Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 138

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 138
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 our efforts
to manage cost, use of our cash effectively and improve profitability while managing our research and development programs. As on March
31, 2025, the Company’s cash position was critically deficient and critical payments to the operational and financial creditors
of the Company are not being made in the ordinary course of business, all of which raises substantial doubt about the Company’s
ability to continue as a going concern.

74

In October 2022, we entered into a Business Combination
Agreement (BCA) for merger with Innovative International Acquisition Corp. (“IOAC”) In October 2022, we entered into a note
purchase agreement with Ananda small business trust, an affiliate of the SPAC sponsor. Ananda small business trust has purchased notes
worth $10.00 million. Additionally, pursuant to signing the BCA, the Company has entered into a warrant and convertible note agreement
in February 2023 with new investors and raised a total of $21.28 million (before fees) as of August 16, 2023 (which has converted at
a discount in the deSPAC). On December 28, 2023, we completed our deSPAC transaction with IOAC and received cash of $5.77 million, assumed
liabilities amounting to $21.5 million and unsecured promissory notes of $3.26 million were also assumed.

On June 18, 2024, the Company
entered into a securities purchase agreement with certain institutional accredited investors (the “June Aegis Securities Purchase
Agreement”) pursuant to which the Company issued and sold an aggregate of $3.60 million in principal amount of notes (the “June
Notes”) and warrants to purchase up to an aggregate of 1,267,728 shares (52,966,102   shares prior to Reverse Stock Split)
shares of Company Common Stock (the “June Warrants”) for gross proceeds to the Company of $3.00 million. The June Notes are
due nine (9) months from the date of issuance,  provided that the Company is required to use the proceeds at the closing date
of one or more subsequent equity, debt or other capital raise(s) or any sale of tangible or intangible assets with net proceeds sufficient
to repay all or any portion of the amounts due under the June Notes, and bear interest at a rate of 15% per annum (up to 20% per
annum during the occurrence of an Event of