Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 299

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 299
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 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.

50

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (UNAUDITED)

32Commitments and contingencies (Continued)

(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 Stock Market. Furthermore, on October 29, 2024, the Staff notified the Company that
it did not comply with Listing Rule 5450(b)(1)(B), which requires that the Company’s ordinary shares maintain a minimum of 1,100,000
publicly held shares for continued listing. This matter serves as a separate and additional basis for delisting.

As of date the Company has regained
compliance with the minimum 1.1 million publicly held shares requirement in Listing Rule 5450(b)(1)(B).

The Company requested a hearing before
a Nasdaq Hearings Panel seeking an extension to comply with the requirements of Rule 5450(b)(2)(A). The Panel has granted an extension
to comply with the requirements of the said rule until March 31, 2025. (Refer to Note 33).

(F) On November 1, 2024,
Gregory Moran, a former employee of Zoomcar India, has filed a case with the Superior Court, Delaware, challenging his termination
without a cause or a sufficient notice, claiming $100,000 payment that was agreed