Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 116

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 116
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 in our internal control over financial reporting that have been identified, we may fail to meet our reporting obligations or be unable to accurately report our results of operations or prevent fraud, and investor confidence and the market price of our Ordinary Shares may be materially and adversely affected.

Prior to this offering,
we have been a private company with limited accounting personnel and other resources with which to address our internal controls and
procedures. Our independent registered public accounting firm has not conducted an audit of our internal control over financial reporting.
However, in preparing our consolidated financial statements as of and for the fiscal years ended September 30, 2024 and 2023, and
balance sheet data as of September 30, 2024 and 2023, we and our independent registered public accounting firm have identified material
weaknesses in our internal control over financial reporting, as defined in the standards established by the PCAOB, and other control
deficiencies. The material weaknesses identified included (i) a lack of accounting staff and resources with appropriate knowledge
of U.S. GAAP and SEC reporting and compliance requirements; and (ii) a lack of formal internal controls over financial closing and
reporting processes. Following the identification of the material weaknesses and control deficiencies, we plan to continue to take remedial
measures including (i) hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications
to strengthen the financial reporting function and to set up a financial and system control framework; (ii) implementing regular
and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel; and
(iii) setting up an internal audit function as well as engaging an external consulting firm to assist us with assessment of Sarbanes-Oxley
compliance requirements and improvement of overall internal control. However, the implementation of these measures may not fully address
the material weaknesses in our internal control over financial reporting. Our failure to correct the material weaknesses or our failure
to discover and address any other material weaknesses or control deficiencies could result in inaccuracies in our financial statements
and could also impair our ability to comply with applicable financial reporting requirements and related regulatory filings on a timely
basis. As a result, our business, financial condition, results of operations and prospects, as well as the eventual trading price of
our Ordinary Shares, may be materially and adversely affected. Moreover, ineffective internal control over financial reporting significantly
hinders our ability to prevent fraud.

Upon the completion of this
offering,