Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 376

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 376
---
 reporting practices. Our current and planned personnel, systems, procedures,
and controls may not be adequate to support our future operations. If we are unable to expand our operations, improve our financial reporting
processes, and hire additional qualified personnel in an efficient manner, it could adversely affect our business, customer and investor
satisfaction, compliance with regulations and laws, and cause our expenses to grow disproportionately relative to our revenue, and our
financial performance and future prospects will be adversely affected.

Breaches and other types of security incidents
of our networks or systems similar to the recent Cybersecurity Incident, or those of our third-party service providers, could negatively
impact our business, our brand and reputation, our ability to retain existing Hosts and Guests and attract new Hosts and Guests, may cause
us to incur significant liabilities and adversely affect our business, results of operations, financial condition, and future prospects.

In the regular course of
our business, we collect, use, store, transmit, and process data and information about Hosts, Guests, employees, and others, some of which
may be sensitive, personal, or confidential and make us an attractive target and potentially vulnerable to cyberattacks, computer viruses,
electronic break-ins or similar disruptions. Recently on June 9, 2025, the Company identified a Cybersecurity Incident involving unauthorized
access to its information systems. The Company became aware of the incident after certain employees received external communications from
a threat actor alleging unauthorized access to Company data. Upon discovery, the Company promptly activated its incident response plan.
Although based on its initial assessment the Company determined that an unauthorized third party accessed a limited dataset containing
certain personal information of a subset of approximately 8.4 million users, including names, phone numbers, car registration numbers,
personal addresses and email addresses associated with such users, it found no evidence to suggest that financial information, plaintext
passwords, or other sensitive identifiers were compromised. To date, the incident has not resulted in any material disruption to the Company’s
operations.

Accordingly, any such unauthorized
access to or use of such data and information, or breach of our security measures or those of our third-party service providers, could
adversely affect our business, operations, and future prospects. While we have taken steps to mitigate our cyberattack risks and protect
the confidential information that we have access to, including but not limited to installation and periodical updates of antivirus software
and backup of information on our computer systems, our security measures may be vulnerable to