Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 114

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 114
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 Zoomcar, along with certain other compensation he claims to be owed under the terms of his Employment
Agreement, including “Owed Severance” equal to approximately $72,000.  In total, Mr. Moran seeks damages of at least
$238,000 plus damages associated with the 8% of shares.  He also seeks damages under the New York Labor Law, under which he seeks
liquidated damages equal to 100% of any unpaid wages.  He claims that all of the above constitute wages under New York Labor Law.

Zoomcar believes that the
termination of Mr. Moran’s employment for cause was proper in accordance with the terms of his Employment Agreement. Mr. Moran’s
case in the District Court was dismissed on account of Mr. Moran’s stated 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 November 27, 2024, the Company 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 January 7, 2025.  Mr. Moran filed opposition to Zoomcar’s motion on February 5, 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. 

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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