Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 73

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 less meaningful.

We believe that adjusted
EBITDA provides useful information to investors and others in understanding and evaluating the results of our operations, as well as provides
a useful measure for period-to-period comparisons of our business performance. Moreover, we have included adjusted EBITDA because it is
a key measurement used by our management internally to make operating decisions, including those related to analyzing operating expenses,
evaluating performance, and performing strategic planning and annual budgeting.

Our adjusted EBITDA loss
has reduced to $1.73 million during the three months ended on June 30, 2025, as compared to an adjusted EBITDA loss of $3.26 million during
the three months ended on June 30, 2024.

This improvement is a result
of broad-based cost reduction and optimization initiatives that reduced our cost of revenue, technology and development costs, sales and
marketing costs, and general and administrative costs (as described above) during the three months ended on June 30, 2025, as compared
to the same period in 2024. 

Adjusted EBITDA has limitations as a financial measure, should be considered
as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. These
limitations include the following:

●Adjusted
EBITDA does not reflect other (income)/expense, net, which includes interest income on cash, cash equivalents, restricted cash and
investments, net of interest expense, and gains and losses on foreign currency transactions and balances;

●Adjusted
EBITDA excludes certain recurring non-cash charges, such as depreciation of property and equipment and amortization of intangible assets;
although these are non-cash charges, the assets being depreciated and amortized may need to be replaced in the future, and adjusted EBITDA
does not reflect all cash requirements for such replacements or for new capital expenditure requirements;

●Adjusted
EBITDA excludes stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a recurring expense
in our business and an important part of our compensation strategy: and

●Adjusted
EBITDA excludes all finance charges.

Because of these limitations,
you should consider adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results.

The following is a reconciliation
of adjusted EBITDA to the most comparable GAAP measure, Net (Loss) / Income:

    For the Three Months Ended June