Company: EZOO
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022083
Chunk: 14

Company: Ezagoo Ltd
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 1
Chunk 14
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 rate based on the information available at commencement date in determining the present value
of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit
rating would be. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments
is recognized on a straight-line basis over the lease term.

●
Revenue recognition

The
Company assesses and follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps:

    1.
    Identify the contract(s)
    with a customer;

    a. 
    The parties to the contract
    have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform
    their respective obligations.

    b. 
    The entity can identify
    each party’s rights regarding the services to be transferred.

    c. 
    The entity can identify
    the payment terms for the services to be transferred.

    d. 
    The contract has commercial
    substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the
    contract).

    e. 
    It is probable that the
    entity will collect substantially all of the consideration to which it will be entitled in exchange for the services that will be
    transferred to the customer.

    2.
    Identify the performance
    obligations in the contract;

    a. 
    According to the contract,
    the Company and Customer has to maintain the performance obligation, respectively.

    b. 
    The customer shall pay
    for the services and goods after signing of the contract and provide appropriate advertisement materials, and the delivery address
    & contact information of the e-commerce order to the Company, the Company shall ensure the provided service and delivered goods
    of the Customer according to the contract terms.

    3.
    Determine the transaction
    price;

    a. 
    For the e-commerce contract,
    the transaction price is explicitly stated in fixed amount in the contract. There is no variable consideration, such as discounts,
    rebates, consideration payable to customer or noncash consideration. There was no price concession, and the Company did not expect
    any price concession for the service performed during the periods ended September 30, 2025 and 2024.

    b. 
    The contract does not contain
    any elements that would cause consideration under