Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 414

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 414
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 operations for debt payments.

We are in default of a majority
of our indebtedness of $ 33.55 million as of December 31, 2024 as more fully described under the Condensed Consolidated Financial Statements
(Unaudited), 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;

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.

116

Risks Related to Ownership of Our Common Stock

Future sales of our Common Stock could cause
the market price for our Common Stock to decline.

We cannot predict the effect,
if any, that market sales of shares of our Common Stock or the availability of shares of our Common Stock, including upon exercise or
conversion of any of our outstanding securities, for sale will have on the market price of our Common Stock prevailing from time to time.
Sales of substantial amount of shares of our Common Stock on the public market, or the perception that those sales will occur, including
sales pursuant to this quarterly report, could cause the market price of our Common Stock to decline or be depressed.

As described elsewhere herein,
we expect to issue additional securities imminently to raise capital to continue our operations. Additionally, we may issue our securities
if we need to raise capital in connection with capital expenditure, working capital requirement