Roadzen Inc. 10-Q

Item 1. Financial Statements (Unaudited): Roadzen Inc. Unaudited Condensed Consolidated Balance Sheets (in US $, except share count) As of June 30, As of March 31, Particulars 2025 2025 Assets Current assets: Cash and cash equivalents 3,124,856 4,836,576 Accounts receivable, net 2,574,592 2,625,385 Inventories 99,187 202,535 Prepayments and other current assets 21,167,240 19,092,595 Investments 124,689 197,805 Total current assets 27,090,564 26,954,896 Non current assets Restricted cash 218,714 217,064 Non marketable securities 269,470 269,470 Property and equipment, net 633,015 602,923 Goodwill 2,061,553 2,061,553 Operating lease right-of-use assets 1,048,594 1,109,219 Intangible assets, net 1,504,567 1,243,253 Other long-term assets 130,822 120,972 Total Non current assets 5,866,735 5,624,454 Total assets 32,957,299 32,579,350 Liabilities and shareholders’ Equity/(Deficit) Current liabilities Current portion of long-term borrowings 2,912,746 2,904,444 Short-term borrowings 20,591,106 19,865,645 Accounts payable and accrued expenses 32,822,637 30,254,010 Derivative warrant liabilities 1,535,869 1,489,818 Short-term operating lease liabilities 442,914 318,921 Other current liabilities 2,304,421 2,102,466 Total current liabilities 60,609,693 56,935,304 Non current liabilities Long-term borrowings 150,334 139,775 Long-term operating lease liabilities 443,500 628,400 Other long-term liabilities 547,523 566,651 Total Non current liabilities 1,141,357 1,334,826 Total liabilities 61,751,050 58,270,130 Commitments and contingencies (refer note 21) - - Shareholders’ Equity/(Deficit) Ordinary Shares and additional paid in capital, $ 0.0001 par value per share, 220,000,000 shares authorized as of June 30, 2025 and March 31, 2025; 74,290,986 shares outstanding as of June 30, 2025 and March 31, 2025 96,888,250 95,501,291 Accumulated deficit ( 227,832,212 ) ( 223,826,442 ) Accumulated other comprehensive income/(loss) ( 929,924 ) ( 468,859 ) Other components of equity 103,791,466 103,720,113 Total shareholders’ deficit ( 28,082,420 ) ( 25,073,897 ) Non-controlling interest ( 711,331 ) ( 616,883 ) Total deficit ( 28,793,751 ) ( 25,690,780 ) Total liabilities and Total Deficit 32,957,299 32,579,350 The accompanying notes are an integral part of these consolidated financial statements. 1 Roadzen Inc. Unaudited Condensed Consolidated Statements of Operations (in US $, except share count) For the three months ended June 30, Particulars 2025 2024 Revenue 10,865,545 8,931,517 Costs and expenses: Cost of services 4,469,453 5,427,440 Research and development 81,534 1,789,542 Sales and marketing 6,132,010 5,802,298 General and administrative 2,577,897 25,826,188 Depreciation and amortization 125,000 480,349 Total costs and expenses 13,385,894 39,325,817 Loss from operations ( 2,520,349 ) ( 30,394,300 ) Interest expense (net) ( 941,319 ) ( 821,686 ) Fair value gains/(losses) in financial instruments carried at fair value ( 511,538 ) ( 17,152,060 ) Other income (net) ( 47,922 ) 22,352 Total other income/(expense) ( 1,500,779 ) ( 17,951,394 ) (Loss)/Income before income tax expense ( 4,021,128 ) ( 48,345,694 ) Less: income tax (benefit)/expense 79,979 106,650 Net (loss)/income before non-controlling interest ( 4,101,107 ) ( 48,452,344 ) Net loss attributable to non-controlling interest, net of tax ( 95,337 ) ( 45,319 ) Net Loss attributable to Ordinary shareholders ( 4,005,770 ) ( 48,407,025 ) Net loss per share attributable to Ordinary shareholders Basic and Diluted ( 0.05 ) ( 0.71 ) Weighted-average number of shares used in computing net loss per share (Basic and Diluted) 74,290,986 68,440,829 The accompanying notes are an integral part of these consolidated financial statements. 2 Roadzen Inc. Unaudited Condensed Consolidated Statements of Cash Flow (in US $, except share count) For the Period ended June 30, Particulars 2025 2024 Cash flows from operating activities Net loss per share attributable to Ordinary shareholders ( 4,005,770 ) ( 48,407,025 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 125,000 480,349 Stock based compensation 71,358 26,230,989 Deferred income taxes ( 1,289 ) ( 37,185 ) Unrealized foreign exchange loss/(profit) ( 9,456 ) ( 3,398 ) Fair value losses in financial instruments carried at fair value 511,538 17,152,060 Expected credit loss (net of reversal) 198,749 ( 50,682 ) Net loss attributable to non-controlling interest, net of tax ( 95,337 ) ( 45,319 ) Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: Inventories 103,415 ( 6,803 ) Accounts receivables, net ( 147,930 ) 1,037,883 Prepayments and other assets ( 2,071,468 ) 1,046,454 Accounts payable and accrued expenses 2,323,205 ( 2,767,021 ) Other liabilities 76,478 ( 296,982 ) Net cash used in operating activities ( 2,921,507 ) ( 5,666,680 ) Cash flows from investing activities Purchase of property and equipment, intangible assets and goodwill ( 274,056 ) 32,745 Proceeds from sale of mutual fund 73,116 193,606 Proceeds from forward purchase agreement - 1,000,000 Net cash used in investing activities ( 200,940 ) 1,226,351 Cash flows from financing activities Proceeds from issue of ordinary shares 1,386,959 - Net proceeds/(payments) from borrowings 49,990 - Repayments of long-term borrowings - ( 121,365 ) Net proceeds/(payments) from short-term borrowings - 1,154,519 Net cash generated from financing activities 1,436,949 1,033,154 Effect of exchange rate changes on cash and cash equivalents ( 24,586 ) ( 3,519 ) Net (decrease)/increase in cash and cash equivalents (including restricted cash) ( 1,710,084 ) ( 3,410,694 ) Cash and cash equivalents at the beginning of the period (including restricted cash) 5,053,654 11,565,088 Cash and cash equivalents at the end of the period (including restricted cash) 3,343,570 8,154,394 Reconciliation of cash and cash equivalents Cash and cash equivalents 3,124,856 7,777,413 Restricted cash 218,714 376,981 Total cash and cash equivalents 3,343,570 8,154,394 Supplemental disclosure of cash flow information Cash paid for interest, net of amounts capitalized 1,001,397 391,829 Non-cash investing and financing activities Consideration payable in connection with acquisitions 8,376,253 488,000 Interest accrued on borrowings 2,089,465 790,395 The accompanying notes are an integral part of these consolidated financial statements. 3 Roadzen Inc. Unaudited Condensed Consolidated Statements of Comprehensive Loss (in US $, except share count) For the Period ended June 30, 2025 2024 Net (loss)/income ( 4,005,770 ) ( 48,407,025 ) Changes in foreign currency translation reserve ( 458,071 ) ( 288,265 ) Less: changes in foreign currency translation reserve attributable to non-controlling interest 2,994 ( 3,667 ) Other comprehensive income (loss) attributable to Ordinary shareholders ( 461,065 ) ( 284,598 ) Total comprehensive loss attributable to Ordinary shareholders ( 4,466,835 ) ( 48,691,623 ) The accompanying notes are an integral part of these consolidated financial statements. 4 Roadzen, Inc. Unaudited Condensed Consolidated Statement of Shareholders’ deficit (in US $, except share count) Shareholders’ Equity/(Deficit) Ordinary shares and additional paid in capital Accumulated Debenture Redemption Stock based Accumulated other comprehensive Total shareholders’ Particulars Shares Amount deficit Reserve compensation loss deficit Balance as of April 1, 2024 68,440,829 84,974,378 ( 151,008,419 ) 257,571 56,303,135 ( 600,501 ) ( 10,073,836 ) Movement attributable to stock based Compensation Reserve 26,230,989 Net profit attributable to ordinary shareholders - - ( 48,407,025 ) - - - ( 48,407,025 ) Other comprehensive income - - - - - ( 284,598 ) ( 284,598 ) Balance as of June 30, 2024 68,440,829 84,974,378 ( 199,415,444 ) 257,571 82,534,124 ( 885,099 ) ( 32,534,470 ) Balance as of April 1, 2025 74,290,986 95,501,291 ( 223,826,442 ) 205,162 103,514,951 ( 468,859 ) ( 25,073,897 ) Balance 74,290,986 95,501,291 ( 223,826,442 ) 205,162 103,514,951 ( 468,859 ) ( 25,073,897 ) Pending allotment of Ordinary share during the period through PIPE (No. of shares 1,109,567 ) 1,386,959 - - - - 1,386,959 Issuance of Ordinary shares during the period through conversion of loan - - - - - - - Net profit attributable to Ordinary shareholders - - ( 4,005,770 ) - - - ( 4,005,770 ) Other comprehensive income - - - - - ( 461,065 ) ( 461,065 ) Movement attributable to stock based Compensation Reserve - - - - 71,353 - 71,353 Impact of issuance/repayment of debenture - - - - - - - Issuance of ordinary shares - - - - - - - Balance as of June 30, 2025 74,290,986 96,888,250 ( 227,832,212 ) 205,162 103,586,304 ( 929,924 ) ( 28,082,420 ) Balance 74,290,986 96,888,250 ( 227,832,212 ) 205,162 103,586,304 ( 929,924 ) ( 28,082,420 ) The accompanying notes are an integral part of these consolidated financial statements. 5 Roadzen Inc. Notes to the condensed consolidated financial statements (Unaudited) (in US$, except per share count) 1. Reorganization and description of business Roadzen Inc., a British Virgin Islands business company (the “Parent Company”, formerly known as Vahanna Tech Edge Acquisition I Corp; and sometimes referred to in this filing as “Vahanna”) has subsidiaries located in India, the United States and the United Kingdom. The Company is a leading Insurtech platform and provides solutions in relation to insurance products, including distribution, pre-inspection assistance, telematics, claims submission and administration, and roadside assistance. The consolidated financial statements include the accounts of Roadzen Inc. and its subsidiaries (collectively, “Roadzen” or the “Company”). Merger agreement On September 20, 2023 (the “Closing Date”), Vahanna, Roadzen, Inc., a Delaware corporation (“Roadzen (DE)”), and Vahanna Merger Sub Corp., a Delaware corporation and a direct, wholly owned subsidiary of Vahanna (“Merger Sub”), consummated the Business Combination (as defined below) pursuant to the Agreement and Plan of Merger, dated February 10, 2023, by and among Vahanna, Roadzen (DE) and Merger Sub, as amended by the First Amendment to the Agreement and Plan of Merger, dated June 29, 2023 (as so amended, the “Merger Agreement”). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Roadzen (DE), with Roadzen (DE) surviving the merger as a wholly owned subsidiary of Vahanna (the “Merger,” and together with the other transactions contemplated by the Merger Agreement and the other agreements contemplated thereby, the “Business Combination”). In connection with the consummation of the Business Combination, Vahanna changed its name to “Roadzen Inc.”. Beginning on September 21, 2023, the Company’s Ordinary Shares and warrants trade on the Nasdaq Global Market and Nasdaq Capital Market under the ticker symbol “RDZN” and “RDZNW” respectively. 2. Summary of significant accounting policies a) Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for the periods presented. The accompanying unaudited condensed consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of the Parent Company and its subsidiaries. All intercompany balances and transactions have been eliminated. When the Company does not have a controlling interest in an investee but exerts significant influence over the investee, the Company applies the equity method of accounting. b) Liquidity and going concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has experienced operating losses in current and preceding periods. As of June 30, 2025 and 2024, the Company also has negative operating cash flows and negative working capital position. These events among others, raise substantial doubt over the Company’s ability to continue as a going concern for a reasonable period of time. The Company expects to have ongoing requirements for capital investment to implement its business plans to achieve revenue growth forecast, control operating costs, and meet cash flow requirements. The Company’s ability to continue as a going concern is dependent upon, among other things, the Company’s mitigation plan to (i) raise additional funds from existing or new credit facilities (ii) receive funds by raising additional share capital and/or (iii) re-structure existing liabilities. The Company has undertaken multiple initiatives to achieve these goals, including agreeing the terms to convert certain liabilities into equity and working to restructure and convert other current liabilities into equity or long-term notes. The Company has also filed a shelf registration statement on Form S-3 with the SEC, under which it sold equity through three separate transactions, raising gross proceeds of $ 2,875,000 in December 2024, $ 5,000,175 in January 2025, and two $ 2,250,000 transactions in July 2025, and is pursuing potential financing opportunities. The Company’s plans may change as a result of many factors currently unknown. 