Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 598

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 598
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 our other lenders with regards to the scheduled loan payments from November 2023 onwards and extending
up to January 2025. However, we have not received any formal notice of default from these other lenders, but such lenders have not formally
extended or provided waivers of such overdue payments. While the Company is actively engaging in discussions with its lenders and vendors
to restructure the existing indebtedness by means of haircuts and deferment of payment timelines, no assurance can be made that the Company
will be successful in restructuring these outstanding liabilities.

As a result of the foregoing,
the Company is at material risk that the above parties including certain vendors could initiate insolvency proceedings under Indian Insolvency
and Bankruptcy Code 2016 (IBC). As per the provisions of IBC, an operational creditor can initiate an insolvency resolution process against
the Company where the minimum amount of the default is INR 1,00,00,000 (Rupees One crore) or ~USD 119,000. If insolvency proceedings
were initiated and the petition is admitted, it could result in significant disruptions to our operations, loss of management control,
and a substantial decrease in stockholder value. Furthermore, the outcomes of such proceedings are uncertain and could materially
affect our financial position and results of operations.

The Zoomcar Board and Zoomcar
management are evaluating options to improve liquidity and address Zoomcar’s long-term capital structure, however, there can
be no assurance that any such option or plan will be available on favorable terms, or at all.

We have issued a significant number of options
and warrants and exercise of these securities and the sale of the shares of Common Stock issuable thereunder (along with the issuance
of any similar securities in the future,) will dilute your percentage ownership interest and may also result in downward pressure on the
price of our Common Stock.

As of December 31, 2024,
we have issued and outstanding options to purchase 205 shares of our  Common Stock with a weighted average exercise price of $573,
pre-funded warrants to purchase 425,000 shares of Common Stock at an exercise price of $0.0001 per share, warrants to purchase  380,011
shares of Common Stock with an exercise price of $300 per share which were assumed by the Company in connection with the Business Combination,
11,500,000 Public Warrants to purchase 115,000 shares of our Common Stock, each Public Warrant exercisable into one hundredth of