Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 464

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 464
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as required by ASC 825-10-45-5, was recognized as a component of other comprehensive income (“OCI”) with respect to the portion
of the fair value adjustment attributed to a change in the instrument-specific credit risk, with the remaining amount of the fair value
adjustment recognized under Finance costs shown as “Change in fair value of Notes” and “Change in fair value of SSCPN”
in the accompanying Consolidated Statements of Operations. With respect to the above Notes and SSCPN, as provided for by ASC 825-10-50-
30(b), the estimated fair value adjustments were presented as a separate line item in the accompanying Consolidated Statements of Operations,
since the change in fair value of the Notes and SSCPN payable were not attributable to instrument specific credit risk.

F-18

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies (Continued)

During the year ended March 31, 2024,
as a result of consummation of the Business Combination by way of Reverse Recapitalization, the Notes and SSCPN outstanding were converted
into 4,215 shares (84,286 prior to the Second Reverse Stock Split and 8,428,621 shares prior to the First Reverse Stock Split) of the
Company’s Common Stock.

The SSCPN and Notes were adjusted
for their carrying value through Consolidated Statements of Operations as on date of Reverse Recapitalization and credited at carrying
value to the capital accounts upon conversion to reflect the stock issued.

During the year ended March 31, 2024,
the Company issued an unsecured convertible note (“Atalaya Note) which had features similar to that of SSCPN and were accounted
accordingly as enumerated above.

xxiv.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