Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 93

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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 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.

Litigation with ACM

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 of notes in
a transaction involving Aegis Capital Corp. acting as the placement agent, prior to which, the consent of ACM was not obtained. As per
the terms of the ACM note, in the event of any default, all accrued but unpaid interest plus liquidated damages and other amounts thereof,
shall become immediately due and payable in cash. On November 7, 2024, ACM filed a notice of motion for summary judgement in in lieu of
complaint against Zoomcar in New York courts for accelerated payment of $5,997,832.72 due under the ACM note and related legal expenses,
pursuant to breach of the terms of the note. ACM alleged that two “Events of Default” (as defined in the Note) had occurred
thereby entitling ACM to