Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 676

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 676
---
 result of the foregoing,
the Company is at material risk that the above parties including certain vendors could initiate insolvency proceedings under Indian Insolvency
and Bankruptcy Code 2016 (IBC). As per the provisions of IBC, an operational creditor can initiate an insolvency resolution process against
the Company where the minimum amount of the default is INR 1,00,00,000 (Rupees One crore) or ~USD 119,000. If insolvency proceedings were
initiated and the petition is admitted, it could result in significant disruptions to our operations, loss of management control, and
a substantial decrease in stockholder value. Furthermore, the outcomes of such proceedings are uncertain and could materially affect our
financial position and results of operations.

The Zoomcar Board and Zoomcar
management are evaluating options to improve liquidity and address Zoomcar’s long-term capital structure, however, there can
be no assurance that any such option or plan will be available on favorable terms, or at all.

73

We have issued a significant number of warrants
and exercise of these securities and the sale of the shares of Common Stock issuable thereunder (along with the issuance of any similar
securities in the future,) will dilute your percentage ownership interest and may also result in downward pressure on the price of our
Common Stock.  

As of August 13, 2025, we
have issued and outstanding options to purchase 16 shares of our Common Stock with a weighted average exercise price of $11,460,
pre-funded warrants to purchase 4,306,012 shares of Common Stock, warrants to purchase 19,416 shares of Common Stock with an exercise
price of $6,000 per share which were assumed by the Company in connection with the Business Combination, 11,500,000 Public Warrants to
purchase 5,750 shares of our Common Stock, each Public Warrant exercisable into one two-thousandth of one share of Common Stock at an
exercise price of $11,420.00 per full share, warrants to purchase 5,297 shares of Common Stock at a current exercise price of $56.64 per
share which were issued to the Placement Agent in June 2024, November Series A Warrants to purchase 996,939 shares of Common Stock at
a current exercise price of $16.12, November Series B Warrants to purchase up to 5,865 shares at an exercise price of $0.002 per share,
November