Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 53

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 and nine months ended December
31, 2024 which was recognized in the Condensed Consolidated Statements of Operations for their respective period (as no portion of such
fair value adjustment resulted from instrument-specific credit risk).

As per the terms of the agreement, the number of warrants
issued in the November 2024 and December 2024 offering are subject to anti-dilution adjustments wherein the exercise price of these Warrants
will be adjusted to equal the floor price, if the Company secures any funding in a variable rate transaction and the number of warrants
will also be adjusted such that aggregate exercise price of the warrants remains the same. Hence, the exercise price of warrants issued
in November 2024 offering will be adjusted to equal the floor price once the stockholder’s approval is received and the exercise price
of the warrants issued in December 2024 offering will also be adjusted to equal the price so adjusted for the warrants issued in the November
2024 offering.

The fair value of derivative financial instruments as on
December 31, 2024 and March 31, 2024 are as follows:

     December 31, 2024  March 31, 2024  As at  Balance Sheet Location  Fair Value   Balance Sheet Location  Fair Value   Derivatives not designated as hedging instruments under ASC 815-20                Series A and Series B Warrants   Derivative financial instruments  $7,950,503   Derivative financial instruments  $        -   Total     $7,950,503      $-  

The changes in fair value of the Series
A and Series B warrants are being recognized under ‘Change in fair value of derivative financial instruments’ within the Condensed
Consolidated Statements of Operations. Refer Note 31, Fair value measurements. The Company classifies cash flows related to derivative
liabilities as financing activities in the Condensed Consolidated Statement of Cash Flows. Further, the Company has reported the (gain)/loss
on fair value change of these derivative financial instruments under non cash adjustments to the cash flow from operating activities in
the Condensed Consolidated Statement of Cash Flows.

36

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (UNAUDITED)

    23
    Revenue

The components of revenue, net were as follows: 

    Three months ended  December