Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 778

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 3
Chunk 778
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 – As at December 31, 2024, the Company retains copies of
    all financial data and material agreements; however, there is no formal procedure or evidence of normal backup of the Company’s
    data or off-site storage of the data in the event of theft, misplacement, or loss due to unmitigated factors.

Accordingly,
the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual
or interim financial statements will not be prevented or detected on a timely basis by the Company’s internal controls.

As
a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control
over financial reporting as of December 31, 2024 based on criteria established in Internal Control—Integrated Framework issued
by COSO.

Management’s
Remediation Initiatives

In
an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated,
or plan to initiate, the following series of measures:

    1.
    We
    plan to create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical
    accounting expertise within the accounting function when funds are available to us. The accounting personnel is responsible for reviewing
    the financing activities, facilitate the approval of the financing, record the information regarding the financing, and submit SEC
    filing related documents to our legal counsel in order to comply with the filing requirements of SEC.

    2.
    We
    plan to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our
    books monthly on an accrual basis and account for all transactions, including equity and debt transactions.

    3.
    We
    intend to add staff members to our management team for making sure that information required to be disclosed in our reports filed
    and submitted under the Exchange Act is recorded, processed, summarized and reported as and when required and the staff members will
    have segregated responsibilities with regard to these responsibilities.

We
anticipate that these initiatives will be at least partially, if not fully, implemented by the end of fiscal year 2024.

Changes
in internal controls over financial reporting

There
was no change in our internal controls over financial reporting that occurred during the period covered by this Report, which has materially
affected or is reasonably likely to materially affect, our internal controls over financial reporting, except that we have hired outside
consultant to remediate our