Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 247

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 247
---
 as per ASC 815-10, the outstanding Series A Series B warrants
for both November 2024 and December 2024 offering have been reclassified to equity at the reclassification date fair value.

19

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary
of Significant Accounting Policies (Continued)

Warrants
exercised before the reclassification have been reclassified at their respective exercise date fair value and warrants exercised after
the reclassification were adjusted with additional paid in capital.

(b)Warrants
                                            issued along with Redeemable Promissory Note:

During
the year ended March 31, 2025, 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 on the
initial recognition.

xxiii.Net profit/(loss) per share attributable to common stockholders

The
Company computes net profit/(loss) per share using the two-class method required for participating securities. The two-class method requires
income available to common stockholders for the period to be allocated between common stock and participating securities based upon their
respective rights to receive dividends as if all the income for the period had been distributed. The Company’s convertible preferred
stock is participating security. The holders of the convertible preferred stock would be entitled in preference to common shareholders,
at specified rate, if declared.

Then
any remaining earnings would be distributed to the holders of common stock and convertible preferred stock on a pro-rata basis assuming
conversion of all convertible preferred stock into common stock. This participating security do not contractually require the holders
of such shares to participate in the Company’s losses. As such, net losses for the periods presented were not allocated to the
Company’s participating securities.

The
Company’s basic profit/(loss) per share is computed using the weighted-average number of ordinary shares outstanding during the
period. The diluted profit/(loss) per share is computed by considering the impact of potential issuance of common stock on the weighted
average number of shares outstanding during the period, except where the results would be anti- dilutive.

xxiv.Provisions and accrued expenses

A
provision is recognized in the Condensed Consolidated Balance Sheets when the Company has a present legal or constructive obligation
as a result of a past event, and