Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 3194

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 8
Chunk 3194
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 share. On October 2, 2024,
338 shares (6,759 shares prior to Second Reverse Stock Split and 675,946 shares prior to First Reverse Stock Split) have been issued to
Ananda Small Business Trust on conversion of the Unsecured promissory note.

20Unsecured Convertible Note (‘Atalaya Note’)

The following is a summary of the Company’s
Atalaya Note payable for which it elected fair value option as on March 31, 2025 and March 31, 2024:

    (In
    USD)
    As at 
    March 31,
 2025  
    March 31,
 2024 
  
    Non-current liability 

    Atalaya Note 
    $-  
    $10,067,601 
  
    Current liability 

    Atalaya Note 
    $6,002,269  
    $- 
  
    Total 
    $6,002,269  
    $- 

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 year ended March 31, 2025, partial liability
was settled by issue of 6,256 (125,120 prior to Second Reverse Stock Split and 12,512,080 prior to First Reverse Stock Split) shares to
the Atalaya Note holders for a settlement of $2,324,696.

The change in fair value resulted in gain of $1,740,636
that is recorded for the year ended March 31, 2025 ($NIL for the year ended March 31, 2024) in the Consolidated Statements of Operations
(as no portion of such fair value adjustment resulted from instrument-specific credit risk). Also, Refer Note 33.

During the year ended March 31, 2025, the Company
received notices from Atalaya regarding equity line transactions and incurring debt without the Purchaser’s consent. Atalaya filed a case
against the Company seeking relief from the above mentioned defaults. On March 28, 2025, the Supreme Court of the state of New York ordered
the Company to pay the outstanding principal amount along with interest accrued till date amounting to