Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 210

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 210
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 non-GAAP
financial measure that represents our net income or loss adjusted for (i) other income and (expense), net; (ii) depreciation and amortization;(iii)
finance costs; (iv) any other exceptional nonrecurring expenses.

We use adjusted EBITDA in
conjunction with net income or loss, its corresponding GAAP measure, as a performance measure that we use to assess our operating performance
and operating leverage in our business. The above items are excluded from our adjusted EBITDA measure because these items are non-cash
in nature, or because the amount and timing of these items is unpredictable, or they are not driven by core results of operations, thereby
rendering comparisons with prior periods and competitors less meaningful.

We believe that adjusted
EBITDA provides useful information to investors and others in understanding and evaluating the results of our operations, as well as provides
a useful measure for period-to-period comparisons of our business performance. Moreover, we have included adjusted EBITDA because it is
a key measurement used by our management internally to make operating decisions, including those related to analyzing operating expenses,
evaluating performance, and performing strategic planning and annual budgeting.

Our adjusted EBITDA loss
has reduced to $1.73 million during the three months ended on June 30, 2025, as compared to an adjusted EBITDA loss of $3.26 million during
the three months ended on June 30, 2024.

This improvement is a result
of broad-based cost reduction and optimization initiatives that reduced our cost of revenue, technology and development costs, sales and
marketing costs, and general and administrative costs (as described above) during the three months ended on June 30, 2025, as compared
to the same period in 2024. 

Adjusted EBITDA has limitations as a financial measure, should be considered
as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. These
limitations include the following:

●Adjusted
EBITDA does not reflect other (income)/expense, net, which includes interest income on cash, cash equivalents, restricted cash and
investments, net of interest expense, and gains and losses on foreign currency transactions and balances;

●Adjusted
EBITDA excludes certain recurring non-cash charges, such as depreciation of property and equipment and amortization of intangible assets;
although these are non-cash charges, the assets being depreciated and amortized