Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 596

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 596
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 price of the warrants (or additional issuances to make the Financing Investors whole) may have a negative impact on the trading
price of our Common Stock. Additionally, raising additional capital with new investors may be difficult as a result of the MFN Noteholder
Rights and anti-dilution protection. Sales of substantial amounts of Common Stock in the public market, or the perception that such sales
could occur, could materially adversely affect the market price of the Common Stock, and may make it more difficult for you to sell your
securities at a time and price which you deem appropriate.

91

In addition to our defaults under current
indebtedness described elsewhere here, certain of our debt financing arrangements are currently in default and we have delayed certain
other payments to lenders, which may restrict our current and future business and operations.

Since November 2023, we are
in violation of our scheduled monthly instalment payment obligations of $215,337 per month on our lease liability with Ayvens Group (f/k/a
Leaseplan India Private Limited) (“Leaseplan”). Leaseplan notified us on February 7, 2024, that we are in default of
our November 2023 payment. As of the date hereof, we are in default beyond the 30-day extended cure period (as envisaged under the terms
of our debt with Leaseplan) of our November 2023 payment and continue to be default of all EMIs thereafter. As a result of such defaults,
as of the date hereof, Leaseplan (i) has initiated the process of repossession of all vehicles, and (ii) has invoked the bank guarantee
of $120,482 which was a security created by Zoomcar in favor of Leaseplan. Such outcomes may have a material adverse impact on our business,
operations, or financial condition. 

Based on the most recent
discussions with Leaseplan, the Company continues to negotiate a payment plan to the restructured debt proposal shared by the Company
wherein the debt after certain waivers and discounts, will stand restructured to $4,755,942 and the Company is hopeful that Leaseplan
will issue a comfort letter in this regard acknowledging the proposed payment schedule spread across six tranches for repayment of the
restructured debt. As of January 31, 2024, the Company has already cleared the first three tranches in accordance with the proposed payment
schedule as per the comfort letter, amounting to $ 2,851,924