v3.25.1
Financial Instruments - Fair Value Measurements
 9 Months Ended 12 Months Ended
Dec. 31, 2024
Mar. 31, 2024
Financial Instruments - Fair Value Measurements [Abstract]    
Financial Instruments - Fair Value Measurements
31Financial Instruments - Fair Value Measurements

 

ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability as against assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk.

 

The carrying value of financial instruments not carried at fair value by categories are as below:

 

   December 31,
2024		   March 31,
2024		 
As at   Carrying value   Carrying value 
Financial assets        
Cash and cash equivalents  $4,397,373   $1,496,144 
Accounts receivable   97,128    194,197 
Short term investments   
-
    298,495 
Receivable from government authorities   476,037    445,828 
Long term investments   25,295    91,947 
Other financial assets   966,027    770,941 
Total assets  $5,961,860   $3,297,552 
Financial liabilities          
Accounts payable  $20,791,914   $14,431,587 
Debt   2,973,192    5,049,483 
Other financial liabilities   1,315,048    1,232,930 
Total liabilities  $25,080,154   $20,714,000 

 

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis:

 

   December 31, 2024 
   Total
Carrying value		   Level 1   Level 2   Level 3 
Assets:                
Assets held for sale  $527,784   $
-
   $527,784   $
-
 
Liabilities:                    
Atalaya Note  $7,017,543   $
     -
   $
-
   $7,017,543 
Derivative financial instruments  $7,950,503   $
-
   $
-
   $7,950,503 
   March 31, 2024 
   Total
Carrying value		   Level 1   Level 2   Level 3 
Assets:                
Assets held for sale  $629,908   $
-
   $629,908   $
-
 
Liabilities:                    
Atalaya Note  $10,067,601   $
        -
   $
-
   $10,067,601 

 

Level 2: The fair value of Assets held for sale not traded in an active market is determined using the quoted prices in markets that are not active or inputs other than the quoted prices that are observable either directly or indirectly considering all the relevant factors of assets.

 

The Company’s recurring Level 3 financial instruments within the Company’s fair value hierarchy as of December 31, 2024 and March 31, 2024 consist of the Company’s Atalaya Note and derivative financial instruments.

 

Atalaya Note

 

The Company measures its notes at fair value based on significant inputs not observable in the market, which caused them to be classified as Level 3 measurements within the fair value hierarchy. Changes in the fair value of unsecured convertible note related to updated assumptions and estimates were recognized as change in fair value of Atalaya Note within the Condensed Consolidated Statements of Operations.

 

The Company used the following assumptions for the valuation of Atalaya Note as on December 31, 2024 in the model of Valuation of:

 

   Atalaya Note 
Remaining term (years)   0.25 
Rate of interest   8.00%
Penal rate of interest   8.00%
Cost of Debt*   14.60%

 

*Cost of debt for commensurate term is considered as discount rate for cash payment.

 

The assumptions for the valuation of Atalaya Note as on December 31, 2024 have been updated since the last valuation. Until March 31, 2024, the settlement of Atalaya Note could have been through either issue of shares or repayment of outstanding amount. During the nine months ended December 31, 2024, the stock price of the Company was reduced below $1.25 ($25 prior to Second Reverse Stock Split and $0.25 prior to First Reverse Stock Split) and in accordance with the agreement on the breach of this stock price threshold, the Atalaya Note is to be settled mandatorily in cash. The Company adopted discounted cash flow method to fair value the lability of Atalaya Note. The Company used the discount rate as per CCC+ bond i.e., 14.60% for discounting the future cash outflow.

 

Derivative financial instruments

 

The Company measures its derivative financial instruments at fair value based on significant inputs not observable in the market, which caused them to be classified as Level 3 measurements within the fair value hierarchy and used the Monte Carlo pricing model to calculate the fair value of the instruments. Changes in the fair value of derivative financial instruments related to updated assumptions and estimates were recognized as change in fair value of derivative financial instruments within the Condensed Consolidated Statements of Operations.

The changes in the fair value are summarized below:

 

   Preferred
stock
warrant
liability		   Notes   SSCPN   Unsecured
Convertible
Note
(‘Atalaya Note’)		   Derivative
financial
instruments		 
Balance as of April 1, 2023  $1,190,691   $10,944,727   $17,422,132   $
-
   $14,373,856 
Issue of SSCPN and warrants   
-
    
-
    8,655,330    
-
    
-
 
Change in fair value of convertible preferred stock warrant   (245,143)   
-
    
-
    
-
    
-
 
Change in fair value of SSCPN   
-
    
-
    10,519,247    
-
    
-
 
Change in fair value of Notes   
-
    420,022    
-
    
-
    
-
 
Change in fair value of derivative financial instrument   
-
    
-
    
-
    
-
    9,222,809 
Balance as of June 30, 2023  $945,548   $11,364,749   $36,596,709   $
-
   $23,596,665 
Issue of SSCPN and warrants   
-
    
