Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 46

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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500
after deduction of legal and due diligence fees of $3,500. Hence, the total debt issuance costs amounts to $3,500.

Terms
of Convertible notes

The
convertible redeemable notes issued have a maturity date of August 24, 2026 and bear interest at an annual rate ranging from 6 - 8% as
specified in the agreement. The Company will pay each interest payment and the outstanding principal due upon this convertible redeemable
notes before or on the Maturity Date. These convertible redeemable notes may be prepaid in part or full, by the Company at a discount
to the outstanding balance. One of the convertible redeemable note are subject to default interest rate of 22% per annum and include
customary events of default and upon default, in the other convertible redeemable note, the then outstanding principal shall be increased
by 50%.

The
Holders of these convertible redeemable notes is entitled, at its option, at time specified in the agreements, to convert all or any
amount of the principal face amount of these convertible redeemable notes then outstanding into shares of the Company’s common
stock (the “Common Stock”) at a price (“Conversion Price”) equal to 72% or 72.5% (as specified in the agreement)
of the average of the three lowest trading prices of the Common Stock as reported on the OTC Markets on which the Company’s shares
are then traded or any exchange upon which the Common Stock may be traded in the future (the “Exchange”), for the seven or
fifteen prior trading days (as specified in the agreement) including the day upon which a Notice of Conversion is received by the Company.

Terms
of Promissory notes

The
Promissory notes have a maturity date of August 11, 2026 and bear interest at an annual rate of 12%. The notes include scheduled monthly
installment repayments as stipulated in the agreement and may be prepaid in part or full, by the Company at a discount to the outstanding
balance.

The
Holder shall have the right, on any Trading Day, at any time on or following the earlier of (i) the date that an Event of Default occurs
under this Note or (ii) the date that that is one hundred eighty (180) calendar days after the Issue Date, to convert all or any portion
of the then outstanding and unpaid Principal Amount and interest (including any Default Interest) into fully paid and nonassessable