Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 387

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 387
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, in full or in part, from all types of damages claims or claims for third-party indemnification associated with damages. We
may therefore be subject to claims of significant liability based on any of the foregoing or based on other events or circumstances which
occur during a booking or relate in some other manner to our platform or our business. We do not maintain balance sheet reserves to cover
costs of defending, disputing, adjudicating, satisfying, or settling any such claims if they are asserted against us and we may not be
able to succeed in any such actions, should they materialize and be determined to result in liability to us. While we are currently in
the process of identifying adequate and feasible insurance coverage for our business, there can be no guarantee that we will be able to
obtain or expand the insurance coverage in the future, and even if we are able to obtain additional coverage, we may not carry sufficient
insurance coverage to satisfy potential claims. As our business continues to grow, incidences of such claims may also increase and, unless
we obtain insurance coverage for such matters, we may choose or be required to absorb larger parts of such uninsured claims to avoid becoming
subject to legal proceedings that could be resolved against us, which could lead to business losses and adversely affect our business,
financial conditions and results of operations. Should uninsured losses occur, they could adversely affect our business, results of operations
and financial condition. Further, our being subject to claims of liability, we may be subject to negative publicity and incur additional
expenses, which could harm our business, financial condition, and operating results.

101

We are in the process of remediating identified
material weaknesses in our internal controls and if we fail to remediate these weaknesses, or if we experience additional material weaknesses
in the future, or otherwise fail to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act, we
may not be able to accurately or timely report our financial condition or results of operations, or comply with the accounting and reporting
requirements applicable to public companies, which may adversely affect investor confidence in the Company and the market price of our
stock. 

Zoomcar has identified certain
material weaknesses in Zoomcar’s internal controls over financial reporting as more particularly described under “Item
4 Controls and Procedures” of this Quarterly Report on Form 10-Q. These material weaknesses have been recurring from prior reporting
periods and remain unresolved as of the date of this filing. Based on the