Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 318

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 12
Chunk 318
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 the first one is in Changsha, Hunan China with remaining lease term
of 0 years, the second is in Beijing China with remaining lease term of 0 year, the third is in Changsha, Hunan China with remaining
lease term of 1.2 year. A lease with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts
for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis
over the lease term.

The
details lease terms are shown as followings:

SCHEDULE OF DETAILS OF LEASE TERM 

    Lease
    agreement
     
    Expiry
    Date
     
    Original
    Lease Term
     
    The
    Remaining Lease Term
  
    1st
    Changsha office rent, related party
     
    Dec
    31, 2024
     
    2
    years
     
    0
    year
  
    2nd
    Beijing office rent, related party
     
    Dec
    31, 2024
     
    1
    year
     
    0
    year
  
    3rd
    Changsha office rent, related party
     
    Aug
    1, 2024
     
    1
    year
     
    1.2
    year

Operating
lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease
payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent
our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily
determinable and the Company utilizes its incremental borrowing rate 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 includes any lease payments made and excludes lease incentives.

This
standard did not have a significant impact on our liquidity or on our compliance with our financial covenants associated with our loans.

    F-16

EZAGOO
                                            LIMITED

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED DECEMBER 31, 2024 AND 202