Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 869

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 869
---
 Notes are repayable in 12 months from their respective closing dates with interest
accruing at 8% per annum on the outstanding principal. As of date of filing of this 10-Q, the Company received net proceeds of $ 71,000
after adjusting deduction of legal and due diligence fees of $4,000 from the issuance and closing of the Primary Notes.  

On August 24, 2025, the Company
issued a convertible note to CFI CAPITAL LLC (“CFI”) totaling $150,000 at a discount of $15,000 (“CFI Note”).
The CFI Note is repayable in 12 months maturing on August 24, 2026 with interest accruing at 6 % per annum on the outstanding principal.
The Company received net proceeds of $130,000 after adjusting legal cost of $5000.

We believe that the current
cash and cash equivalents will allow us to continue operations through March 31, 2026 assuming we do not make any payments on our currently
outstanding indebtedness and withhold some future accruals, however  there can be no assurance that this will be the case. Accordingly,
we believe that additional funds will be required to support operations and, in the long term, 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. Our cash needs will depend on numerous factors, including our revenues, upgrade
and innovation of our peer-to-peer car sharing platform, customer and market acceptance and use of our platform, and our ability to reduce
and control costs. We expect to devote substantial capital resources to, among other things, fund operations, continued improvement, upgrading
or innovation of our platform, and expand our international outreach. If we are unable to secure such additional financing, it will have
a material adverse effect on our business, and we may not be able to meet our obligations or continue as a going concern.

Our Common Stock is quoted on an OTC Markets
Group trading platform, the OTCQB, instead of a national exchange or quotation system. Accordingly, our investors may experience