Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 534

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 534
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centive Plan or otherwise will dilute all other stockholders.

We expect to issue additional
capital stock in the future that will result in dilution to all other stockholders. We expect to grant equity awards to employees, directors
and consultants under the Incentive Plan. We may also raise capital through equity financing in the future. As part of our business strategy,
we may acquire or make investments in complementary companies, products or technologies and issue equity securities to pay for any such
acquisition or investment. Any such issuances of additional capital stock may cause stockholders to experience significant dilution of
their ownership interests and the per share value of our Common Stock to decline.

There can be no assurance that we will continue
to be able to comply with the continued listing standards of Nasdaq.

Our continued eligibility
to maintain the listing of our Common Stock and Public Warrants on Nasdaq depends on a number of factors, including the price of our Common
Stock and Public Warrants and the number of persons that hold our Common Stock and Public Warrants. On May 6, 2024, the Company received
two letters from the Nasdaq staff indicating that the Company no longer complies with (i) Listing Rule 5450(b)(2)(A) as it relates to
the requirement to maintain a minimum market value of listed securities of $50,000,000 and (ii) Listing Rule 5450(a)(1) as it relates
to the requirement to maintain minimum bid price of $1 per share. Further to this, on November 8, 2024, the Company received a notice
from NASDAQ stating that, since the closing bid price over the 12 consecutive days between October 22, 2024, and November 6, 2024, has
been $1.00 per share or greater, the Company is now in compliance with Listing Rule 5550(a)(2) and, hence, has resolved this matter.

However, the market value
of listed securities of the Company did not close at $50,000,000 or more for ten consecutive business days prior to November 4, 2024.
The Company failed to regain the compliance with the minimum market value requirement within the stipulated timeframe and thus, it received
a staff delist determination letter from the Nasdaq Listing Qualifications Department on November 6, 2024, for its failure under the MVLS
standard. The Company submitted a request for a hearing on November 13,