6 Based on the progress made to date – demonstrated by completed transactions, advanced negotiations, and investor commitments – management believes it has formulated and is executing a viable plan to obtain sufficient liquidity to meet obligations as they fall due over the next 12 months. As a result, management expects to alleviate the substantial doubt regarding the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary if the Company is unable to continue as a going concern. c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, which affect the reported amounts in the consolidated financial statements and accompanying notes. Estimates are based on historical experience, where applicable, and other assumptions which management believes are reasonable under the circumstances. On an ongoing basis, the Company evaluates its estimates and underlying assumptions, including those related to the allowance for accounts receivables, fair values of financial instruments, measurement of defined benefit obligations, impairment of non-financial assets, useful lives of property, plant and equipment and intangible assets, income taxes, certain deferred tax assets and tax liabilities, and other contingent liabilities. Although these estimates are inherently subject to judgment and actual results could differ from those estimates, management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. d) Contract assets and liabilities A contract asset (unbilled revenue) is the right to receive consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. Contract liabilities consist of amounts paid by the Company’s customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company’s revenue recognition criteria described above. Contract liabilities are classified as current in the consolidated balance sheet when the revenue recognition associated with the related customer payments and invoicing is expected to occur within one year of the balance sheet date and as long-term when the revenue recognition associated with the related customer payments and invoicing is expected to occur in more than one year from the balance sheet date. e) Cash and cash equivalents Cash and cash equivalents primarily represent cash balances in current bank accounts. The Company considers all short-term deposits with an original maturity of three months or less, when purchased, to be cash equivalents. f) Restricted cash and cash equivalents Restricted cash and cash equivalents are pledged as security for contractual arrangements. Restricted cash and cash equivalents are classified as current and noncurrent assets based on the term of the remaining restriction. The reconciliation of cash and cash equivalents and restricted cash and cash equivalents to the consolidated balance sheets amounts are as follows: Schedule of restricted cash and cash equivalents June 30, 2025 March 31, 2025 Cash and cash equivalents 3,124,856 4,836,576 Restricted cash and cash equivalents—current — — Restricted cash and cash equivalents—non-current 218,714 217,064 Total Restricted Cash includes USD 11,684 held as lien as per the regulatory laws in India and remaining balance represents fixed deposits held in banks as lien against letter of credit facility during the year. 7 g) Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, investment in equity securities and accounts receivable. The Company places its cash and cash equivalents and funds with banks that have high credit ratings, limits the amount of credit exposure with any one bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. The Company holds cash and cash equivalent concentrations in financial institutions around the world in excess of federally insured limits. The Company has not experienced any losses to date related to these concentrations. h) Accounts receivable, net Accounts receivable from contracts with customers are recorded at the invoiced amounts. The Company recognizes an allowance for credit losses in accordance with ASC 326 using the Current Expected Credit Loss (CECL) model. The allowance reflects management’s estimate of lifetime expected credit losses based on historical experience, current conditions, and reasonable and supportable forecasts. We apply the aging method and the simplified approach permitted under ASC 326 for trade receivables. Receivables are evaluated on a collective basis, and loss rates are determined based on the aging of balances. Historical loss rates are updated periodically. Based on our assessment, historical loss experience continues to provide the most reliable basis for estimating expected credit losses. Receivables are written off when they are deemed uncollectible, with the corresponding amount charged against the allowance for credit losses. Recoveries of amounts previously written off are recognized when received and recorded as a reduction to the provision for credit losses. The provision is presented within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive income (loss). Management reviews the allowance for credit losses regularly. Changes in estimates or assumptions, or updates to customer-specific facts and circumstances, may result in adjustments to the allowance in the period such changes occur. i) Property and equipment Property and equipment represents the costs of furniture and fixtures, office and computer equipment, and leasehold improvements. Property and equipment cost also includes any costs necessarily incurred to bring assets to the condition and location necessary for its intended use. Property and equipment are stated at cost, less accumulated depreciation and impairment losses. Depreciation is calculated using declining balance method over the assets’ estimated useful lives as follows: Schedule of depreciation over the assets estimated useful lives Office and Electrical Equipment [Member] Assets Useful lives Office and electrical equipment 3 - 5 years Computers 3 years Furniture and fixtures 10 years Leasehold improvements related to office facilities are depreciated over the shorter of the lease term or the estimated useful life of the improvement. The Company reviews the remaining estimated useful lives of its property and equipment on an ongoing basis. Management is required to use judgment in determining the estimated useful lives of such assets. Changes in circumstances such as technological advances, changes to the Company’s business model, changes in the Company’s business strategy, or changes in the planned use of property and equipment could result in the actual useful lives differing from the Company’s current estimates. In cases where the Company determines that the estimated useful life of property and equipment should be shortened or extended, the Company would apply the new estimated useful life prospectively. The Company reviews property and equipment for impairment when events or circumstances indicate the carrying amount may not be recoverable. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. j) Intangible assets, net The Company capitalizes costs incurred on its internal-use software during the application development stage as intangibles under development. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once the developed software is available for intended use, capitalization ceases, and the Company estimates the useful life of the asset and begins amortization. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years and up to 11 eleven. 8 The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. k) Leases The Company accounts for leases in accordance with Accounting Standards Codification (“ASC”) 842, “Leases” (“ASC 842”). The Company elected the “package of practical expedients,” which permits us not to reassess under ASC 842 our prior conclusions about lease identification, lease classification and initial direct costs. The Company made a policy election not to separate non-lease components from lease components, therefore, the Company accounts for lease and non-lease components as a single lease component. The Company also elected the short-term lease recognition exemption for all leases that qualify. The Company determines if a contract contains a lease at inception of the arrangement based on whether the Company has the right to obtain substantially all of the economic benefits from the use of an identified asset and whether it has the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which the Company does not own. Right of use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate (“IBR”), because the interest rate implicit in most of its leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what the Company’s credit rating would be to borrow and resulting interest it would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. Lease payments may be fixed or variable; however, only fixed payments or in-substance fixed payments are included in the Company’s lease liability calculation. Variable lease payments may include costs such as common area maintenance, utilities, real estate taxes or other costs. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. Operating leases are included in operating lease ROU assets, short-term operating lease liabilities, current and long-term operating lease liabilities, non-current on the Company’s consolidated balance sheets. Finance leases are included in property and equipment, net, accrued and other current liabilities, and other long-term liabilities on the Company’s consolidated balance sheets. For operating leases, lease expense is recognized on a straight-line basis in operations over the lease term. For finance leases, lease expense is recognized as depreciation and interest; depreciation on a straight-line basis over the lease term and interest using the effective interest method. l) Fair value measurements and financial instruments The Company holds financial instruments that are measured and disclosed at fair value. Fair value is determined in accordance with a fair value hierarchy that prioritizes the inputs and assumptions used, and the valuation techniques used to measure fair value. The three levels of the fair value hierarchy are described as follows: Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The Company establishes the fair value of its assets and liabilities using the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and established a fair value hierarchy based on the inputs used to measure fair value. The recorded amounts of certain financial instruments, including cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other liabilities approximate fair value due to their relatively short maturities. 9 m) Business combination The Company accounts for an acquisition as a business combination if the assets acquired and liabilities assumed in the transaction constitute a business in accordance with Accounting Standard Codification (“ASC”) Topic 805 “Business Combinations.” Such acquisitions are accounted using the acquisition method i.e., by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Where the set of assets acquired and liabilities assumed do not constitute a business, it is accounted for as an asset acquisition where the individual assets and liabilities are recorded at their respective relative fair values corresponding to the consideration transferred. n) Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business acquisitions accounted for using the acquisition method of accounting and is not amortized. Goodwill is measured and tested for impairment on an annual basis in accordance with ASC 350, Intangibles - Goodwill and Other, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Such events and changes may include: significant changes in performance related to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in our business strategy. The Company’s test for goodwill impairment starts with a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. If qualitative factors indicate that the fair value of the reporting unit is more likely than not less than its carrying amount, then a quantitative goodwill impairment test is performed. For the purposes of impairment testing, the Company determined that it has five reporting unit. o) Foreign currency The Company’s consolidated financial statements are reported in U.S. Dollars (“USD”), the Parent Company’s functional currency. The functional currency for the Company’s subsidiaries in India, is the Indian Rupee (“INR”), the functional currency of the Company’s subsidiary in the United Kingdom is the British Pound Sterling (“GBP”). The translation of the functional currency of the Company’s subsidiaries into USD is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using an average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments (“CTA”) under other comprehensive income/loss, or under accumulated other comprehensive income/loss as a separate component of equity. Monetary assets and liabilities of the Company and its subsidiaries that are denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of the Company and its subsidiaries that are denominated in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations. p) Employee benefit plans Contributions to defined contribution plans are charged to consolidated statements of operations in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability from defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, future compensation increases and attrition rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in its entirety immediately. