Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 79

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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, Pre-funded
warrants issued to certain investors, at their option, exercisable for an aggregate of up to 872,000 shares of Common Stock, Series A
Warrants to initially purchase up to an aggregate of 4,804,491 shares of Common Stock and Series B Warrants to purchase initially no shares
of Common Stock and then up to such number of shares of Common Stock, as determined on the Reset Date for an aggregate investment of $3
million. The Securities were offered at a price of $1.56. Out of the total proceeds of $3 million, the Company did not receive any cash
proceeds with respect to Securities with a subscription price of $1.56 million, as those Securities were issued in consideration for the
settlement of litigation with Randall Yanker. Hence, the Company raised gross proceeds of $1.44 million and net proceeds of $1.25 million
after deduction of offering expenses amounting to $0.2 million.

(D)
In August 2022, the Company received a complaint and a demand for trial by jury from Randall Yanker (complainant) towards non-payment
of performance bonus consideration seeking damages amounting to $15.9 million towards breach of contract claims, as well as costs, attorneys’
fees, and interest on the $15.9 million amount.

On February 4, 2025, the Company entered into a settlement
agreement with Randall Yanker to settle claims arising out of a certain consulting agreement, dated May 1, 2020, for which claims had
been brought by Mr. Yanker. Pursuant to the Settlement Agreement, the Company agreed to issue an aggregate of (i) 1,000,000 shares and/or
Pre-Funded Warrants, (ii) Series A Warrants to initially purchase up to an aggregate of 2,500,000 shares of Common Stock and (iii) Series
B Warrants, in connection with the second closing of December 2024 offering. The settlement agreement is considered a recognized subsequent
event and hence, as on December 31, 2024, the Company has recorded a provision for expense under ‘Accounts payable’ under Condensed Consolidated
Balance Sheets for an amount equal to the fair value of instruments issued on settlement on February 4, 2025 and has recorded the corresponding
expense as ‘Loss on litigation settlement’ under ‘Other income/expense’ in the Condensed Consolidated Statements of Operations.

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