Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 268

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 268
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 payment towards facilitation fees. Under ASC 606, each transaction that generates loyalty points results in the deferral of revenue equivalent to the retail value at the date the points are earned. The associated revenue is recognized when the customer redeems the loyalty points at some time in future. The retail value of points is estimated based on the current retail value measured as of the date the loyalty points are earned, less an estimated amount representing loyalty points that are not expected to be redeemed (“breakage”). Breakage is reviewed on an annual basis and includes significant assumptions such as historical breakage trends, internal Company forecasts and extended redemption period, if any. As at December 31, 2024 and March 31, 2024, the Company’s deferred revenue balance amounted to $ 29,369and $ 96,710respectively and is included in Contract liabilities in the Condensed Consolidated Balance Sheets. F- 12 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

| (e) | 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.

| (f) | 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