Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 104

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 104
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 sufficient working capital, we will continue to invest in product development and in our technology platform.
We expect that our general and administrative expenses will be reduced on an absolute dollar basis due to our efforts to manage cost,
use of our cash effectively and improve profitability while managing our research and development programs. The Company’s cash position
is critically deficient and critical payments to the operational and financial creditors of the Company are not being made in the ordinary
course of business, all of which raises substantial doubt about the Company’s ability to continue as a going concern.

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In October 2022, we entered
into a Business Combination Agreement (BCA) for merger with Innovative International Acquisition Corp. (“IOAC”) In October
2022, we entered into a note purchase agreement with Ananda small business trust, an affiliate of the SPAC sponsor. Ananda small business
trust has purchased notes worth $10.00 million. Additionally, pursuant to signing the BCA, the Company has entered into a warrant and
convertible note agreement in February 2023 with new investors and has raised a total of $21.28 million (before fees) as of August 16,
2023 (which has converted at a discount in the deSPAC). On December 28, 2023, we completed our deSPAC transaction with IOAC and received
cash of $5.77 million, assumed liabilities amounting to $21.5 million and unsecured promissory notes of $3.26 million were also assumed.

Financing Arrangements

We have financed our operations
through revenue generated from sales, borrowings, and issuance of Common Stock, preferred stock, senior subordinated convertible promissory
notes, convertible promissory note and unsecured convertible notes and redeemable promissory notes.

Debentures and Other Borrowings from Financial Institutions

We have obtained loan facilities
from various financial institutions during earlier time periods, which remained outstanding as of December 31, 2024.

Issue of Common Stock

The Company’s shareholders
authorized, and the Board of Directors approved for a 1-for-100 Reverse Stock Split, which became effective on October 21, 2024.

In December 2023, we raised
$5,000,000 against issuance of 16,667 shares (1,666,666 prior to Reverse Stock Split)   to Mohan Ananda, Chairman of Board
of Directors and our largest shareholder.

In May 2024, we issued