Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 271

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 271
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2024 and December 
 2024 offering:                                         |

During the nine months ended
December 31, 2024, the Company issued shares of Common Stock, pre-funded, Series A and Series B warrants in the November 2024 and December
2024 offering (Refer to Note 22) and as consideration to the placement agents for the issuance. The Common stock and pre-funded warrants
were classified as equity in accordance with ASC 815-40 since all the conditions required for equity classification are met. The Series
A warrants and Series B warrants were classified as derivative financial instruments in accordance with ASC 815-10-15-83 since they contain
an underlying, can only be net settled and required no initial net investment. Accordingly, the derivative instruments were measured at
fair value and subsequently revalued at each reporting date.

| (b) | Warrants issued along with Redeemable Promissory Note: |

During the nine months ended
December 31, 2024, the Company issued warrants along with Redeemable Promissory Note and as consideration to the placement agent for the
issuance of the Redeemable Promissory Note.

These warrants were classified
as equity in accordance with ASC 815-40 since all the conditions required for equity classification are met. During the nine months ended
December 31, 2024, these were exercised and were converted into common stock.

| (c) | Warrants issued along with SSCPN and to placement agent (‘Derivative financial instrument’): |

During the year ended March
31, 2024, the Company issued warrants along with Senior Subordinated Convertible Promissory Note (“SSCPN)” and as consideration
to the placement agent for the issuance of SSCPN.

F- 15 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

These warrants were deemed derivative
instruments in accordance with ASC 815-10-15-83 since they contained an underlying, had cash less payment provisions, that could have
been net settled in shares and had a very minimal initial net investment. Accordingly, the derivatives were measured at fair value and
subsequently revalued at each reporting date until the close of Reverse Recapitalization consummated during year ended March 31, 2024.

| (d) | Warrants issued to preferred stockholders: |

Before the date of reverse recapitalization,
the Company had warrants issued to preferred stock