Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 169

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 169
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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 incremental expense reduction measures or a combination thereof to
continue financing its operations. The Company has filed Registration Statement under Form S-1 on May 5, 2025 to raise upto $15
million. No amount has been raised against the same. Further, on June 23, 2025, the Company received a net proceed of $350,000 by way of issue of a bridge note to
certain investors totaling $402,000 at a discount of $42,000 and an issuance cost of $10,000.

While these financing arrangements
shall result in the payment of certain outstanding indebtedness, the Company will still need to raise additional capital imminently in
order to have sufficient capital. There can be no assurance that the Company will be able to achieve its business plan, raise any additional
capital or secure the additional financing necessary to implement its current operating plan.

The ability of the Company to continue as a going concern
is dependent upon its ability to increase its revenues and eventually achieve profitable operations. The accompanying Consolidated Financial
Statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

F-8

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.Summary of Significant Accounting Policies

i.Basis of presentation

The accompanying
Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States
of America (US GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Any reference
in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”)
and an Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The Consolidated
Financial Statements include the accounts of the Company and its wholly owned subsidiaries and variable interest entities in which the
Company is the primary beneficiary, including an entity in India and in other geographical locations. All intercompany accounts and transactions
have been eliminated in the Consolidated Financial Statements herein.

ii.Principles of consolidation

The Consolidated
Financial Statements include the accounts of Zoomcar Holdings, Inc. and of its wholly owned subsidiaries and Variable Interest Entities
(“VIE”) in which the Company is the primary beneficiary, including an entity in India