-
    4,519,696    
-
    
-
 
Change in fair value of convertible preferred stock warrant   (175,102)   
-
    
-
    
-
    
-
 
Change in fair value of Notes   
-
    575,434    
-
    
-
    
-
 
Change in fair value of SSCPN   
-
    
-
    6,141,965    
-
    
-
 
Change in fair value of derivative financial instrument   
-
    
-
    
-
    
-
    813,566 
Balance as of September 30, 2023  $770,446   $11,940,183   $47,258,370   $
-
   $24,410,231 
Issue of unsecured convertible note at discount   
-
    
-
    
-
    8,434,605    
-
 
Issue of senior subordinated convertible promissory note and warrants   
-
    
-
    (20,110,058)   
-
    
-
 
Change in fair value of convertible preferred stock warrant   5,704,739    
-
    
-
    
-
    
-
 
Change in fair value of convertible promissory note   
-
    (7,986,326)   
-
    
-
    
-
 
Change in fair value of derivative financial instrument   
-
    
-
    
-
    
-
    (6,571,082)
Cost of issuance of Warrants   
-
    
-
    
-
    
-
    
-
 
Conversion to Common Stock   
-
    (3,953,857)   (27,148,312)   
-
    
-
 
Reclassification on conversion of preferred stock warrants and derivative financial instruments of Zoomcar, Inc. to common stock warrants of the Company   (6,475,185)   
-
    
-
    
-
    (17,839,149)
Fair valuation of Company warrants   
-
    
-
    
-
    
-
    
-
 
Discount on issue of unsecured convertible note   
-
    
-
    
-
    
-
    
-
 
Change in fair value of unsecured convertible note   
-
    
-
    
-
    1,732,589    
-
 
Balance as of December 31, 2023  $
-
   $
-
   $
-
   $10,167,194   $
-
 
                          
Balance as of April 1, 2024  $
-
   $
-
   $
-
   $10,067,601   $
-
 
Shares issued to Atalaya Note holders   
-
    
-
    
-
    (2,324,696)   
-
 
Change in fair value of unsecured convertible note   
-
    
-
    
-
    (1,360,238)   
-
 
Balance as of June 30, 2024  $
-
   $
-
   $
-
   $6,382,667   $
-
 
Shares issued to Atalaya Note holders                  
-
      
Change in fair value of unsecured convertible note                  390,218    
 
 
Balance as of September 30, 2024  $
-
   $
-
   $
-
   $6,772,885   $
-
 
Shares issued to Atalaya Note holders   
-
    
-
    
-
    
-
    
-
 
Change in fair value of unsecured convertible note   
-
    
-
    
-
    244,658    
-
 
Issue of derivative financial instruments   
-
    
-
    
-
    
-
    

13,422,022

 
Change in fair value of derivative financial instruments   
-
    
-
    
-
    
-
    (5,471,519)
Balance as of December 31, 2024  $-   $-   $-   $7,017,543   $

7,950,503

 

 

During the three months and nine months ended December 31, 2024 and December 31, 2023, there were no non-recurring fair value measure of assets or liabilities subsequent to initial recognition.
34Financial Instruments - Fair Value Measurements

 

ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability as against assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk.

 

The carrying value of financial instruments not carried at fair value by categories are as below:

 

  March 31, 2024   March 31, 2023 
As at  Carrying value   Carrying value 
Financial assets        
Cash and cash equivalents  $1,794,639   $3,686,741 
Accounts receivable   194,197    255,175 
Receivable from government authorities   445,828    4,211,143 
Long term investments   91,947    254,032 
Other financial assets   770,941    1,381,926 
Total assets   3,297,552    9,789,017 
Financial liabilities          
Accounts payable  $14,431,587   $6,547,978 
Debt   5,049,483    5,509,948 
Other financial liabilities   1,232,930    1,349,393 
Total liabilities   20,714,000    13,407,319 

 

The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis:

 

   March 31, 2024 
   Total Carrying value   Level 1   Level 2   Level 3 
Assets:                
Assets held for sale  $629,908   $         -   $629,908   $- 
Liabilities:                    
Atalaya Note   10,067,601    -    -    10,067,601 

 

   March 31, 2023 
   Total Carrying value   Level 1   Level 2   Level 3 
Assets:                
Assets held for sale  $923,176   $           -   $923,176   $- 
Liabilities:                    
Preferred stock warrant liability  $1,190,691   $-   $-   $1,190,691 
Notes   10,944,727    -    -    10,944,727 
SSCPN   17,422,132    -    -    17,422,132 
Derivative financial instrument   14,373,856    -    -    14,373,856 

Level 2: The fair value of Assets held for sale not traded in an active market is determined using the quoted prices in markets that are not active or inputs other than the quoted prices that are observable either directly or indirectly considering all the relevant factors of assets.

