Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2428

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 8
Chunk 2428
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acy of settlement.

For March 31, 2024, the Company measures
its notes at fair value based on significant inputs not observable in the market, which caused them to be classified as Level 3 measurements
within the fair value hierarchy. Changes in the fair value of unsecured convertible note related to updated assumptions and estimates
were recognized as change in fair value of Atalaya Note within the Consolidated Statements of Operations and Comprehensive Loss.

The Company used the following assumptions
for the valuation of Atalaya Note as on March 31, 2024 in the model of Valuation of:

    Atalaya Note 

    Remaining term (years) 
     4.75 
  
    Volatility1 
     80%
  
    Risk-free rate2 
     4.90%
  
    Conversion Price3 (after Second Reverse Stock Split and First Reverse Stock Split) 
    $20,000.00 
  
    Fair Value per Share4 (after Second Reverse Stock Split and First Reverse Stock Split) 
    $1,200.00 

1.Expected volatility is based upon the historical volatility
of a peer group of publicly traded companies.

2.The risk-free rate for the expected term of the warrant is
based on U.S. Treasury constant maturities yield at measurement date.

3.Conversion Price prior to Second Reverse Stock Split and
First Reverse Stock Split was $1,000 and $10 respectively.

4.Fair Value per share prior to Second Reverse Stock Split
and First Reverse Stock Split was $600 and $0.6 respectively.

F-49

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

33Financial
Instruments - Fair Value Measurements (Continued)

The changes in the fair value are summarized
below:

    Preferred stock warrant liability  
    Notes  
    SSCPN  
    Unsecured Convertible Note (‘Atalaya Note’)  
    Derivative financial instruments 

    Balance as of April 1, 2023 
    $1,190,691  
    $10,944,727  
    $17,422,132  
    $-  
    $14,373,856 
  
    Issue of unsecured convertible note at discount 
     -  
     -  
     -  
     8,434,605  
     - 
  
    Issue of SSCPN and warrants 
     -