Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1181

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 4
Chunk 1181
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 cash, and we have incurred operating losses since
we began operating in 2013. While our cash consumption has been reduced following our business transition from short-term rental of vehicles
owned by or leased to Zoomcar to an online platform for peer-to-peer car sharing, we have consumed significant amounts of cash in effecting
such transition in terms of technology and platform innovation, and our cash consumption has varied over time.

89

Further, as a result of the
consummation of the Business Combination, our expenses continue to increase substantially in connection with the actions and efforts we
need to take for operating as a public company. Moreover, we expect our expenses to increase significantly in connection with our ongoing
activities, including the continuing increase in our technological capabilities with respect to IoT, machine learning, and artificial
intelligence. We do not currently have sufficient cash resources to operate our business beyond December 2025(assuming that we do not
repay our outstanding indebtedness) and accordingly, will need to raise capital imminently to continue our operations and to fully execute
our business plan. Additionally, circumstances could cause us to consume capital more rapidly than we currently anticipate and if our
cash resources are insufficient to satisfy our cash requirements, we may seek to issue additional equity or debt securities or obtain
new or expanded credit facilities or identify and secure additional sources of capital. Our ability to obtain external financing in the
future is subject to a variety of uncertainties, including our future financial condition, results of operations, cash flows, share price
performance, liquidity of capital and lending markets and governmental regulations in India. In addition, incurring indebtedness would
subject us to increased debt service obligations and could result in operating and financing covenants that would restrict our operations.
There can be no assurance that financing will be available in a timely manner or in amounts or on terms acceptable to us, or at all. Any
failure to raise needed funds on terms favorable to us, or at all, will severely restrict our liquidity as well as have a material adverse
effect on our business, financial condition, and results of operations. In addition, any issuance of equity or equity-linked securities
could result in significant dilution to our existing shareholders. Additionally, fundraising efforts may divert our management from its
day-to-day duties and activities, which may affect our ability to execute our business plan. If we do not raise additional capital imminently
to continue operations in the short term or otherwise when required or in sufficient amounts and on acceptable terms, we may