Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 378

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 378
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 liability insurance
is expensive and difficult to obtain. The SEC and OTCQX have also imposed higher independence standards and certain special requirements
on directors of public companies. Accordingly, it may become increasingly difficult to attract and retain qualified outside directors
to serve on our Board.

Stock trading volatility could impact our
ability to recruit and retain employees.

Volatility or lack of appreciation
in our stock price may also affect our ability to attract and retain our key employees. Employees may be more likely to leave us if the
shares they own or the shares underlying their vested equity have not significantly appreciated in value relative to the original purchase
price of the shares or the exercise price of the options, or conversely, if the exercise price of the options that they hold are significantly
above the market price of our common stock. If we are unable to retain our employees, or if we need to increase our compensation expenses
to retain our employees, our business, operating results, and financial condition could be adversely affected.

52

Members of our management team have limited
or no prior experience managing a public company.

Except a few, most of the
members of our senior management team have no experience managing a publicly traded company, interacting with public company investors,
and complying with the increasingly complex laws pertaining to public companies. Our management team may not successfully or efficiently
manage our transition to being a public company, which will subject us to significant regulatory oversight and reporting obligations
under the federal securities laws and the continuous scrutiny of securities analysts, investors and regulators. These new obligations
and constituents will require significant attention from our senior management and could divert their attention away from the day-to-day
management of our business, which could harm our business, results of operations, and financial condition.

We may be exposed to risk if we cannot
enhance, maintain, and adhere to our internal controls and procedures.

As a public company trading
on OTCQX, we have significant requirements for enhanced financial reporting and internal controls. The process of designing and implementing
effective internal controls is a continuous effort that will require us to anticipate and react to changes in our business accounting,
auditing and regulatory requirements and to expend significant resources to maintain a system of internal controls that is adequate to
satisfy our reporting obligations as a public company, and we are still early in the process 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