Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 304

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 304
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 period. Diluted EPS presents the dilutive effect on a
per-share basis of the potential Ordinary Shares (e.g., convertible securities, options and warrants) as if they had been converted at
the beginning of the periods presented, or issuance date, if later. Potential Ordinary Shares that have an anti-dilutive effect (i.e.,
those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Contingencies

From time to time, the Company is a party to
various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become
probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.
The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the
aggregate would have a material adverse impact on the Company’s consolidated financial position, results of operations and cash
flows.

| F-18 |

Lease

In February 2016, the FASB issued ASU No. 2016-02,
“Leases (Topic 842)”. The amendments in this ASU require that a lessee recognize the assets and liabilities that arise from
operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability)
and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or
less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease
liabilities. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments — Credit losses (Topic 326), Derivative and
Hedging (Topic 815), and Lease (Topic 842): Effective Date. ASU2019-10 amends the effective dates for ASU No. 2016-02. The Group fits
the requirement for other entities and has adopted ASU2016-02 for fiscal year ended September 30, 2023. The Company has adopted the amendments
with no material change to the balance sheet to recognize right-of-use assets and related lease liabilities for operating leases.

Recent accounting pronouncements

The Group expects to be an emerging growth company
(“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS