Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 600

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1B
Chunk 600
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 31, 2024,
the claimants filed an action in the New York State Supreme Court, including an order to show cause seeking substantially the same relief
as the Claim on a declaratory basis along with temporary injunctive relief. The Court denied the temporary injunctive relief and has
scheduled a hearing on the order to show cause for February 21, 2024. The Company believes that the claims are baseless and there was
no breach of agreements as alleged. Claimants filed a separate order to show cause seeking attachment of the Company’s assets arguing
the Company did not have sufficient working capital to satisfy a potential award based on its public filings. The Court found that while
Claimants had not shown a likelihood of success on their theory of the case, it was likely something would be owed. An order granting
claimants the right to attach up to $3,399,878 of Zoomcar’s assets in New York along with other relief, was issued and later modified
by the New York Appellate Division, First Department. A motion seeking to stay or modify that order is currently pending in the First
Department and the parties are awaiting the start of arbitration. On June 18, 2024, in connection with the Company’s agreement
to engage Aegis as placement agent for the bridge financing that closed in June 2024, the parties agreed to defer all further action
with respect to the arbitration and associated litigation until June 18, 2025.

Effective as of March 31,
2025, the Company entered into a settlement (the “Aegis Settlement”) with Aegis and certain affiliated parties (the “Aegis
Settlement Parties”). Pursuant to the Aegis Settlement, the Aegis Settlement Parties agreed to settle and dismiss the arbitration
claim in consideration for the issuance of $7,000,000 of securities of the Company in a private placement consisting of an aggregate
of (a) 224,360 shares of Common Stock, (b) Series A Warrants to purchase up to 3,505.627 shares of Common Stock at an exercise price
of $6.24 per share and (c) Series B Warrants to purchase up to 897,440 shares of Common Stock at an exercise price of $0.002 per share.
These securities were issued in the March Offering (defined hereafter). 

Litigation with Former Employee

In February 2023, a former
employee of Zoomcar India instituted a suit before the City Civil