Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 313

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 313
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, redeeming or repurchasing any equity
interests of the Company, declaring any dividends 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 Unaudited
Condensed Consolidated Financial Statements were issued. The Company underwent various rounds of financing as described in the “Financing
Arrangements” section (see Management’s Discussion and Analysis of Financial Condition and Results of Operations of this
form 10-Q), which resulted in the payment of certain outstanding indebtedness, the Company will still need to raise 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 September 30, 2025, assuming that the Company does not make payment towards 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 any liquidity requirements arise in the future.

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. No adjustments have been made to the financial statements based on this uncertainty.

64

Financing Arrangements

We have financed our operations
through revenue generated from sales, borrowings, and issuance of Common Stock, preferred stock, senior