Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 1049

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 1049
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our business, which could harm our business, results of operations, and financial condition.

We may be exposed to risk if we cannot enhance,
maintain, and adhere to our internal controls and procedures.

As a public company trading
on OTCQB, we have significant requirements for enhanced financial reporting and internal controls. The process of designing and implementing
effective internal controls is a continuous effort that will require us to anticipate and react to changes in our business accounting,
auditing and regulatory requirements and to expend significant resources to maintain a system of internal controls that is adequate to
satisfy our reporting obligations as a public company, and we are still early in the process of generating a mature system of internal
controls and integration across business systems. If we are unable to establish or maintain appropriate internal financial reporting
controls and procedures, it could cause us to fail to meet our reporting obligations on a timely basis, result in material misstatements
in our financial statements, and harm our operating results.

Matters impacting our internal
controls may cause us to be unable to report our financial information in an accurate manner or on a timely basis and thereby subject
us to adverse regulatory consequences, including sanctions by the SEC or violations of OTCQB Rules. There also could be a negative reaction
in the financial markets due to a loss of investor confidence in us and the reliability of our financial statements. Confidence in the
reliability of our financial statements could also suffer if we or our independent registered public accounting firm continue to report
a material weakness in our internal controls over financial reporting. This could materially adversely affect us and lead to a decline
in the market price of our Common Stock.

As a public company, we have incurred and
expect to continue to incur increased expenses associated with the costs of being a public company.

We have and expect to continue
to face a significant increase in insurance, legal, auditing, accounting, administrative and other costs, and expenses as a public company
that we did not currently incur as a 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 OTCQB, 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