Company: EZOO
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022083
Chunk: 43

Company: Ezagoo Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 43
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ES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Under
Topic 606, revenues are recognized when the promised services and goods have been confirmed and transferred to the consumers in amounts
that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added
taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and
relevant charges.

During
the period ended September 30, 2025, the Company’s revenues were mainly generated from providing e-commerce trading of goods and
products on ZCZX WeChat Application that is subscribed from Weimob (微盟集团, HK02013) (“trading income”
since September 2022), providing e-commerce value-added service in LSM WeChat Application which is also subscribed from Weimob (微盟集团,
HK02013) (“commission income” since November 2022), and providing service of travel planning to customer (“service
income” since March 2024).

“Commission
income” is recognized in the following month.

●
Cost of revenues

Cost
of revenue includes costs of goods sold and sales commissions expenses of e-commerce trading in ZCZX, the operating salaries for the
staffs who running the ZCZX and LSM, and the service of travel planning.

●
Value-added taxes

Revenue
is recognized net of value-added taxes (“VAT”). The VAT is based on gross sales price and VAT rates applicable to the Company
is 13% of e-commerce trading income and 6% of commission income and service income for the periods ended September 30, 2025 and 2024.
All of the VAT returns filed by the Company’s subsidiaries in the PRC, have been and remain subject to examination by the PRC tax
authorities for five years from the date of filing. VAT payables are included in accrued liabilities.

●
Income taxes

The
Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this
method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets
and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company
record