Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 246

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 246
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 recognized under ‘Other Operating Revenue’ in the Condensed Consolidated
Statements of Operations.

The Company offers vehicle listing
incentive programs to hosts. The incentives are recorded in accordance with ASC 606- 10-32-25 and ASC 606-10-32-27 as a reduction to
revenue and in cases where the amount of incentive paid to the Host are above the facilitation fees earned from that Host on cumulative
basis, the excess of the revenue amount is recorded as a marketing expense in the Condensed Consolidated Statements of Operations. These
incentives are offered as part of overall marketing strategy of the Company and incentivize the hosts to refer the platform. No incentives
were paid during the three and nine months ended December 31, 2024.

12

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Loyalty program

The Company offers loyalty program,
Z-Points, wherein customers are eligible to earn loyalty points that are redeemable for payment towards facilitation fees. Under ASC
606, each transaction that generates loyalty points results in the deferral of revenue equivalent to the retail value at the date the
points are earned. The associated revenue is recognized when the customer redeems the loyalty points at some time in future. The retail
value of points is estimated based on the current retail value measured as of the date the loyalty points are earned, less an estimated
amount representing loyalty points that are not expected to be redeemed (“breakage”). Breakage is reviewed on an annual basis
and includes significant assumptions such as historical breakage trends, internal Company forecasts and extended redemption period, if
any. As at December 31, 2024 and March 31, 2024, the Company’s deferred revenue balance amounted to $29,369 and $96,710 respectively
and is included in Contract liabilities in the Condensed Consolidated Balance Sheets.

13

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Contract liabilities

Contract liabilities primarily consist
of obligations to customers for advance received against bookings, revenue-share payable to customers for vehicles listed by them on
Company’s portal for short-term rentals and related to Company’s points-based loyalty program. As per ASC 606-10-50-14 the
Company does not aggregate amount of transaction price allocated to remaining performance obligations as required under ASC 606-10-50-13,
since