ZOOMCAR HOLDINGS, INC.

Red flags

• The filing expresses substantial doubt about going concern: FY2026 net loss was $14.62 million, accumulated deficit was $347.79 million, negative working capital was $36.28 million and cash used in operations was $1.36 million.
• As of March 31, 2026, the company had defaulted on $874,580 of debt obligations; Tata Motors Finance debt became immediately payable because scheduled EMIs were not paid, and the company recorded $84,237 of penal interest.
• The company had $811,178 of net bridge notes outstanding at March 31, 2026, while additional bridge and convertible financings carry interest rates up to 12% and default rates up to 22%.
• The interim bridge financing converts Series A preferred stock at $0.05 per share and includes warrants exercisable at $0.0625; 1,875 units raised only approximately $1.88 million before fees, against an offering target of up to $5 million plus a $5 million overallotment.
• Indian indirect-tax disputes totaled $3.36 million, with no provision recorded; customer and third-party claims not acknowledged as liabilities totaled $368,616.
• The stock trades on OTCQB rather than a national exchange, creating liquidity and penny-stock risks while the company also warns that future securities issuance may materially dilute holders.