Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 257

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 257
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 quickly, we spend the cash we raise in this offering. We are under no obligation
to take steps to reduce the risk of our being classified as a PFIC, and as stated above, the determination of the value of our assets
will depend upon material facts (including the market price of our Ordinary Shares from time to time and the amount of cash we raise
in this offering) that may not be within our control. If we are a PFIC for any year during which you hold Ordinary Shares, we will continue
to be treated as a PFIC for all succeeding years during which you hold Ordinary Shares. If we cease to be a PFIC and you did not
previously make a timely “mark-to-market” election as described below, however, you may avoid some of the adverse effects
of the PFIC regime by making a “purging election” (as described below) with respect to the Ordinary Shares.

If we are a PFIC for your
taxable year(s) during which you hold Ordinary Shares, you will be subject to special tax rules with respect to any “excess
distribution” that you receive and any gain you realize from a sale or other disposition (including a pledge) of the Ordinary Shares,
unless you make a “mark-to-market” election as discussed below. Distributions you receive in a taxable year that are greater
than 125% of the average annual distributions you received during the shorter of the three preceding taxable years or your holding
period for the Ordinary Shares will be treated as an excess distribution. Under these special tax rules:

| · | the excess distribution or gain will be allocated ratably over your 
 holding period for the Ordinary Shares;                             |

| · | the amount allocated to your current taxable year, and any amount allocated                                                          
 to any of your taxable year(s) prior to the first taxable year in which we were a PFIC, will be treated as ordinary income,          
 and                                                                                                                                  |
| · | the amount allocated to each of your other taxable year(s) will                                                                      
 be subject to the highest tax rate in effect for that year and the interest charge generally applicable to underpayments of tax will 
 be imposed on the resulting tax attributable to each such year.                                                                      |

The tax liability for amounts
allocated to years prior to the year of disposition or “excess distribution” cannot be offset by any net operating losses
for such years, and gains (but not losses) realized on the sale of the Ordinary Shares cannot be treated as capital, even if