EZGO Tech(EZGO) - 2023 Q4 - Annual Report

Liquidity and Financial Management - The company is exposed to liquidity risk and may seek short-term funding from financial institutions and shareholders if necessary[337]. - The company has reported a collection of loans from shareholders amounting to $2,992,126, highlighting its reliance on shareholder support for liquidity[362]. - The company has engaged in various loan activities with related parties, including a loan of$3,051,944 and collections amounting to $6,007,720, reflecting active financial management within its network[362]. - The company has incurred expenses for daily operations on behalf of related parties, totaling$675,067, indicating ongoing operational collaboration[362]. - The company has seen a repayment of interest-free loans from related parties, amounting to $534,090, which may enhance its cash flow position[362]. Inflation and Economic Impact - Inflation in China has not materially impacted the company's operations, with year-over-year consumer price index changes of 2.1$255,974) each year[344]. - The board of directors consists of 5 members, with 1 female and 4 male directors, reflecting a diversity matrix[344]. - The company has entered into employment agreements with executive officers for an initial term of three years, with fixed salaries and benefits determined by the board[346]. - The company has not set aside or accrued any amounts for pension or retirement benefits for executive officers and directors[344]. - The Chief Executive Officer, Jianhui Ye, has been in position since August 2019 and is responsible for daily operations and business strategy formulation[340]. - The Chief Financial Officer, Jingyan Wu, has over 20 years of experience in accounting and auditing, including over 10 years with U.S. public companies[340]. - The board of directors is divided into three classes, with each class serving a three-year term[353]. - The audit committee is responsible for overseeing financial reporting processes and has determined that Robert Johnson qualifies as an "audit committee financial expert"[348]. - The compensation committee reviews and approves compensation for executive officers, ensuring no executive is present during discussions about their own compensation[350]. - The company has adopted an audit committee charter to monitor compliance with business conduct and ethics[348]. Employee Relations and Workforce - The company has 81 full-time employees, with 29 in manufacturing and 12 in research and development[354]. - The company has not experienced any labor disputes and none of the employees are represented by labor unions[354]. - The company participates in various employee social security plans, contributing monthly at specified percentages of salaries and bonuses[354]. Related Party Transactions - The company reported a significant decrease in related party transactions, with purchases of e-bicycles dropping from $6,048,053 in 2021 to$2,179,826 in 2023, representing a decline of approximately 64.1%[362]. - The company has made long-term investments in related parties, totaling $1,525,972, indicating a strategic focus on strengthening partnerships[362]. - The company has made significant purchases from related parties, including e-bicycles and parts, totaling$1,188,752, which underscores its commitment to maintaining supply chain relationships[362]. - The company has reported a decrease in rental and utility fees from related parties, which may reflect cost-saving measures[362]. - The company has engaged in various financial transactions with related parties, including loans and repayments, which are critical for its operational financing strategy[362]. - The audit committee reviews all related party transactions to ensure fairness and compliance with company policies[358]. - The company has a total of 7,063,380 shares owned by all directors and executive officers as a group, representing 6.9% of the total shares[359].