Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 498

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 498
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 incidents
of our networks or systems, or those of our third-party service providers, could negatively impact our business, our brand and reputation,
our ability to retain existing Hosts and Guests and attract new Hosts and Guests, may cause us to incur significant liabilities and adversely
affect our business, results of operations, financial condition, and future prospects. 

In the regular course of
our business, we collect, use, store, transmit, and process data and information about Hosts, Guests, employees, and others, some of which
may be sensitive, personal, or confidential and make us an attractive target and potentially vulnerable to cyberattacks, computer viruses,
electronic break-ins, or similar disruptions. Any actual or perceived unauthorized access to or use of such data and information, or breach
of our security measures or those of our third-party service providers, could adversely affect our business, operations, and future prospects.
While we have taken steps to mitigate our cyberattack risks and protect the confidential information that we have access to, including
but not limited to installation and periodical updates of antivirus software and backup of information on our computer systems, our security
measures could be breached. Because techniques used to sabotage or obtain unauthorized access to systems change frequently and generally
are not recognized until they are launched against a target, we may be unable to anticipate these techniques or to implement adequate
preventative measures. Any cybersecurity incident, accidental or willful security breaches or other unauthorized access to our systems
could cause confidential information to be stolen and used for criminal purposes. Cybersecurity incidents, security breaches or unauthorized
access to confidential information could also expose us to liability related to the loss of the information, time-consuming and expensive
litigation, and negative publicity. If security measures are breached because of third-party action, employee error, malfeasance or otherwise,
or if design flaws in our technology infrastructure are exposed and exploited, our relationships with our Hosts and Guests could be severely
damaged, we could incur significant liability, and our business and operations could be adversely affected. Additionally, if we fail to
protect confidential information, we may be susceptible to potential claims such as breach of contract, negligence, or other claims. Such
claims will require considerable time and resources to defend and there can be no assurances that favorable final outcomes will be obtained.

98

An increasing number of organizations,
including large online and offline merchants and businesses, other large Internet companies, financial institutions, and government institutions
have disclosed breaches of their information security systems and