Company: EZOO
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001493152-25-020156
Chunk: 52

Company: Ezagoo Ltd
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 52
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 a statute or under an agreement
among the shareholders or equity holders.

●
Use of estimates

The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosures of contingent assets and liabilities on the date of the financial statements,
and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an
ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances
may cause the Company to revise its estimates. The Company bases its estimates on past experiences and on various other assumptions that
are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Estimates are used when accounting for items and matters including, but not limited to, allowances for expected credit losses, useful
lives and impairment of long-lived assets.

●
Reclassification

Certain
prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on
the reported results of operations.

●
Foreign currencies translation and re-measurement

Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the statements of operations and comprehensive income.

The
reporting currency of the Company is United States Dollars (“US$”) and the accompanying condensed financial statements have
been expressed in US$. In addition, the Company’s subsidiary in People’s Republic of China maintains its books and record
in its local currency, Chinese Yuan (“RMB”), which is functional currency as being the primary currency of the economic environment
in which the entity operates.

In
general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into
US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet
date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation
of financial statements of foreign subsidiary are recorded as a separate component of accumulated other comprehensive income (loss) within
the statements of stockholders’ deficit.

Translation
of amounts from RMB