Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 632

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 632
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capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and
our ability to pay our debts and could divert our cash flow from operations for debt payments.

We are in default of a majority
of our indebtedness of $25.50 million as of June 30, 2025 as more fully described under the Unaudited Condensed Consolidated Financial
Statements, which has had and will continue to have an adverse effect on our financial condition, our ability to raise additional capital
to fund our operations, and our ability to operate our business. Further, in the future, we may continue to incur a material amount of
indebtedness. Our level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal
of, interest on, or other amounts due with respect to our indebtedness. Our leverage and debt service obligations could adversely impact
our business, including by:

●impairing our ability to generate cash sufficient to pay
interest or principal, including periodic principal payments;

●increasing our vulnerability to general adverse economic
and industry conditions;

103

●requiring the dedication of a portion of our cash flow from
operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures,
dividends to stockholders or to pursue future business opportunities;

●requiring us to sell debt or equity securities, possibly
on unfavorable terms, to meet payment obligations;

●limiting our flexibility in planning for, or reacting to,
changes in our business and the industries in which we compete; and

●placing us at a possible competitive disadvantage with less
leveraged competitors and competitors that may have better access to capital resources.

The Company may be subject to securities
litigation, which is expensive and could divert management’s attention. 

Following the Business Combination,
the per share price of the Common Stock has been and may continue to be volatile and, in the past, companies that have experienced volatility
in the market price of their stock have been subject to securities litigation, including class action litigation. Litigation of this type
could result in substantial costs and diversion of management’s attention and resources, which could have a material adverse effect
on our business, financial condition, and results of operations. Any adverse determination in litigation could also subject the Company
to significant liabilities.

Zoomcar has limited operating history as a publicly traded company,
and its historical financial information is not