Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 232

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 232
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 incremental expense reduction measures or a combination thereof to continue financing its
operations. The Company has filed Registration Statement under Form S-1 on May 5, 2025 to raise up to $15 million. No amount has been
raised against the same. Currently the Company is working with banker to finalize the engagement letter to raise up to $ 5 million via
bridge financing and approximately $20 million by way of uplist raise before the end of the Fiscal year ended March 31, 2026. Further
the Company continues to raise money by way of promissory note, convertible promissory note, share and warrant issuance to manage the
working capital requirements. Additionally, the company entered into the financing arrangements below:

●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 Bridge notes 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 August 30, 2025 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.

●On August 19, 2025, the Company closed a Securities Purchase Agreement with Labrys Fund II, L.P. (“Labrys”)
in connection for purchase of a promissory note convertible on default. Labrys purchased a note for a principal amount $180,000 with an
original issue discount of $18,000 and net proceeds to the Company of $158,500 after adjusting issuance cost of $3,500. The note is repayable
in 12 months maturing on August 19, 2026 with interest accruing at 12% per annum on the outstanding principal. This note is subject to
a default interest at a rate of 22% per annum and include customary events of default and covenants.

6

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL