Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 752

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 4
Chunk 752
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on August 5, 2025, we had received a written notice from the OTCQX U.S. tier of OTC Markets Group stating that our Global Market Capitalization
has remained below the minimum $5.0 million required under Section 2.1(B) of the OTCQX Rules for U.S. Companies for more than 30 consecutive
calendar days and, as a result, we no longer satisfy the OTCQX standards for continued qualification. Under those rules, we have a 90-calendar-day
cure period, expiring on November 3, 2025, to regain compliance by maintaining a Global Market Capitalization of at least $5.0 million
for 10 consecutive trading days. Following receipt of the notice
and after evaluating available alternatives, the Company elected to transition its quotation to the OTCQB tier of OTC Markets Group (“OTCQB”).

On November 4, 2025, the
Company’s ordinary shares commenced trading on the OTCQB under the ticker symbol “ZCAR.” The transition from the OTCQX
to the OTCQB does not affect the Company’s reporting obligations under the Securities Exchange Act of 1934, as amended, or the public
trading of its securities in the United States. 

If the Company fails to comply with the OTCQB Rules its securities
could be removed from OTCQB and may trade on a less liquid market tier or otherwise experience reduced liquidity. Any such outcome could,
among other things: (i) further depress the market price and increase the volatility of our common stock; (ii) limit or preclude the ability
of certain brokers to make a market in, or of certain institutional investors to purchase or hold, our securities; (iii) reduce analyst
coverage and overall investor interest; (iv) impair our ability to raise additional capital on acceptable terms or at all; and (v) adversely
affect the terms of any financing or strategic transactions we may seek. In an effort to regain or maintain compliance, the Company may
consider and pursue one or more corporate or financing actions—such as equity or equity-linked issuances, strategic transactions,
or other measures—which could be dilutive to existing stockholders, increase our leverage, or otherwise involve significant costs
and risks. Even if the Company regains compliance, it may be unable to sustain it, and any future failure could have the same adverse
effects.

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We require additional capital to support