Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 47

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 47
---
    March
    31,
 2024 
  
    Current liability 

    Atalaya
    Note  
    $7,017,543  
    $      - 
  
    Total 
    $7,017,543  
    $- 

The Atalaya Note was initially
recorded at the fair value of $10,167,194 on issuance. The Atalaya Note was issued at 7.5% discount on principal amounting to
$632,596 and bears an interest of 8% and an additional interest on default of 8% compounded monthly.

During the nine months ended December 31, 2024, partial
liability was settled by issue of 125,120 (12,512,080 prior to Reverse Stock Split) shares to the Atalaya Note holders for a settlement
of $2,324,696.

The principal balance of the Atalaya
Note was $8,434,605 (amount received $7,802,009). As of December 31, 2024 and March 31, 2024, the fair value of the Atalaya Note of $7,017,543
and $10,067,601, was recorded in the Condensed Consolidated Balance Sheets for their respective periods. The change in fair value resulted
in loss of $244,658 and gain of $725,362 that is recorded for the three months and nine months ended December 31, 2024 ($NIL and $NIL
for three months and nine months ended December 31, 2023) in the Condensed Consolidated Statements of Operations (as no portion of such
fair value adjustment resulted from instrument-specific credit risk). Also, Refer Note 31.

The Company is liable to pay liquidated damages to the
note holders, owing to breach of certain conditions as prescribed by the agreement. However, there is no visibility on the amount of such
damages, henceforth, no provision has been booked for the same.

During the period ended December 31,
2024, the Company received notices from Atalaya regarding equity line transactions and incurring debt without the Purchaser’s consent.
Under the Atalaya Note, any default would make all accrued interest, liquidated damages, and other amounts immediately due in cash. The
Company is in discussions with Atalaya to resolve this matter and has classified all payments due to Atalaya as a current liability.

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