Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 629

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 629
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 administrative expense and a diversion
of management’s time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new
laws, regulations and standards differ from the activities intended by regulatory or governing bodies, regulatory authorities may initiate
legal proceedings against us, and our business and prospects may be harmed. As a result of disclosure of information in the filings required
of a public company and in this quarterly report, our business and financial condition will become more visible, which may result in threatened
or actual litigation, including by competitors and other third parties. If such claims are successful, our business, financial condition,
results of operations and prospects could be materially harmed, and even if the claims do not result in litigation or are resolved in
our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and materially
harm our business, financial condition, results of operations and prospects.

101

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 OTCQX have also imposed 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.

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