Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 834

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1C
Chunk 834
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 or distributions, changing the Company’s business, entering into any
related party transactions or issuing any securities that would cause a breach or default of the June Notes. The June Notes also contain
certain affirmative covenants, including, but not limited to, maintaining good standing, maintaining the Company’s property and
intellectual property, maintaining current insurance policies and providing prompt notice in the event of an Event of Default or the
commencement of voluntary bankruptcy or liquidation proceedings.

Our future capital requirements
will depend on many factors, including, but not limited to, our growth, our ability to attract and retain Hosts and Guests, and the scope
of future sales and marketing activities.

The Company expects to continue to incur net losses and have significant
cash outflows from operating activities for at least the next 12 months. Management has evaluated the significance of the conditions described
above in relation to the Company’s ability to meet its obligations and concluded that, without additional funding, the Company will
not have sufficient funds to meet its obligations within one year from the date of the audited Consolidated Financial Statements were
issued. On November 5, 2024, the Company had entered into a private placement transaction for gross proceeds of $9.15 million (before
deduction of fees to the placement agent and other offering expenses). On November 7, 2024, the Company closed on private placement financing
pursuant to which it raised gross proceeds of approximately $9.15 million. After the deduction of commissions and expenses, the Company
received net proceeds of approximately $7.625 million and used $3.804 million of such net proceeds to repay the outstanding principal
balance and accrued interest on outstanding indebtedness relating to financing from institutional investors in June 2024. There was also
a holdback of $0.2 million for indemnification of the placement agent in the financing, leaving proceeds of approximately $3.621 million
to the Company. While this financing resulted in the payment of certain outstanding indebtedness, the Company will still need to raise
substantial additional capital imminently in order to have sufficient capital. The Company believes that current cash and cash equivalents
will allow the Company to continue operations through July 31, 2025, assuming that the Company makes part payments on its currently outstanding
indebtedness and future accruals. The Company was advised by its largest investor and director that he would no longer commit to continuing
his support to the Company in the event that