Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 149

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 149
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 damages equal to 100% of any
unpaid wages. He claims that all of the above constitute wages under New York Labor Law.

Zoomcar believes that the
termination of Mr. Moran’s employment for cause was proper in accordance with the terms of his Employment Agreement. Mr. Moran’s
case in the District Court was dismissed on account of Mr. Moran’s stated 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 November 27, 2024, the Company 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 January 7, 2025. Mr. Moran filed opposition to Zoomcar’s motion on February 5, 2025 and Zoomcar filed a reply in further
support of its motion on February 20, 2025.Zoomcar’s oral arguments in its motion to dismiss  were heard on April 29, 2025.
The Court has requested additional briefing with respect to the Company’s motion to dismiss Mr. Moran’s Wage claim. The
additional briefing is due on August 15, 2025. The court granted the motion to dismiss Mr. Moran’s quasi-contractual claims
and reserved decision on the balance of the motion. Zoomcar believes the allegations are without merit, intends to defend them vigorously
and expects to prevail either at the motion stage or at a hearing on the merits. 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.

92

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