Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 112

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 112
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 Stock Market. Furthermore, on October 29, 2024, the Staff notified the Company that it did not comply with
Listing Rule 5450(b)(1)(B), which requires that the Company’s ordinary shares maintain a minimum of 1,100,000 publicly held shares
for continued listing. This matter serves as a separate and additional basis for delisting.

As of date the Company has regained
compliance with the minimum 1.1 million publicly held shares requirement in Listing Rule 5450(b)(1)(B).

The
Company requested a hearing before a Nasdaq Hearings Panel seeking an extension to comply with the requirements of Rule 5450(b)(2)(A).
The Panel has granted an extension to comply with the requirements of the said rule until March 31, 2025. 

(F)On November 1, 2024, Gregory Moran, a former employee of Zoomcar
India, has filed a case with the Superior Court, Delaware, challenging his termination without a cause or a sufficient notice, claiming
$100,000 payment that was agreed to be paid on the 6 month anniversary of the effective date of closing of the SPAC transaction along
with a 8% fully diluted equity interest in Zoomcar Holdings, Inc., non-payment of “vacation” valued at approximately $30,000,
leave encashment of approximately $42,000, $96,000 entitled to him for severance pay and gratuity as per India’s Payment of Gratuity
Act, 1972. Additionally, he has claimed 210,520 stock units already existing, fully vested. The Company filed a motion to dismiss the
matter on November 27, 2024. On January 7, 2025, the Company subsequently filed the opening brief in support of the motion to dismiss
filed on November 27, 2024.

(G)On November 7, 2024, the Company received a notice from ACM
Zoomcar Convert LLC (“ACM”) regarding a breach of obligations under the Unsecured Convertible Note executed on December 28,
2023. The Company had defaulted on its payment obligations to ACM on June 25, 2024, resulting in the entire outstanding amount becoming
payable on demand. ACM has initiated litigation with the Court to recover the principal amount of $5,656,087, unpaid interest of $341,746,
and interest at the contractual rate until the date of judgment. The Company has filed an opposition