Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 70

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 8
Chunk 70
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    7.83 

    Foreign exchange rate 
     7.81  
     
    7.83 

● Cash and cash equivalents

The
Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

● Account receivable

Account
receivable are stated at the customer obligations due under normal trade terms net of allowance for doubtful accounts.

    F-8

EZAGOO
LIMITED

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Currency
expressed in United States Dollars (“US$”), except for number of shares)

● Property and equipment

Property and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using
the straight-line method. Estimated useful lives of the property and equipment are as follows:

 SCHEDULE
OF PLANT AND EQUIPMENT EXPECTED USEFUL LIVES

    Office
    equipment 
    3-5
    years

The
cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized.

● Lease

The
Company accounts for its leases in accordance with ASC 842 Leases. The Company leases office space. The Company concludes on whether
an arrangement is a lease at inception. This determination as to whether an arrangement contains a lease is based on an assessment as
to whether a contract conveys the right to the Company to control the use of identified property, plant or equipment for period of time
in exchange for consideration. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes
these lease expenses on a straight-line basis over the lease term.

The
Company has assessed its contracts and concluded that its leases consist of only operating leases. Operating leases are included in operating
lease right-of-use (ROU) assets, current portion of operating lease liabilities, and operating lease liabilities in the Company’s
consolidated balance sheets.

ROU
assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date
based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an