Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 194

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 194
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 circumstances, we would caution you against investing in our Common
Stock unless you are prepared to incur the risk of incurring substantial losses.

114

A proportion of our Common
Stock may be traded by short sellers, which may put pressure on the supply and demand for our Common Stock, creating further price volatility.
In particular, a possible “short squeeze” due to a sudden increase in demand of our Common Stock that largely exceeds supply
may lead to sudden extreme price volatility in our Common Stock. Investors may purchase our Common Stock to hedge existing exposure in
our Common Stock or to speculate on the price of our Common Stock. Speculation on the price of our Common Stock may involve long and short
exposures. To the extent aggregate short exposure exceeds the number of shares of Common Stock available for purchase in the open market,
investors with short exposure may have to pay a premium to repurchase our Common Stock for delivery to lenders of our Common Stock. Those
repurchases may in turn dramatically increase the price of our Common Stock until investors with short exposure are able to purchase additional
Common Stock to cover their short position. This is often referred to as a “short squeeze.” Following such a short squeeze,
once investors purchase the shares necessary to cover their short position, the price of our Common Stock may rapidly decline. A short
squeeze could lead to volatile price movements in our shares that are not directly correlated to the performance or prospects of our company
and could cause purchasers of our common shares to incur substantial losses.

Further, shareholders may
institute securities class action litigation following periods of market volatility. If we were involved in securities litigation, we
could incur substantial costs and our resources, and the attention of management could be diverted from our business.

Our issuance of additional capital stock
in connection with financing, acquisitions, investments, the Incentive Plan or otherwise will dilute all other stockholders.

We expect to issue additional
capital stock in the future that will result in dilution to all other stockholders. We expect to grant equity awards to employees, directors
and consultants under the Incentive Plan. We may also raise capital through equity financing in the future. As part of our business strategy,
we may acquire or make investments in complementary companies, products or technologies and issue equity securities to pay for any such
acquisition or investment. Any such issuances of additional capital stock may cause stockholders to experience significant dilution of
their ownership interests and the per share value of our Common Stock to decline.

If securities or industry analysts