Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 530

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 530
---
 private company. The Sarbanes-Oxley Act, including the requirements of Section 404 of that Act, as
well as rules and regulations subsequently implemented by the SEC, the Dodd-Frank Act and the rules and regulations promulgated and to
be promulgated thereunder, the Public Company Accounting Oversight Board (“PCAOB”), the SEC and Nasdaq, impose additional
reporting and other obligations on public companies. Compliance with public company requirements has and will continue to increase our
costs and make certain activities more time-consuming. A number of those requirements require us to carry out activities that we have
not done previously. For example, we recently created new board committees and adopted new internal controls and disclosure controls and
procedures. In addition, additional expenses associated with SEC reporting requirements have and will continue to be incurred. Furthermore,
if any issues in complying with those requirements are identified (for example, if our independent registered accounting firm identifies
a material weakness or significant deficiency in the internal control over financial reporting), we could incur additional costs to remediate
those issues, and the existence of those issues could adversely affect our reputation or investor perceptions of it. Being a public company
has and may in the future make it more difficult or costly for us to obtain certain types of insurance, including director and officer
liability insurance. We may ultimately be forced to accept reduced policy limits and coverage with increased self-retention risk or incur
substantially higher costs to obtain the same or similar coverage in the future. Furthermore, if we are unable to satisfy our obligations
as a public company, we could be subject to delisting of our Common Stock, fines, sanctions and other regulatory action and potentially
civil litigation.

The additional reporting
and other obligations imposed by various rules and regulations applicable to public companies has and is expected to continue to increase
legal and financial compliance costs and the costs of related legal, auditing, accounting, and administrative activities. These increased
costs will require us to divert a significant amount of money that could otherwise be used to expand the business and achieve strategic
objectives. Advocacy efforts by shareholders and third parties may also prompt additional changes in governance and reporting requirements,
which could further increase costs.

Our current indebtedness, and to the extent
we incur indebtedness in the future, our future indebtedness could adversely affect our financial condition, our ability to raise additional
capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry