Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 723

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 723
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 an adverse effect on our financial position and operating results. In
addition, the determination of our worldwide provision for income taxes and other tax liabilities requires significant judgment by our
management, and we have engaged in many transactions for which the ultimate tax determination remains uncertain. The ultimate tax outcome
may differ from the amounts recorded in our financial statements and may materially affect our financial results in the period or periods
for which such determination is made. Our tax positions or tax returns are subject to change, and therefore we cannot accurately predict
whether we may incur material additional tax liabilities in the future, which could impact our financial position.

Our business is subject to extensive government
regulation and oversight relating to the provision of payment and financial services. 

The jurisdictions in which
we operate and jurisdictions we may enter may have laws that govern payment and financial services activities. These laws govern, among
other things, money transmission, prepaid access instruments, electronic funds transfers, anti-money laundering, counter-terrorist financing,
banking, systemic integrity risk assessments, and cyber-security of payment processes. Our business operations, including our payments
to Hosts and Guests, may not always comply with these financial laws and regulations. Regulators may determine that certain aspects of
our business are subject to these laws and could require us to obtain licenses to continue to operate in India. We have evaluated and
will continue to critically evaluate our options for seeking applicable licenses and approvals in the jurisdictions where we operate to
optimize our payment solutions and support the future growth of our business. Laws related to money transmission and online payments are
evolving, and changes in such laws could affect our ability to provide payment processing on our platform in the same form and on the
same terms as we have historically, or at all.

Historical or future non-compliance
with these laws or regulations could result in significant criminal and civil lawsuits, penalties, forfeiture of significant assets, or
other enforcement actions. Costs associated with fines and enforcement actions, as well as reputational harm, changes in compliance requirements,
or limits on our ability to expand our product offerings, could harm our business.

Further, our payment system
may be susceptible to illegal and improper uses, including money laundering, terrorist financing, fraudulent transactions, and payments
to sanctioned parties. We have invested and will continue to invest substantial resources to comply with applicable anti-money laundering
and sanctions laws and conduct appropriate risk assessments and implement appropriate controls. Government authorities may seek to bring
legal action against us if our payment system is used for improper