Company: ZCARW
Filing Date: 2025-03-04
Form Type: S-1
Source: 0001213900-25-020176
Chunk: 272

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-04
Form: S-1
Chunk 272
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-funded warrants were classified as equity in accordance with ASC 815-40 since all the conditions required for equity classification are met. The Series A warrants and Series B warrants were classified as derivative financial instruments in accordance with ASC 815-10-15-83 since they contain an underlying, can only be net settled and required no initial net investment. Accordingly, the derivative instruments were measured at fair value and subsequently revalued at each reporting date.

| (b) | Warrants issued along with Redeemable Promissory 
 Note:                                            |

During the nine months ended December 31, 2024, the Company issued warrants along with Redeemable Promissory Note and as consideration to the placement agent for the issuance of the Redeemable Promissory Note.

These warrants were classified as equity in accordance with ASC 815-40 since all the conditions required for equity classification are met. During the nine months ended December 31, 2024, these were exercised and were converted into common stock.

| (c) | Warrants issued along with SSCPN and to placement 
 agent (‘Derivative financial instrument’):        |

During the year ended March 31, 2024, the Company issued warrants along with Senior Subordinated Convertible Promissory Note (“SSCPN)” and as consideration to the placement agent for the issuance of SSCPN.

These warrants were deemed derivative instruments in accordance with ASC 815-10-15-83 since they contained an underlying, had cash less payment provisions, that could have been net settled in shares and had a very minimal initial net investment. Accordingly, the derivatives were measured at fair value and subsequently revalued at each reporting date until the close of Reverse Recapitalization consummated during year ended March 31, 2024.

F-17 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| (d) | Warrants issued to preferred stockholders: |

Before the date of reverse recapitalization, the Company had warrants issued to preferred stockholders convertible into shares of preferred stock and common stock which were issued during the year ended March 31, 2022, and were classified as liabilities and equity respectively.

Each unit of issued by the Company consisted of one share of Series E preferred stock and a warrant which entitled the holder to purchase one share of common stock of the Company on the satisfaction of certain conditions. Warrants were also issued to the placement agent of the Series E and Series E1