Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 463

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 4
Chunk 463
---
 to the U.S. broker-dealer and the registered representative and current quotations for the securities.
Finally, a U.S. broker-dealer is required to submit monthly statements disclosing recent price information with respect to any “penny
stock” held in a customer’s account and information with respect to the limited market in “penny stocks.”

You should be aware that, according to the SEC,
the market for “penny stocks” has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control
of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (ii) manipulation of prices
through prearranged matching of purchases and sales and false and misleading press releases; (iii) “boiler room” practices
involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed
bid-ask differentials and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers
after prices have been manipulated to a desired level, resulting in investor losses. Our management is aware of the abuses that have occurred
historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers
who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from
being established with respect to our securities.

On August 5, 2025, we received
notice from the OTCQX U.S. tier of OTC Markets Group that our Global Market Capitalization has been below the $5.0 million minimum for
more than 30 consecutive calendar days, and that we therefore no longer satisfy OTCQX continued qualification standards. We have a 90-calendar-day
cure period, expiring November 3, 2025, during which we must maintain a Global Market Capitalization of at least $5.0 million for 10 consecutive
trading days to regain compliance. We may be unable to regain or maintain compliance within the required timeframe, and any removal from
OTCQX could further reduce the liquidity and market price of our common stock and negatively affect our access to capital. Efforts to
regain compliance could require financing or other corporate actions that may be dilutive or involve other risks.

We may not regain compliance with OTCQX continued qualification
standards within the required