Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 64

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 64
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istributors assist the
VIE in marketing and sales, as well as collecting customers’ feedback and advice related to the VIE products. If the VIE cannot
maintain strong working relationships with its distributors and continue to receive their advice and input, the development, improvement
and marketing of the VIE’s products could suffer, which could have a material adverse effect on our business, financial condition
and results of operations.

Technological changes may adversely affect the sales of the VIE’s products and may cause its products to become obsolete.

The distributed technology
market is characterized by extensive research and development and rapid technological changes. Technological progress or new developments
in the distributed technology industry or technological changes in other industries could adversely affect the demand and consequently
sales of the VIE’s products and services. For example, new hardware innovations could render our software applications which make
certain assumptions based on current hardware standards inoperable or handicapped and could require significant development on our part
to adapt to such changes in technology and new industry developments. The VIE’s products and services could also be rendered obsolete
due to future innovations by its competitors, all of which would have a material adverse effect on the VIE’s business, financial
condition, and results of operations.

Consolidation in the decentralized distributed technology industry could have an adverse effect on the VIE’s revenues and results of operations.

Distributed technology companies
may consolidate to create new companies with greater market power. If companies in the decentralized distributed technology industry
consolidates, competition to provide goods and services to industry participants will become more intense. These industry participants
may use their market power to negotiate price concessions or reductions for their products making them more desirable than the VIE’s
products. If the VIE reduces its prices because of consolidation in the decentralized distributed technology industry, the VIE’s
revenues would decrease accordingly, which could have a material adverse effect on the VIE’s business, financial condition, and
results of operations.

The VIE may fail to effectively develop and commercialize new products, which would materially and adversely affect their business, financial condition, and results of operations.

The distributed technology
industry is developing rapidly and related technology trends are constantly evolving. This results in frequent introduction of new products,
short product life cycles and significant price competition. Consequently, the VIE’s future success depends on its ability to anticipate
technology development trends and identify, develop, and commercialize in a timely and cost-effective manner new and advanced products
that their customers