Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 335

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 335
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 of the arbitration claim to secure potential recovery. On June 18, 2024, the parties agreed
to defer all further action with respect to the arbitration and associated litigation until June 18, 2025. Zoomcar is examining its legal
options with respect to the Claim and the Court action. The Company believes that the claims are baseless and there was no breach of
agreements as alleged.

71

(E)The Company received a notice from Nasdaq on November 6, 2024
stating that the Company has still not regained compliance with the Rule 5450 (b)(2)(A). Accordingly, its securities will be delisted
from The Nasdaq Global Market. In that regard, unless the Company requests an appeal of Staff’s determination to a Hearings Panel,
pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series, trading of the Company’s common stock and warrants
will be suspended at the opening of business on November 15, 2024 and the Company’s securities will be removed from listing and
registration on The Nasdaq Stock Market. Furthermore, on October 29, 2024, the Staff notified the Company that it did not comply with
Listing Rule 5450(b)(1)(B), which requires that the Company’s ordinary shares maintain a minimum of 1,100,000 publicly held shares
for continued listing. This matter serves as a separate and additional basis for delisting.

As of date the Company has regained
compliance with the minimum 1.1 million publicly held shares requirement in Listing Rule 5450(b)(1)(B).

The
Company requested a hearing before a Nasdaq Hearings Panel seeking an extension to comply with the requirements of Rule 5450(b)(2)(A).
The Panel has granted an extension to comply with the requirements of the said rule until March 31, 2025. 

(F)On November 1, 2024, Gregory Moran, a former employee of Zoomcar
India, has filed a case with the Superior Court, Delaware, challenging his termination without a cause or a sufficient notice, claiming
$100,000 payment that was agreed to be paid on the 6 month anniversary of the effective date of closing of the SPAC transaction along
with a 8% fully diluted equity interest in Zoomcar Holdings, Inc., non-payment of “vacation” valued at approximately $30,000,
leave encashment of approximately $42,000, $