Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 991

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 991
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 of generating a mature system of internal
controls and integration across business systems. If we are unable to establish or maintain appropriate internal financial reporting controls
and procedures, it could cause us to fail to meet our reporting obligations on a timely basis, result in material misstatements in our
financial statements, and harm our operating results.

115

Matters impacting our internal
controls may cause us to be unable to report our financial information in an accurate manner or on a timely basis and thereby subject
us to adverse regulatory consequences, including sanctions by the SEC or violations of Nasdaq rules. There also could be a negative reaction
in the financial markets due to a loss of investor confidence in us and the reliability of our financial statements. Confidence in the
reliability of our financial statements could also suffer if we or our independent registered public accounting firm continue to report
a material weakness in our internal controls over financial reporting. This could materially adversely affect us and lead to a decline
in the market price of our Common Stock.

As a public company, we have incurred and
expect to continue to incur increased expenses associated with the costs of being a public company.

We have and expect to continue
to face a significant increase in insurance, legal, auditing, accounting, administrative and other costs, and expenses as a public company
that we did not currently incur as a private company. The Sarbanes-Oxley Act, including the requirements of Section 404 of that Act, as
well as rules and regulations subsequently implemented by the SEC, the Dodd-Frank Act and the rules and regulations promulgated and to
be promulgated thereunder, the Public Company Accounting Oversight Board (“PCAOB”), the SEC and Nasdaq, impose additional
reporting and other obligations on public companies. Compliance with public company requirements has and will continue to increase our
costs and make certain activities more time-consuming. A number of those requirements require us to carry out activities that we have
not done previously. For example, we recently created new board committees and adopted new internal controls and disclosure controls and
procedures. In addition, additional expenses associated with SEC reporting requirements have and will continue to be incurred. Furthermore,
if any issues in complying with those requirements are identified (for example, if our independent registered accounting firm identifies
a material weakness or significant deficiency in the internal control over financial reporting), we could incur additional costs to remediate
those issues, and the existence of those issues could adversely affect our reputation or investor perceptions of it. Being a public