Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 68

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 68
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-sale stages, while maintaining
close communication with distributors. This helps to ensure the smooth and timely receipt of payments. Any failure to manage the VIE’s
accounts payable and accounts receivable may have a material adverse effect on our business, financial condition and results of operations.

Economic recessions could have a significant, adverse impact on our business.

The VIE’s revenues
are generated from sales of products and services in China and the VIE anticipates that revenues from such sales will continue to constitute
its sole source of revenues in the near future. The VIE’s sales and earnings can also be affected by changes in the general economy
of China.

The distributed technology
industry historically has experienced cyclical fluctuations in financial results due to economic recession, downturns in business cycles
of customers, interest rate fluctuations, and other economic factors beyond the VIE’s control. Deterioration in the economic environment
subjects the VIE’s business to various risks, which may have a material and adverse impact on the VIE’s operating results
and cause the VIE to not reach their long-term growth goals. A downturn in the economy could affect the discretionary spending power
of customers and, in turn, depress the number of orders for the VIE’s products, which would have a material adverse effect on our
business, financial condition and results of operations.

Any disruption of the operation of the VIE could materially and adversely affect the VIE’s business and results of operations.

Currently, the VIE’s
software products are primarily produced at its office located in Shenzhen, China. Natural disasters or other unanticipated catastrophic
events, including storms, fires, explosions, earthquakes, terrorist attacks and wars, as well as changes in governmental planning for
the land where the VIE’s office are located could significantly impair the VIE’s ability to manufacture software products
and operate its business. Catastrophic events could also destroy inventories of hardware. The occurrence of any catastrophic event could
result in the temporary or long-term closure of the facility and may severely disrupt the VIE’s business operations.

In addition, VIE’s
office and their suppliers’ factories are subject to environmental inspections and regulations. As of the date of this prospectus,
we cannot assure you that all the factories and offices are in strict compliance with such environmental inspections and regulations
based on our knowledge. If such facilities fail to rectify and pass the environmental inspections or comply with relevant environmental
requirements relating to production activities in a timely manner, they may be subject