Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 158

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 158
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 deposits, and other assets in the consolidated
balance sheets.

Contract acquisition costs
consist of incremental costs incurred by the Company to originate contracts with customers. Contract acquisition costs, which generally
include costs that are only incurred as a result of obtaining a contract, are capitalized when the incremental costs are expected to be
recovered over the contract period. All other costs incurred regardless of obtaining a contract are expensed as incurred. Contract acquisition
costs are amortized over the period the costs are expected to contribute directly or indirectly to future cash flows, which is generally
over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs relate. Contract
fulfillments costs consist of costs incurred by the Company to fulfill a contract with a customer and are capitalized when the costs generate
or enhance resources that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered.
Capitalized contract fulfillment costs generally include contracted services, direct labor, materials, and allocable overhead directly
related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost of revenue during the period
that the related costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term,
on a basis consistent with the transfer of goods or services to the customer to which the costs are related. There were no contract acquisition
costs or fulfillment costs as of September 30, 2024 and 2023.

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Contract balance

When a revenue contract
has been performed, the Company presents the contract in the consolidated balance sheet as a contract asset or a contract liability,
depending on the relationship between the Company’s performance and the customer’s payment. The contract assets consist of
accounts receivable and deferred cost. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing
when the Company has satisfied its performance obligation and has unconditional right to the payment. Deferred cost is deferred for the
contract preparation and will be recognized as cost of revenues when goods or services are transferred to customers.

The contract liabilities
consist of advance from customers, which represent the billings or cash received for services or product sales in advance of revenue
recognition and is recognized as revenue when all of the Company’s revenue recognition criteria are met. For the fiscal years ended
September 30, 2024 and 2023, the contract liabilities at the beginning of the reporting period, which amounted to $287,369 and