Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 670

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 670
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 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 not be available on terms acceptable
to us, or at all. 

To continue current operations, we will need to
raise capital imminently. Further, to continue to effectively compete thereafter, we will require additional funds to support the growth
of our business. Our operations have consumed substantial amounts of cash, and we have incurred operating losses, since we began operating
in 2013. While our cash consumption has been reduced following our business transition from short-term rental of vehicles owned by or
leased to Zoomcar to an online platform for peer-to-peer car sharing, we have consumed significant amounts of cash in effecting such transition
in terms of technology and platform innovation, and our cash consumption has varied over time. Because of our limited resources the company
was not able to expand to emerging markets outside of India and in fact, discontinued operations in Vietnam during June 2023 and subsequently
in Egypt, Indonesia during June 2024 as a result.

70

Further, as a result of the consummation of the
Business Combination, our expenses have increased substantially in connection with actions and efforts required to operate as a public
company. During the three months ended June 30, 2025, we have incurred expenses in maintaining the listing requirements and complying
with statutory filings with SEC along with significant professional and consultancy fee to professionals and we contemplate that we will
continue to incur these expenses as long as we remain a public company to fulfill which we will need additional capital.

Moreover, we expect our expenses to increase significantly
in connection with our ongoing activities, including the continuing increase in our technological capabilities with respect to IoT, machine
learning, and artificial intelligence. We do not currently have sufficient cash resources to operate our business beyond June 2025 (assuming
that we do not repay any of our currently outstanding indebtedness) and accordingly, will need to raise capital imminently to continue
our operations and to fully execute our business plan. Additionally, circumstances could cause us to consume capital more rapidly than
we currently anticipate and if our cash resources are insufficient to satisfy our cash requirements, we may seek to issue additional equity
or debt securities or obtain new or expanded credit facilities or identify and secure additional sources of capital. Our ability to obtain