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. q) Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method (FIFO) for all inventories. r) Income taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. 10 The Company accounts for uncertainty in tax positions recognized in the consolidated financial statements by recognizing a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and for all operating loss and tax credit carryforwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in the consolidated statement of income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the Company’s income tax provision would increase or decrease in the period in which the assessment is changed. s) Loss per share attributable to Ordinary shareholders Basic net loss per ordinary share is computed by dividing the net loss available to ordinary shareholders (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period. Diluted net loss per ordinary share is computed by dividing the net loss available to ordinary shareholders by the weighted average number of ordinary shares and potential ordinary shares outstanding when the impact is not antidilutive. Potential ordinary shares from stock options, unvested restricted stock units and ordinary share warrants are computed using the treasury stock method. Contingently issuable shares are included in basic net loss per share only when there is no circumstance under which those shares would not be issued. Shares issuable for little or no cash consideration shall be considered outstanding ordinary shares and included in the computations of basic and diluted net loss per share. t) Public and Private Warrants Each whole warrant entitles the holder to purchase one share of the Company’s Ordinary Share. The Private Warrants do not meet the derivative scope exception and are accounted for as derivative liabilities. Specifically, the Private Warrants contain provisions that cause the settlement amounts to be dependent upon the characteristics of the holder of the warrant which is not an input into the pricing of a fixed-for-fixed option on equity shares. Therefore, the Private Warrants are not considered indexed to the Company’s stock and should be classified as a liability. Since the Private Warrants meet the definition of a derivative, the Company records the Private Warrants as liabilities in the consolidated balance sheet at fair value upon, with subsequent changes in the fair value recognized in the consolidated statements of operations at each reporting date. The fair value of the Private Warrants are measured using the Black-Scholes option-pricing model. The Public Warrants are not accounted for as liabilities. The Public Warrants will not be adjusted for issuances of Ordinary Shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. See Notes 16 for further information regarding the fair value of the Public and Private Warrants. u) Investments Mutual Fund These investments are classified as available-for-sale securities and are measured at fair value based on quoted market prices in accordance with ASC 320 and ASC 820. 11 v) Non marketable securities Equity securities Equity investments with a readily determinable fair value, other than equity method investments, are measured at fair value with changes in fair value recognized in the consolidated statements of operations. Equity investments without a readily determinable fair value, are measured at cost, less any impairment. w) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recoveries of environmental remediation costs from third parties that are probable of realization are separately recorded as assets and are not offset against the related environmental liability. x) Revenue Revenues consist primarily of revenue from: - insurance policy distribution in the form of commissions, brokerage, underwriting and other fees; and - insurance support services comprised of pre-inspection and risk assessment, roadside assistance, extended warranty, and claim processing using the Company’s IaaS platform. The Company recognizes revenue at the time of transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenues cannot be recognized until the performance obligation(s) are satisfied and control is transferred to the customer. Income from distribution of insurance policies Insurance policy distribution and brokerage income: The Company enters into contracts with insurance companies for the purpose of distributing insurance products to end consumers. The Company’s performance obligation under these contracts is to sell insurance policies to earn commissions, brokerage and other fees. Revenue from distribution services is recognized at a point in time when the related services are rendered as per the terms of the agreement with customers. Revenue is disclosed net of the Goods and Service tax charged on such services. Distribution fee from underwriting and pricing: The Company enters into contracts with insurance companies for the purpose of underwriting insurance products for the automotive segment including its pricing on behalf of insurers. The risk of underwriting the insurance contract is covered by the insurer and thus the Company is considered as an agent for the purpose of recognizing revenue. The Company’s performance obligation under these contracts is to underwrite and price the policies. The Company generates underwriting fees termed as Managing General Agent fees (MGA fees) on provision of those services. The underwriting fees are determined as a percentage of net insurance premiums payable to the insurer (net of all commissions, royalties, and administration fees). Revenue from underwriting and pricing is recognized upfront based on the point in time i.e., at the time the policy is issued to the customer. IaaS platform enabled services: Roadside assistance and extended warranty income: The Company enters into contracts with insurance companies and other subscribers in order to provide roadside assistance services and extended warranty services to their policyholders/subscribers. The Company’s performance obligation under these contracts is to provide roadside assistance and extended warranty services as a stand ready obligation. The Company is the primary obligor in these transactions and has latitude in establishing prices and selecting and contracting with suppliers, and is accordingly considered as principal for the purpose of recognizing gross revenue. Revenue from roadside assistance and extended warranty services is recorded over the tenure of contract which is usually one year. 12 Inspection income: The Company enters into contracts with insurance companies to inspect vehicles for accident claims made by their policyholders. The Company’s performance obligation under these contracts is to inspect and assist in assessing claims for and on behalf of the customers, i.e. the insurance companies. The Company engages with multiple vendors to provide these services in different geographies. The Company is the primary obligor in the transaction and has latitude in establishing prices, and selecting and contracting with suppliers, and is accordingly considered as principal for the purpose of recognizing revenue. Revenue from inspection and risk assessment is recorded when the inspections are conducted. Administration fee from insurance support and service plan administration: The Company enters into contracts with insurance companies to provide insurance support services which includes premium collection, policy administration, claims handling and processing, customer service, updating customer files, etc., to provide better customer experience for the policyholders/subscribers. Revenue is recognized over time as the performance obligations are satisfied through effort expended to research, investigate, evaluate, document and process claims, and control of these services are transferred to customers/insurance companies. The Company’s obligation to manage and process the claims under insurance support services can range from one to seven years. The Company receives administration fees from its customers at inception of the contract prior to completion of transferring the services to the customer. The Company’s performance obligation under these contracts is to provide the above services as a stand ready obligation. The obligation to provide insurance services lies with the insurer and the Company has no interest other than receiving the commission/management fee retained. The Company provides the above services on behalf of the insurance companies and is accordingly considered as an agent for the purpose of recognizing revenue. The Company enters into contracts with Original Equipment Manufacturers (“OEMs”) primarily to administer the service plans/extended warranty schemes launched by OEMs. The Company’s performance obligation under these contracts is to administer these programs. The Company acts on behalf of the OEMs and is accordingly considered as an agent for the purpose of recognizing revenue, as the primary obligation to fulfill the service/extended warranty schemes belongs to the OEMs. The administration fees received from the provision of service plan administration is recorded ratably over the tenure of contract which usually ranges from one to seven years. y) Expenses Set forth below is a brief description of the components of the Company’s expenses: i. Cost of services The cost of services for the Company’s distribution business includes employee related expenses directly involved in generating and servicing revenue and other direct expenses related to facilities. For the Company’s IaaS platform-based services cost of revenue primarily consists of direct costs incurred for delivering the services to customers and the cost of onsite engineering support for roadside assistance, employee related expenses, risk assessment expenses and other direct expenses. Amounts incurred towards vendors/suppliers for inspections and roadside assistance also form part of direct cost. Cost of services also includes cost of telematics devices sold through different subscription or upfront sale model. Cost of services are recognized as they are incurred. ii. Sales, marketing and business development expense Sales expenses includes costs related to brokerage income which is derived from sale of insurance policies such as broker expenses, cost of sales, promotion expense, and travel and entertainment expenses. Broker expense is the compensation paid to our channel partners when an insurance policy is written through a broker relationship. This function also includes expenses incurred directly or indirectly for selling and marketing a product or service and costs spent on/by personnel employed under the sales or marketing departments and share based compensation expenses. These expenses also include marketing efforts made by the Company to expand its market reach for distributing insurance policies. The expenses include advertisements through different mediums to reach end customers of insurance policies to enhance awareness and educate end customers. 