LEASE

3 Months Ended

Mar. 31, 2024

Lease

LEASE

NOTE 9 - LEASE

As of March 31, 2024, the Company has three separates lease agreements for the three office spaces in PRC with remaining lease terms of from 4 months to 9 months

The details lease terms are shown as followings:

Lease agreement	Expiry Date		Original Lease Term		The Remaining Lease Term
1st Changsha office rent, related party		Dec 31, 2024		2 years		0.75 year
2nd Beijing office rent, related party		Dec 31, 2024		1 year		0.75 year
3rd Changsha office rent, related party		Aug 1, 2024		1 year		0.33 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.

EZAGOO LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

The components of lease expense and supplemental cash flow information related to leases are as following:

	Three months ended March 31,
	2024			2023
	(Unaudited)			(Unaudited)
Leases Cost (included in general and administration in the Company’s unaudited condensed statement of operations)
Leases cost, related parties	$	6,725		$	4,171
Leases cost, non-related parties		-			44,380
Total lease cost	$	6,725		$	48,551
Other Information
Cash paid for the amounts included in the measurement of lease liabilities, related parties	$	-		$	-
Cash paid for the amounts included in the measurement of lease liabilities, non-related parties	$	-		$	30,448
Weighted average remaining lease term, related party (in years)		0.75			-
Weighted average remaining lease term, non-related party (in years)		-			0.67
Average discount rate – operating leases		4.35	%		4.35	%

The supplemental balance sheet information related to leases is as following:

	March 31, 2024		December 31, 2023
	(Unaudited)		(Audited)
Leases
Right-of-use assets, related parties	$	16,012	$	21,603
Total Right-of-use assets	$	16,012	$	21,603
Lease liabilities - current portion, related parties	$	22,693	$	21,603
Total lease liabilities	$	22,693	$	21,603

Maturities of the Company’s lease liabilities are as following:

Period ending March 31,
2024	$	22,985
2025		-
Total lease payments		22,985
Less: Imputed interest/present value discount		(292	)
Present value of lease liabilities	$	22,693

Lease expenses were $6,725 and $48,551 for the three months ended March 31, 2024 and 2023, respectively.