Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 298

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 298
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, indicate that the net book value of an asset may not be recovered
through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its
eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair
value.

There was no impairment charge recognized for
long-lived assets for the years ended September 30, 2024 and 2023.

Deferred IPO cost

Deferred IPO cost consist of legal, accounting,
underwriting fee and other costs incurred through the balance sheet date that are directly related to the proposed public offering. These
costs, together with the underwriting discounts and commissions, will be charged to additional paid-in capital upon completion of
the proposed public offering. Should the proposed public offering prove to be unsuccessful, the deferred cost, as well as additional
expenses to be incurred, will be charged to operations.

Fair value of financial instruments

ASC 825-10 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes
the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use
of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

| · | Level 1 — inputs                                                                                                                   
 to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.                 |
| · | Level 2 — inputs                                                                                                                   
 to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for  
 identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived 
 from or corroborated by observable market data.                                                                                    |
| · | Level 3 — inputs to the valuation                                                                                                  
 methodology are unobservable.                                                                                                      |

| F-13 |

The fair value of the Company’s financial
instruments, including cash, accounts receivable, other receivables – related party, accounts payable, and other current liabilities,
due to the related parties, and short-term bank loans, approximate their recorded values due to their short-term maturities as of September
30, 2023 and 2022.