Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 241

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 241
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 and economic uncertainties. The key factors that affect estimates are (1) future
revenue estimates; (2) customer preferences and decisions; and (3) product pricing. Any differences in actual results from the estimates
could result in fair values different from the estimated fair values, which could materially affect our future results of operations and
financial condition. The Company believes the projections of anticipated future cash flows and fair value assumptions are reasonable;
however, changes in assumptions underlying these estimates could affect its valuations.

xvi.Leases

The Company determines if an
arrangement is a lease at inception of the contract. The Company’s assessment is based on whether: (1) the contract involves
the use of a distinct identified asset, (2) the Company obtains the right to substantially all the economic benefit from the use of
the asset throughout the term of the contract, and (3) the Company has the right to direct the use of the asset. A lease is
classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the
end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the
lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals or
exceeds substantially all of the fair value of the asset.

14

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary of Significant Accounting Policies (Continued)

Operating leases are presented within
“Operating lease right-of-use assets,” “Current portion of operating lease liabilities” and “Operating lease
liabilities, less current portion” in the Company’s Condensed Consolidated Balance Sheets. The current portion of finance lease
liabilities are presented within “Finance lease liabilities” in the Company’s Condensed Consolidated Balance Sheets.

ROU assets represent the Company’s
right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments
arising from the lease arrangement. Lease liabilities are recognized at commencement date based on the present value of lease payments
over the lease term. Operating lease ROU assets are recognized at commencement date in an amount equal to lease liability, adjusted for
any lease prepayments, initial direct costs, and lease incentives. For leases in which the rate implicit in