Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 148

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 148
---
 |
| Total General and administrative expenses |     | $                                        | 1,260,104 |     | $ | 1,282,391 |     | $        | (22,287 | ) |     |     | (2%     | ) |

General and administrative
(“G&A”) expenses decreased by $22,287 or 2%, to $1,260,104 for the fiscal year ended September 30, 2024 as compared to
$1,282,391 for the fiscal year ended September 30, 2023. The decrease was primarily due to the decrease of provision for credit loss,
and professional services.

| 84 |

Research and development expenses

Our research and development
(R&D) expenses were $47,909 and $124,100 for the fiscal years ended September 30, 2024 and 2023, respectively. Our R&D
expenses are all costs associated with the research and development of our potential new software or service offerings, as well as improvements
in existing software. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred on an ongoing
basis. There were no material changes in our R&D expenses on a year-over-year basis.

Other income (expenses)

Other income was $440,299
and $581,146 for the fiscal years ended September 30, 2024 and 2023, respectively, which consisted primarily of VAT refund received
for sales of software.

Provision for income tax

For the fiscal years
ended September 30, 2024 and 2023, we made a current income tax provision of $235,195 and $277,576, respectively. For the fiscal years
ended September 30, 2024 and 2023, we recorded a deferred tax credit of $7,841 and $19,708, respectively.

Net income

As a result of the foregoing,
we recorded net income of $2,711,275 and $2,522,852 in the fiscal years ended September 30, 2024 and 2023, respectively.

Liquidity and Capital Resources

Our primary sources of liquidity
consist of existing cash balances and cash flows from our operating activities, capital contribution from shareholders and loan from
related parties and banks. We received proceeds from short-term bank loan of $694,028 and $425,332 for the fiscal years ended September
30, 2024 and 2023, respectively. We made a