{"url_path":"/sec/epow/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 CONTROLS AND PROCEDURES**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1780731/0001213900-26-056928-index.html","accession_number":"0001213900-26-056928","cik":"0001780731","ticker":"EPOW","issuer_name":"E-Power Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1780731/0001213900-26-056928-index.html","primary_entity_key":"0001780731","primary_entity_name":"E-Power Inc."},"word_count":1008,"has_tables":true,"body_markdown":"**ITEM 15. CONTROLS AND PROCEDURES**\n\n \n\n**Disclosure Controls and Procedures**\n\n \n\nAs of December 31, 2025, under the supervision\nand with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we performed an evaluation\nof the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under\nthe Exchange Act). There are inherent limitations to the effectiveness of any disclosure controls and procedures system, including the\npossibility of human error and circumventing or overriding them. Even if effective, disclosure controls and procedures can provide only\nreasonable assurance of achieving their control objectives.\n\n \n\nBased on such evaluation, our Chief Executive\nOfficer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of December 31, 2025\nand as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, failed to provide\nreasonable assurance that the information we are required to disclose in the reports we file or submit under the Exchange Act is (1) recorded,\nprocessed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) accumulated\nand communicated to our management to allow timely decisions regarding required disclosures.\n\n \n\nOur conclusion is based on (i) the fact that we\nlack formal internal control policies and internal independent supervision functions to establish formal risk assessment process and internal\ncontrol framework over financing reporting; and (ii) we lack accounting staff and resources with appropriate knowledge of generally accepted\nU.S. accounting principles (“U.S. GAAP”) and SEC reporting and compliance requirements to design and implement formal period-end\nfinancial reporting policies and procedures to address complex U.S. GAAP technical accounting issues in accordance with U.S. GAAP and\nthe SEC requirements. Our management is currently in the process of evaluating the steps necessary to remediate the ineffectiveness, such\nas (i) hiring additional qualified accounting and financial personnel with appropriate knowledge and experience in U.S. GAAP accounting\nand SEC reporting; and (ii) organizing regular training for our accounting staff, especially training related to U.S. GAAP and SEC reporting\nrequirements.\n\n \n\n109\n\n \n\n \n\n**Management’s Annual Report on Internal\nControl Over Financial Reporting**\n\n \n\nOur management is responsible for establishing\nand maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) and 15d-15(f) under the\nExchange Act. Our management conducted an assessment of the effectiveness of our internal control over financial reporting based on the\ncriteria set forth in “Internal Control - Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations\nof the Treadway Commission.\n\n \n\nIn the course of preparing our consolidated financial\nstatements for the year ended December 31, 2025, we identified material weaknesses and other control deficiencies in our internal control\nover financial reporting as of December 31, 2025. The material weaknesses identified included: (1) a lack of formal internal controls\npolicies over financial closing and reporting processes, which may increase risk of error, fraud, misstatement of financial reporting,\nor even non-compliance with related regulations for a U.S. listed Group; (2) a lack of accounting staff and resources with appropriate\nknowledge of U.S. GAAP and SEC reporting and compliance requirements, and accounting policies and procedures manual that covers U.S. GAAP\nand SEC financial reporting requirements to complete relate US GAAP and SEC reporting; and (3) a lack of appropriately restricted to privileged\nlevel access to employees. Based on this evaluation, our management has concluded that our internal control over financial reporting was\nnot effective as of December 31, 2025.\n\n \n\nWe are taking a number of measures to tackle the\ncontrol deficiencies identified, including: (i) hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience\nand qualifications to strengthen the financial reporting function and to set up a financial and system control framework; (ii) implementing\nregular and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel;\n(iii) preparing a comprehensive accounting policies and procedures manual that covers financial closing and reporting processes, U.S.\nGAAP and SEC financial reporting requirements, and ensuring that accounting personnel are familiar with and follow the manual; and (iv)\nreinforcing the implementation of IT authorization limits matrix and segregation of duties systems to ensure the appropriateness of all\napprovals, authorizations, and confirmations granted.\n\n \n\nHowever, we cannot assure you that we will remediate\nour control deficiencies in a timely manner. The process of designing and implementing an effective financial reporting system is a continuous\neffort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend\nsignificant resources to maintain a financial reporting system that is adequate to satisfy our reporting obligation. See “Item 3.\nKey Information—D. Risk Factors—We have identified several control deficiencies in our internal control over financial reporting.\nIf we fail to maintain an effective system of internal controls over financial reporting, we may not be able to accurately report our\nfinancial results or prevent fraud.” Additionally, we cannot assure you that we have identified all, or that we will not in the\nfuture have additional, material weaknesses.\n\n \n\n**Attestation Report of the Registered Public Accounting Firm**\n\n \n\nAs a company with less than $1.235 billion in\nrevenue for our last fiscal year, we qualify as an “emerging growth company” pursuant to the JOBS Act. An emerging growth\ncompany may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies.\nThese provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002, in the\nassessment of the emerging growth company’s internal control over financial reporting. This annual report on Form 20-F does not\ninclude an attestation report of our registered public accounting firm because we are an emerging growth company.\n\n** **\n\n**Changes in Internal Control**\n\n \n\nOther than as described above, there were no changes\nin our internal controls over financial reporting that occurred during the period covered by this annual report on Form 20-F that have\nmaterially affected, or are reasonably likely to materially affect, our internal control over financial reporting."}