CONCENTRATIONS OF RISK

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

CONCENTRATIONS OF RISK

13. CONCENTRATIONS OF RISK

(a) Major customers

For the year ended December 31, 2021, the customers who accounted for more than 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows:

	For the year ended December 31, 2021					As of December 31, 2021
	Revenues		Percentage of revenues			Accounts receivable
Customer J	$	192,989		9	%	$	-
Total:	$	192,989		9	%	$	-

For the year ended December 31, 2020, the customers who accounted for more than 10% of the Company’s revenues and the accounts receivable balances at period-end are presented as follows:

	For the year ended December 31, 2020					As of December 31, 2020
	Revenues		Percentage of revenues			Accounts receivable
Customer J	$	41,180		18	%	$	-
Customer K-related party		25,009		11	%		-
Total:	$	66,189		29	%	$	-

The related party revenues are $0 and $33,755 for the year ended December 31, 2021 and 2020, respectively.

(b) Major vendors

For the year ended December 31, 2021, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows:

	For the year ended December 31, 2021					As of December 31, 2021
	Purchases		Percentage of purchases			Amount due to related party
Vendor H-related party	$	620,435		80	%	$	463,892
Total:	$	620,435		80	%	$	463,892

For the year ended December 31, 2020, the vendors who accounted for 10% or more of the Company’s cost of revenues and its accounts payable balance at period-end are presented as follows:

	For the year ended December 31, 2020					As of December 31, 2020
	Purchases		Percentage of purchases			Accounts payable
Vendor E	$	51,281		50	%	$	20,678
Total:	$	51,281		50	%	$	20,678

The related party cost of revenues is $620,435 and $0 for the year ended December 31, 2021 and 2020, respectively.

(c) Credit risk

Financial instruments that are potentially subject to credit risk consist principally of accounts receivable. The Company believes the concentration of credit risk in its accounts receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

The related party transactions are generally transacted in an arm-length basis at the current market value in the normal course of business.

EZAGOO LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(Currency expressed in United States Dollars (“US$”), except for number of shares)