Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 317

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 317
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 their after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of
its registered capital. In addition, the PRC entities may allocate a portion of its after-tax profits based on PRC accounting standards
to enterprise expansion fund and staff bonus and welfare fund at its discretion. The PRC entities may allocate a portion of its after-tax
profits based on PRC accounting standards to a discretionary surplus fund at its discretion. The statutory reserve funds and the discretionary
funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination
by the banks designated by State Administration of Foreign Exchange.

As a result of the foregoing restrictions, the
Company’s PRC entities are restricted in their ability to transfer their assets to the Company. Foreign exchange and other regulation
in the PRC may further restrict the Company’s PRC entities from transferring funds to the Company in the form of dividends, loans
and advances. As of September 30, 2024 and 2023, amounts restricted are the paid-in-capital and statutory reserve of the PRC entities,
which amounted to $3,892,301 and $3,621,174, respectively

| F-29 |

Although there are undistributed earnings of the
Company’s subsidiaries in the PRC that are available for distribution to the Company, the undistributed earnings of the Company’s
subsidiaries located in the PRC are considered to be indefinitely reinvested, because the Company does not have any present plan to pay
any cash dividends on its ordinary shares in the foreseeable future and intends to retain most of its available funds and any future earnings
for use in the operation and expansion of its business. Accordingly, no deferred tax liability has been accrued for the PRC dividend withholding
taxes that would be payable upon the distribution of those amounts to the Group as of September 30, 2024 and 2023.

18. Disaggregated information of revenues

|                            | Revenue disaggregation |   |      2024 |     |   |      2023 |
|:---------------------------|:-----------------------|:--|----------:|:----|:--|----------:|
| Software Perpetual License |                        | $ | 5,471,793 |     | $ | 5,045,621 |
| Software Term License      |                        |   |   434,369 |     |   |