Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 449

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 449
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The accompanying notes are an integral part of these Consolidated
Statements of Cash Flows

F-7

ZOOMCAR HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.Organization, Business operation and Going concern

Zoomcar Holdings, Inc. (formerly
“Innovative International Acquisition Corp”) a Delaware corporation provides mobility solutions to consumers and businesses.
The accompanying Consolidated Financial Statements include the accounts and transactions of Zoomcar Holdings, Inc. and its subsidiaries
(collectively, the “Company” or “the combined entity” or “Zoomcar”). The Company operates its facilitation
services under the Zoomcar brand with its operations in India.

Going concern

The accompanying Consolidated Financial Statements have been prepared
in accordance with U.S. GAAP and the rules and regulations of the SEC. The Consolidated Financial Statements have been prepared using
U.S. GAAP applicable to a going concern that contemplates the realization of assets and settlement of liabilities in the normal course
of business. The Company incurred a net loss of $25,622,303 and $ 34,277,252 during the year ended March 31, 2025 and March 31, 2024,
and cash used in operations was $9,076,067 for the year ended March 31, 2025. The Company’s accumulated deficit amounts to $333,173,805
(March 2024: $307,551,502). The Company has negative working capital of $26,496,105 as on March 31, 2025. In addition, the Company’s
cash position is critically deficient and critical payments to the operational and financial creditors of the Company are not being made
in the ordinary course of business, all of which raises substantial doubt about the Company’s ability to continue as a going concern.

The Company expects to continue to incur
net losses and have significant cash outflows from operating activities for at least the next 12 months. Management has evaluated the
significance of the conditions described above in relation to the Company’s ability to meet its obligations and concluded that,
without additional funding, the Company will not have sufficient funds to meet its obligations within one year from the date of the Consolidated
Financial Statements are issued.

Management is evaluating plans
with respect to these adverse financial conditions that caused to express substantial doubt about the Company’s ability to
continue as a going concern. Management’s plan is to seek funding through additional debt or equity financing arrangements,
implement business initiatives to