Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 45

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
 Tata Motors Finance
Limited, Mahindra & Mahindra Financial Services Limited, and Clix Finance India Private Limited. The Company has also recorded a penal
interest expense amounting to $25,051 and $112,635 for the three and nine months ended December 31, 2024 ($5,157 and $5,157 for the three
and nine months ended December 31, 2023). The Company is in negotiations or has entered into settlement agreements with these lenders
to restructure payment terms and resolve outstanding claims.

During
the nine months ended December 31, 2024, the Company entered into settlement agreements with Mercury Car Rentals Limited and Jain
and Sons Services Limited, resulting in waiver of partial liabilities. These transactions were accounted for as troubled debt
restructuring under ASC 470-60 (Refer to Note 5), and all outstanding amounts owed to these lenders were fully repaid by December
31, 2024.

30

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

16ARedeemable Promissory Note

On June 18, 2024, the Company entered
into a Securities Purchase Agreement with certain institutional accredited investors pursuant to which the Company issued and sold an
aggregate of $3,600,000 in principal amount of notes and warrants to purchase up to an aggregate of 1,267,728 shares (52,966,102 prior
to Reverse Stock Split) of Company Common Stock for gross proceeds of $3,000,000. The closing occurred on June 20, 2024.

Pursuant to the funding received on November 7, 2024, the
Company has repaid the outstanding amount of the redeemable promissory notes (including interest accrued) and the difference between the
amount paid and the net carrying amount of the redeemable promissory notes (post amortization of discount on issue and issuance cost until
the date of payment) has been recognized as ‘Loss on extinguishment of the redeemable promissory note’ under other income/(expense) in
the Condensed Consolidated Statements of Operations.

Terms of Warrants issued along with Redeemable Promissory
Note

The warrants are each exercisable for one share of Common
Stock at an exercise price of $2.832 per share ($0.1416 per share prior to Reverse Stock Split) and may be exercised at any time after