Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 692

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 692
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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: $5,997,832.72 and $12,000.00. 
On July 29, 2025, the Company filed Notices of Appeal seeking to reverse both money judgments in favor of ACM.  The Company will
continue to vigorously prosecute its appeals.

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.

81

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