Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 709

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 709
---
 damages. We may therefore
be subject to claims of significant liability based on any of the foregoing or based on other events or circumstances which occur during
a booking or relate in some other manner to our platform or our business. We do not maintain balance sheet reserves to cover costs of
defending, disputing, adjudicating, satisfying, or settling any such claims if they are asserted against us and we may not be able to
succeed in any such actions, should they materialize and be determined to result in liability to us. While we are currently in the process
of identifying adequate and feasible insurance coverage for our business, there can be no guarantee that we will be able to obtain or
expand the insurance coverage in the future, and even if we are able to obtain additional coverage, we may not carry sufficient insurance
coverage to satisfy potential claims. As our business continues to grow, incidences of such claims may also increase and, unless we obtain
insurance coverage for such matters, we may choose or be required to absorb larger parts of such uninsured claims to avoid becoming subject
to legal proceedings that could be resolved against us, which could lead to business losses and adversely affect our business, financial
conditions and results of operations. Should uninsured losses occur, they could adversely affect our business, results of operations and
financial condition. Further, our being subject to claims of liability, we may be subject to negative publicity and incur additional expenses,
which could harm our business, financial condition, and operating results.

89

We are in the process of remediating identified material
weaknesses in our internal controls and if we fail to remediate these weaknesses, or if we experience additional material weaknesses in
the future, or otherwise fail to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act, we may
not be able to accurately or timely report our financial condition or results of operations, or comply with the accounting and reporting
requirements applicable to public companies, which may adversely affect investor confidence in the Company and the market price of our
stock. 

Zoomcar has identified certain material weaknesses
in Zoomcar’s internal controls over financial reporting as more particularly described under Item 4 Controls and Procedures described
elsewhere in this Quarterly Report on Form 10-Q. These material weaknesses have been recurring from prior reporting periods and remain
unresolved as of the date of this filing. Based on the assessment performed as of March 31, 2025, we identified five material weaknesses
in