Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 857

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 857
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 motion to dismiss were heard on April 29, 2025. The Court has requested additional briefing
with respect to the Company’s motion to dismiss Mr. Moran’s Wage claim. The additional briefing is due on August 15,
2025. The court granted the motion to dismiss Mr. Moran’s quasi-contractual claims and reserved decision on the balance of
the motion. Zoomcar believes the allegations are without merit, intends to defend them vigorously and expects to prevail either at the
motion stage or at a hearing on the merits. For more information see the section herein titled “Risk-Factors — 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.”

Litigation with ACM

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 courts for accelerated payment of $5,997,832.72 due under the ACM note and related legal expenses,
pursuant to breach of the terms of the note. ACM alleged that two “Events of Default” (as defined in the Note) had occurred
thereby entitling ACM to full and accelerated payment of the Note. The first was a Form 8-K, filed by Zoomcar on May 9, 2024, which
allegedly disclosed that on May 6, 2024