Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 26

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period
in which the change in judgment occurs. Interest related to unrecognized tax benefits in interest expense and penalties.

xxviii.Contingencies

The Company is subject to legal
proceedings and claims that arise in the ordinary course of business. The Company accrues for losses associated with legal claims when
such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances
change.

xxix.Segment information

Operating segments are defined
as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision
Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The Company’s CODM is its
Board of Directors. The Company has determined it has one operating and reportable segment as the CODM reviews financial information presented
on a consolidated basis for purposes of allocating resources and evaluating financial performance.

21

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

xxx.Common Stock Reverse Split

In October 2024 and March 2025, the
Company effectuated a one-for-hundred and a one-for-twenty reverse stock split, respectively. All share, stock option and warrant information
has been retroactively adjusted to reflect these stock splits.

xxxi.Recent Accounting Pronouncements

Accounting Pronouncement Pending
Adoption

In December 2023, the FASB
issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” to improve income tax disclosure
requirements by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) the
disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure
requirements. The guidance in ASU 2023-09 will be effective for annual reporting periods in fiscal years beginning after December
15, 2024. The Company is currently evaluating the impact that the adoption of ASU 2023-09 will have on its Condensed Consolidated
Financial Statements and disclosures.

In November 2024, the Financial
Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Disaggregation
of Income Statement Expenses, which requires public companies to disaggregate key