Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 887

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 887
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 chat support to
users, (2) repair and maintenance expenses of vehicles, (3) payment gateway charges, (4) depreciation of devices for keyless entry system
and GPS which are installed in the vehicles of Hosts, (5) software support and maintenance, and (6) other direct expenses. We expect that
the cost of revenue will continue to increase on an absolute dollar basis for the foreseeable future to the extent that we continue to
see growth on the platform. However, cost of revenue may vary as a percentage of revenue from period to period based on activity on the
platform.

Technology and Development

Technology and development
expenses primarily consist of personnel-related compensation expenses for technology, product, and engineering teams, as well as expenses
associated with our information technology and data science platforms. We expect that our technology and development expenses will increase
on an absolute dollar basis but vary from period to period as a percentage of net revenue for the foreseeable future as we continue to
invest in technology and development activities relating to ongoing improvements to and maintenance of our platform, including the potential
hiring of additional personnel to support these efforts.

Sales and Marketing

Sales and marketing expenses
primarily consist of online marketing expenses, marketing promotion expense, marketing partnerships with third parties, sales and marketing
personnel compensation expenses and certain incentives and referral bonuses paid to Hosts (reflecting the portion of incentive costs not
adjusted against net revenue). Sales and marketing expenses also include allocated overhead. We expect that our sales and marketing expenses
will increase on an absolute dollar basis but vary from period to period as a percentage of net revenue for the foreseeable future.

General and Administrative

General and administrative
expenses primarily consist of personnel-related expenses for executive management and administrative functions, including finance and
accounting, legal, and human resources. General and administrative expenses also include certain travel expenses, professional service
fees, including legal expenses, rent expenses, office expenses, repairs and maintenance of office equipment and furniture, directors’
and officers’ insurance and other expenses. We further expect to continue incurring general and administrative expenses of operating
as a public company, including expenses for insurance, costs to comply with the rules and regulations applicable to companies listed on
a Nasdaq, costs related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, investor relations,
and professional services expenses. We expect general and administrative expenses will reduce on absolute dollar basis owing to our efforts
to manage costs.

56

Finance Costs

Finance costs consist primarily
of