13 iii. General and administrative expenses General and administrative expenses include personnel costs for corporate, finance, legal and other support staff, including bonus and share-based compensation expenses, professional fees, allowance for doubtful accounts and other corporate expenses. iv. Research and development expense Research and development expense consists of personnel costs incurred by the technology development team, subscription costs and other costs associated with ongoing improvements to and maintenance of internally developed software, share based compensation expenses and allocation of certain corporate costs. z) Recently issued accounting pronouncements and not yet adopted The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, the Company will not be subject to the same implementation timeline for new or revised accounting standards as other public companies that are not emerging growth companies which may make comparison of the Company’s financial statements to those of other public companies more difficult. i. In June 2022, the FASB issued ASU 2022-03, ASC Subtopic 820 “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The FASB issued this update (1) to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. ASU 2022-03 is effective for the Company for annual periods beginning after December 15, 2024, and interim periods within those fiscal years, with early adoption permitted. The Company is still evaluating the impact of this pronouncement on the consolidated financial statements. ii. In December 2023, the FASB issued Accounting Standards Update 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”), which provides for additional disclosures primarily related to the income tax rate reconciliations and income taxes paid. ASU 2023-09 requires entities to annually disclose the income tax rate reconciliation using both amounts and percentages, considering several categories of reconciling items, including state and local income taxes, foreign tax effects, tax credits and nontaxable or nondeductible items, among others. Disclosure of the reconciling items is subject to a quantitative threshold and disaggregation by nature and jurisdiction. ASU 2023-09 also requires entities to disclose net income taxes paid or received to federal, state and foreign jurisdictions, as well as by individual jurisdiction, subject to a five percent quantitative threshold. ASU 2023 -09 may be adopted on a prospective or retrospective basis and is effective for fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the guidance and expects it to only impact disclosures with no impact to results of operations, cash flows, or financial condition. iii. In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income – Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses,” which requires disclosure of disaggregated information about specific categories underlying certain income statement expense line items in the footnotes to the financial statements for both annual and interim periods. ASU 2024-03 is effective for the Company for annual periods beginning after December 15, 2026, and interim reporting periods within annual periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact of this pronouncement on the consolidated financial statements. aa) Recent Accounting Pronouncements - Accounting Standards Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. It requires a public entity to disclose the title and position of the Chief Operating Decision Maker. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. The Company adopted the new standard effective March 31, 2025, which impacted disclosures only, with no impact to results of operations, cash flows, or financial condition. 14 3. Cash, cash equivalents and restricted cash Schedule of cash, cash equivalents and restricted cash As of June 30, 2025 As of March 31, 2025 Balances with banks In current accounts 3,120,874 4,829,632 Balances with banks In current accounts 3,120,874 4,829,632 Cash in hand 3,982 6,944 Cash and cash equivalents 3,124,856 4,836,576 Restricted cash and cash equivalents (non - current) 218,714 217,064 4. Accounts receivables, net Schedule of accounts receivables net As of June 30, 2025 As of March 31, 2025 Accounts receivable 3,364,641 3,216,711 Less: allowance for credit losses ( 790,049 ) ( 591,326 ) Accounts receivable, net 2,574,592 2,625,385 The following table provides details of the Company’s allowance for credit accounts: Schedule of account receivables, allowance for credit accounts Balance, beginning of period 591,326 345,211 Additions charged 198,749 259,293 Existing allowance in acquired entities - - Effect of exchange rate changes ( 26 ) ( 13,178 ) Balance, end of period 790,049 591,326 5. Prepayments and other current assets Schedule of prepayments and other current assets As of June 30, 2025 As of March 31, 2025 Balance with statutory authorities 1,924,705 1,496,055 Unbilled revenue 7,817,159 6,201,942 Advances given (net of doubtful advances of $ 2,021,825 as of June 30, 2025 and $ 2,238,531 as of March 31, 2025). 1,764,928 1,555,929 Other receivables (net of doubtful receivables of $ 2,800,000 as of June 30, 2025 and March 31, 2025) - - Prepayments 855,904 1,100,063 Forward purchase agreement 8,628,301 8,628,301 Deposits 173,066 110,305 Interest Accrued 3,177 - Prepayments and other current assets 21,167,240 19,092,595 i) Advances given include: a) $ 1,271,885 and $ 1,135,108 of advances to suppliers as of June 30, 2025 and March 31, 2025, respectively. b) $ 160,131 and $ 128,654 of advances to employees as of June 30, 2025 and March 31, 2025, respectively. Advances to employees include related party balances of $ 71,414 and $ 71,382 as of June 30, 2025 and March 31, 2025, respectively. c) $ 1,990,648 in advances were extended to Peoplebay Consultancy Services Private Limited, FA Events & Media Private Limited, and FA Premium Insurance Private Limited. However, due to a loss of control over these entities during the previous year, the Company is doubtful on the recovery of these advances and has consequently created a provision. 15 ii) Other receivables includes amount of $ 2,800,000 to be received from a subscriber on account of issuance of preferred stock of Roadzen (DE) during the financial year 2023-24 which was converted to ordinary shares upon business combination. However, upon non receipt of the same a 100% provision of $ 2,800,000 was created against it. iii) Forward purchase agreement On August 25, 2023, the company entered into an agreement with (i) Meteora Capital Partners, LP (“MCP”), (ii) Meteora Select Trading Opportunities Master, LP (“MSTO”), and (iii) Meteora Strategic Capital, LLC (“MSC” and, collectively with MCP and MSTO, “Seller”) (the “Forward Purchase Agreement” or “FPA”) for OTC Equity Prepaid Forward Transactions. The FPA represents the recognition of the cash payments to the Seller of $ 41.2 million (including prepayment of $ 41.15 million and the reimbursable transaction cost of $ 0.05 million) and the FPA with regard to 3,138,628 shares (recycled shares) and 702,255 shares (FPA subscription shares).The fair value of the FPA receivable is comprised of the Prepayment Amount (as defined in the FPA, $ 41.2 million) and is reduced by the economics of the downside provided to the Sellers ($ 32.6 million) and the estimated consideration payment at the Cash Settlement Payment Date ($ 8.6 million). During year ended March 31, 2025, an additional $ 1 million was received from the Seller, bringing the total cash receipts to $ 4.8 million. A contractual dispute arose between the Company and the Seller, regarding alleged breaches of the terms of the FPA. In April 2025, the Company initiated legal proceedings against the Seller, citing that despite negotiated safeguards, Meteora sold shares without honoring its payment obligations or providing the required notices under the FPA. The Seller subsequently filed a counterclaim, alleging breach of contract by the Company on the grounds of non-registration of FPA Subscription shares. The dispute includes disagreement over the number of outstanding shares with the Seller as reported by the Company versus those disclosed in the Seller’s filing of Schedule 13G/A with the Securities Exchange Commission, and the termination date of the FPA. Due to the ongoing uncertainty regarding the resolution of these matters and unavailability of any reliable accounting estimate as of the reporting date, the Company has continued to value its FPA receivable on the latest available Fair Valuation report obtained before the above-mentioned contractual dispute i.e. as of December 31, 2024. The FPA remains classified as a financial instrument, and its fair value will be reassessed in future periods once the dispute is resolved and adequate valuation inputs are accessible. Assumptions used in calculating estimated fair value of Forward Purchase Agreement as of December 31, 2024 is as follows: Schedule of assumptions used in calculating estimated fair value Volatility 61.24 % Risk-free rate 4.58 % Dividend yield 0.00 % Strike price 10.77 Remaining term (years) 0.25 year 6. Non-marketable securities a) Moonshot - Internet SAS (“Moonshot”) Roadzen (DE) invested $ 2,410,000 representing 6.68 % equity stake in Moonshot - Internet SAS, a simplified Joint Stock Company existing under the laws of France, which is a subsidiary of Societe Generale. Moonshot is an InsurTech company, registered as an insurance broker, which specializes in usage-based insurance products and services dedicated to E-Commerce. Roadzen (DE) has a representative on the board of directors of Moonshot, however the investment of 6.68 % does not give Roadzen (DE) the ability to significantly influence the operating and financial policies of Moonshot, since majority ownership of Moonshot is concentrated with a single shareholder. Therefore, Roadzen (DE) uses the measurement alternative for equity investments without readily determinable fair values for its investment in Moonshot. The Company carries this investment at cost, less impairment. b) Daokang (Beijing) Data Science Company Ltd. (“Daokang”) Roadzen (DE) entered into a joint venture contract with WI Harper VIII LLP and Shangrao Langtai Daokang Information Technology Co. Ltd. and invested an amount of $ 2,500,030 (representing a 34.5 % of equity interest) of Daokang. Despite its significant equity interest in Daokang, Roadzen (DE) has attempted but has not been able to obtain adequate financial information as per USGAAP to apply equity method. Predecessor Roadzen, therefore, was unable to exercise significant influence over the operating and financial policies of Daokang. Accordingly, Roadzen (DE) used the measurement alternative for equity investments without readily determinable fair values for its investment in Daokang. The Company carries this investment at cost, less impairment. 16 The Company evaluates its non-marketable equity securities for impairment in each reporting period based on a qualitative assessment that considers various potential impairment indicators. This evaluation consists of several factors including, but not limited to, an assessment of significant adverse change in the economic environment, significant adverse changes in the general market condition of the geographies and industries in which our investees operate, and other available financial information as per the local reporting requirements applicable to the relevant jurisdictions that affects the value of our non-marketable equity securities. Based on such assessment, the Company has recorded an impairment of NIL for Moonshot - Internet SAS and NIL (PY. $ 1,245,326 ) for Daokang (Beijing) Data Science Company Ltd. till June 30, 2025. 