Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 669

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1B
Chunk 669
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 of financial statements in accordance with accounting
principles generally accepted in the United States of America and that receipts and expenditures of the Company are being made only in
accordance with authorizations of management and directors of the Company; 

    ●
    Provide
    reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s
    assets that could have a material effect on the financial statements.

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed,
have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect
to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent
limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to
reduce, though not eliminate, this risk.

28

As
of December 31, 2024, management assessed the effectiveness of our internal control over financial reporting based on the criteria for
effective internal control over financial reporting established in Internal Control—Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments. Based on
such evaluation, the Company’s management concluded that, during the period covered by this Report, internal controls and procedures
over financial reporting were not effective. This was due to deficiencies that existed in the design or operation of our internal controls
over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

Identified
Material Weaknesses

A
material weakness in internal control over financial reporting is a control deficiency, or combination of control deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.

Management
identified the following material weaknesses during its assessment of internal controls over financial reporting as of December 31, 2024.

    1.
    We
    do not have an Audit Committee – While not being legally obligated to have an audit committee, it is the management