Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 152

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 152
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 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 for payment of $5,997,832.72 due under the ACM note and related
legal expenses, pursuant to breach of the terms of the note. On December 6, 2024, the court allowed adjournment of the return date of
motion from December 24, 2024 to January 24, 2025, with the Company’s opposition due by January 14, 2025 and plaintiff’s reply
by January 23, 2025. The Company has filed its opposition on January 14, 2025. On January 23, 2025, the attorneys for ACM sent a letter
to the New York County Supreme Court Justice requesting a stay or adjournment for 30 days for the completion of settlement paperwork,
in connection with a settlement in principle by the parties. However, there can be no assurance that the Company will be successful in
resolving these claims in its entirety, and such efforts may be time-consuming, costly and may have reputational and other negative effects
on Zoomcar.

If the pre-programmed IoT devices distributed
to our Hosts to affix to registered cars, which IoT devices enable GPS tracking and data collection by Zoomcar and keyless, digital access
to booked vehicles by Guests, do not function as they are intended to function, our business, financial condition, and results of operations
could be adversely affected. 

As part of our vehicle registration
process, all Hosts are provided with an option to install a variety of customized software-enabled IoT devices These devices, which Zoomcar
obtains from several suppliers and then programs prior to distribution to Hosts, serve multiple functions, including enabling Guests to
access Host vehicles by digitized keyless access and start and end bookings using Zoomcar’s mobile app. The IoT devices also facilitate
GPS monitoring by Zoomcar of in-trip vehicles, which serves a data collection function that is important to Zoomcar.

We have no control over the
quality or functionality of the IoT devices distributed to Hosts and such devices may not function as intended or may be out of