Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 488

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 488
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 per share and (iii) December 2024 Placement Agent Series A
warrants to purchase 5,425,275 shares at an exercise price of $0.312 per share.

Further, the warrants issued
in our June 2024 financing contain the “alternative cashless exercise” provision, and the all the warrants issued in
the November and December financing contain reset provisions and full ratchet anti-dilution protection described elsewhere herein.
Because the market for our Common Stock is thinly traded, the sales and/or the perception that those sales may occur, could
adversely affect the market price of our Common Stock. Furthermore, even though the options and warrants (other than the warrants issued
in June 2024,November 2024 and December 2024) are all out of the money, the mere existence of a significant number of shares of Common
Stock issuable upon exercise of these securities may be perceived by the market as having a potential dilutive effect, which could
lead to a decrease in the price of our Common Stock.

Our success depends upon our ability to
maintain favorable customer reviews and ratings, and if our reputation suffers, our business, financial condition and operating results
may be adversely affected. 

We have a customized rating
and review system connected to our search-and-ranking-base algorithm in order to provide a more holistic, more relevant overall search
experience for the Guests. By combining Host ratings and reviews into the overall sort algorithm, our platform is able to highlight particular
Hosts who are more likely to receive bookings. The reliable and trustworthy ratings and reviews of our Hosts and Guests are crucial to
our business, which will to a substantial extent affect our Hosts and Guests’ determination as to whether to utilize the platform
to book cars.

Monitor the rating and review
system on an ongoing basis to enforce quality standards and build trust among members of our community. We have procedures in place to
combat fraud or abuse of our rating and review system, but there is no assurance that these procedures are or will be effective, or at
all. Further, Hosts and Guests can leave reviews or ratings on third-party platforms or websites, which are out of our control and off
platform reviews and ratings or other statements about the platform, or a business or brand may have adverse impact on our business operations.
If any Hosts and Guests leave negative ratings and reviews, it may not only cause a decrease in the number of existing Hosts and