, the number of warrant shares issuable upon exercise shall be increased such that aggregate exercise price remains unchanged.         Out of above, a total of 523,318 Common Stock, 28,000 Pre-Funded Warrants,
3,454,810 Series A Warrants and maximum number of Series B warrants as per agreement were issued in settlement of litigation with Randall
Yanker, settlement of litigation with Aegis Capital Corp and Ellenoff Grossman & Schole LLP and to the investors in exchange for waivers
of rights under prior financing agreements. These have been recorded as “Loss on litigation settlement” amounting to $12,738,865
and “Loss on extinguishment of liability” amounting to $3,458,248 under “Other expenses” in the Consolidated Statements
of Operations based on the fair value of the instruments issued (Refer Note 26).         Placement agent compensation across all offerings, wherever applicable included warrants to purchase
10% of the shares of common stock and shares underlying the pre-funded warrants, Series A Warrants equal to 10% of those sold at closing,
and Series B Warrants equal to 10% of those issued at or following the Reset Date. Specifically, 37,930 Common Stock Warrants were issued,
exercisable at prices ranging from $39.00 to $80.60 per share (1.95 to 4.03 prior to the Second Reverse Stock Split), and classified
as equity instruments.         Holders of common stock are entitled to one vote per share, dividends at the discretion of the Board of Directors, and a pro-rata share of residual assets upon liquidation. This comprehensive activity reflects the Company’s capital restructuring and financing strategy during the reporting period.         Series A warrants were issued with initial exercise prices of $80.60
($4.03 prior to the Second Reverse Stock Split), $39.00 ($1.95 prior to the Second Reverse Stock Split), and $6.24, each exercisable for
five years from the initial exercise date. Series B warrants were issued with zero initial eligibility, subject to increase on the Reset
Date based on the Reset Share Amount formula. All warrants were adjusted for the Second Reverse Stock Split. Placement agents received
10% of the Series A and Series B warrants issued to