Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 150

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 150
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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 (“Motion”) against Zoomcar in New York State Supreme
Court, New York County, alleging it was entitled to accelerated payment of $5,997,832.72 pursuant to the terms of an unsecured promissory
note issued by Zoomcar to ACM on December 28, 2023 (“Note”) as consideration for certain alleged, bona fide expenses that
ACM’s members had aggregated and assigned to ACM for collection from Zoomcar. As alleged by ACM in its moving papers, two “Events
of Default” (as defined in the Note) had occurred thereby entitling ACM to full and accelerated payment of the Note. The first was
a Form 8-K, filed by Zoomcar on May 9, 2024, which allegedly disclosed that on May 6, 2024, Zoomcar had entered into an equity line arrangement
and “Variable Rate Transaction” (as defined in the Note) with White Lion Capital LLC (“White Lion”). The second
was a Form 8-K, filed by Zoomcar on June 21, 2024, which allegedly disclosed that on June 18, 2024, Zoomcar had incurred a form of debt
that was not “Excluded Debt” (as defined in the Note) arising from its placement agent agreement with Aegis Capital Corp.
without ACM’s prior consent. The Note generally provides that, upon the occurrence of an Event of Default, all accrued but unpaid
interest plus liquidated damages and other amounts thereof shall become immediately due and payable to the Note holder.

As such, on January 14, 2025,
Zoomcar filed opposition to the Motion.  In relevant part, Zoomcar challenged the fact allegations concerning: (i) the first Form
8-K by tendering to the Court evidence confirming that the subject transaction with White Lion in fact had been terminated and the underlying
filing of a Form S-1