Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 69

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 69
---
7,017,543  
    $     -  
    $-  
    $7,017,543 
  
    Derivative financial instruments 
    $7,950,503  
    $-  
    $-  
    $7,950,503 

    March 31, 2024 

    Total 
Carrying value  
    Level 1  
    Level 2  
    Level 3 
  
    Assets: 

    Assets held for sale 
    $629,908  
    $-  
    $629,908  
    $- 
  
    Liabilities: 

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

Level 2: The fair value of Assets held for sale not traded
in an active market is determined using the quoted prices in markets that are not active or inputs other than the quoted prices that are
observable either directly or indirectly considering all the relevant factors of assets.

The Company’s recurring Level 3 financial instruments
within the Company’s fair value hierarchy as of December 31, 2024 and March 31, 2024 consist of the Company’s Atalaya Note
and derivative financial instruments.

47

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (UNAUDITED)

31Financial Instruments - Fair Value Measurements
(Continued) 

Atalaya Note

The Company measures its notes at
fair value based on significant inputs not observable in the market, which caused them to be classified as Level 3 measurements
within the fair value hierarchy. Changes in the fair value of unsecured convertible note related to updated assumptions and
estimates were recognized as change in fair value of Atalaya Note within the Condensed Consolidated Statements of Operations.

The Company used the following assumptions for the valuation
of Atalaya Note as on December 31, 2024 in the model of Valuation of:

    Atalaya Note 
  
    Remaining term (years) 
     0.25 
  
    Rate of interest 
     8.00%
  
    Penal rate of interest 
     8.00%
  
    Cost of Debt* 
     14.60%

*Cost of debt for commensurate term is considered as discount
rate for cash