Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 166

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 166
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, respectively. We consider these distributors to be our customers. Through our distribution
network channel penetration, sales have extended to cover 9 provinces and 11 municipalities in China as of September 30, 2024 and 2023,
respectively.

We capitalized $0.012
million and $0.59 million of research and development expenditure for the fiscal years ended September 30, 2024 and 2023, respectively.
We also incurred research and development expenses of $0.047 million and $0.12 million for the fiscal years ended September 30, 2024
and 2023, respectively. Our allocation of resources towards innovation has fostered our growth, as a combined company including the VIE
and our subsidiaries. For the fiscal years ended September 30, 2024 and 2023, total revenue reached approximately $5.91 million and $5.68
million, respectively, and net income was approximately $2.71 million and $2.52 million, respectively.

Our Technology Advantages

We place a significant emphasis on the innovation and research and development of the underlying infrastructure of the next generation of the internet. Through continuous investment, we have achieved outstanding results, including obtaining the national high-tech enterprise certification and the specialized and sophisticated small and medium sized enterprise (“SME”) recognition, and securing and Medium-sized Enterprises Service Bureau, and securing 2 registered trademarks, 38 registered computer software copyrights, 11 registered patents and 1 license in China as of September 30, 2024.

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Based on our software component
tools, the distributed network we construct can achieve functionalities such as distributed storage, peer-to-peer transmission, consensus
mechanisms, and cryptographic algorithms. The independently developed Zerolimit Virtual Routing Protocol (‘ZVR Protocol’)
enables distributed networking from a small-scale to an extremely large-scale node count, facilitating rapid node allocation and resource
location in distributed computing and storage. By incorporating digital signature algorithms resistant to quantum computing attacks,
our distributed network achieves scalability, reliability, efficiency and security:

Scalability:The
distributed network can accommodate more users and data by increasing the number of nodes. This means that as demand grows, more nodes
can be added to expand the network’s capacity and processing power. This ability for horizontal scalability ensures that the network
can handle high traffic, adapt to a growing user base, while maintaining stability and performance.

Reliability: The
distributed network can improve reliability by distributing data and tasks across multiple