7. Property and equipment, net The components of property and equipment, net were as follows: Schedule of property plant and equipment, net As of June 30, 2025 As of March 31, 2025 Computers 485,976 477,765 Office equipment 222,478 222,467 Motor Vehicle and other equipment 282,817 233,560 Furniture & fixtures 281,303 267,767 Electrical equipment 30,814 30,811 Leasehold improvements 31,201 31,192 Total 1,334,589 1,263,562 Less: Accumulated depreciation ( 701,574 ) ( 660,639 ) Property and equipment, net 633,015 602,923 For the quarter ended June 30, 2025, the Company capitalized property and equipment amounting to $ 69,842 (net of capitalization of $ 424,910 , transfers of $ 61,209 , and cumulative translation adjustment (CTA) impact of $( 1,218 )). For the year ended March 31, 2025, the disposals amounted to $ 44,547 (capitalization of $ 424,910 , transfers of $ 61,209 , and cumulative translation adjustment (CTA) impact of $( 1,218 )). The Company capitalized assets totaling $ 7,026 for the period ended June 30, 2025, and disposed of assets totaling $ 182,739 (net of additions of $ 37,321 ) during the year ended March 31, 2025, primarily related to computers. Depreciation expense on property and equipment amounted to $ 31,789 and $ 142,027 for the periods ended June 30, 2025 and March 31, 2025, respectively, of which $ 6,038 and $ 62,130 is related to computers. 8. Intangible assets, net Schedule of finite-lived intangible assets As of June 30, 2025 As of March 31, 2025 Software for internal use 8,298,065 8,281,900 Customer contracts 1,235,393 1,163,052 Intangible assets under development 942,128 712,964 Intellectual property 155,540 150,662 Trademark 53 53 Total 10,631,179 10,308,631 Less: accumulated depreciation and amortization ( 9,082,970 ) ( 9,021,736 ) Less: impairment loss ( 43,642 ) ( 43,642 ) Intangible assets, net 1,504,567 1,243,253 17 For the year ended March 31, 2025, the Company derecognized intangible assets totaling $ 1,167,264 . This includes the write-off of customer contracts with Global Insurance Management amounting to $ 1,157,920 and related accumulated amortization of $ 389,714 , due to termination of the contract and the absence of any future economic benefits. Additionally, software assets with a gross value of $ 292,120 and associated accumulated amortization of $ 210,975 were written off. Capitalized intangible assets under development amounting to $ 275,584 were also derecognized during the period. The Company conducted a qualitative assessment of its intangible assets and concluded that it is more likely than not that the carrying amount of the acquired entities does not exceed their fair value. As such, no impairment was recorded. The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: Schedule of estimated amortization of company’s intangible assets for future periods For Year Ended June 30, 2025: Amount 2026 251,180 2027 and thereafter 311,283 9. Other long-term assets Schedule of other long term assets As of June 30, 2025 As of March 31, 2025 Deposits 12,604 12,657 Advances 118,218 103,312 Interest accrued - 5,003 Other long-term assets 130,822 120,972 10. Accounts payable and accrued expenses Schedule of accounts payable and accrued expenses As of June 30, 2025 As of March 31, 2025 Accounts payable 17,289,616 17,484,895 Accrued expenses 11,376,292 8,599,752 Amounts due to employees 862,387 780,695 Due to insurer 3,294,342 3,388,668 Accounts payable and accrued expenses 32,822,637 30,254,010 1) Accounts Payable includes related to the cost of services and operating expenses amounting to $ 1,374,302 and $ 10,814,972 as of June 30, 2025, and $ 1,084,594 and $ 16,400,301 as of March 31, 2025, respectively. It also includes payables assumed by Roadzen (DE) in connection with the Business Combination, totaling $ 8,376,253 as of June 30, 2025 and March 31, 2025. 2) Accrued Expenses comprise related to the cost of services and operating expenses totaling $ 2,411,108 and $ 11,329,343 as of June 30, 2025, and $ 1,478,125 and $ 7,121,627 as of March 31, 2025, respectively. Accrued expenses include the amount of $ 2.1 million on account of interest due but not paid. Accrued expenses also include related party balances of $ 350,000 and $ 100,000 as of June 30, 2025 and as of March 31, 2025 respectively. 3) Amounts Due to Employees, comprising salary and reimbursement payables, include related party balances of $ 74,946 and $ 74,062 as of June 30, 2025 and March 31, 2025, respectively. 4) Sum due to insurer represents the net amounts of premium due to insurer based on the respective contract with each insurer. The net amount due is equal to the gross written premium less the Company’s commission for policies that have reached their effective date. Sum due to insurer is $ 3,294,342 as of June 30, 2025, which represents funds from the insurer to meet working capital requirements/contingencies arising out of claim settlement. 18 11. Other current liabilities Other current liabilities consist of the following: Schedule of other current liabilities As of June 30, 2025 As of March 31, 2025 Statutory liabilities 700,869 535,493 Deferred revenue 883,896 893,822 Advances from customers 140,377 86,653 Provision for income tax - - Retirement benefits 25,476 25,464 Convertible Promissory Note - - Other payables 553,803 561,034 Other current liabilities 2,304,421 2,102,466 Other Payables include consideration of $ 488,000 payable on acquisition of National Automobile Club as of June 30, 2025 and as of March 31, 2025. 12. Derivative warrant liabilities Fair valuation of warrants issued to lenders as a part of a senior secured note agreement entered into between Roadzen (DE) and Mizuho Securities USA LLC (“Mizuho”) on June 30, 2023 (“Issuance Date”) as administrative agent amounting to $ 1,489,818 . Each warrant grants the holder the right to purchase one Ordinary Share of the Company at an exercise price of $ 0.001 with a cashless settlement option where the difference between the exercise price and the market price would be paid to the warrant holder in the form of Ordinary Shares. Since the Company has Warrants traded under the symbol RDZNW, market price method was used to compute the fair market value on the reporting date. The warrants issued are recognized as derivative liabilities and were initially measured using the Black-Scholes model and are subsequently remeasured at each reporting period with changes recorded in consolidated statements of operation. On May 14, 2024, as required by the terms of this senior secured notes agreement, the Company issued to Mizuho a warrant to purchase 1,432,517 Ordinary Shares at an exercise price of $ 0.001 per share. The assumptions used in calculating estimated fair value of the warrant due as of June 30, 2025 is as follows: Schedule of assumptions used in calculating estimated fair value Closing price $ 0.98 Risk Free rate 4.23 % Dividend Yield 0 % Volatility 193.41 % Expected Life of the option 2 years Pursuant to the terms of a Securities Purchase Agreement entered into among the Company, Supurna VedBrat and Krishnan-Shah Family Partners, LP on March 28, 2024 (the “March 2024 SPA”), on April 22, 2024, the Company issued warrants to purchase 50,000 Ordinary Shares to Krishnan-Shah Family Partners, LP, on June 20, 2024, the Company issued warrants to purchase 50,000 Ordinary Shares to Ms. VedBrat, and the Company expects to issue warrants to purchase an additional 50,000 Ordinary Shares to Ms. VedBrat in the near future (such warrants collectively the “March 2024 SPA Warrants”). Each March 2024 SPA Warrant will be exercisable at any time during the period commencing on March 28, 2025 (or earlier under certain circumstances described in the March 2024 SPA Warrants) (as applicable, the “Vesting Date”) through March 28, 2031 (or until the dissolution, liquidation or winding up of the Company, if earlier). The exercise price of the March 2024 SPA Warrants is equal to 80 % of the lower of (i) the volume weighted average price (the “VWAP”) of the Ordinary Shares, as reported on the relevant market or exchange, over the 60 trading days subsequent to the first loan funding pursuant to the March 2024 SPA, (ii) the opening price of any public offering of straight equity securities of the Company occurring within six months after the issue date of the March 2024 SPA Warrants and (iii) the VWAP of the Ordinary Shares over the 60 trading days immediately prior to the Vesting Date. Ms. VedBrat is a director of the Company. Ajay Shah, another director of the Company, and his wife, are trustees of the general partner of the Krishnan-Shah Family Partners, LP. The fair value of the warrants issued to Supurna VedBrat and Krishnan-Shah Family Partners, LP amounts to $ 132,000 . The assumptions used in calculating estimated fair value of warrants due as of June 30, 2025 is as follows: Schedule of assumptions used in calculating estimated fair value Closing price $ 0.98 Risk Free rate 4.23 % Volatility 193.41 % Expected Life of the option 3 years 13. Borrowings Schedule of long term borrowings A. Long-term borrowings consist of the following: As of June 30, 2025 As of March 31, 2025 Loans from banks (note a) 197,394 167,177 Secured debentures (note b) 1,719,349 1,718,596 Convertible debenture (note c) 1,146,337 1,158,446 Less: current portion of long-term borrowings ( 2,912,746 ) ( 2,904,444 ) Long term borrowings 150,334 139,775 19 Schedule of loans from banks a) Loan from banks: Particulars Maturity date Amount outstanding Long-term borrowings from banks 1-May-29 21,978 Long-term borrowings from banks 1-Oct-29 14,272 Long-term borrowings from banks 5-Jan-30 16,267 Long-term borrowings from banks 5-Jan-30 16,267 Long-term borrowings from banks 5-May-30 36,976 Long-term borrowings from banks 10-Aug-30 91,634 197,394 The above loans are vehicle loans and secured by way of hypothecation against the vehicle for which each loan is granted. Schedule of secured debentures b) Secured debentures: Particulars Maturity date (as amended) Amount outstanding N1 Series Debentures 31-Mar-25 448,817 N2 Series Debenture 31-Mar-25 254,175 N3 Series Debentures 31-Mar-25 318,012 N4 Series Debentures 31-Mar-25 698,344 1,719,349 The debentures are secured by a subordinated lien on intellectual property, current assets and movable property and equipment of certain material foreign subsidiaries. During the quarter ended September 30, 2024, the company has entered into a modification arrangement with the debenture holders, resulting in amendment to the repayment terms for the following series of debentures: Schedule of changes in repayment terms Particulars Original terms (Months) Modified Terms (Months) N1 Series Debentures 24 34 N2 Series Debenture 24 32 N3 Series Debentures 18 28 N4 Series Debentures 13 27 The Company has not honored the repayment of the above debentures as on the amended date but has obtained an extension from the lender up to November 30, 2025. However, there is no new agreement in place for the same. The debenture holder may impose additional penalty amounting to $ 0.67 million as per the terms of original and amended agreement, unless explicitly waived upon final settlement. c) Convertible debenture During the period ended June 30, 2025, the Company has outstanding $ 1.10 million (net of fair valuation) unsecured convertible debentures to different parties which have maturity date of December 15, 2025 . The instruments carry an interest rate of 13 % per annum, unless otherwise specified, as below. Redemption/Conversion On Maturity If any amount of principal or interest under the notes remain outstanding on the maturity date, the Company shall repay the principal together with payment of accrued interest. 