Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 188

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 188
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manage our transition to being a public company, which will subject us to significant regulatory oversight and reporting obligations under
the federal securities laws and the continuous scrutiny of securities analysts, investors, and regulators. These new obligations and constituents
will require significant attention from our senior management and could divert their attention away from the day-to-day management of
our business, which could harm our business, results of operations, and financial condition.

We are an Emerging Growth Company, making
comparisons to non-Emerging Growth companies difficult or impossible.

We are an Emerging Growth
Company (“EGC”) as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups
Act of 2012 (the “JOBS Act”), and we have taken and expect to continue to take advantage of certain exemptions from
various reporting requirements that are applicable to other public companies that are not EGCs including, but not limited to, not being
required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations
regarding executive compensation in our periodic reports, registrations statements and proxy statements, and exemptions from the requirements
of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously
approved. Further, Section 102(b)(1) of the JOBS Act exempts EGCs from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not
have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards.
This exemption may make comparison of our financial statements with other public companies that are neither EGCs nor EGCs that have opted
out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

We may be exposed to risk if we cannot enhance,
maintain, and adhere to our internal controls and procedures.

As a public company trading
on Nasdaq, we have significant requirements for enhanced financial reporting and internal controls. The process of designing and implementing
effective internal controls is a continuous effort that will require us to anticipate and react to changes in our business accounting,
auditing and regulatory requirements and to expend significant resources to maintain a system of internal controls that is adequate to
satisfy our reporting obligations as a public company, and we are still early in the process