Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 600

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 600
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, negligence or other claims. Such claims will require significant time and resources to
defend and there can be no assurances that favorable final outcomes will be obtained.

84

An increasing number of organizations,
including large online and offline merchants and businesses, other large Internet companies, financial institutions, and government institutions
have disclosed breaches of their information security systems and other information security incidents, some of which have involved sophisticated
and highly targeted attacks. In addition, users on our platform could have vulnerabilities on their own mobile devices that are entirely
unrelated to our systems and platform, but which could mistakenly be attributed to us and our system and platform. Further, breaches experienced
by other companies may also be leveraged against us. For example, credential stuffing and ransomware attacks are becoming increasingly
common, and sophisticated actors can mask their attacks, making them increasingly difficult to identify and prevent. Certain efforts may
be state-sponsored or supported by significant financial and technological resources, making them even more difficult to detect. If a
third party or employee circumvents any of our security measures or those of our third-party service providers, they may access, misappropriate,
delete, alter, publish, or modify this information, which could cause interruptions in our business and operations, fraud or loss to third
parties, regulatory enforcement actions, litigation, indemnity obligations, competitive harm, and other possible liabilities, as well
as negative publicity. Widespread negative publicity may also result from real, threatened, or perceived security compromises (or lack
of adequate security measures) of our industry, competitors, Hosts, and Guests. Concerns regarding privacy and data security could cause
some Hosts and Guests to stop using our services, and for employees to be less satisfied with their employment with us and potentially
leave the Company or institute claims against us. This discontinuance in use and the potential failure to acquire new Hosts and Guests,
and similar personnel issues, could substantially harm our business, results of operations, financial condition, and future prospects.

Our information technology
systems, internal computer systems, cloud-based computing services, and those of our current and any future third-party service providers
are vulnerable to interruption and intrusion. Cyberattacks and other malicious internet-based activity, such as insider threats, computer
malware, hacking, and phishing attempts continue to increase. Any cybersecurity incident or material disruption or slowdown of our systems
could cause outages or delays in our services, which could harm our brand and adversely affect our operating results. Our failure to implement
adequate