Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 982

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 7
Chunk 982
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 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:

    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  
     
    7.08 
  
    Period-end HK$: US$1 exchange rate 
     7.77  
     
    7.81 
  
    Period-average HK$: US$1 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.

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 implicit rate,
the Company determines an incremental borrowing rate based on the information available at commencement date in determining the present
value of lease payments. The Company’s incremental borrowing rate