Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 542

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1
Chunk 542
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 to reflect the possible future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result in the Company not being able to continue as a going concern.

3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The
accompanying audited consolidated financial statements reflect the application of certain significant accounting policies as described
in this note and elsewhere in the accompanying consolidated financial statements and notes.

● Basis of consolidated presentation

These
consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations
of the U.S. Securities and Exchange Commission (“SEC”). These accompanying consolidated financial statements have been prepared
in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The Company’s
fiscal year end is December 31. The Company’s financial statements are presented in U.S. dollars.

The
consolidated financial statements include the accounts of EZAGOO LIMITED and its subsidiaries. All significant inter-company balances
and transactions within the Company have been eliminated upon consolidation.

● Use of estimates

In
preparing these consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets
and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.

● Foreign currencies translation and re-measurement

Transactions
denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing
at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated
into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded
in the statements of operations and comprehensive income.

The
reporting currency of the Company is United States Dollars (“US$”) and the accompanying financial statements have been expressed
in US$. In addition, the Company’s subsidiary in People’s Republic of China maintains its books and record in its local currency,
Chinese Yuan (“RMB”), which is functional currency as being the primary currency of the economic environment in which the
entity operates.

In
general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into
US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement”, using the exchange rate on the balance sheet
date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation
of financial statements of foreign