Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 570

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 570
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 maintain compliance within the
cure period, if at all.

If the Company does not regain compliance within the cure period, its securities could be removed from OTCQX and may trade on a less
liquid market tier or otherwise experience reduced liquidity. Any such outcome could, among other things: (i) further depress the market
price and increase the volatility of our common stock; (ii) limit or preclude the ability of certain brokers to make a market in, or
of certain institutional investors to purchase or hold, our securities; (iii) reduce analyst coverage and overall investor interest;
(iv) impair our ability to raise additional capital on acceptable terms or at all; and (v) adversely affect the terms of any financing
or strategic transactions we may seek.
In an effort to regain or maintain compliance, the Company may consider and pursue one or more corporate or financing actions—such
as equity or equity-linked issuances, strategic transactions, or other measures—which could be dilutive to existing stockholders,
increase our leverage, or otherwise involve significant costs and risks. Even if the Company regains compliance, it may be unable to
sustain it, and any future failure could have the same adverse effects.

We require additional capital to support
current operations and will require additional capital to support the growth of our business, which may not be available on terms acceptable
to us, or at all. 

To continue current operations, we will need to
raise capital imminently. Further, to continue to effectively compete thereafter, we will require additional funds to support the growth
of our business. Our operations have consumed substantial amounts of 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. Because of our limited resources the company
was not able to expand to emerging markets outside of India and in fact, discontinued operations in Vietnam during June 2023 and subsequently
in Egypt, Indonesia during June 2024 as a result.

70

Further, as a result of the consummation of the
Business Combination, our expenses have increased substantially in connection with actions and efforts required to operate as a public
company. During the three months ended June 30,