Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1010

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 2
Chunk 1010
---
 arise and the matters continue to develop.

Litigation with Former Consultant

On August 4, 2023, a former
consultant to Zoomcar filed a complaint against Zoomcar in the United States District Court for the Southern District of New York. The
complaint contains breach and anticipatory breach of contract claims arising from a letter agreement, effective as of May 2020, between
Zoomcar and the former consultant, which engagement letter was terminated by Zoomcar in January 2022. The plaintiff alleges that the
terms of the engagement letter entitle him to cash and warrants to purchase Zoomcar shares in relation to prior Zoomcar transactions
and upon consummation of the proposed 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