Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 60

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 60
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 On May 9, 2025, the Court reduced the award of attorneys’
fees and costs to $12,000.00.  On April 22, 2025, the Company filed a Notice of Appeal seeking to reverse the March 28, 2025, order
granting summary judgment in favor of ACM.  Zoomcar intends to vigorously prosecute its appeal. 

However, there can be no
assurance that the Company will be successful in its appeal or 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.

Our entering into a settlement with ACM
could result in a breach of standstill provisions in agreements we entered into in connection with the investors in the November Offering

We have in the past and
may continue in the future to negotiate a settlement of a claim against us by ACM, the terms of which could breach certain restrictive
covenants in the securities purchase agreements we entered into with investors, and the Placement Agent Agreement we entered into with
the Placement Agent, each in connection with the November Offering. These restrictive covenants prohibit us, subject to certain exceptions,
from issuing additional shares of Common Stock or securities convertible into or exercisable for shares of Common Stock (“Common
Stock Equivalents”), and from filing any registration statements to register for resale any of such securities, without the consent
of the investors, who were issued 50.1% of the securities issued in the November Offering, and the Placement Agent. Since we expect to
issue shares of Common Stock and Common Stock Equivalents to ACM, in connection with any settlement, and to register such shares of Common
Stock and shares of Common Stock underlying Common Stock Equivalents for resale in one or more registration statements, such actions
could result in a breach of these restrictive covenants and we could be liable for damages to the investors in the November Offering,
and the Placement Agent, which could have a material adverse effect on our financial situation and operations. 

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