Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 375

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 375
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 assurance that the Company will be successful in defending these claims in its entirety and such efforts may
be time-consuming, costly and may have reputational and other negative effects on Zoomcar.

95

ACM has filed a notice of motion for summary
judgement in lieu of complaint against Zoomcar in New York courts for payment of amounts due under the Note pursuant to breach of the
terms of a note

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, 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. 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 for payment of $5,997,832.72 due under the ACM note and related
legal expenses, pursuant to breach of the terms of the note. On December 6, 2024, the court allowed adjournment of the return date of
motion from December 24, 2024 to January 24, 2025, with the Company’s opposition due by January 14, 2025 and plaintiff’s reply
by January 23, 2025. The Company has filed its opposition on January 14, 2025. On January 23, 2025, the attorneys for ACM sent a letter
to the New York County Supreme Court Justice requesting a stay or adjournment for 30 days for the completion of settlement paperwork,
in connection with a settlement in principle by the parties. However, there can be no assurance that the Company will be successful in
resolving these claims in its entirety, and such efforts may be time-consuming, costly and may have