Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 873

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 873
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ZCAR.” The transition from the OTCQX
to the OTCQB does not affect the Company’s reporting obligations under the Securities Exchange Act of 1934, as amended, or the public
trading of its securities in the United States. 

If the Company fails to comply with the OTCQB Rules its securities
could be removed from OTCQB and may trade on a less liquid market tier or otherwise experience reduced liquidity. Any such outcome could,
among other things: (i) further depress the market price and increase the volatility of our common stock; (ii) limit or preclude the ability
of certain brokers to make a market in, or of certain institutional investors to purchase or hold, our securities; (iii) reduce analyst
coverage and overall investor interest; (iv) impair our ability to raise additional capital on acceptable terms or at all; and (v) adversely
affect the terms of any financing or strategic transactions we may seek. In an effort to regain or maintain compliance, the Company may
consider and pursue one or more corporate or financing actions—such as equity or equity-linked issuances, strategic transactions,
or other measures—which could be dilutive to existing stockholders, increase our leverage, or otherwise involve significant costs
and risks. Even if the Company regains compliance, it may be unable to sustain it, and any future failure could have the same adverse
effects.

82

We require additional capital to support
current operations and will require additional capital to support the growth of our business, which may not be available on terms acceptable
to us, or at all. 

To continue current operations,
we will need to raise capital imminently. Further, to continue to effectively compete thereafter, we will require additional funds to
support the growth of our business. Our operations have consumed substantial amounts of cash, and we have incurred operating losses, since
we began operating in 2013. While our cash consumption has been reduced following our business transition from short-term rental of vehicles
owned by or leased to Zoomcar to an online platform for 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.

Further, as a result