Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 233

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 233
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STATEMENTS (UNAUDITED)

1.Organization, Business operation and Going concern (Continued)

●On August 24, 2025, the Company closed a Securities Purchase
Agreement with AES Capital Management, LLC (“AES”) in connection with purchase of convertible redeemable notes. AES purchased
for an aggregate principal amount of $75,000 with $NIL initial issue discount and disbursed sum of $71,000 (after deducting legal and
due diligence fee of $4,000). The AES Notes are repayable in 12 months from their closing dates with interest accruing at 8% per annum
on the outstanding principal. 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 with CFI CAPITAL LLC (“CFI”) in connection with purchase of convertible redeemable notes. 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.

While these financing arrangements shall
result in the payment of certain outstanding indebtedness, the Company will still need to raise additional capital imminently in order
to have sufficient capital. There can be no assurance that the Company will be able to achieve its business plan, raise any additional
capital or secure the additional financing necessary to implement its current operating plan.

The ability of the Company to continue
as a going concern is dependent upon its ability to increase its revenues and eventually achieve profitable operations. The accompanying
Condensed Consolidated Financial Statements do not include any adjustments that might be necessary if the Company is unable to continue
as a going concern.

2.Summary of Significant Accounting Policies

i.Basis of presentation

The accompanying Condensed
Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United
States of America (US GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”)
for interim reporting. As permitted under those rules