Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 26

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 7A
Chunk 26
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AP”). The Company’s
fiscal year end is December 31. The Company’s financial statements are presented in U.S. dollars.

The
consolidated financial statements include the accounts of EZAGOO LIMITED and its subsidiaries. All significant inter-company balances
and transactions within the Company have been eliminated upon consolidation.

● Use of estimates

In
preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets
and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.

● 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$”) and the accompanying financial statements have been expressed
in US$. 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 into US$1 has been made at the following exchange rates for the respective periods:

SCHEDULE OF FOREIGN CURRENCY TRANSLATION OF
EXCHANGE RATES

    2024  
    2023 

    As
    of and for the  year ended  December 31, 

    2024  
    2023 
  
    Period-end RMB: US$1 exchange rate 
     7.30  
     
    7.10 
  
    Period-average RMB: US$1 exchange rate 
     7.20