Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 55

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 55
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 Any failure to maintain high-quality support, or a market perception 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 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.

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We received a statement of arbitration claim from certain of our warrant holders related to the purported cashless exercise of their warrants.

On January 30, 2024,
we received a statement of arbitration claim before Judicial Arbitration and Mediation Services, Inc., with Aegis Capital Corp., 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 “prelim