Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 467

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 467
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 since the Company had entered into an equity line arrangement with White Lion Capital LLC, a
variable rate transaction, without the prior consent of ACM. Further, on June 25, 2024, the Company received the second notice of default
from ACM stating that the Company has incurred indebtedness in the form of $3,600,000 in principal amount of notes in a transaction involving
Aegis Capital Corp. acting as the placement agent, prior to which, the consent of ACM was not obtained. As per the terms of the ACM note,
in the event of any default, all accrued but unpaid interest plus liquidated damages and other amounts thereof, shall become immediately
due and payable in cash. Subsequently on November 7, 2024, ACM filed a notice of motion for summary judgement in in lieu of complaint
against Zoomcar in New York for payment of $5,997,832.72 due under the ACM note and related legal expenses, pursuant to breach of the
terms of the note. On December 6, 2024, the court allowed adjournment of the return date of motion from December 24, 2024 to January 24,
2025, with the Company’s opposition due by January 14, 2025 and plaintiff’s reply by January 23, 2025. The Company has filed
its opposition on January 14, 2025. On January 23, 2025, the attorneys for ACM sent a letter to the New York County Supreme Court Justice
requesting a stay or adjournment for 30 days for the completion of settlement paperwork, in connection with a settlement in principle
by the parties.

81

Item 1A. Risk Factors

An investment in our securities
involves a high degree of risk. You should carefully consider the risks described below before making an investment decision. Our business,
prospects, financial condition, or operating results could be harmed by any of these risks, as well as other risks not currently known
to us or that we currently consider immaterial. The trading price of our securities could decline due to any of these risks, and, as a
result, you may lose all or part of your investment.

In the course of conducting
our business operations, we are exposed to a variety of risks. Any of the risk factors we describe below have affected or could materially
adversely affect our business, financial condition, and results of operations. The market price of our securities could decline, possibly