Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 15

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 sale. The associated revenue is recognized when the customer utilizes such voucher. On expiry of validity of the voucher, the utilized
portion is recognized as Other operating revenues in the Condensed Consolidated Statements of Operations.

Contract
liabilities

Contract liabilities primarily
consist of obligations to customers for advance received against bookings, revenue-share payable to customers for vehicles listed by them
on Company’s portal for short-term rentals and related to Company’s points-based loyalty program. As per ASC 606- 10-50-14
the Company does not aggregate amount of transaction price allocated to remaining performance obligations as required under ASC 606-10-50-13,
since the company’s performance obligation is a part of a contract that has an original expected duration of one year or less.

11

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

vii.Cash and cash equivalents

Cash and cash equivalents include
cash on hand, bank balances. Cash and cash equivalents are recorded at cost, which approximates fair value.

Cash and cash equivalents include
amounts collected on behalf of but not yet remitted to the Hosts which are included in accrued and other current liabilities in the Condensed
Consolidated Financial Statements.

viii.Restricted Cash

The Company
is required to place cash in an indemnification escrow fund with the placement agent for all indemnification liabilities and expenses
payable by the Company as per the placement agent agreement for a period of 3 years from closing of the November 2024 Offering. Such cash
is classified as restricted cash and reported as a component of other non-current assets in the Condensed Consolidated Balance Sheets.

ix.Accounts receivable, net of allowance

Accounts receivables are stated
net of allowances and primarily represent corporate debtors and dues from payment gateways for amounts paid by customers. In case of corporate
debtors, the payment terms generally include a credit of 30-60 days. The amounts receivable from payment gateways are settled within 2
days.

The Company records an allowance
for credit losses for amounts owed for completed transactions that may never settle or be collected. The Company estimates its exposure
to balances deemed to be uncollectible based on factors including known facts and circumstances, historical experience, and the age of
the uncollected balances. Accounts receivable balances are written off against the allowance of credit losses after all means of collection
has been exhausted and potential recovery