Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 380

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 380
---

liability insurance. We may ultimately be forced to accept reduced policy limits and coverage with increased self-retention risk or incur
substantially higher costs to obtain the same or similar coverage in the future. Furthermore, if we are unable to satisfy our obligations
as a public company, we could be subject to delisting of our common stock, fines, sanctions and other regulatory action and potentially
civil litigation.

53

The additional reporting
and other obligations imposed by various rules and regulations applicable to public companies has and is expected to continue to increase
legal and financial compliance costs and the costs of related legal, auditing, 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 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 of $ 25.37 million
as of March 31, 2025 (as more fully described under Item 8 Financial Statements; the Audited Consolidated Financial Statements)
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