Company: EZOO
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001493152-25-020156
Chunk: 37

Company: Ezagoo Ltd
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 2
Chunk 37
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 to commence our business operations.

Off-balance
Sheet Arrangements

As
of June 30, 2025, we have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future
effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to our stockholders.

3

Additional
Information

VIE
STRUCTURE AND ARRANGEMENTS

Foreign
ownership in companies providing media advertising services is subject to certain restrictions under PRC laws and regulations. To comply
with the PRC laws and regulations, we, through our wholly-owned subsidiary, Changsha Ezagoo Technology Limited (CETL), entered into a
set of contractual arrangements with Beijing Ezagoo Zhicheng Internet Technology Limited (BEZL) and includes its branch company, named
Changsha Branch of Beijing Ezagoo Industrial Development Group Holding Limited (BELCB), and its shareholders. The contractual arrangements
between CETL, BEZL and shareholders of BEZL allow us to:

    1.
    exercise
    effective control over BEZL and BELCB whereby having the power to direct BEZL and BELCB’s activities that most significantly
    drive the economic results of BEZL and BELCB;

    2.
    receive
    substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from
    BEZL and BELCB as if it was their sole shareholder; and

    3.
    have
    an exclusive option to purchase all of the equity interests in BEZL and BELCB.

Our
consolidated financial statements include the financial statements of our company, our subsidiaries and our consolidated VIE for which
we are the primary beneficiary. All transactions and balances among our company, our subsidiaries and our consolidated VIE have been
eliminated upon consolidation.

A
subsidiary is an entity in which we, directly or indirectly, control more than one half of the voting powers; or has the power to appoint
or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the
power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

A
consolidated VIE is an entity in which we, or our subsidiaries, through contractual agreements