Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 60

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 60
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 customers, would adversely
affect the VIE’s profitability and also cause a significant decline in our consolidated revenues.

The success of a network created using our proprietary technology depends on maintaining a minimum user base, which translates to a minimum number of nodes; for instance, if the number of users and nodes decreases below 160, application failures on the distributed network are more likely, however the minimum number of nodes to run a network with only one application is three nodes.

There are a number of factors
that could negatively impact user retention and growth, including, among other things:

| · | the VIE may fail to introduce new software products or those the VIE                                                             
 introduces may be poorly received;                                                                                               |
| · | decentralized applications created by developers may fail to operate                                                             
 effectively on networks created by the VIE’s proprietary technology;                                                             |
| · | there is a requirement for a minimum                                                                                             
 number of nodes. As for the user base, because can expand the user base according to the demands in different scenarios and has  
 the business to have flexible scalability, may have minimum requirement for the user base to make it profitable. For us, we only 
 focus on the minimum nodes;                                                                                                      |
| · | there may be adverse changes in user                                                                                             
 sentiment about the quality or usefulness of decentralized applications on networks created by the VIE’s proprietary technology; |
| · | there may be concerns about privacy implications, safety or security                                                             
 of decentralized applications on networks created by the VIE’s proprietary technology, although its designed to be resistant     
 to even quantum computing;                                                                                                       |
| · | technical or other problems may frustrate the experience of the users,                                                           
 particularly if those problems prevent the decentralized applications from running in a fast and reliable manner;                |
| · | since the VIE does not communicate directly with end-users, others                                                               
 (including customers of the distributors and developers) may fail to provide adequate service to end-users;                      |
| · | the VIE or other companies in its industry may be the subject of adverse                                                         
 media reports or other negative publicity;                                                                                       |

| 33 |

| · | the VIE may not maintain its brand image or reputation may be damaged;                                                   |
| · | the VIE may be subject to denial of service or other attacks from hackers                                                
 that result in service downtime, although it’s particularly difficult to hack multiple nodes in a decentralized network; |
| · | the VIE may be unable to adapt software products to the rapidly changing