Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 354

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 3
Chunk 354
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 negatively affect our access to capital. Efforts to
regain compliance could require financing or other corporate actions that may be dilutive or involve other risks.

We may not regain compliance with OTCQX continued qualification
standards within the required timeframe, and any removal from OTCQX could materially and adversely affect the liquidity and market price
of our common stock and our access to capital.

On August 5, 2025, we received a written notice from the OTCQX U.S. tier of OTC Markets Group stating that our Global Market Capitalization
has remained below the minimum $5.0 million required under Section 2.1(B) of the OTCQX Rules for U.S. Companies for more than 30 consecutive
calendar days and, as a result, we no longer satisfy the OTCQX standards for continued qualification. Under those rules, we have a 90-calendar-day
cure period, expiring on November 3, 2025, to regain compliance by maintaining a Global Market Capitalization of at least $5.0 million
for 10 consecutive trading days. There can be no assurance that the Company will regain or thereafter maintain compliance within the
cure period, if at all.

If the Company does not regain compliance within the cure period, its securities could be removed from OTCQX and may trade on a less
liquid market tier or otherwise experience reduced liquidity. Any such outcome could, among other things: (i) further depress the market
price and increase the volatility of our common stock; (ii) limit or preclude the ability of certain brokers to make a market in, or
of certain institutional investors to purchase or hold, our securities; (iii) reduce analyst coverage and overall investor interest;
(iv) impair our ability to raise additional capital on acceptable terms or at all; and (v) adversely affect the terms of any financing
or strategic transactions we may seek.
In an effort to regain or maintain compliance, the Company may consider and pursue one or more corporate or financing actions—such
as equity or equity-linked issuances, strategic transactions, or other measures—which could be dilutive to existing stockholders,
increase our leverage, or otherwise involve significant costs and risks. Even if the Company regains compliance, it may be unable to
sustain it, and any future failure could have the same adverse effects.

We require additional capital to support
current operations and will require additional capital to support the growth of our business, which may