Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 78

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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. We expect that our technology and development expenses will increase
on an absolute dollar basis but vary from period to period as a percentage of net revenue for the foreseeable future as we continue to
invest in technology and development activities relating to ongoing improvements to and maintenance of our platform, including the potential
hiring of additional personnel to support these efforts.

Sales and Marketing

Sales and marketing expenses
primarily consist of online marketing expenses, marketing promotion expense, marketing partnerships with third parties, sales and marketing
personnel compensation expenses and certain incentives and referral bonuses paid to Hosts (reflecting the portion of incentive costs not
adjusted against net revenue). Sales and marketing expenses also include allocated overhead. We expect that our sales and marketing expenses
will increase on an absolute dollar basis but vary from period to period as a percentage of net revenue for the foreseeable future.

56

General and Administrative

General and administrative
expenses primarily consist of personnel-related expenses for executive management and administrative functions, including finance and
accounting, legal, and human resources. General and administrative expenses also include certain travel expenses, professional service
fees, including legal expenses, rent expenses, office expenses, repairs and maintenance of office equipment and furniture, directors’
and officers’ insurance and other expenses. We further expect to continue incurring general and administrative expenses of operating
as a public company, including expenses for insurance, costs to comply with the rules and regulations applicable to public companies,
costs related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, investor relations, and professional
services expenses. We expect general and administrative expenses will reduce on absolute dollar basis owing to our efforts to manage costs.

Finance Costs

Finance costs consist primarily
of interest on vehicle loans, finance leases, bridge loan , changes in fair value of Atalaya note, and redeemable promissory note. In
addition, it also includes Note issue expenses, bank charges, other borrowing costs.

Other (Income) and Expense, Net

Other expense and (income),
net consists primarily of interest income, change in fair value of Atalaya note, Loss on assets written off, Liquidated damages to Investors
and Gain on derecognition of subsidiary and other expenses.

Gain on troubled debt restructuring

Gain on troubled debt restructuring
consists of gains on account of restructuring of loans from lenders and dues from vendors.

Reversal of previously recognized gain on troubled
debt restructuring

Reversal of previously recognized
gain on troubled debt restructuring includes the reversal of gains on