Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2208

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7A
Chunk 2208
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 year ended March 31, 2025 and March 31, 2024,
and cash used in operations was $9,076,067 for the year ended March 31, 2025. The Company’s accumulated deficit amounts to $333,173,805
(March 2024: $307,551,502). The Company has negative working capital of $26,496,105 as on March 31, 2025. In addition, the Company’s
cash position is 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.

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 Consolidated
Financial Statements are issued.

Management is evaluating plans
with respect to these adverse financial conditions that caused to express substantial doubt about the Company’s ability to
continue as a going concern. Management’s plan is to seek funding through additional debt or equity financing arrangements,
implement business initiatives to improve customer experience and incremental expense reduction measures or a combination thereof to
continue financing its operations. The Company has filed Registration Statement under Form S-1 on May 5, 2025 to raise upto $15
million. No amount has been raised against the same. Further, on June 23, 2025, the Company received a net proceed of $350,000 by way of issue of a bridge note to
certain investors totaling $402,000 at a discount of $42,000 and an issuance cost of $10,000.

While these financing arrangements
shall result in the payment of certain outstanding indebtedness, the Company will still need to raise additional capital imminently in
order to have sufficient capital. There can be no assurance that the Company will be able to achieve its business plan, raise any additional
capital or secure the additional financing necessary to implement its current operating plan.

The ability of the Company to continue as a going concern
is dependent upon its ability to increase its revenues and eventually achieve profitable operations. The accompanying Consolidated Financial
Statements do not include any adjustments that might be necessary if the Company