Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 927

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 927
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 along with other relief,
was issued and later modified by the New York Appellate Division, First Department. A motion seeking to stay or modify that order is currently
pending in the First Department and the parties are awaiting the start of arbitration. On June 18, 2024, in connection with the Company’s
agreement to engage Aegis as placement agent as mentioned under ‘Liquidity and Capital Resources’ section of Management’s
Discussion and Analysis of Financial Condition and Results of Operations. The parties have thereafter agreed to defer all further action
with respect to the arbitration and associated litigation until June 18, 2025.

In February 2023, a former
employee of Zoomcar India instituted a suit before the City Civil and Sessions Judge at Mayo Hall, Bengaluru against Zoomcar India, Zoomcar
and IOAC challenging his termination, claiming approximately $400,000 in damages, and claiming that 100,000 options to purchase shares
of Zoomcar have vested. On March 3, 2023, the City Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction to restrain
each of Zoomcar and IOAC from “alienating or dealing” the 100,000 shares, on pre-split basis, of Zoomcar claimed by the former
employee while the suit is pending. Zoomcar believes that such claims are baseless and is attempting to have the interim order vacated.
In addition, Zoomcar India filed an application in the former employee’s suit, seeking that IOAC be deleted from the array of parties
in the suit, inter alia since (i) IOAC is neither a necessary nor a proper party to the suit; (ii) no reliefs have been sought by the
former employee from IOAC; and (iii) there is no cause of action against IOAC.

On September 26, 2024, we
received a copy of a complaint filed with the United States District Court for the District of Delaware wherein our founder and former
CEO Mr. Moran has challenged the Company’s termination of his employment for cause, effective as of June 18, 2024,. Mr. Moran has
contested the facts leading up to the grounds on which his termination was 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