Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 98

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 98
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, accounting and administrative activities. These increased costs will require us to divert a significant
amount of money that could otherwise be used to expand the business and achieve strategic objectives. Advocacy efforts by shareholders
and third parties may also prompt additional changes in governance and reporting requirements, which could further increase costs.

Our current indebtedness (which includes vendor payables), and to the extent we incur indebtedness and additional payables in the future, our future indebtedness could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and our ability to pay our debts and could divert our cash flow from operations for debt payments.

We are in default of a majority
of our indebtedness (which includes vendor payables) of $33.55 million as of December 31, 2024 as more fully described in the Condensed
Consolidated Financial Statements (Unaudited) under the 10 Q filed with the SEC on February 14, 2025, which has had and will continue
to have an adverse effect on our financial condition, our ability to raise additional capital to fund our operations, and our ability
to operate our business. Further, in the future, we may continue to incur a material amount of indebtedness. Our level of indebtedness
increases the possibility that we may be unable to generate cash sufficient to pay the principal of, interest on, or other amounts due
with respect to our indebtedness. Our leverage and debt service obligations could adversely impact our business, including by:

| ● | impairing our ability to generate cash sufficient to pay interest or principal, including periodic principal payments; |

| ● | increasing our vulnerability to general adverse economic and industry conditions; |

| ● | requiring the dedication of a portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures, dividends to stockholders or to pursue future business opportunities; |

| ● | requiring us to sell debt or equity securities, possibly on unfavorable terms, to meet payment obligations; |

| ● | limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and |

| ● | placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources. |

Any of the foregoing factors
could have negative consequences on our financial condition and results of operations.