Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 870

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 870
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 significant
volatility in the market price of our Common Stock and have difficulty selling their shares.

Our Common Stock is currently
quoted on an OTC Markets Group trading platform, the OTCQB, under the ticker symbol “ZCAR.” The OTC Markets Group is a regulated
quotation service that displays real-time quotes, last sale prices, and volume limitations in over-the-counter securities. Trading in
shares quoted on an OTC Markets Group trading platform is often thin and characterized by volatility in trading prices. This volatility
may be caused by a variety of factors, including the lack of readily available price quotations, the absence of consistent administrative
supervision of bid and ask quotations, lower trading volume, and market conditions. As a result, there may be wide fluctuations in the
market price of the shares of our Common Stock for reasons unrelated to operating performance, and this volatility, when it occurs, may
have a negative effect on the market price for our securities. Moreover, the OTC Markets Group is not a stock exchange, and trading of
securities on one of its trading platforms is often more sporadic than the trading of securities listed on a national quotation system
or stock exchange. Accordingly, our stockholders may not be able to realize a fair price from their shares when they determine to sell
them or may have to hold them for a substantial period of time until the market for our Common Stock improves.

81

Because our Common Stock is quoted on the
OTCQB and not listed on a national exchange, U.S. broker-dealers may be discouraged from effecting transactions in shares of our Common
Stock because it may be considered a penny stock and thus be subject to the penny stock rules.

The SEC has adopted a number
of rules to regulate a “penny stock” that restricts transactions involving stock which is deemed to be a penny stock. Such
rules include Rules 3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 5g-7, and 15g-9 under the Exchange Act. These rules may have the
effect of reducing the liquidity of penny stocks. “Penny stocks” generally are equity securities with a price of less than
$5.00 per share (other than securities registered on certain national securities exchanges or traded on Nasdaq if current price and volume
information with respect to transactions in such securities is