Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 337

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 337
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(I)The Company entered into a placement agent agreement with Aegis
Capital Corp. (‘Aegis’) dated November 5, 2024 wherein Aegis will act as the placement agent in connection with the November 2024 and
December 2024 offering. Along with a cash fee payable and warrants issuable to Aegis as a placement agent commission, Aegis is also entitled
to a fee of 5% of the gross proceeds from cash exercise of any Series A warrants issued in the November 2024 and December 2024 offering,
payable upon exercise.

The Company has not recognized a provision
for such fee payable in the books as the Company believes that the exercise of warrants is not probable as of December 31, 2024. The Company
will record the fee in the books in the period in which the warrants will be exercised.

72

Critical Accounting Policies and Estimates  

The Company prepared its
financial statements in accordance with GAAP. Our preparation of these financial statements requires us to make estimates, assumptions
and judgments that affect the reported amounts of assets, liabilities, and related disclosures at the date of the financial statements,
as well as revenue and expense recorded during the reporting periods. The Company evaluates our estimates and judgments on an ongoing
basis.

The Company bases its estimates
on historical experience and/or other relevant assumptions that the Company believes to be reasonable under the circumstances. Actual
results may differ materially from management’s estimates.

See Note 2, Summary of Significant
Accounting Policies, to our unaudited condensed consolidated financial statements for further information related to our critical accounting
policies and estimates, which are as follows:

Debt

The debt instruments
of the Company consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic
prepayments of scheduled instalments and the same has been accounted for under ASC 470-50.

Redeemable Promissory Notes

During the nine
months ended December 31, 2024, the Company has issued Redeemable Promissory Notes which are repayable at the principal value on maturity
date and has been accounted for under ASC 470-10. The Company issued these Redeemable Promissory notes on discount and incurred expenses
on issue of the Redeemable Promissory Notes. As per ASC 835, the discount and the expenses incurred on issue of the Redeemable Promissory
Notes have been amortized over the period of the