Company: EZOO
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001493152-25-020156
Chunk: 70

Company: Ezagoo Ltd
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 70
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 we, through our wholly-owned subsidiary, Changsha Ezagoo Technology Limited (CETL), entered into a
set of contractual arrangements with Beijing Ezagoo Zhicheng Internet Technology Limited (BEZL) and includes its branch company, named
Changsha Branch of Beijing Ezagoo Industrial Development Group Holding Limited (BELCB), and its shareholders. The contractual arrangements
between CETL, BEZL and shareholders of BEZL allow us to:

    1.
    exercise
    effective control over BEZL and BELCB whereby having the power to direct BEZL and BELCB’s activities that most significantly
    drive the economic results of BEZL and BELCB;

    2.
    receive
    substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from
    BEZL and BELCB as if it was their sole shareholder; and

    3.
    have
    an exclusive option to purchase all of the equity interests in BEZL and BELCB.

Our
consolidated financial statements include the financial statements of our company, our subsidiaries and our consolidated VIE for which
we are the primary beneficiary. All transactions and balances among our company, our subsidiaries and our consolidated VIE have been
eliminated upon consolidation.

A
subsidiary is an entity in which we, directly or indirectly, control more than one half of the voting powers; or has the power to appoint
or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the
power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

A
consolidated VIE is an entity in which we, or our subsidiaries, through contractual agreements, bears the risks of, and enjoys the rewards
normally associated with ownership of the entity. In determining whether we or our subsidiaries are the primary beneficiary, we considered
whether it has the power to direct activities that are significant to the consolidated VIE’s economic performance, and also our
obligation to absorb losses of the consolidated VIE that could potentially be significant to the consolidated VIE or the right to receive
benefits from the consolidated VIE that could potentially be significant to the consolidated VIE. We hold all the variable interests
of the consolidated VIE and its subsidiaries, and has been determined to be the primary beneficiary of the consolidated VIE.

In