Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 256

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 256
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 Disclosures” to expand the disclosure requirements for
income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods
beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard
will have on our Condensed Consolidated Financial Statements disclosures.

In March 2024, the FASB issued ASU
2024-02 Codification Improvements – Amendments to Remove References to the Concept Statements to provide amendments to the Codification
that remove references to various FASB Concepts Statements. ASU 2024-02 is effective for our annual periods beginning December 15, 2024,
with early adoption permitted. This update does not have any impact on the Company’s Condensed Consolidated Financial Statements.

There are other new accounting pronouncements
issued by the FASB that the Company has adopted or will adopt, as applicable, and the Company does not believe any of these accounting
pronouncements have had, or will have, a material impact on its Condensed Consolidated Financial Statements or disclosures.

21

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

3Reverse
Stock Split

The Company’s shareholders authorized, and the Board of
Directors approved for a 1-for-100 Reverse Stock Split, which became effective on October 21, 2024. Any fractional shares that would have
otherwise resulted from the Reverse Stock Split were rounded up to the nearest whole share.

Every 100 shares of issued and outstanding
Common Stock has been consolidated into one share, without affecting the par value. In addition, (i) a proportionate adjustment has been
made to the number of outstanding warrants, per share exercise price and the number of shares issuable upon the exercise of all outstanding
stock options and warrants to purchase shares of common stock as per the terms and conditions of the respective warrant agreements, and
(ii) the number of shares reserved for issuance pursuant to the Company’s equity incentive plans was also reduced proportionately.

    4
    Troubled Debt Restructuring

7.7% Debenture 

On September 25, 2024, the
Company entered into a settlement agreement with Blacksoil Capital Private Limited (lender). As per the agreement, the lender has
agreed to waive off 25% of the outstanding amount and the Company agreed