Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 106

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 106
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 million.

On January 31, 2025, the
Company entered into a securities purchase agreement with certain additional accredited investors, for the second closing of the December
2024 Offering (the “Second Closing”). In connection with the second closing, the Company has issued 1,049,796 shares
of common stock of the Company, Pre-funded warrants issued to certain investors, at their option, exercisable for an aggregate of up to
872,000 shares of Common Stock, Series A Warrants to initially purchase up to an aggregate of 4,804,491 shares of Common Stock and Series
B Warrants to purchase initially no shares of Common Stock and then up to such number of shares of Common Stock, as determined on the
Reset Date for an aggregate investment of $3 million. The Securities were offered at a price of $1.56. However, out of the $ 3 million
aggregate investments, the Company did not receive any cash proceeds with respect to Securities with a subscription price of $1.56 million,
as those Securities were issued in consideration for the settlement of litigation with Randall Yanker. Hence, the Company raised gross
proceeds of $1.44 million and net proceeds of $1.25 million after deduction of offering expenses amounting to $0.2 million.

Our future capital
requirements will depend on many factors, including, but not limited to, our growth, our ability to attract and retain Hosts and Guests,
and the scope of future sales and marketing activities.

The
Company expects to continue to incur net losses and have significant cash outflows from operating activities for at least the next
12 months. Management has evaluated the significance of the conditions described above in relation to the Company’s ability to
meet its obligations and concluded that based on multiple rounds of funding raised by the Company as detailed above under the
section titled as “Private Placement of Equity and Warrants”, while this financing resulted in the payment of certain outstanding
indebtedness, the Company will still need to raise additional capital imminently in order to have sufficient capital. The Company
believes that current cash and cash equivalents will allow the Company to continue operations through December 31, 2025, assuming
that the Company makes no further payments on its currently outstanding indebtedness and only pays current operating accruals. The
Company was advised by its largest investor and director that he would no longer commit to continuing his support to the Company in
the event that any liquidity requirements arise in the