Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 670

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 1B
Chunk 670
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’s
    view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s
    financial statement. Currently the Chief Executive Officer and Director act in the capacity of the Audit Committee and does not include
    a member that is considered to be independent of management to provide the necessary oversight over management’s activities.

    2.
    We
    do not have Written Policies & Procedures – Due to lack of written policies and procedures for accounting and financial
    reporting, the Company did not establish a formal process to close our books monthly and account for all transactions and thus failed
    to properly record the Private Placement or disclose such transactions in its SEC filings in a timely manner.

    3.
    We
    did not implement appropriate information technology controls – As at December 31, 2024, the Company retains copies of
    all financial data and material agreements; however, there is no formal procedure or evidence of normal backup of the Company’s
    data or off-site storage of the data in the event of theft, misplacement, or loss due to unmitigated factors.

Accordingly,
the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual
or interim financial statements will not be prevented or detected on a timely basis by the Company’s internal controls.

As
a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control
over financial reporting as of December 31, 2024 based on criteria established in Internal Control—Integrated Framework issued
by COSO.

Management’s
Remediation Initiatives

In
an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated,
or plan to initiate, the following series of measures:

    1.
    We
    plan to create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical
    accounting expertise within the accounting function when funds are available to us. The accounting personnel is responsible for reviewing
    the financing activities, facilitate the approval of the financing, record the information regarding the financing, and submit SEC
    filing related documents to our legal counsel in order to comply with the filing requirements of SEC.

    2.
    We
    plan to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our
    books monthly on an accrual basis and account for all transactions, including equity and debt