Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 126

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 126
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 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, for cause, was properly
terminated in accordance with the terms of his Employment Agreement As of October 31, 2024, the suit has been dismissed on account of
Mr. Moran’s intention to refile the case in Delaware Superior Court. Mr. Moran refiled his lawsuit in the Superior Court of the
State of Delaware on November 1, 2024. On 27 November 2024, the Company has filed a motion to dismiss certain of the causes of action
for failure to state a cause of action, and the briefing on that motion was filed on 7 January 2025. Even if the Company prevails
on the motion, there will still be remaining count of breach of contract the Company will be required to defend.

The Company received two default notices from
ACM. The first notice was issued on May 22, 2024 which stated that the Company is in default of the terms of the Unsecured Convertible
Note issued to ACM on December 28, 2023, since the Company had entered into an equity line arrangement with White Lion Capital LLC, a
variable rate transaction, without the prior consent of ACM. Further, on June 25, 2024, the Company received the second notice of default
from ACM stating that the Company has incurred indebtedness in the form of $3,600,000 in principal amount of notes in a transaction involving
Aegis Capital Corp. acting as the placement 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. Subsequently 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,