Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 481

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 481
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 of any intellectual property rights;

    ●
    the effect of competing technological and market developments; and

    ●
    market acceptance of our platform and the functionality it provides to facilitate peer-to-peer car sharing.

If lack of available capital
prevents us from proceeding with the execution of our business plan, our ability to become profitable will be compromised and our business
will be materially affected.

90

Future sales of our securities may affect
the market price of the Common Stock and result in material dilution, including triggering the most favored nation features of our Convertible
Notes and the anti-dilution protection in the warrants issued in June 2024, November 2024 and at the First Closing. We are also in default
of various outstanding debt obligations, including under the Notes issued to ACM, and may issue shares of Common Stock or other securities
to satisfy those obligations in the future (in the case of ACM, subject to receipt of shareholder approval). The issuance of shares of
Common Stock or other securities in the future will dilute your percentage ownership interest and may also result in downward pressure
on the price of our Common Stock.

We will finance our immediate
cash needs (and expect to finance our future cash needs until we become profitable, if ever) through equity offerings, debt financings
or other third-party funding, marketing and distribution arrangements and other collaborations, strategic alliances, and licensing arrangements.
We will require substantial funding to fund our business. Investors in the Zoomcar 2023 Private Financing (“Financing Investors”)
received most favored nation exchange right provisions (the “MFN Noteholder Rights”) with respect to their convertible
notes (“Convertible Notes”), and such provisions may have survived the closing of that offering. Additionally, in June
2024 we issued warrants that contain an “alternative cashless exercise” provision which gives the warrant holder the right
to exchange the warrant on a one-for-one basis for shares of Common Stock at any time that the warrant is exercisable without any cash
payment and without regard to the then market price of the Company’s Common Stock or exercise price of the warrant, many of which
warrants have already been exercised pursuant to the “alternative cashless exercise” provision. In addition, the June Warrants,
the November Series A Warrants and the Series A Warrants issued at the First Closing include a provision that resets the warrant exercise
price with a proportionate adjustment to the number of shares underlying the warrant in the event of a reverse split of the Company’s
Common Stock