Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 16

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 and nine months ended December 31, 2024, and cash used in operations was $5,043,721 for the nine months ended December 31, 2024.
The Company’s accumulated deficit amounts to $321,357,118 (March 2024: $307,551,501). The Company has negative working capital of
$40,754,964 as on December 31, 2024. In addition, the Company’s cash position is critically deficient and critical payments to the
operational and financial creditors of the Company are not being made in the ordinary course of business, all of which raises substantial
doubt about the Company’s ability to continue as a going concern.

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 the Condensed
Consolidated Financial Statements are issued. Management’s plans with respect to these adverse financial conditions that caused
management to express substantial doubt about the Company’s ability to continue as a going concern are as follows:

    a. On November 5, 2024, the Company entered into a securities purchase agreement in connection with a private placement offering  pursuant to which the Company raised gross proceeds of $9.15 million. After the deduction of fees, expenses payable to the Placement Agent and other offering expenses, including legal fees payable to the Company’s and Placement Agent’s counsel, the net proceeds to the Company was $7.625 million. Proceeds were also used to repay $3.804 million of outstanding indebtedness to debt investors pursuant to an offering in June 2024. After all of such deductions the Company retained net proceeds of $3.621 million. 

6

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    b. On December 23, 2024, the Company entered into a securities purchase agreement in connection with a private placement offering  pursuant to which the Company raised gross proceeds of $5.48 million and after the deduction of fees and expenses payable to the Placement Agent and other offering expenses, including legal fees payable to the Company’s and Placement Agent’s counsel, the net proceeds to the