Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 913

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 913
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. claimed by the former employee while the suit is pending. Zoomcar believes that such claims are baseless and is attempting to have
the interim order vacated. In addition, Zoomcar India filed an application in the former employee’s suit, seeking that Zoomcar
Holdings, Inc. be deleted from the array of parties in the suit.

(D)On January 30, 2024, the Company received a statement of arbitration
claims involving warrant holders seeking damages of at least $10,000,000 purportedly arising from the alleged breaches of certain agreements
between the Company and warrant holders. Additionally, the Claim requests additional amounts for attorneys’ fees and costs, as
well as an order of rescission regarding the issuance of certain allegedly wrongfully dilutive shares of the Company’s stock issued
in connection with the business combination or, alternatively, an order mandating a purportedly anti-dilutive issuance of additional
shares of Zoomcar common stock to the warrant holders. The Court denied the temporary injunctive relief and passed an order to prevent
issuance of securities to insiders and allowing Claimants to attach Company’s assets up to $3,500,000 if, and only if, located in New
York. No further action has been taken as JAMS arbitration panel is yet to be appointed. The claimants have filed a case in New York
County Supreme Court for seeking relief in aid of the arbitration claim to secure potential recovery. On June 18, 2024, the parties agreed
to defer all further action with respect to the arbitration and associated litigation until June 18, 2025. Zoomcar is examining its legal
options with respect to the Claim and the Court action. The Company believes that the claims are baseless and there was no breach of
agreements as alleged.

71

(E)The Company received a notice from Nasdaq on November 6, 2024
stating that the Company has still not regained compliance with the Rule 5450 (b)(2)(A). Accordingly, its securities will be delisted
from The Nasdaq Global Market. In that regard, unless the Company requests an appeal of Staff’s determination to a Hearings Panel,
pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series, trading of the Company’s common stock and warrants
will be suspended at the opening of business on November 15, 2024 and the Company’s securities will be removed from listing and
registration on The Nasdaq