Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 1

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 7A
Chunk 1
---
 of the inherent limitations of internal control, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent
limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to
reduce, though not eliminate, this risk.

28

As
of December 31, 2024, management assessed the effectiveness of our internal control over financial reporting based on the criteria for
effective internal control over financial reporting established in Internal Control—Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments. Based on
such evaluation, the Company’s management concluded that, during the period covered by this Report, internal controls and procedures
over financial reporting were not effective. This was due to deficiencies that existed in the design or operation of our internal controls
over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

Identified
Material Weaknesses

A
material weakness in internal control over financial reporting is a control deficiency, or combination of control deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.

Management
identified the following material weaknesses during its assessment of internal controls over financial reporting as of December 31, 2024.

    1.
    We
    do not have an Audit Committee – While not being legally obligated to have an audit committee, it is the management’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