Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 198

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 9B
Chunk 198
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 in United States Dollars (“US$”), except for number of shares)

    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 years ended December 31, 2024 and 2023.

    b.
    
    The
    contract does not contain any elements that would cause consideration under the arrangement to be variable (Examples include discounts,
    rebates, refunds, credits, incentives, tiered pricing, price guarantees, right of return, etc.). 

    c.
    
    There
    are no factors that exist whereby it is not probable that a significant reversal or revenues will not occur in the contract.

    4.
    Allocate
    the transaction price to the performance obligations in the contract; and

    a.
    
    There
    were no multiple performance obligations to which the transaction price must be allocated, and each contract only has one performance
    obligation. The standalone selling price is explicated stated in the contract.

    5.
    Recognize
    revenue when (or as) the entity satisfies a performance obligation.

    a.
    Per
    ASC 606, an entity shall recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised
    good or service (that is, an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

    b.
    Revenue
    is recognized when the advertising service is performed. According to the sample advertising and e-commerce contract, upon obtaining
    the signed contract and order from the Customer, the service and goods’ period would be started. Therefore, the revenue is
    recognized when the service and goods are completely provided and delivered at that point in time.

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.

● Cost of revenues

Cost
of revenue includes costs of goods