Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 245

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 245
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 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.

Unsecured
Notes

During
the six months ended September 30, 2025, the Company has issued Bridge Notes which are repayable at the principal value along with an
interest of 12% p.a. on the maturity date and has been accounted for under ASC 470-10. The Company issued these Bridge Notes at discount
and incurred expenses on the issue of these Notes. As per ASC 835, the discount and the expenses incurred on issue of the Bridge Notes
have been amortized over the contractual period using the effective interest method. The Bridge Notes liabilities have been presented
net off the discount and issue expenses.

Convertible
Notes

During
the six months ended September 30, 2025, the Company has issued Convertible Notes which are repayable at the principal value along with
an interest of 6-12% p.a. on the maturity date or the holder as an option to convert those in variable number of equity shares and the
same has been accounted for as a share settled debt under ASC 480-10. The Company issued these Convertible Notes at discount and incurred
expenses on the issue of these Convertible Notes. As per ASC 835, the discount and the expenses incurred on issue of the Convertible
Notes have been amortized over the contractual period using the effective interest method. The Convertible Notes liabilities have been
presented net off the discount and issue expenses.

18

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary
of Significant Accounting Policies (Continued)

Issuance
cost