Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 500

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1
Chunk 500
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 our management, employees and parties that we collaborate with,
who may from time to time be subject to litigation and regulatory investigations and proceedings or otherwise face potential liability
and penalties in relation to noncompliance with applicable laws and regulations, which could harm our reputation and business.

Payment
of dividends is subject to restrictions under Nevada and the PRC laws.

Under
Nevada law, we may only pay dividends subject to our ability to service our debts as they become due and provided that our assets will
exceed our liabilities after the payment of such dividends. Our ability to pay dividends will therefore depend on our ability to generate
adequate profits. In addition, because of a variety of rules applicable to our operations in the PRC and the regulations on foreign investments
as well as the applicable tax law, we may be subject to further limitations on our ability to declare and pay dividends to our shareholders.

As
a holding company, we may rely on dividends and other distributions from our PRC subsidiaries and WFOEs for cash requirements. If a WFOE
incurs any debts, the instruments governing such debts may restrict its ability to pay dividends to us. In order for us to pay dividends
or other distributions to our shareholders, including investors in this offering, we will rely on payments from our subsidiaries. Cash
or other assets may be transferred to us from our subsidiaries in the following manner: (i) funds from our operating subsidiaries to
WFOEs may be remitted as services fees, dividends or other distributions; and (ii) WFOEs may make dividends or other distributions to
us through our Hong Kong subsidiaries.

Current
PRC regulations permit Chinese operating subsidiaries to pay dividends to foreign parent companies only out of their accumulated profits,
if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is
required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches
50% of its registered capital. Each of our subsidiaries in China is also required to further set aside a portion of its after-tax profits
to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors.
While the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess
of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquid