Financial Position - As of September 30, 2024, total current assets decreased to $2,639,787 from $5,059,696 as of March 31, 2024, representing a decline of approximately 48%[20] - Current liabilities increased to $37,655,737 from $31,296,055, marking an increase of about 20%[20] - The company reported a cash and cash equivalents balance of $614,206, down from $1,496,144, a decrease of approximately 59%[20] - Accounts payable rose to $15,750,725 from $14,279,152, reflecting an increase of about 10%[20] - The accumulated deficit increased to $(313,435,055) from $(307,551,501), indicating a worsening of approximately 2%[20] - Total liabilities decreased to $38,948,254 from $42,864,786, a reduction of about 9%[20] - The company has a total stockholders' deficit of $(32,758,818) as of September 30, 2024, compared to $(33,692,188) as of March 31, 2024, a slight improvement of about 2.8%[20] - The company has negative working capital of $35,015,950 as of September 30, 2024, raising concerns about its ability to meet short-term obligations[35] Revenue and Loss - Total revenue for the three months ended September 30, 2024, was $2,246,897, a decrease of 16.2% compared to $2,681,008 for the same period in 2023[21] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(3,351,975), compared to $(12,402,287) for the same period in 2023[22] - Total costs and expenses for the six months ended September 30, 2024, were $9,434,701, down from $17,097,303 for the same period in 2023, representing a reduction of 44.5%[21] - The company reported a loss from operations before income tax of $(1,572,251) for the three months ended September 30, 2024, compared to $(4,298,695) for the same period in 2023[21] - Comprehensive loss for the three months ended September 30, 2024, was $(3,316,834), compared to $(12,346,404) for the same period in 2023[22] - For the six months ended September 30, 2024, the net loss was $5,883,554, a significant improvement compared to a net loss of $41,183,419 for the same period in 2023, representing a reduction of approximately 86.7%[25] Cash Flow and Financing - Cash used in operating activities for the six months ended September 30, 2024, was $2,496,568, down from $10,214,140 in the prior year, indicating a decrease of about 75.5%[25] - The company reported a net cash generated from financing activities of $1,258,995 for the six months ended September 30, 2024, compared to $10,602,899 in the same period of 2023, reflecting a decrease of approximately 88.1%[25] - In November 2024, the company received net proceeds of $7.63 million from a private placement, which will be used to pay down outstanding Redeemable Promissory Notes[36] - The company entered into a letter agreement with Aegis Capital Corp. for a proposed private placement of up to $30 million in securities, indicating plans for future capital raising[36] Operational Changes - The Company has closed down operations for PT Zoomcar Indonesia Mobility Services and Zoomcar Egypt Car Rental LLC due to decreased bookings and rising economic difficulties[53] - The company has not paid any incentives to hosts during the three and six months ended September 30, 2024, as part of its marketing strategy[62] - The company anticipates completing the sale of assets held for sale by the year ending March 31, 2025, indicating a strategic focus on asset liquidation[144] Debt and Liabilities - The company is in default under various obligations, which may impact its ability to obtain additional capital necessary for operations[8] - The company has defaulted on equated monthly installments (EMI) payments for November 2023 to September 2024, with a total lease commitment balance of $5,804,548, including $1,781,841 of defaulted lease rentals[154] - The company has entered into negotiations with lenders to restructure payment terms and resolve outstanding claims[168] Stock and Equity - The company has 757,494 shares issued and outstanding as of September 30, 2024, compared to 631,859 shares as of March 31, 2024, an increase of approximately 20%[20] - The additional paid-in capital increased to $276,854,023 from $272,063,258, an increase of about 2.9%[20] - The company underwent a reverse stock split at a ratio of 1-for-100 effective October 21, 2024[24] - Following the Reverse Recapitalization, the total number of Common Stock outstanding was 428,754 shares, compared to 42,875,363 shares prior to the Reverse Stock Split[124] Accounting and Valuation - The Company has determined that it acts in an agent capacity for its marketplace service, presenting revenue net of facilitation fees received[61] - The Company has consolidated variable interest entities (VIEs) as it is the primary beneficiary, including Zoomcar Egypt Car Rental LLC and Zoomcar Vietnam Mobility LLC[51] - The estimated fair value of cash equivalents, accounts receivable, and accounts payable approximates their carrying value due to short-term maturities[106] - The Company is evaluating the potential effects of new accounting standards on its financial statements, with no material impact expected from recent pronouncements[116]
Innovative International Acquisition (IOAC) - 2024 Q3 - Quarterly Report