Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 348

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 348
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its legal options with respect to the Claim. On January 31, 2024, the Zoomcar claimants filed an action in the New York State Supreme
Court, including an order to show cause seeking substantially the same relief as the Claim on a declaratory basis along with temporary
injunctive relief. The Court denied the temporary injunctive relief and has scheduled a hearing on the order to show cause for February
21, 2024. 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. 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 potential award based on its public filings.
The Court found that while Claimants had not shown a likelihood of success on 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. 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 have thereafter agreed to defer all further action
with respect to the arbitration and associated litigation until June 18, 2025.

In February 2023, a former
employee of Zoomcar India instituted a suit before the City Civil and Sessions Judge at Mayo Hall, Bengaluru against Zoomcar India, Zoomcar
and IOAC challenging his termination, claiming approximately $400,000 in damages, and claiming that 100,000 options to purchase shares
of Zoomcar have vested. On March 3, 2023, the City Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction to restrain
each of Zoomcar and IOAC from “alienating or dealing” the 100,000 shares, on pre-split basis, of Zoomcar claimed by the former
employee while the suit is pending. Zoomcar believes that such claims are baseless and is attempting to have the