Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 374

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 374
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 the Company. On June 18,
2024, in connection with the Company’s agreement to engage Aegis as placement agent as mentioned under ‘Liquidity and Capital
Resources’ section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. The parties thereafter
agreed to defer all further action with respect to the arbitration and associated litigation until June 18, 2025.

The founder and former CEO of the Company
has initiated a civil complaint against the Company contesting the reasons for his termination and has raised certain other claims with
regards to his ownership of the Company and compensation for termination of his employment.

On September 26, 2024, we
received a copy of a complaint filed with the United States District Court for the District of Delaware wherein our founder and former
CEO Mr. Moran has challenged the Company’s termination of his employment for cause, effective as of June 18, 2024. Mr. Moran has
contested the facts leading up to the grounds on which his termination was based and has also claimed that this alleged wrongful termination
has also deprived him of his vested right to 8% of the Company’s outstanding equity that he claims was owed to him under his Employment
Agreement. He has also claimed that in connection with his termination he is entitled to the payment of certain amounts for unused paid
leave during his employment with Zoomcar, along with certain bonuses he claims to be owed under the terms of his Employment Agreement,
as well as severance equal to one year’s base salary. Zoomcar believes that the Mr. Moran’s employment, because of cause,
was properly terminated in accordance with the terms of his Employment Agreement is currently assessing and verifying the monetary and
statutory claims made by Mr. Moran and intends to defend this action vigorously. As of October 31, 2024, the suit has been dismissed on
account of Mr. Moran’s intention to refile the case in Delaware Superior Court.

Mr. Moran refiled his lawsuit
in the Superior Court of the State of Delaware on November 1, 2024. On 27 November 2024, the Company has filed a motion to dismiss
certain of the causes of action for failure to state a cause of action, and the briefing on that motion was filed on 7 January 2025. Even
if the Company prevails on the motion, there will still be remaining count of breach of contract the Company will be required to defend.
However, there can be no