Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 877

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 877
---
 that we raise additional capital through the sale of equity or convertible debt securities, your ownership
interest will be diluted, anti-dilution provision may be triggered, and the terms of the newly issued securities may include liquidation
or other preferences that adversely affect your rights.

Any future adjustments to
the exercise price of the warrants (or additional issuances to make the Financing Investors whole) may have a negative impact on the trading
price of our Common Stock. Additionally, raising additional capital with new investors may be difficult as a result of anti-dilution protection.
Sales of substantial amounts of Common Stock in the public market, or the perception that such sales could occur, could materially adversely
affect the market price of the Common Stock and may make it more difficult for you to sell your securities at a time and price which you
deem appropriate.

84

In addition to our defaults under current
indebtedness described elsewhere here, certain of our debt financing arrangements are currently in default and we have delayed certain
other payments to lenders, which may restrict our current and future business and operations. 

Since November 2023, we have
been in violation of our scheduled monthly installment payment obligations of $215,337 per month on our lease liability with Ayvens Group
(f/k/a Leaseplan India Private Limited) (“Leaseplan”). Leaseplan notified us on February 7, 2024, that we are in default of
our November 2023 payment. As of the date hereof, we are in default beyond the 30-day extended cure period (as envisaged under the terms
of our debt with Leaseplan) of our November 2023 payment and continue to be default of all EMIs thereafter. As a result of such defaults,
as of the date hereof, Leaseplan (i) has initiated the process of repossession of all vehicles, and (ii) has invoked the bank guarantee
of $120,482 which was a security created by Zoomcar in favor of Leaseplan. Such outcomes may have a material adverse impact on our business,
operations or financial condition. The Company continues to negotiate a deferred payment plan to the restructured debt proposal
shared by the Company wherein the debt after certain waivers and discounts, will stand restructured to $4,755,942 and the Company is hopeful
that Leaseplan will issue a comfort letter in this regard acknowledging the proposed payment schedule spread across six tranches repayment
of the restructured debt. As of the date of this Form