 

The Company’s recurring Level 3 financial instruments within the Company’s fair value hierarchy as of March 31, 2024 consist of Company’s Atalaya Note and as of March 31, 2023 consist of Company’s Notes, SSCPN, preferred stock warrant liability and derivative financial instrument.

 

The fair value of the warrant liability is estimated using a Monte Carlo simulation model as the series and number of shares issued upon exercise is contingent upon the outcome of multiple discrete scenarios. The fair value of the underlying shares used within the Monte Carlo simulation model was estimated using an option pricing model to estimate the allocation of value to the various classes of securities of the Company. The significant unobservable inputs into the valuation model include the expected warrant term, the fully-diluted stock value, and volatility. A significant increase/(decrease) in any of the unobservable inputs in isolation would result in a material increase/(decrease) in the Company’s estimate of fair value of the derivative financial instrument.

 

Warrant

 

The Company used the following assumptions for the valuation of warrant liability and derivative financial instrument in the model:

 

   December 28, 2023   March 31, 2023 
         
Remaining term (years)   5.0    5.2 
Volatility1   55%   53%
Risk-free rate2   3.80%   3.60%
Estimated exercise price  $3.0   $0.23-5 
Fair value per share  $3.7   $10.7 

 

1.Expected volatility is based upon the historical volatility of a peer group of publicly traded companies.

2.The risk-free rate for the expected term of the warrant is based on U.S. Treasury constant maturities yield at measurement date.

Atalaya Note

 

The Company measures its notes at fair value based on significant inputs not observable in the market, which caused them to be classified as Level 3 measurements within the fair value hierarchy. Changes in the fair value of unsecured convertible note related to updated assumptions and estimates were recognized as change in fair value of Atalaya Note within the Consolidated Statements of Operations and Comprehensive Loss.

 

The Company used the following assumptions for the valuation of Atalaya Note as on March 31, 2024 in the model of Valuation of:

 

    Atalaya
Note		  
Remaining term (years)     4.75  
Volatility1     80 %
Risk-free rate2     4.90 %
Conversion Price3 (after Second Reverse Stock Split and First Reverse Stock Split)   $ 20,000.00  
Fair Value per Share4 (after Second Reverse Stock Split and First Reverse Stock Split)   $ 1,200.00  
1.Expected volatility is based upon the historical volatility of a peer group of publicly traded companies.
2.The risk-free rate for the expected term of the warrant is based on U.S. Treasury constant maturities yield at measurement date.
3.Conversion Price prior to Second Reverse Stock Split and First Reverse Stock Split was $1,000 and $10 respectively.
4.Fair Value per share prior to Second Reverse Stock Split and First Reverse Stock Split was $600 and $0.6 respectively.

 

The changes in the fair value are summarized below:

 

   Preferred stock warrant liability   Notes   SSCPN   Unsecured Convertible Note (‘Atalaya Note’)   Derivative financial instrument (‘Warrants’)
(Refer
Note 18)		 
Balance as of April 01, 2022  $1,610,938   $-   $-   $-   $- 
Issue of Notes  $-   $10,000,000   $-    -   $- 
Issue of SSCPN and warrants   -    -    8,109,954    -    - 
Change in fair value of convertible preferred stock warrant   (420,247)   -    -    -    - 
Change in fair value of Notes   -    944,727    -    -    - 
Change in fair value of SSCPN   -    -    9,312,177    -    - 
Change in fair value of derivative financial instrument   -    -    -    -    14,373,856 
Balance as of March 31, 2023   1,190,691    10,944,727    17,422,132    -    14,373,856 
                          
Balance as of April 1, 2023   1,190,691    10,944,727    17,422,132    -    14,373,856 
Issue of unsecured convertible note at discount   -    -    -    8,434,605    - 
Issue of SSCPN and warrants   -    -    13,175,026    -    - 
Change in fair value of convertible preferred stock warrant   5,284,494    -    -    -    - 
Change in fair value of SSCPN             (3,448,845)          
Change in fair value of Notes   -    (6,990,870)   -    -    - 
Change in fair value of derivative financial instrument   -    -    -    -    3,465,293 
Conversion to Common Stock   -    (3,953,857)   (27,148,313)   -    - 
Reclassification on conversion of preferred stock warrants and derivative financial instruments of Zoomcar, Inc. to common stock warrants of the Company   (6,475,185)   -    -    -    (17,839,149)
Change in fair value of unsecured convertible note   -    -    -    1,632,996    - 
Balance as of March 31, 2024   -    -    -    10,067,601    - 

 

During the years ended March 31, 2024 and March 31, 2023, there were no non-recurring fair value measure of assets or liabilities subsequent to initial recognition.