Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 21

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 will
eventually vest. The fair value of stock-based awards, granted or modified, is determined on the grant date at fair value, using appropriate
valuation techniques.

For stock options or restricted
stock units with service-based vesting conditions only, the valuation model, typically the Black-Scholes option-pricing model, incorporates
various assumptions including expected stock price volatility, expected term, and risk-free rates. For stock options or restricted stock
units with graded vesting, the fair- value-based measure is estimated of the entire award by using a single weighted- average expected
term. The Company estimated the volatility of common stock on the date of the grant based on weighted-average historical stock price volatility
of comparable publicly traded companies in its industry group. The risk-free rate is based on the U.S. Treasury yield curve in effect
at the time of grant with a term equal to the expected term. The Company estimates the term based on the simplified method for employee
stock options considered to be “plain vanilla” options as the Company’s historical share option exercise experience
does not provide a reasonable basis upon which to estimate the expected term. The expected dividend yield is 0.0% as the Company has not
paid and does not anticipate paying dividend on its common stock.

The Company estimates a forfeiture
rate on an annual basis for the purpose of computation of stock- based compensation expense. The rate is used consistently across the
subsequent interim periods during the year.

In case of cancellation of stock-based awards
with no concurrent grant of a replacement award or other valuable consideration, any unrecognized compensation cost is recognized immediately
on the cancellation date.

xxi.Debt

The debt instruments of the Company
consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic prepayments of
scheduled instalments and the same has been accounted for under ASC 470-50.

June 2025 Bridge Notes

During the three months ended June
30, 2025, the Company has issued Bridge Notes which are repayable at the principal value along with an interest of 12% p.a. on the maturity
date and has been accounted for under ASC 470-10. The Company issued these Bridge Notes at discount and incurred expenses on the issue
of these Notes. As per ASC 835, the discount and the expenses incurred on issue of the Bridge Notes have been amortized over the contractual
period using the effective interest method. The
Bridge Notes liabilities have been presented net off