Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1886

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 6
Chunk 1886
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. The discount on issue and issuance cost amounts to $2,647,925 and $909,657
(including consideration incurred towards placement agents of $788,157) respectively. These discount and issuance cost on Redeemable Promissory
notes have been amortized over the contractual period on a straight-line basis. The Company assessed the fair value of the accelerated
redemption option embedded in the redeemable promissory notes and determined that the value of this embedded feature was not material.

During the year ended March 31, 2025, the Company has paid the liability
and the difference between the amount paid and the net carrying amount of the redeemable promissory notes (post amortization of discount
on issue and issuance cost until the date of payment) i.e. unamortised portion of discount on issuance has been amortized and charged
under finance costs in the Consolidated Statements of Operations as ‘Amortisation of discount and debt issuance cost on redeemable promissory
notes’.

Terms of Redeemable Promissory Note

The redeemable promissory
note is due nine months from the date of issuance, provided that the Company is required to use the proceeds at the Closing Date of one
or more subsequent equity, debt or other capital raises or any sale of tangible or intangible assets with net proceeds sufficient to
repay all or any portion of the amounts due under the redeemable promissory note (the “Maturity Date”). The redeemable promissory
note bears interest at a rate of 15% per annum computed on the basis of a 360-day year and twelve 30-day months and payable in arrears
on the Maturity Date.

The interest on the redeemable promissory note
(including amortization of discount on issue and issuance cost) was $1,995,967 for the year ended March 31, 2025 ($NIL for the year ended
March 31, 2024) which was recognized in the Condensed Consolidated Statements of Operations for their respective period.

Warrants issued along
with Redeemable Promissory Note

The warrants are each exercisable for
one share of Common Stock at an exercise price of $56.64 per share ($2.832 per share prior to Second Reverse Stock Split and $0.1416 per
share prior to First Reverse Stock Split) and may be exercised at any time after six months and upto 5 years the date of issue. Additionally,
in accordance