Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 9

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
,047,925 
  
    Warrants issued to placement agents 
     -  
     418,157 
  
    Issue of common stock upon exercise of warrants 
     584  
     - 
  
    Issue of prefunded warrants in exchange of common stock 
     240  
     - 
  
    Issue of prefunded warrants in lieu of liquidated damages payable 
     2,771,457  
     - 

The accompanying notes are an integral part of these Condensed
Consolidated Statements of Cash Flows

5

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 Condensed 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 Condensed Consolidated
Financial Statements have been prepared in accordance with U.S. GAAP and the rules and regulations of the SEC. The Condensed 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 $4,205,313 during the three months ended
June 30, 2025, and cash generated from operations was $89,745 for the three months ended June 30, 2025. The Company’s accumulated
deficit amounts to $337,379,118 (March 2025: $333,173,805). The Company has negative working capital of $27,818,691 as on June 30, 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