Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 858

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 858
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, Zoomcar had entered into an equity line arrangement and “Variable Rate Transaction”
(as defined in the Note) with White Lion Capital LLC (“White Lion”). The second was a Form 8-K, filed by Zoomcar on June
21, 2024, which allegedly disclosed that on June 18, 2024, Zoomcar had incurred a form of debt that was not “Excluded Debt”
(as defined in the Note) arising from its placement agent agreement with Aegis Capital Corp. without ACM’s prior consent. The
Note generally provides that, upon the occurrence of an Event of Default, all accrued but unpaid interest plus liquidated damages and
other amounts thereof shall become immediately due and payable to the Note holder. On January 14, 2025, Zoomcar filed opposition to the
Motion. In relevant part, Zoomcar challenged the fact allegations concerning: (i) the first Form 8-K by tendering to the Court evidence
confirming that the subject transaction with White Lion in fact had been terminated and the underlying filing of a Form S-1 registration
statement contemplated in that transaction was never effectuated; and (ii) the second Form 8-K by tendering to the Court evidence confirming
that the subject transaction involved Excluded Debt. The effect of the foregoing is the transactions were excluded from the definitions
of Events of Default and extinguished ACM’s alleged entitlement to accelerated payment under the Note. Additional defenses
were also presented by Zoomcar to the Motion. On March 28, 2025, New York County Supreme Court Justice granted a summary judgment
in favor of ACM in the amount of $5,656,086.72, as well as default interest in the amount of $346,481.00, post-judgment interest at the
statutory rate, attorneys’ fees, and costs. The issue of attorneys’ fees was referred to a special referee to report
and recommend on submission from the parties. 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. On May 9, 2025, the Court reduced the award of attorneys’ fees and
costs to $12,000.00. Based on the foregoing, on July 1, 2025, the Clerk of the Court entered two (2) money judgments against the
Company for the underlying liability and attorneys’ fees