20 Optional Conversion The unpaid principal amount of this debenture (together with all accrued but unpaid interest thereon) shall be convertible, in whole or in part, at the option of the Holder at any time prior to the payment in full of the principal amount of this Debenture, into such number of Ordinary Shares as is determined by dividing the principal amount of the Debenture so converted (together with all accrued but unpaid interest thereon) by the conversion price of $ 8.50 , determined by the greater of (i) the volume-weighted average price of RDZN for the thirty (30) trading day period immediately preceding December 15, 2024 and (ii) 85 % of the Conversion Price then in effect, resulting in an optional conversion into 150,995 Ordinary Shares. Mandatory Conversion by Company If at any time after the Original Issuance Date, of the closing price of the Common Stock of the company for any 20 Trading Days within a consecutive 30 Trading Day-period exceeding 130 % of the then-applicable Conversion Price, then the Company shall thereafter have the right, at any time upon written notice to the Holder, to convert the unpaid principal amount of this Debenture (together with all accrued but unpaid interest thereon) into such number of shares of fully paid and non-assessable shares of Common Stock as is determined by dividing the principal amount of the Debenture (together with all accrued but unpaid interest thereon) by the Conversion Price (a “Company Conversion”). Warrants Entitlement The Company has agreed to issue the warrants to the debenture holder within 90 days of the closing of the securities purchase agreement. The warrants shall be equivalent to the 10 % of the original principal balance of the notes. The exercise price of the Warrants shall be eight dollars and fifty cents ($ 8.50 ) per Warrant Share. The Warrants shall expire five ( 5 ) years after issuance. The assumptions used in calculating estimated fair value of warrants due as of June 30, 2025 are as follows: Schedule of assumptions used in calculating estimated fair value Risk free rate 4.23 % Volatility 193.41 % Annual Interest rate 13 % Conversion Price $ 10 d. As of June 30, 2025, the aggregate maturities of long-term borrowings are as follows: Schedule of maturities of long-term borrowings excluding convertible notes Period ending June 30, 2026 2,912,746 Period ending June 30, 2027 37,484 Period ending June 30, 2028 41,002 Period ending June 30, 2029 onwards 83,954 Long-term borrowings excluding convertible notes 3,075,186 B. Short-term borrowings Schedule of short term borrowings As of June 30, 2025 As of March 31, 2025 Loans from banks (note a) 257,478 263,846 Loans from related parties 123,953 115,086 Loans from others (note b) 20,209,675 19,486,713 Short term borrowings 20,591,106 19,865,645 a) Loans from banks and others Summary of loans from banks and others Particulars Weighted average borrowing rate Short-term borrowings from banks and others 14.31 % b) Loans from others 1. During the quarter ended June 30, 2023, Roadzen (DE) entered into a $ 7.5 million senior secured notes agreement with Mizuho as a lender and administrative agent, which originally had a maturity date of June 30, 2024 . On May 14, 2024, as required by the terms of the senior secured notes agreement, the Company issued to the lender, a warrant to purchase 1,432,517 Ordinary Shares at an exercise price of $ 0.001 per share. On July 26, 2024, the Company entered into Amendment No. 1 to the senior secured notes, providing for an additional $ 4 million in principal amount to a total of $ 11.5 million, and an extension of the maturity date to December 31, 2025 . Terms of the notes are otherwise the same as the original notes issued in June 2023, including an interest rate of 15 % per annum, and did not require any additional warrants. 21 2. As the accounting acquirer Roadzen (DE) has assumed promissory note amounting to $ 2.7 million at a discount of 10 % which was obtained to finance transaction costs in connection with the Business Combination. The Promissory note is not convertible and interest of 20 % per annum and is due and payable upon the earlier of the date on which the Company consummates its initial Business Combination or the date of the liquidation of the Company. The company has not honored repayment of the promissory note on the due date. Additionally, Roadzen (DE) also assumed Convertible Promissory Note amounting to $ 1.03 million which was obtained to finance transaction costs in connection with a Business Combination. The Convertible Promissory Notes is a non-interest bearing instrument and payable upon the consummation of a Business Combination or may be convertible into warrants of the post-Business Combination entity at a price of $ 1.00 per warrant at the holder’s discretion. The warrants would be identical to the private placement warrants described in note 17. The company has not honored repayment of the promissory note on the due date. 3. During the quarter ended December 31, 2024, Good Insurance Brokers Private Limited secured loan facilities from Hindon Mercantile Ltd amounting to $ 0.79 million., carrying an interest rate of 22 %, with repayment scheduled in eight installments in four months from the date of loan. 4. During the quarter ended March 31, 2024 and June 30, 2024 the company has issued $ 1.0 million and $ 0.5 million notes at an interest rate of 17.5 % PA and mature on the sixth month anniversary of the funding of the notes respectively. The interest rate on the notes can be increased maximum upto 29 % as per the applicable condition of repayment. 5. During the year ended March 31, 2023, Roadzen Technologies Private Limited secured loan facilities from Cambridge Innovations Private Limited amounting to $ 0.27 million bearing an interest rate of 8 % annually, repayable within 22 months from the issuance date. However the company has not honored the repayment of the above loan as on the reporting date. The company is in process to get an extension of repayment to March 31, 2026. 6. On March 31, 2025, the Company entered into a securities purchase agreement with an institutional investor (the “Investor”) under which the Company agreed to issue and sell, in a registered public offering, junior convertible notes for up to an aggregate principal amount of $2,300,000 (the “Junior Notes”) that may be convertible into the Company’s Ordinary Shares. The Junior Notes were sold for a gross purchase price of $2,000,000 before fees and other expenses. On April 1, 2025, the Company completed the sale of the Junior Notes to the Investor and issued the Junior Notes.. The Junior Notes will mature one year from the date of issuance and will bear interest at a rate of 16% per annum (increasing to 18% per annum upon the occurrence and during the continuation of an event of default). 25% of the principal amount of the Junior Notes (less any amount previously converted by the holders), together with accrued but unpaid interest, is payable quarterly, commencing three months after the date of issuance. The Junior Notes will have an initial conversion price of $ 2.00 and will be convertible at any time, in whole or in part and subject to certain beneficial ownership limitations, at the election of the holders, subject to customary adjustments upon any stock split, stock dividend, stock combination, recapitalization or similar event. The Company may redeem all or any portion of outstanding Junior Notes at any time upon at least five trading days’ written notice by paying an amount equal to the principal amount of the Junior Notes being redeemed, together with interest accrued on such principal amount through the date of redemption, and additional interest that would accrue on such principal amount through the maturity date (the “Make Whole Amount”). The assumptions used in calculating estimated fair value of the notes due as of June 30, 2025 is as follows: Summary of estimated fair value of notes Risk free rate 4.23 % Volatility 193.41 % Annual Interest Rate 16 % Conversion Price $ 2 7. On April 10, 2025, National Automobile Club (“Merchant”) entered into an agreement with Libertas Funding, LLC (“Purchaser”) to sell its future receipts (all sums received by or payable to Merchant from its customers as payment for Merchant’s goods and/or services in the ordinary course of Merchant’s business). The Merchant has agreed to sell $ 774,000 of future receipts to the purchaser for the purchase price of $ 588,000 (net of origination fee). 14. Other long-term liabilities Summary of other long-term liabilities As of June 30, 2025 As of March 31, 2025 Retirement benefits 292,549 269,767 Deferred tax liability 40,424 41,687 Deferred revenue 214,550 255,197 Total 547,523 566,651 22 15. Ordinary Shares - As of June 30, 2025, the Company was authorized to issue 220,000,000 ordinary shares, $ 0.0001 par value. - The holders of Ordinary Shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. In the event of liquidation, the holders of Ordinary Shares are eligible to receive an equal share in the distribution of the surplus assets of the Company based on their percent of ownership. - As of June 30, 2025 and March 31, 2025, the Company’s Ordinary Shares outstanding were 74,290,986 . The following table summarizes the Company’s Ordinary Shares reserved for future issuance on an as-converted basis: Schedule of ordinary shares reserved for future issuance As of June 30, 2025 As of March 31, 2025 Remaining shares available for future issuance under the Company’s equity incentive plan 9,714,986 9,714,986 Warrants 21,768,972 21,618,972 16. Warrants In connection with Vahanna’s initial public offering in 2021, 10,004,994 public warrants were issued (the “Public Warrants”) and 9,152,087 warrants were issued in a private placement (the “Private Placement Warrants”). Both Public Warrants and Private Placement Warrants remained outstanding and became warrants to purchase Ordinary Shares in the Company upon the close of the Business Combination. As of June 30, 2025, there were 10,004,994 Public Warrants outstanding. No fractional shares will be issued upon exercise of the Public Warrants. Each whole warrant entitles the registered holder to purchase one Ordinary Share at a price of $ 11.50 per share. The Public Warrants became exercisable as of October 20, 2023. The Public Warrants will expire five years from the consummation of a Business Combination or earlier upon redemption or liquidation. The Company may redeem the outstanding Public Warrants and Private Placement Warrants: ● at a price of $ 0.001 per warrant; ● upon not less than 30 days’ prior written notice of redemption given to each warrant holder; and ● if, and only if, the reported last sale price of the Ordinary Shares equals or exceeds $ 18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30 -trading day period commencing once the warrants become exercisable and ending three business days before the Company sends the notice of redemption to the warrant holders. If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of Ordinary Shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of Ordinary Shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. As of June 30, 2025, there were 9,152,087 Private Placement Warrants outstanding. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Ordinary Shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. 23 Pursuant to the terms of a Securities Purchase Agreement entered into among the Company, Supurna VedBrat and Krishnan-Shah Family Partners, LP on March 28, 2024 (the “March 2024 SPA”), on April 22, 2024, the Company issued warrants to purchase 50,000 Ordinary Shares to Krishnan-Shah Family Partners, LP, on June 20, 2024, the Company issued warrants to purchase 50,000 Ordinary Shares to Ms. VedBrat, and on October 27, 2024 the Company issued warrants to purchase an additional 50,000 Ordinary Shares to Ms. VedBrat as per the terms of the agreement (such warrants collectively the “March 2024 SPA Warrants”). Each March 2024 SPA Warrant will be exercisable at any time during the period commencing on March 28, 2025 (or earlier under certain circumstances described in the March 2024 SPA Warrants) (as applicable, the “Vesting Date”) through March 28, 2031 (or until the dissolution, liquidation or winding up of the Company, if earlier). The exercise price of the March 2024 SPA Warrants is equal to 80 % of the lower of (i) the volume weighted average price (the “VWAP”) of the Ordinary Shares, as reported on the relevant market or exchange, over the 60 trading days subsequent to the first loan funding pursuant to the March 2024 SPA, (ii) the opening price of any public offering of straight equity securities of the Company occurring within six months after the issue date of the March 2024 SPA Warrants and (iii) the VWAP of the Ordinary Shares over the 60 trading days immediately prior to the Vesting Date. Ms. VedBrat is a director of the Company. Ajay Shah, another director of the Company, and his wife, are trustees of the general partner of the Krishnan-Shah Family Partners, LP. On May 14, 2024, as required by the terms of the senior secured notes agreement entered with Mizuho in June 30, 2023, the Company issued to Mizuho a warrant to purchase 1,432,517 Ordinary Shares at an exercise price of $ 0.001 per share (the “Mizuho Warrants”). On December 15, 2024 the Company entered into an underwriting agreement with ThinkEquity LLC and as required by the terms of this agreement, the Company issued warrants to purchase 115,000 shares of the Company at an exercise price of $ 1.5625 per share (the “Dec ThinkEquity Warrant Shares”). On January 3, 2025 the Company entered into a placement agent agreement with ThinkEquity LLC and as required by the terms of this agreement, the Company issued warrants to purchase 111,115 shares of the Company at an exercise price of $ 2.8125 per share (the “Jan ThinkEquity Warrants Shares”). As of June 30, 2025, there were 150,000 March 2024 SPA Warrants, 1,432,517 Mizuho Warrants, 115,000 Dec ThinkEquity Warrant Shares and 111,115 Jan ThinkEquity Warrants Shares outstanding. 