Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 249

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 249
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 815-40), the Company classifies a warrant as equity so long as it is “indexed to the Company’s
equity” and several specific conditions for equity classification are met. A warrant is not considered indexed to the Company’s
equity, in general, when it contains certain types of exercise contingencies or adjustments to exercise price. If a warrant is not indexed
to the Company’s equity or it has net cash settlement that results in the warrants to be accounted for under ASC 480, Distinguishing
Liabilities from Equity, or ASC 815-40, it is classified as a derivative liability which is carried on the Condensed Consolidated Balance
Sheets at fair value with any changes in its fair value recognized currently in the Condensed Consolidated Statement of Operations.

15

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(a)Warrants
                                            issued towards the November 2024 and December 2024 offering:

During the nine months ended December
31, 2024, the Company issued shares of Common Stock, pre-funded, Series A and Series B warrants in the November 2024 and December 2024
offering (Refer to Note 22) and as consideration to the placement agent for the issuance. The Common stock and pre-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,