Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 603

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 603
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 potential award based on its public filings. The Court found that while Claimants had not shown
a likelihood of success in their theory of the case, it was likely something would be owed. An order, granting claimants the right to
attach up to $3,399,878 of Zoomcar’s assets in New York along with other relief, was issued and later modified by the New York Appellate
Division, First Department. A motion seeking to stay or modify that order is currently pending in the First Department and the parties
are awaiting the start of arbitration. While the Company believes that the claims are not supported by the facts or law and there
was no breach of agreements as alleged, there can be no assurance that the Company will be successful in their efforts to have the matter
vacated, and such efforts may be time-consuming, costly and may have reputational and other negative effects on the Company. On June 18,
2024, in connection with the Company’s agreement to engage Aegis as placement agent as mentioned under ‘Liquidity and Capital
Resources’ section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. The parties thereafter
agreed to defer all further action with respect to the arbitration and associated litigation until June 18, 2025.

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.

On September 26, 2024, we
received a copy of a complaint filed with the United States District Court for the District of Delaware wherein our founder and former
CEO Mr. Moran has challenged the Company’s termination of his employment for cause, effective as of June 18, 2024. Mr. Moran has
contested the facts leading up to the grounds on which his termination was based and has also claimed that this alleged wrongful termination
has also deprived him of his vested right to 8% of the Company’s outstanding equity that he claims was owed to him under his Employment
Agreement. He has also claimed that in connection with his termination he is entitled to the payment of certain amounts for unused paid
leave during his employment with Zoomcar, along with certain bonuses he claims to be owed under the terms of his Employment Agreement,
as well as severance equal to one year’s base salary. Zoomcar believes that the Mr. Moran’s employment, because of cause,
was