Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 231

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 231
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ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1.Organization, Business operation and Going concern

Zoomcar Holdings, Inc. (formerly
“Innovative International Acquisition Corp”) a Delaware corporation provides mobility solutions to consumers and businesses.
The accompanying Condensed Consolidated Financial Statements include the accounts and transactions of Zoomcar Holdings, Inc. and its subsidiaries
(collectively, the “Company” or “the combined entity” or “Zoomcar”). The Company operates its facilitation
services under the Zoomcar brand with its operations in India.

Going concern

The accompanying Condensed Consolidated
Financial Statements have been prepared in accordance with U.S. GAAP and the rules and regulations of the SEC. The Condensed Consolidated
Financial Statements have been prepared using U.S. GAAP applicable to a going concern that contemplates the realization of assets and
settlement of liabilities in the normal course of business. The Company incurred a net loss of $794,149 and $4,999,462 during the three
months and six months ended September 30, 2025, and cash used in operations was $ 533,980 for the six months ended September 30, 2025.
The Company’s accumulated deficit amounts to $338,173,267 (March 2025: $333,173,805). The Company has negative working capital of
$28,582,909 as on September 30, 2025. In addition, the Company’s cash position is critically deficient and critical payments to
the operational and financial creditors of the Company are not being made in the ordinary course of business, all of which raises substantial
doubt about the Company’s ability to continue as a going concern.

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,
without additional funding, the Company will not have sufficient funds to meet its obligations within one year from the date of the Condensed
Consolidated Financial Statements are issued.

Management is evaluating plans with
respect to these adverse financial conditions that caused to express substantial doubt about the Company’s ability to continue as
a going concern. Management’s plan is to seek funding through additional debt or equity financing arrangements, implement business
initiatives to improve customer experience and