Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 772

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 3
Chunk 772
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 lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date
based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate,
the Company determines an incremental borrowing 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 operating lease 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.

25

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