Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 252

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 252
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-10-50- 30(b), the estimated fair value adjustments were presented as a separate line item in the accompanying Condensed Consolidated
Statement of Operations, since the change in fair value of the Notes and SSCPN payable were not attributable to instrument specific credit
risk.

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 59,757 shares (5,975,686 shares prior to the Reverse Stock Split) of the Company’s Common Stock.

The SSCPN and Notes were adjusted
for their carrying value through Condensed Consolidated Statement 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.

18

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(l)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.

(m)Provisions