Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1213

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 3
Chunk 1213
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 Business Combination. The complaint seeks declaratory relief affirming the plaintiff’s alleged
continuing right to receive compensation from Zoomcar under the engagement letter, together with attorneys’ fees, costs and interests,
as well as punitive damages. Zoomcar and former consultant executed a Settlement Agreement in February 2025, settling the disputes between
them. In connection with this settlement, affiliates of the former consultant were issued, in the January/February Offering, shares of
Common Stock, January/February Pre-Funded Warrants, January/February Series A Warrants and January/February Series B Warrants with an
aggregate value of $1,482,000 (the “Former Consultant Settlement”). The action was terminated on February 19, 2025.

59

Arbitration with Aegis Capital Corp.
and Affiliates 

On January 30, 2024, we
received a statement of arbitration claim before Judicial Arbitration and Mediation Services, Inc., with Aegis Capital Corp. (“Aegis”),
Adam Stern, and the Robert J. Eide Pension Plan being the claimants therein. The Claim alleges breaches of certain agreements between
(a) the Company and Aegis, and (b) Adam Stern and the Robert J. Eide Pension Plan as warrant holders, on the one hand, and the Company
on the other; it seeks damages “preliminarily believed to be” at least $10,000,000 purportedly arising from the alleged breaches.
The Claim also seeks amounts for attorneys’ fees and costs, as well as an order of rescission with respect to the issuance of certain
allegedly wrongfully dilutive shares of Common Stock issued in connection with the Business Combination or, alternatively,
an order mandating a purportedly anti-dilutive issuance of additional shares of Common Stock to the claimants. On January 31, 2024,
the claimants filed an action in the New York State Supreme Court, including an order to show cause seeking substantially the same relief
as the Claim on a declaratory basis along with temporary injunctive relief. The Court denied the temporary injunctive relief and has
scheduled a hearing on the order to show cause for February 21, 2024. The Company believes that the claims are baseless and there was
no breach of agreements as alleged. Claimants filed a separate order to show cause seeking attachment of the Company’s assets arguing
the Company did not have sufficient working capital to satisfy a potential