Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1115

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1115
---
 exceeds supply
may lead to sudden extreme price volatility in our Common Stock. Investors may purchase our Common Stock to hedge existing exposure in
our Common Stock or to speculate on the price of our Common Stock. Speculation on the price of our Common Stock may involve long and short
exposures. To the extent aggregate short exposure exceeds the number of shares of Common Stock available for purchase in the open market,
investors with short exposure may have to pay a premium to repurchase our Common Stock for delivery to lenders of our Common Stock. Those
repurchases may in turn dramatically increase the price of our Common Stock until investors with short exposure are able to purchase additional
Common Stock to cover their short position. This is often referred to as a “short squeeze.” Following such a short squeeze,
once investors purchase the shares necessary to cover their short position, the price of our Common Stock may rapidly decline. A short
squeeze could lead to volatile price movements in our shares that are not directly correlated to the performance or prospects of our company
and could cause purchasers of our common shares to incur substantial losses.

117

Further, shareholders may
institute securities class action litigation following periods of market volatility. If we were involved in securities litigation, we
could incur substantial costs and our resources, and the attention of management could be diverted from our business.

Our issuance of additional capital stock
in connection with financing, acquisitions, investments, the Incentive Plan or otherwise will dilute all other stockholders.

We expect to issue additional
capital stock in the future that will result in dilution to all other stockholders. We expect to grant equity awards to employees, directors
and consultants under the Incentive Plan. We may also raise capital through equity financing in the future. As part of our business strategy,
we may acquire or make investments in complementary companies, products or technologies and issue equity securities to pay for any such
acquisition or investment. Any such issuances of additional capital stock may cause stockholders to experience significant dilution of
their ownership interests and the per share value of our Common Stock to decline.

There can be no assurance that we will continue
to be able to comply with the continued listing standards of Nasdaq.

Our continued eligibility
to maintain the listing of our Common Stock and Public Warrants on Nasdaq depends on a number of factors, including the price of our Common
Stock and Public Warrants and the number of persons that hold our Common Stock and Public Warrants. On May 6, 2024, the