Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 326

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 326
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subject to full ratchet anti-dilution protection for any issuances of Company securities (other than certain excluded issuances) at a
price or effective price (as determined in accordance with the terms of the warrant, the “Dilutive Issuance Price”)
that is less than the then current exercise price of the warrants following the issuance date (a “Dilutive Issuance”).
In the event of a Dilutive Issuance, the exercise price of the warrants will be reduced to the lower of the Dilutive Issuance Price and
the lowest VWAP during the five consecutive trading days commencing after the date of the Dilutive Issuance, in each case, subject to
the Floor Price, and there will be a proportionate adjustment to the number of shares underlying the warrant. In connection with the Business
Combination, we also issued the Notes to ACM in satisfaction of certain transaction expenses associated with the Business Combination.
The Notes contain price based anti-dilution protection on the conversion price of such Notes down to a floor price of $500 per share (considering
both reverse stock splits effectuated by the Company) which has already been reached. While the Notes have already converted into the
maximum number of shares permissible under the terms of the Notes without receiving stockholder approval, we may seek stockholder approval
in the future to allow for the Notes to convert into additional shares. To the extent that we raise additional capital through the sale
of equity or convertible debt securities, your ownership interest will be diluted, anti-dilution provision may be triggered, and the terms
of the newly issued securities may include liquidation or other preferences that adversely affect your rights.

Any future adjustments to
the exercise price of the warrants (or additional issuances to make the Financing Investors whole) may have a negative impact on the
trading price of our Common Stock. Additionally, raising additional capital with new investors may be difficult as a result of anti-dilution
protection. Sales of substantial amounts of Common Stock in the public market, or the perception that such sales could occur, could materially
adversely affect the market price of the Common Stock and may make it more difficult for you to sell your securities at a time and price
which you deem appropriate.

In addition to our defaults under current
indebtedness described elsewhere here, certain of our debt financing arrangements are currently in default and we have delayed certain
other payments to lenders, which may restrict our current and future