Company: ZCARW
Filing Date: 2025-05-12
Form Type: S-1/A
Source: 0001213900-25-041769
Chunk: 286

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-12
Form: S-1/A
Chunk 286
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2023).

As of December 31, 2024, the Company
has defaulted on debt obligations, totaling $, owed to various lenders, including Kotak Mahindra Finance, Tata Motors Finance
Limited, Mahindra & Mahindra Financial Services Limited and Clix Finance India Private Limited. The Company has also recorded a penal
interest expense amounting to $ and $ for the three and nine months ended December 31, 2024 ($ and $ for the three
and nine months ended December 31, 2023). The Company is in negotiations or has entered into settlement agreements with these lenders
to restructure payment terms and resolve outstanding claims.

During
the nine months ended December 31, 2024, the Company entered into settlement agreements with Mercury Car Rentals Limited and Jain
and Sons Services Limited, resulting in waiver of partial liabilities. These transactions were accounted for as troubled debt
restructuring under ASC 470-60 (Refer to Note 5), and all outstanding amounts owed to these lenders were fully repaid by December
31, 2024.

F-30 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

| 16A | Redeemable Promissory Note |

On June 18, 2024, the Company entered
into a Securities Purchase Agreement with certain institutional accredited investors pursuant to which the Company issued and sold an
aggregate of $ in principal amount of notes and warrants to purchase up to an aggregate of shares ( shares prior
to Second Reverse Stock Split and shares prior to First Reverse Stock Split) of Company Common Stock for gross proceeds of
$. The closing occurred on June 20, 2024.

Pursuant to the funding received on
November 7, 2024, the Company has repaid the outstanding amount of the redeemable promissory notes (including interest accrued) and the
difference between the amount paid and the net carrying amount of the redeemable promissory notes (post amortization of discount on issue
and issuance cost until the date of payment) has been recognized as ‘Loss on extinguishment of the redeemable promissory note’ under other
income/(expense) in the Condensed Consolidated Statements of Operations.

Terms of Warrants issued along with Redeemable Promissory Note

The warrants are each exercisable for one share of Common
Stock at an exercise price of $ per share ($ per share prior to Second Reverse Stock Split