Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 77

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 77
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 share information. If actions the VIE takes or changes the VIE makes to the VIE’s products, solutions or platform upset these
customers, their online commentary could negatively affect the VIE’s brand and reputation. Complaints or negative publicity about
the VIE, its products, solutions or platform could materially and adversely impact the VIE’s ability to attract and retain customers,
the VIE’s business, results of operations and financial condition.

| 42 |

As the VIE also provides
services to customers in different industries, negative publicity about such counterparties, including any failure by them to adequately
protect customer information, to comply with applicable laws and regulations or to otherwise meet required quality and service standards
could harm the VIE’s reputation.

The promotion of the Brands
also requires the VIE to make substantial expenditures, and we anticipate that these expenditures will increase as the VIE’s market
becomes more competitive and as we expand into new markets. To the extent that these activities increase revenues, the increased revenues
still may not be enough to offset the increased expenses we incur. If the VIE does not successfully maintain and enhance its brand, then
the VIE’s business may not grow, we may see the VIE’s pricing power reduced relative to competitors and the VIE may lose
customers, all of which would adversely affect our business, results of operations and financial condition.

The VIE’s ability to maintain customer satisfaction depends in part on the consistency and quality of the VIE’s customer support services through the product cycle. Failure to maintain continuous and high-quality customer support could have an adverse effect on our business, results of operation, and financial condition.

We believe that customer
satisfaction is key to our business. In order to deliver high-level customer satisfaction, the VIE must successfully assist its distributors
in deploying and continuing to use the VIE’s products and solutions, resolving performance issues, and responding to performance
and reliability problems that may arise from time to time. Because the VIE’s platform and products are designed to be highly configurable
and to rapidly implement customers’ reconfigurations, customer errors in configuring the VIE’s platform and products can
result in significant disruption to its distributors.

There can be no assurance
that the VIE will be able to hire sufficient personnel as and when needed, particularly if the VIE’s sales exceeds its internal
forecasts. To the extent that the VIE is unsuccessful in hiring, training, and retaining adequate support resources, the VIE’s
ability