Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 642

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 642
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 10-Q, the Company received net
proceeds of $ 71,000 after adjusting deduction of legal and due diligence fees of $4,000 from the issuance and closing of the Primary
Notes. The AES Notes are subject to a default interest at a rate of 22% per annum and include customary events of default
and covenants.

On August 24, 2025, the Company
closed a Securities Purchase Agreement (“CFI SPA”) with CFI CAPITAL LLC (“CFI”) in connection with purchase of
convertible redeemable notes. Pursuant to the CFI SPA, CFI purchased a convertible for a principal amount of $150,000 at an original issue
discount of $15,000. The note is repayable in 12 months maturing on August 24, 2026 with interest accruing at 6 % per annum on the outstanding
principal. The Company received net proceeds of $130,000 after adjusting issuance cost of $5000. This note is subject to a default penalty
amounting to increase in the principal amount by 50% and includes customary events of default and covenants.

The Company believes that
current cash and cash equivalents will allow the Company to continue operations through March 31, 2026 assuming that the Company makes
no payments on its currently outstanding indebtedness and only pays current operating accruals, however, there can be no assurance that
this will be the case. Even if our current cash position supports operations through March 31, 2026, we cannot assure that this cash will
be sufficient in the longer run and we will be required to obtain a further infusion of cash funds to support our operations or address
the indebtedness, including through this offering. The Company will still need to seek financing for the purpose of raising additional
funds to be able to meet its obligations and so that there will no longer be substantial doubt about its ability to continue as a going
concern. However, there is no assurance that the Company will be able to raise any such financing or, even if it does, that it will be
sufficient for it to meet its obligations or continue as a going concern.

The Company as on November
10, 2025 has $0.41 million of cash and cash equivalents.

Accordingly, we believe that
additional funds will be imminently required to support current operations and, in the long term, the growth of our business. Our operations
have consumed substantial amounts of