Thu, May 15, 10:28 AM (39 days ago)
**Summary of Ezagoo Limited (EZAGOO) 10-K for the Fiscal Year Ended December 31, 2024** **Financial Performance:** - **Revenue:** $125,195 in 2024, down from $166,396 in 2023, primarily due to the shutdown of the Xindian Application and decreased commission income. - **Net Loss:** $585,330 in 2024, an improvement from $907,126 in 2023, mainly due to reduced staff salaries. - **Operating Expenses:** $746,012 in 2024, down from $1,075,412 in 2023, reflecting cost-cutting measures. - **Liquidity:** Working capital deficit of $3,566,393 in 2024, up from $3,153,392 in 2023, indicating financial strain. **Strategic Overview:** - **Business Model:** Ezagoo operates through its subsidiary Beijing Ezagoo Zhicheng Internet Technology Limited (BEZL), focusing on e-commerce and advertising services. - **Market Position:** The company faces intense competition from major players like TikTok and RED, and has shut down its Xindian Application due to market competitiveness and COVID-19 impacts. - **Future Outlook:** Plans to expand its health industry chain and reach over 500 million users across 300 cities in China within three to five years. **Risk Factors:** - **Market Competition:** High competition from established and new market entrants. - **Regulatory Risks:** Complex regulations in China, including data security and cybersecurity requirements. - **Financial Risks:** Dependence on related parties for funding and potential liquidity issues. - **Operational Risks:** Dependence on key personnel and potential disruptions due to COVID-19. **Financial Condition:** - **Cash Flow:** Negative operating cash flow of $620,934 in 2024, reflecting ongoing financial challenges. - **Debt and Liabilities:** Significant liabilities due to related parties, totaling $3,694,880 in 2024. - **Equity:** 119,956,826 shares of common stock outstanding, with a majority held by the CEO, Xiaohao Tan. **Market Position Changes:** - **Stock Trading:** Shares are quoted on the OTC Pink under the symbol "EZOO," with potential risks of being classified as a "penny stock." - **Dividends:** No dividends paid or anticipated in the foreseeable future. **Ticker:** EZOO **Conclusion:** Ezagoo Limited faces significant financial and operational challenges, including intense market competition, regulatory hurdles, and liquidity issues. The company's strategic focus on expanding its health industry chain and reaching a broader user base is crucial for its future growth. However, it must address its financial condition and risk factors to ensure sustainability and success.