Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 605

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 605
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 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, 2025, with the Company’s opposition due by January 14, 2025 and plaintiff’s reply
by January 23, 2025. The Company has filed its opposition on January 14, 2025. On January 23, 2025, the attorneys for ACM sent a letter
to the New York County Supreme Court Justice requesting a stay or adjournment for 30 days for the completion of settlement paperwork,
in connection with a settlement in principle by the parties. However, there can be no assurance that the Company will be successful 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.

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 option to install a variety of customized software-enabled IoT devices These devices, which Zoomcar
obtains from several suppliers and then programs prior to distribution to Hosts, serve multiple functions, including enabling Guests to
access Host vehicles by digitized keyless access and start and end bookings using Zoomcar’s mobile app. The IoT devices also facilitate
GPS monitoring by Zoomcar of in-trip vehicles, which serves a data collection function that is important to Zoomcar.

We have no control over the
quality or functionality of the IoT devices distributed to Hosts and such devices may not function as intended or may be out of service
during the course of a booking or while a Guest is attempting to access a booked vehicle. In such scenarios, Guests are able to contact
Hosts via number masking call or text chat enabled by Zoomcar Guest App. However, failures to provide the seamless keyless functions may
deny or delay Guests’ quick access to the vehicles, thus reducing Guests’ interest in utilizing our platform. Hosts, in turn,
may rely on Zoomcar’s customer support functionality to facilitate connecting Guests to emergency services in the event