Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 689

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 689
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 resolve them, could divert the resources of our management
and materially harm our business, financial condition, results of operations and prospects.

We may have increasing difficulty attracting
and retaining qualified outside independent board members.

The directors and management
of publicly traded corporations are increasingly concerned with the extent of their personal exposure to lawsuits and shareholder claims,
as well as governmental and creditor claims that may be made against them in connection with their positions with publicly held companies.
Outside directors are becoming increasingly concerned with the availability of directors’ and officers’ liability insurance
to pay on a timely basis the costs incurred in defending shareholder claims. Directors’ and officers’ liability insurance
is expensive and difficult to obtain. The SEC and the OTC Markets including the OTCQB Rules also impose higher independence standards and certain special
requirements on directors of public companies. Accordingly, it may become increasingly difficult to attract and retain qualified outside
directors to serve on our Board.

Stock trading volatility could impact our
ability to recruit and retain employees.

Volatility or lack of appreciation
in our stock price may also affect our ability to attract and retain our key employees. Employees may be more likely to leave us if the
shares they own or the shares underlying their vested equity have not significantly appreciated in value relative to the original purchase
price of the shares or the exercise price of the options, or conversely, if the exercise price of the options that they hold are significantly
above the market price of our Common Stock. If we are unable to retain our employees, or if we need to increase our compensation expenses
to retain our employees, our business, operating results, and financial condition could be adversely affected.

111

Members of our management team have limited
or no prior experience managing a public company.

Except a few, most of the
members of our senior management team have no experience managing a publicly traded company, interacting with public company investors,
and complying with the increasingly complex laws pertaining to public companies. Our management team may not successfully or efficiently
manage our transition to being a public company, which will subject us to significant regulatory oversight and reporting obligations under
the federal securities laws and the continuous scrutiny of securities analysts, investors, and regulators. These new obligations and constituents
will require significant attention from our senior management and could divert their attention away from the day-to-day management of
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