Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 213

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 213
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 15% per annum (up to 20% per
annum during the occurrence of an Event of Default). The June Notes are also subject to optional redemption at the option of the Note
Holder in the event of a change of control or upon occurrence of an Event of Default (in which case the June Notes are redeemable at a
premium of 125% of the amount due thereunder). The June Notes contain certain negative covenants including, but not limited to, a
prohibition on incurring indebtedness (other than certain permitted indebtedness) or allowing or suffering to exist any liens or encumbrances
(other than permitted liens), repaying or redeeming any outstanding indebtedness other than the June Notes, redeeming or repurchasing
any equity interests of the Company, declaring any dividends or distributions, changing the Company’s business, entering into any
related party transactions or issuing any securities that would cause a breach or default of the June Notes. The June Notes also contain
certain affirmative covenants, including, but not limited to, maintaining good standing, maintaining the Company’s property and
intellectual property, maintaining current insurance policies and providing prompt notice in the event of an Event of Default or the commencement
of voluntary bankruptcy or liquidation proceedings.

Our future capital requirements
will depend on many factors, including, but not limited to, our growth, our ability to attract and retain Hosts and Guests, and the scope
of future sales and marketing activities.

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 of the Unaudited
Condensed Consolidated Financial Statements were issued. The Company underwent various rounds of financing as described in the “Financing
Arrangements” section (see Management’s Discussion and Analysis of Financial Condition and Results of Operations of this
form 10-Q), which resulted in the payment of certain outstanding indebtedness, the Company will still need to raise additional capital
imminently in order to have sufficient capital. The Company believes that current cash and cash equivalents will allow the Company to
continue operations through September 30, 2025, assuming that the Company does not make payment towards its currently outstanding indebtedness
and