Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 266

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 266
---
 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. However, there can be no assurance that the Company will
be successful in defending these claims in its entirety and such efforts may be time-consuming, costly and may have reputational and other
negative effects on Zoomcar.

80

ACM has filed a notice of motion for summary
judgement in lieu of complaint against Zoomcar in New York courts for payment of amounts due under the Note pursuant to breach of the
terms of a note

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 (“Motion”) against Zoomcar in New York State Supreme
Court, New York County, alleging it was entitled to accelerated payment of $5,997,832.72 pursuant to the terms of an unsecured promissory
note issued by Zoomcar to ACM on December 28, 2023 (“Note”) as consideration for certain alleged, bona fide expenses that
ACM’s members had aggregated and assigned to ACM for collection from Zoomcar. As alleged by ACM in its moving papers, two “Events
of Default” (as defined in the Note)