Company: ZCARW
Filing Date: 2025-03-04
Form Type: S-1
Source: 0001213900-25-020176
Chunk: 86

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-04
Form: S-1
Chunk 86
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 ability to pay our debts and could divert our cash flow from operations for debt payments. We are in default of a majority of our indebtedness (which includes vendor payables) of $33.55 million as of December 31, 2024 as more fully described in the Condensed Consolidated Financial Statements (Unaudited) under the 10 Q filed with the SEC on February 14, 2025, which has had and will continue to have an adverse effect on our financial condition, our ability to raise additional capital to fund our operations, and our ability to operate our business. Further, in the future, we may continue to incur a material amount of indebtedness. Our level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal of, interest on, or other amounts due with respect to our indebtedness. Our leverage and debt service obligations could adversely impact our business, including by:

| ● | impairing our ability to generate                                                    
 cash sufficient to pay interest or principal, including periodic principal payments; |

| ● | increasing our vulnerability to                   
 general adverse economic and industry conditions; |

| ● | requiring the dedication of a portion                                                                                                      
 of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including 
 capital expenditures, dividends to stockholders or to pursue future business opportunities;                                                |

| ● | requiring us to sell debt or equity                                     
 securities, possibly on unfavorable terms, to meet payment obligations; |

| ● | limiting our flexibility in planning                                                     
 for, or reacting to, changes in our business and the industries in which we compete; and |

| ● | placing us at a possible competitive                                                                           
 disadvantage with less leveraged competitors and competitors that may have better access to capital resources. |

Any of the foregoing factors could have negative consequences on our financial condition and results of operations. Zoomcar has limited operating history as a publicly traded company, and its historical financial information prior to completion of the Business Combination is not necessarily representative of the results we would have achieved as a publicly traded company and may not be a reliable indicator of its future results. The historical financial information included in Zoomcar’s public filings relating to its operation as a private company prior to the Business Combination does not necessarily reflect the results of operations and financial position we would have achieved as a publicly traded company during the periods presented, or those that we will achieve in the future. This is primarily because of the following factors:

| ● | Prior to