Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 263

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 263
---
On June 23, 2025, the Company entered
into Securities Purchase Agreements with certain institutional accredited investors pursuant to which the Company issued Bridge notes
for a total principal amount of $402,000 with an initial issue discount of $42,000. The net proceeds disbursed to the Company were $350,000
after deduction of legal and due diligence fees of $10,000. Additionally, $45,500 (i.e., 13% of net proceeds) is due to the placement
agent relating to the issuance of these bridge notes which is directly attributable to the loan raised, thereby bringing the total debt
issuance costs to $55,500.

On
July 31, 2025, the Company entered into Securities Purchase Agreements with certain institutional accredited investors pursuant to
which the Company issued Bridge notes for a total principal amount of $206,225 with an initial issue discount of $23,725. The net
proceeds disbursed to the Company were $175,000 after deduction of legal and due diligence fees of $7,500. Hence, the total debt
issuance costs amounts to $7,500.

The
discount and issuance cost on bridge notes has been amortized over the contractual period using the effective interest method. The unamortized
discount and issuance cost have been presented as net of the bridge notes or promissory note liability.

Terms
of Bridge notes

The
Bridge notes issued in June have a maturity date of March 30, 2026 and those issued in July have a maturity date of May 31, 2025, and
bear interest at an annual rate of 12%. The notes include scheduled monthly installment repayments and interest payments starting November
30, 2025 for notes issued in June and August 30, 2025 for notes issued in July and may be prepaid in part or full, by the Company at
a discount to the outstanding balance. The notes are subject to default interest rate of 22% per annum and include customary events of
default.

In
the event of an uncured default under either of the Bridge notes, the holder has the right to elect to convert the outstanding amount
(includes principal, accrued interest, default interest, and other fees as applicable) into the Company’s Common stock at a conversion
price equal to 75% of the lowest trading price of the Company’s Common stock during the fifteen or ten trading days (as specified
in the Note agreement) immediately prior