Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1216

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 3
Chunk 1216
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 2025 and Zoomcar filed a reply in further
support of its motion on February 20, 2025.  Zoomcar’s oral arguments in its motion to dismiss  were heard on April 29,
2025.  The court granted the motion to dismiss Mr. Moran’s quasi-contractual claims and reserved decision on the balance of
the motion.  Zoomcar believes the allegations are without merit, intends to defend them vigorously and expects to prevail either
at the motion stage or at a hearing on the merits. 

60

Litigation with ACM

The Company received two
default notices from ACM. The first notice was issued on May 22, 2024 which stated that the Company is in default of the terms of the
Unsecured Convertible Note issued to ACM on December 28, 2023(“Note”), 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. (“Aegis”) 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. On November 7, 2024, ACM filed a
notice of motion for summary judgement in in lieu of complaint against Zoomcar in New York courts for accelerated payment of $5,997,832.72
due under the ACM note and related legal expenses, pursuant to breach of the terms of the note. ACM alleged that, two “Events of
Default” (as defined in the Note) had occurred thereby entitling ACM to full and accelerated payment of the Note.  The first
was a Form 8-K, filed by Zoomcar on May 9, 2024, which allegedly disclosed that on May 6, 2024, Zoomcar had entered into an equity line
arrangement and “Variable Rate Transaction” (as defined in the Note) with White Lion Capital LLC (“White Lion”). 
The second was a Form 8-K, filed by Zoomcar on June 21, 2024