Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1073

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1073
---
 based and has also claimed that this alleged wrongful termination
has also deprived him of his vested right to 8% of the Company’s outstanding equity that he claims was owed to him under his Employment
Agreement. He has also claimed that in connection with his termination he is entitled to the payment of certain amounts for unused paid
leave during his employment with Zoomcar, along with certain bonuses he claims to be owed under the terms of his Employment Agreement,
as well as severance equal to one year’s base salary. Zoomcar believes that the Mr. Moran’s employment, because of cause,
was properly terminated in accordance with the terms of his Employment Agreement is currently assessing and verifying the monetary and
statutory claims made by Mr. Moran and intends to defend this action vigorously. As of October 31, 2024, the suit has been dismissed on
account of Mr. Moran’s intention to refile the case in Delaware Superior Court.

Mr. Moran refiled his lawsuit
in the Superior Court of the State of Delaware on November 1, 2024. On 27 November 2024, the Company has filed a motion to dismiss
certain of the causes of action for failure to state a cause of action, and the briefing on that motion was filed on 7 January 2025. Even
if the Company prevails on the motion, there will still be remaining count of breach of contract the Company will be required to defend.
However, there can be no assurance that the Company will be successful in defending these claims in its entirety and such efforts may
be time-consuming, costly and may have reputational and other negative effects on Zoomcar.

95

ACM has filed a notice of motion for summary
judgement in lieu of complaint against Zoomcar in New York courts for payment of amounts due under the Note pursuant to breach of the
terms of a note

The Company received two default notices from
ACM. The first notice was issued on May 22, 2024 which stated that the Company is in default of the terms of the Unsecured Convertible
Note issued to ACM on December 28, 2023, since the Company had entered into an equity line arrangement with White Lion Capital LLC, a
variable rate transaction, without the prior consent of ACM. Further, on June 25, 2024, the Company received the second notice of default
from ACM stating that the Company has incurred indebtedness in the form of $3,600,000 in principal amount