Company: EZOO
Filing Date: 2025-05-15
Form Type: 10-K
Source: 0001641172-25-010460
Chunk: 984

Company: Ezagoo Ltd
Filing Date: 2025-05-15
Form: 10-K
Item: Item 7
Chunk 984
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, tiered pricing, price guarantees, right of return, etc.). 

    c.
    
    There
    are no factors that exist whereby it is not probable that a significant reversal or revenues will not occur in the contract.

    4.
    Allocate
    the transaction price to the performance obligations in the contract; and

    a.
    
    There
    were no multiple performance obligations to which the transaction price must be allocated, and each contract only has one performance
    obligation. The standalone selling price is explicated stated in the contract.

    5.
    Recognize
    revenue when (or as) the entity satisfies a performance obligation.

    a.
    Per
    ASC 606, an entity shall recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised
    good or service (that is, an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

    b.
    Revenue
    is recognized when the advertising service is performed. According to the sample advertising and e-commerce contract, upon obtaining
    the signed contract and order from the Customer, the service and goods’ period would be started. Therefore, the revenue is
    recognized when the service and goods are completely provided and delivered at that point in time.

Under
Topic 606, revenues are recognized when the promised services and goods have been confirmed and transferred to the consumers in amounts
that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company presents value added
taxes (“VAT”) as reductions of revenues. The Company recognizes revenues net of value added taxes (“VAT”) and
relevant charges.

During
the year 2023, the Company’s revenues were mainly generated from providing e-commerce trading of goods and products on ZCZX WeChat
Application that is subscribed from Weimob (微盟集团, HK02013) (“trading income”), and providing
e-commerce value-added service in LSM WeChat Application which is also subscribed from Weimob (微盟集团, HK02013)
(“commission income”, that the Company only generated income till March 2023 now, as the Customer is updating they’re
products line since April 2023 and they have been launch their new products in January 2024).

Cost
of revenues

Cost
of revenue includes costs of goods sold and sales commissions expenses of e-commerce trading in ZCZX,