Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 366

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 366
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 each of the Offerings (which will trigger an adjustment of the Series A
Warrants down to the Floor Price as well) and in the future may be adjusted down to their respective Floor Prices if lower than the Floor
Price in this Offering. The exercise price of Series A Warrants issued at the First Closing would be similarly reduced in the event of
any subsequent Variable Rate Transaction, subject to the $0.312 Floor Price.

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, which are presently in default (and are the subject of a demand letter sent by the ACM to the Company for immediate payment
and a notice of motion for summary judgement as described in more detail herein), contain price based anti-dilution protection on the
conversion price of such Notes down to a floor price of $25 per share which has already been reached. Additionally, while the holder of
the Notes is unable to convert any additional amounts under the Notes since the Notes have already been 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, the MFN Noteholder Rights and 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 the MFN Noteholder
Rights and 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.

91

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 business and operations.

Since November 2023, we are
in violation of our scheduled