Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 602

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 602
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 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.

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 “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 shares of Common Stock to the claimants. On January 31, 2024, the claimants filed
an action in the New York State Supreme Court in aid of the arbitration, including seeking by order to show cause substantially the same
relief as the Claim on a declaratory basis. The Court denied the application for a mandatory injunction granting ultimate relief on the
record. Claimants filed a separate order to show cause seeking attachment of the Company’s assets arguing the Company did not have
sufficient working capital to satisfy a