Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1639

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 5
Chunk 1639
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. 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 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. Stock options 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.

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.

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 470-10. The Company issued these Redeemable Promissory notes on discount and incurred expenses on issue of the
Redeemable Promissory Notes. As per ASC 835, the discount and the expenses incurred on issue of the Redeemable Promissory Notes have
been amortized over the period of the Redeemable Promissory note on a straight-line basis. The Redeemable Promissory Notes liabilities
have been presented net off