Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 112

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 112
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 may become subject to Rule 15g-9 under the Exchange Act, or the “Penny Stock Rule.” This rule imposes additional sales
practice requirements on broker-dealers that sell such securities to persons other than established customers and “accredited investors”
(generally individuals with a net worth of $1,000,000 or annual incomes exceeding $200,000, or $300,000 together with their spouses).
For transactions covered by Rule 15g-9, a broker-dealer must make a special suitability determination for the purchaser’s written
consent to the transaction prior to sale. As a result, this rule may affect the ability of broker-dealers to sell our securities and
may affect the ability of purchasers to sell any of our securities to the secondary market.

For any transaction involving
a penny stock, unless exempt, the rules require delivery, prior to any transaction in a penny stock, of a disclosure schedule prepared
by the SEC relating to the penny stock market. Disclosure is also required to be made about sales commissions payable to both the broker-dealer
and the registered representative and current quotations for the securities. Finally, monthly statements are required to be sent disclosing
recent price information for the penny stock held in the account and information on the limited market in penny stock.

There can be no assurance
that our Ordinary Shares will qualify for exemption from the Penny Stock Rule. In any event, even if our Ordinary Shares were exempt
from the Penny Stock Rule, we would remain subject to Section 15(d)(6) of the Exchange Act, which gives the SEC the authority to restrict
any person from participating in a distribution of penny stock, if the SEC finds that such a restriction would be in the public interest.

If securities or industry analysts do not publish research or reports about our business, or if they adversely change their recommendations regarding the Ordinary Shares, the market price for the Ordinary Shares and trading volume could decline.

The trading market for our
Ordinary Shares will be influenced by research or reports that industry or securities analysts publish about our business. If industry
or securities analysts decide to cover us and in the future downgrade our Ordinary Shares, the market price for our Ordinary Shares would
likely decline. If one or more of these analysts cease to cover us or fail to regularly publish reports on us, we could lose visibility
in the financial markets, which in turn could cause the market price or trading volume for our Ordinary Shares to decline.

If our stock becomes publicly traded, techniques employed by short sellers may drive down the