Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 528

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 528
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 expensive and difficult to obtain. 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.

Except a few, most of the
members of our senior management team have no experience managing a publicly traded company, interacting with public company investors,
and complying with the increasingly complex laws pertaining to public companies. Our management team may not successfully or efficiently
manage our transition to being a public company, which will subject us to significant regulatory oversight and reporting obligations under
the federal securities laws and the continuous scrutiny of securities analysts, investors, and regulators. These new obligations and constituents
will require significant attention from our senior management and could divert their attention away from the day-to-day management of
our business, which could harm our business, results of operations, and financial condition.

We are an Emerging Growth Company, making
comparisons to non-Emerging Growth companies difficult or impossible.

We are an Emerging Growth
Company (“EGC”) as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups
Act of 2012 (the “JOBS Act”), and we have taken and expect to continue to take advantage of certain exemptions from
various reporting requirements that are applicable to other public companies that are not EGCs including, but not limited to, not being
required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations
regarding executive compensation in our periodic reports, registrations statements and proxy statements, and exemptions from the requirements
of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously
approved. Further,