17. Revenue The following table summarizes revenue by the Company’s service offerings: Schedule of summarizes revenue by company’s service For the period ended June 30, 2025 For the period ended June 30, 2024 Revenue from services Commission and Distribution Income 5,728,215 3,082,652 Income from Insurance as a Service 5,137,330 5,848,865 10,865,545 8,931,517 There were three customers that individually represented 24 %, 13 % and 10 % of the Company’s revenue for the period ended June 30, 2025 and one customer individually represents 22 % of the Company’s accounts receivable balance as of June 30, 2025. There were three customers that individually represented 14 %, 13 % and 10 % of the Company’s revenue for the period ended March 31, 2025 and one customer individually represents 23 % of the Company’s accounts receivable balance as of March 31, 2025. Contract balances The following table provides information about receivables and contract liabilities from contracts with customers: Summary of contract liabilities from contract with customers As of June 30, 2025 As of March 31, 2025 Contract liabilities Deferred revenue 1,098,446 1,149,019 Total contract liabilities 1,098,446 1,149,019 Contract assets Unbilled revenue 7,817,159 6,201,942 Total contract assets 7,817,159 6,201,942 24 Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Contract assets are generated when contractual billing schedules differ from the timing of revenue recognition or cash collection and are included in “prepayments and other current assets” in the consolidated balance sheets which will be billed in the month subsequent to the period in which performance obligations were satisfied. 18. Goodwill A summary of the changes in carrying value of goodwill is as follows: Schedule of goodwill As of June 30, 2025 As of March 31, 2025 Opening balance 2,061,553 2,061,553 Goodwill relating to acquisitions consummated - — Derecognition on deconsolidation of subsidiaries - — Impairment reversed on goodwill on account of deconsolidation of subsidiaries - — Effect of exchange rate changes - - Closing balance 2,061,553 2,061,553 19. Financial instruments The Company measures its convertible promissory notes and Forward Purchase Agreement asset at fair value. The Company’s convertible promissory notes, Derivative warrant liabilities and Forward Purchase Agreement are categorized as Level 2 because they are measured based on valuation techniques using observable market prices of such instruments. Convertible debentures is categorized as Level 3 because of unobservable inputs and other estimation techniques due to the absence of quoted market prices, inherent lack of liquidity and the tenure of such financial instruments. Financial instruments measured at fair value on a recurring basis The following table represents the fair value hierarchy for the Company’s financial instruments measured at fair value on a recurring basis as of June 30, 2025: Schedule of financial instruments measured at fair value on recurring basis June 30, 2025 Fair Value Measured using Particulars Level 1 Level 2 Level 3 Total Financial liabilities: Derivative warrant liabilities - 1,535,869 - 1,535,869 Convertible debentures - - 1,146,337 1,146,337 Convertible Promissory Notes - 1,029,374 - 1,029,374 - 2,565,243 1,146,337 3,711,580 Financial assets: Forward purchase agreement - 8,628,301 - 8,628,301 - 8,628,301 - 8,628,301 The Company uses a third-party valuation specialist to assist management in its determination of the fair value of its Level 2 classified derivative warrant liabilities and convertible promissory notes. The fair value of these financial instruments is based on the volatility of its ordinary share warrants, based on implied volatility from the Company’s traded warrants and from historical volatility of select peer company’s ordinary shares that matches the expected remaining life of the warrants. For key aspects of valuation of convertible debentures refer note 13. 25 The Company uses a third party valuation specialist to assist management in its determination of the fair value of its Level 3 classified Convertible debentures and its Level 2 classified Forward Purchase Agreement. The instruments were fair valued using a Monte Carlo simulation model utilizing assumptions related to the contractual term of the instruments and current interest rates. For key aspect of the valuation inputs refer notes 13 (c) and 5 (iii) respectively. The following table presents a reconciliation of the Company’s Level 3 financial instruments measured and recorded at fair value on a recurring basis as of June 30, 2025 for Financial Liability: Convertible Debentures and as of December 31, 2024 for Financial Asset: Forwards Purchase Agreement: Schedule of fair value, liabilities measured on recurring basis, unobservable input reconciliation Financial asset Forward purchase agreement Financial liability Convertible debentures Financial liability Convertible Promissory Notes Balance - - - Initial measurement 46,190,195 1,100,000 1,029,374 Cash receipt 4,790,633 - - Change in fair value ( 42,352,527 ) 46,337 - Balance 8,628,301 1,146,337 1,029,374 Assets measured at Fair Value on a non-recurring basis The Company’s non-financial assets, such as goodwill, intangible assets and property and equipment are adjusted to fair value when an impairment charge is recognized. Such fair value measurements are based predominately on Level 3 inputs. Non-Marketable Equity Securities The Company measures its non-marketable equity securities that do not have readily determinable fair values under the measurement alternative at cost less impairment, adjusted by price changes from observable transactions recorded within “Other income/(expense) net” in the consolidated statements of operations. The Company’s non-marketable equity securities are investments in privately held companies without readily determinable fair values and primarily relate to its investment in Daokang and Moonshot. The Company recorded a impairment loss on it’s non-marketable equity securities, as more briefly discussed in note 6. Management of risks Interest rate risk - Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to change to market interest rates. The Company is exposed to interest rate risk for its long-term debts where the interest rates are variable according to the market conditions. Foreign currency risk - The Company monitors its foreign currency exposures on a regular basis. The operations are primarily denominated in United States Dollars, Pounds Sterling, Indian Rupees and Euros. For the purpose of analyzing foreign currency exchange risk, we considered the historical trends in foreign currency exchange rates. Based on a sensitivity analysis we have performed as of June 30, 2025, an adverse 10 % foreign currency exchange rate change applied to total monetary assets and liabilities denominated in currencies other than the United States Dollar would not have a material effect on our financial statements. 20. Investments These balances include certain investments in mutual funds that are recorded at fair value. Any changes to the fair value are recorded in “Fair value gains/(losses) in financial instruments carried at fair value” due to the election of the fair value option of accounting for financial instruments. 21. Commitments and contingencies A. Leases - Accounted as per ASC 842 for the Period Ended June 30, 2025 Operating leases The Company leases office space under non-cancellable operating lease agreements, which expire on various dates through April 2031. Some property leases contain extension options exercisable by the Company. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease cost for the period ended June 30, 2025 are summarized below: 26 i) The following tables presents the various components of lease costs: Components of lease cost Particulars For the period ended June 30, 2025 Lease : Operating lease cost 106,978 Short-term lease cost 37,908 Total lease cost 144,886 ii) The following table presents supplemental information relating to the cash flow and non-cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating liabilities, and, as such, are excluded from the amounts below. Schedule of supplemental cash flow information related to leases and non cash flows arising from lease transactions Particulars For the period ended June 30, 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 104,887 iii) Balance sheet information related to leases is as follows: Schedule of balance sheet information related to leases Particulars For the period ended June 30, 2025 Operating Leases: Operating Lease ROU Asset, net 1,048,594 Short term liabilities 442,914 Long term liabilities 443,500 Total operating lease liabilities 886,414 iv) Weighted Average Summary of weighted average remaining lease terms and discount rates For the period ended June 30, 2025 Remaining Lease term (in years) 4.28 Discount rate 14.74 % v) Maturities of lease liabilities were as follows: Schedule of maturities of lease liabilities Particulars Lease Liabilities (USD)* For Period Ended June 30, 2025 2026 426,075 2027 309,004 2028 97,803 2029 89,427 2030 92,558 Thereafter 114,958 Total Lease Payments 1,129,825 Less: Imputed Interest ( 243,411 ) Total 886,414 27 C. Litigation and loss contingencies From time to time, the Company may be subject to other legal proceedings, claims, investigations, and government inquiries (collectively, Legal Proceedings) in the ordinary course of business. It may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending Legal Proceedings that the Company believes will have a material adverse impact on the business or consolidated financial statements. D. Indemnifications In the ordinary course of business, the Company enters into contractual arrangements under which the Company agrees to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including losses arising out of intellectual property infringement claims made by third parties, if the Company has violated applicable laws, if the Company is negligent or commits acts of willful misconduct, and other liabilities with respect to its products and services and its business. In these circumstances, payment is typically conditional on the other party making a claim pursuant to the procedures specified in the particular contract. To date, the Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in its consolidated financial statements. 