Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 246

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 246
---
 peer-to-peer car sharing, we have consumed significant amounts of cash in effecting such transition
in terms of technology and platform innovation, and our cash consumption has varied over time. Because of our limited resources the company
was not able to expand to emerging markets outside of India and in fact, discontinued operations in Vietnam during June 2023 and subsequently
in Egypt, Indonesia during June 2024 as a result.

70

Further, as a result of the consummation of the
Business Combination, our expenses have increased substantially in connection with actions and efforts required to operate as a public
company. During the three months ended June 30, 2025, we have incurred expenses in maintaining the listing requirements and complying
with statutory filings with SEC along with significant professional and consultancy fee to professionals and we contemplate that we will
continue to incur these expenses as long as we remain a public company to fulfill which we will need additional capital.

Moreover, we expect our expenses to increase significantly
in connection with our ongoing activities, including the continuing increase in our technological capabilities with respect to IoT, machine
learning, and artificial intelligence. We do not currently have sufficient cash resources to operate our business beyond June 2025 (assuming
that we do not repay any of our currently outstanding indebtedness) and accordingly, will need to raise capital imminently to continue
our operations and to fully execute our business plan. Additionally, circumstances could cause us to consume capital more rapidly than
we currently anticipate and if our cash resources are insufficient to satisfy our cash requirements, we may seek to issue additional equity
or debt securities or obtain new or expanded credit facilities or identify and secure additional sources of capital. Our ability to obtain
external financing in the future is subject to a variety of uncertainties, including our future financial condition, results of operations,
cash flows, share price performance, liquidity of capital and lending markets and governmental regulations in India. In addition, incurring
indebtedness would subject us to increased debt service obligations and could result in operating and financing covenants that would restrict
our operations. There can be no assurance that financing will be available in a timely manner or in amounts or on terms acceptable to
us, or at all. Any failure to raise needed funds on terms favorable to us, or at all, will severely restrict our liquidity as well as
have a material adverse effect on our business, financial condition and results of operations. In addition, any issuance of equity or
equity-linked securities could result in significant dilution