Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 933

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 933
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 to their lack of specificity, and, as a result, their application in practice may evolve
over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply
with evolving laws, regulations and standards, and this investment may result in increased general and administrative expense and a diversion
of management’s time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new
laws, regulations and standards differ from the activities intended by regulatory or governing bodies, regulatory authorities may initiate
legal proceedings against us, and our business and prospects may be harmed. As a result of disclosure of information in the filings required
of a public company and in this quarterly report, our business and financial condition will become more visible, which may result in
threatened or actual litigation, including by competitors and other third parties. If such claims are successful, our business, financial
condition, results of operations and prospects could be materially harmed, and even if the claims do not result in litigation or are
resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management
and materially harm our business, financial condition, results of operations and prospects.

We may have increasing difficulty attracting
and retaining qualified outside independent board members.

The directors and management
of publicly traded corporations are increasingly concerned with the extent of their personal exposure to lawsuits and shareholder claims,
as well as governmental and creditor claims that may be made against them in connection with their positions with publicly held companies.
Outside directors are becoming increasingly concerned with the availability of directors’ and officers’ liability insurance
to pay on a timely basis the costs incurred in defending shareholder claims. Directors’ and officers’ liability insurance
is expensive and difficult to obtain. The SEC and the OTC Markets including the OTCQB Rules also impose higher independence standards and certain special
requirements on directors of public companies. Accordingly, it may become increasingly difficult to attract and retain qualified outside
directors to serve on our Board.

Stock trading volatility could impact our
ability to recruit and retain employees.

Volatility or lack of appreciation
in our stock price may also affect our ability to attract and retain our key employees. Employees may be more likely to leave us if the
shares they own or the shares underlying their vested equity have not significantly appreciated in value relative to the original purchase
price of the shares or the