Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 136

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 136
---
, and negatively affect the results of our operations. Our business is becoming increasingly complex, and this complexity and
our rapid growth have demanded, and will continue to demand, substantial resources and attention from our management.

Further, to accommodate our
expected growth, we must improve and maintain our platform, technology, systems, and network infrastructure. Failure to effectively upgrade
our technology or network infrastructure to support the expected increased traffic on our platform could result in unanticipated system
disruptions, slow response times, or poor experiences for Hosts and Guests. To manage the expected growth of our operations and to support
financial reporting requirements, we will need to improve our transaction processing and reporting, operational and financial systems
and reporting, procedures, and controls. These improvements will be particularly challenging to realize if we acquire new operations with
different systems or if we continue to rely on manual financial reporting practices. Our current and planned personnel, systems, procedures,
and controls may not be adequate to support our future operations. If we are unable to expand our operations, improve our financial reporting
processes, and hire additional qualified personnel in an efficient manner, it could adversely affect our business, customer and investor
satisfaction, compliance with regulations and laws, and cause our expenses to grow disproportionately relative to our revenue, and our
financial performance and future prospects will be adversely affected.

Breaches and other
types of security incidents of our networks or systems similar to the recent Cybersecurity Incident, or those of our third-party service
providers, could negatively impact our business, our brand and reputation, our ability to retain existing Hosts and Guests and attract
new Hosts and Guests, may cause us to incur significant liabilities and adversely affect our business, results of operations, financial
condition, and future prospects. 

In the regular course of
our business, we collect, use, store, transmit, and process data and information about Hosts, Guests, employees, and others, some of which
may be sensitive, personal, or confidential and make us an attractive target and potentially vulnerable to cyberattacks, computer viruses,
electronic break-ins or similar disruptions. Recently on June 9, 2025, the Company identified a Cybersecurity Incident involving unauthorized
access to its information systems. The Company became aware of the incident after certain employees received external communications from
a threat actor alleging unauthorized access to Company data. Upon discovery, the Company promptly activated its incident response plan.
Although based on its initial assessment the Company determined that an unauthorized third party accessed a limited dataset containing