Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 57

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 57
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 remain
viable due to these and other technology changes and network performance standards.

Potential risks in our business
arise mainly from whether the software technology that we use in our operations becomes outdated. Our software technology needs to be
continuously upgraded and iterated to adapt to the changes of software industry. Technology in the software sector is characterized by
constant ongoing changes, and our ability to innovate and adapt are critical to our success. There is no assurance that our products
and offerings can be maintained at the advanced level of progress which may occur in the software industry. If we are unable to adapt
and innovate to keep up with technology changes in the software sector, our business plan, financial performance and overall success
could suffer a significant and material adverse effect.

The VIE depends on its largest 5 distributors, the loss of any of which could cause a significant decline in our consolidated revenues.

Management of the VIE considers distributors to be its customers since the VIE sells its software and hardware solutions to its distributors not to end-users directly. The VIE enters into distributor agreements. The VIE does not have agreements with end-users. We generally categorize our end-users as individuals or enterprises who seek access to the distributed network and leverage our software products to create the decentralized applications for their specific needs. The VIE’s distributors market to government organizations, businesses and individuals interested in utilizing decentralized distributed networks and either utilizing existing applications, having applications developed for them or creating their own applications. As part of the e-learning platform, which runs its own network, the Company is in ongoing discussions with various organizations. As of September 30, 2024, the VIE had 35 distributors in China. The VIE had 5 significant customers which accounted for greater around 50% of their total revenue for the fiscal year ended September 30, 2024 . For the fiscal year ended September 30, 2024, the VIE’s top 5 customers accounted for 12%, 11%, 11%, 8%, 7%, respectively, of revenues for such period. For the fiscal year ended September 30, 2023, the VIE’s top 5 customers accounted for 22%, 15%, 10%, 7%, 6%, respectively, of revenues for such period.

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Although the VIE does enter
into distributor agreements with each customer describing the terms and conditions concerning the software, delivery of the software
and payment, the consequences of breach of this agreement are only the termination