Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 589

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 589
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 that we do not maintain high-quality support, could harm our
reputation, and adversely affect our ability to scale our platform and business, our financial condition, and results of operations.

A former employee of Zoomcar India has instituted a wrongful
termination suit and claims that certain Zoomcar options have vested.

In February 2023, a former
employee of Zoomcar India instituted a suit before the City Civil and Sessions Judge at Mayo Hall, Bengaluru against Zoomcar India, Zoomcar
and IOAC challenging his termination, claiming approximately $400,000 in damages, and claiming that 100,000 options to purchase shares
of Zoomcar have vested. On March 3, 2023, the City Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction to restrain
each of Zoomcar and IOAC from “alienating or dealing” the 100,000 shares (without giving effect to the reverse splits and
the conversion ratio for the business combination) of Zoomcar 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 IOAC be deleted from the array of parties in the suit, inter alia since (i) IOAC is neither
a necessary nor a proper party to the suit; (ii) no reliefs have been sought by the former employee from IOAC; and (iii) there is no cause
of action against IOAC. However, there can be no assurance that Zoomcar India and Zoomcar will be successful in their efforts to have
the matter vacated or IOAC deleted from the parties, and such efforts may be time-consuming, costly and may have reputational and other
negative effects on Zoomcar.

The founder and former CEO of the Company
has initiated a civil complaint against the Company contesting the reasons for his termination and has raised certain other claims with
regards to his ownership of the Company and compensation for termination of his employment.

On September 26, 2024, we
received a copy of a complaint filed with the United States District Court for the District of Delaware wherein our founder and former
CEO Mr. Moran has challenged the Company’s termination of his employment for cause, effective as of June 18, 2024. Mr. Moran has
contested the facts leading up to the grounds on which his termination was based and has also