22. Net loss per share Basic net loss per share attributable to ordinary shareholders is computed by dividing the net loss by the number of weighted-average outstanding Ordinary Shares. Diluted net loss per share attributable to ordinary shareholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. The Company considers its preferred stocks, convertible notes and share warrants as potential common equivalents, but excluded them from the computation of diluted net loss per share attributable to ordinary shareholders in the periods presented, as their effect was antidilutive. The following table sets forth the computation of basic net loss per share attributable to ordinary shareholders and preferred stock holders: Schedule of computation of basic net loss per share attributable to ordinary shareholders and preferred stockholders Particulars For the Period ended June 30, 2025 For the period ended June 30, 2024 Numerator: Net loss ( 4,005,770 ) ( 48,407,025 ) Less: dividend attributable to preferred stockholders for the current year - - Net loss attributable to Roadzen Inc. ordinary shareholders ( 4,005,770 ) ( 48,407,025 ) Denominator (for basic and diluted EPS): Weighted-average shares used in computing net loss per share attributable to Roadzen Inc. ordinary shareholders 74,290,986 68,440,829 Net loss per share attributable to Roadzen Inc. ordinary shareholders ( 0.05 ) ( 0.71 ) The Company’s potential dilutive securities, which include restricted stock units, convertible instruments, share warrants and shares pending allotment have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted average number of ordinary shares outstanding used to calculate both basic and diluted net loss per share is the same. 28 The Company excluded the following potential common shares from the computation of diluted net loss per share as of June 30, 2025 and June 30, 2024: Schedule of potential ordinary shares equivalents excluded from the computation of diluted net loss per share Particulars For the Period ended June 30, 2025 For the period ended June 30, 2024 Share warrants 21,618,972 21,618,972 Restricted stock units 9,714,986 9,922,986 Convertible instruments 54,542 54,542 Total 31,388,500 31,596,500 23. Income taxes The Company’s net loss before provision for income taxes for the period ended June 30, 2025 and June 30, 2024 were as follows: Schedule of income before income tax domestic and foreign Particulars For the Period ended June 30, 2025 For the period ended June 30, 2024 Domestic ( 2,049,030 ) ( 26,270,441 ) Foreign ( 1,972,098 ) ( 22,075,253 ) Total ( 4,021,128 ) ( 48,345,694 ) The components of the provision for income taxes for the period ended June 30, 2025 and June 30, 2024 were as follows: Schedule of components of provision for income taxes Particulars For the Period ended June 30, 2025 For the period ended June 30, 2024 Current: Domestic 34,949 12,933 Foreign — - Total 34,949 12,933 Deferred: Domestic — — Foreign 45,030 93,717 Total 45,030 93,717 Total provision for income taxes # 79,979 106,650 The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the period ended June 30, 2025 and June 30, 2024: Schedule of reconciliation of statutory federal income tax rate Particulars For the Period ended June 30, 2025 For the period ended June 30, 2024 Federal statutory income tax rate 21.00 % 21.00 % Non deductible expenses ( 0.54 )% ( 0.25 )% Valuation allowance ( 20.90 )% ( 20.79 )% Foreign rate differential 0.00 % 0.05 % Share warrants 0.00 % 0.00 % Other 0.42 % ( 0.04 )% Total provision for income taxes ( 0.02 )% ( 0.03 )% 29 The components of the Company’s net deferred tax assets as of the period ended June 30, 2025 and year ended March 31, 2025 were as follows: Schedule of net deferred tax assets Particulars As of June 30, 2025 As of March 31, 2025 Deferred tax assets: Net operating loss carry forwards 37,849,937 41,091,266 Unabsorbed depreciation carry forwards 140,872 121,285 Retirement benefits 70,197 15,209 Depreciation and amortization 67,267 74,937 Others ( 322,995 ) ( 325,774 ) Total deferred tax assets 37,805,277 40,976,924 Less: valuation allowance ( 37,805,277 ) ( 40,976,924 ) Deferred tax assets, net of valuation allowance - - Deferred tax liabilities: Intangibles on account of business combination ( 40,424 ) ( 41,688 ) Net deferred tax assets/ (liabilities) ( 40,424 ) ( 41,688 ) Movement recognized in net deferred tax assets: Schedule of movements in deferred tax assets As of March 31, 2025 Recognized/ reversed through statements of operations Impact of currency translation and acquisitions As of June 30, 2025 Deferred tax assets: Net operating loss carry forwards 41,091,266 ( 3,241,330 ) - 37,849,937 Unabsorbed depreciation carry forwards 121,285 19,587 - 140,872 Retirement benefits 15,209 54,988 - 70,197 Depreciation and amortization 74,937 ( 7,670 ) - 67,267 Fair value changes on convertible notes - - - - Others ( 325,774 ) 2,778 - ( 322,995 ) Total deferred tax assets 40,976,924 ( 3,171,647 ) 37,805,277 Less: valuation allowance ( 40,976,924 ) 3,171,647 - ( 37,805,277 ) Deferred tax assets, net of valuation allowance - - - - Deferred tax liabilities: Intangibles on account of business combination ( 41,688 ) 1,264 - ( 40,424 ) Acquisitions - 635,965 ( 635,965 ) - Deconsolidation - - - - Currency translation - ( 284,598 ) 284,598 - Net deferred tax assets/ (liabilities) ( 41,688 ) 352,631 ( 351,367 ) ( 40,424 ) 30 Particulars As of March 31, 2024 Recognized/ reversed through statements of operations Impact of currency translation and acquisitions As of March 31, 2025 Deferred tax assets: Net operating loss carry forwards 25,515,511 15,575,755 - 41,091,266 Unabsorbed depreciation carry forwards 76,126 45,159 - 121,285 Retirement benefits 72,349 ( 57,140 ) - 15,209 Depreciation and amortization 109,299 ( 34,362 ) - 74,937 Fair value changes on convertible notes - - - - Others 244,136 ( 569,910 ) - ( 325,774 ) Total deferred tax assets 26,017,421 14,959,503 - 40,976,924 Less: valuation allowance ( 25,995,368 ) ( 14,981,556 ) - ( 40,976,924 ) Deferred tax assets, net of valuation allowance 22,053 ( 22,053 ) - - Deferred tax liabilities: Intangibles on account of business combination ( 263,665 ) 221,977 - ( 41,688 ) Currency translation - ( 284,598 ) 284,598 - Acquisitions - 635,965 ( 635,965 ) - ( 241,612 ) 551,291 ( 351,367 ) ( 41,688 ) The Company regularly reviews its deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences and tax planning strategies. The Company’s judgement regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the intangible on account of business combination ability to recover deferred tax assets, the Company’s income tax provision would increase or decrease in the period in which the assessment is changed. The Company’s valuation allowance decreased by $ 3,171,647 during the period ended June 30, 2025 and increased by $ 14,981,556 during the year ended March 31, 2025. The Company has not provided U.S. income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries because the Company intends to permanently reinvest such earnings outside the U.S. 31 Net operating loss and credit carry forwards As of June 30, 2025, the Company has U.S. federal net operating loss carry forwards of approximately $ 37,849,937 of which none are subject to limitation under Internal Revenue Code Section 382 (IRC Section 382). The federal net operating loss carry forwards that were generated prior to the 2018 tax year will begin to expire in 2030 if not utilized. For net operating loss carry forwards arising in tax years beginning after March 31, 2017, the tax act limits the Company’s ability to utilize carry forwards to 80% of taxable income, however, these operating losses may be carried forward indefinitely. The state (Delaware) net operating loss carry forwards will begin to expire in 2032 if not utilized. The Company has foreign tax credits which will expire at the end of 8 years from the end of the assessment year in which these tax credits were originated. Utilization of the net operating loss carry forwards may be subject to a substantial annual limitation due to the ownership change provisions of IRC Section 382 and similar state provisions. The annual limitation may result in the inability to fully offset future annual taxable income and could result in the expiration of net operating loss carry forwards before utilization. The Company continually reviews the impact to net operating losses of any ownership changes. Unrecognized tax benefits The Company has adopted authoritative guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The Company did no t have any unrecognized tax benefits with a significant impact on its financial statements as of June 30, 2025 and March 31, 2025. The Company’s major tax jurisdictions are India, the United Kingdom and the U.S. The U.S. federal, state and foreign jurisdictions have statutes of limitations that generally range from three to six years. Due to the Company’s net losses, substantially all of its federal and state income tax returns are subject to examination for federal and state purposes. 24. Segment reporting Our Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net loss to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes natural expenses such as employee wages and benefits at a consolidated level and capital expenditures including asset additions to manage the Company’s operations and strategic growth initiatives. 25. Stock based compensation The share-based compensation awards issued under the Company’s 2023 Omnibus Incentive Plan to the Company’s employees, officers, directors, are all equity-classified instruments Restricted stock units (“RSUs”) outstanding as of June 30, 2025 have service vesting conditions up to March 2027. Compensation expenses are based on the grant-date fair value of the awards and recognized over the requisite service period using a straight-line method for stock options and a graded vesting method for RSUs. The Company has elected to account for forfeitures of employee stock awards as they occur. Share-based compensation is in the form of restricted stock units (RSUs). The fair value per RSU is calculated using the Black-Scholes option valuation model. Option value and assumption Schedule of option value and assumption Fair value per share (as of grant date) $ 10.83 Exercise price $ 0 Assumptions: Volatility 30.82 % Expected dividends 0.00 % Expected term (in years) 1.5 Risk free rate 5.24 % 32 Schedule of RSU vesting activity RSU vesting schedule for year ended As of June 30, 2025 March 2025 79,995 March 2026 9,579,589 March 2027 63,336 Schedule of restricted stock units activity Stock option activity As of June 30, 2025 Opening unvested units (as of April 01, 2025) 9,722,920 Granted - Exercised - Cancelled - Vested but not exercised 7,995 Closing unvested units 9,714,925 Stock-based compensation expense related to RSUs granted to employees was $ 71,358 for the period ended June 30, 2025. As of June 30, 2025, the unrecognized compensation expense related to unvested RSUs was approximately $ 188,904 which is expected to be recognized over the remaining unvested period of RSU’s. On September 18, 2023, prior to the business combination, Roadzen DE granted 9,903,500 Restricted Stock Units (RSUs) under the 2023 Omnibus Incentive Plan. These RSUs were initially scheduled to vest on the one-year anniversary of the grant date, specifically on September 17, 2024. However, the Board of Directors of Roadzen DE has subsequently decided to extend the vesting period by an additional year, revising the vesting date to September 17, 2025. Consequently, outstanding 9,507,928 RSUs did not vest as originally anticipated on September 17, 2024. Based on the current market price of the shares, management has assessed that this revised vesting timeline will not result in any additional RSU compensation expense being recognized in the company’s financial statements. 26. Subsequent Events On July 24, 2025, the Company entered into separate securities purchase agreements (the “PIPE Purchase Agreements”) with certain institutional investors (the “PIPE Investors”) pursuant to which the Company agreed to issue and sell to the PIPE Investors, and the PIPE Investors agreed to purchase from the Company, an aggregate of 1,803,134 of the Company’s Ordinary Shares, for a purchase price of $ 1.25 per share, or approximately $ 2,253,917 in the aggregate. Also on July 24, 2025, the Company entered into a registration rights agreement with the PIPE Investors (the “Registration Rights Agreement”), pursuant to which the Company agreed, among other things, to use its reasonable best efforts to file, on or before October 27, 2025, a registration statement covering the resale of all of the Ordinary Shares sold pursuant to the PIPE Purchase Agreements. On July 24, 2025, the Company entered into separate amendments (the “RSU Amendments”) to the restricted stock unit awards (as previously amended, the “RSUs”) previously granted to Rohan Malhotra, the Company’s Chief Executive Officer and a director, Jean-Noël Gallardo, the Company’s Chief Financial Officer, and Ankur Kamboj, the Company’s Chief Operating Officer. Pursuant to the RSU Amendments, the RSUs previously granted by the Company to Mr. Malhotra and to Mr. Kamboj were each amended to change the date on which such RSUs vest in full (subject to the executive’s continuous service with the Company through the vesting date) from September 17, 2025 to September 17, 2026, and the RSUs previously granted by the Company to Mr. Gallardo were amended to change the date on which such RSUs vest in full (subject to the executive’s continuous service with the Company through the vesting date) from November 20, 2025 to November 20, 2026. On July 27, 2025, the Company entered into a placement agency agreement with Maxim Group LLC and a securities purchase agreement with a purchaser for the purchase and sale of 1,730,769 of the Company’s Ordinary Shares at an offering price of $ 1.30 per Ordinary Share, which closed on July 29, 2025. The Company received gross proceeds of $ 2,249,999.70 in connection with the offering before deducting fees and expenses related to the offering. 33