Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 410

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 410
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 incur a material amount
of indebtedness. Our level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal
of, interest on, or other amounts due with respect to our indebtedness. Our leverage and debt service obligations could adversely impact
our business, including by:

    ●
    impairing our ability to generate cash sufficient to pay interest or principal, including periodic principal payments;

    ●
    increasing our vulnerability to general adverse economic and industry conditions;

    ●
    requiring the dedication of a portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures, dividends to stockholders or to pursue future business opportunities;

    ●
    requiring us to sell debt or equity securities, possibly on unfavorable terms, to meet payment obligations;

    ●
    limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

    ●
    placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

The Company may be subject to securities
litigation, which is expensive and could divert management’s attention. 

Following the Business Combination,
the per share price of the Common Stock has been and may continue to be volatile and, in the past, companies that have experienced volatility
in the market price of their stock have been subject to securities litigation, including class action litigation. Litigation of this type
could result in substantial costs and diversion of management’s attention and resources, which could have a material adverse effect
on our business, financial condition, and results of operations. Any adverse determination in litigation could also subject the Company
to significant liabilities.

Zoomcar has limited operating history as
a publicly traded company, and its historical financial information is not necessarily representative of the results we would have achieved
as a publicly traded company and may not be a reliable indicator of its future results. 

The historical financial
information included in this Quarterly Report on Form 10-Q from Zoomcar’s operation as a private company prior to the Business Combination
does not necessarily reflect the results of operations and financial position we would have achieved as a publicly traded company during
the periods presented, or those that we will achieve in the future. This is primarily because of the following factors:

    ●
    Prior to the Business Combination, we operated as a private company. Our historical financial information reflects allocations of corporate expenses as a private company