Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 287

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 287
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 through the VIE Agreements, and we consolidate
the VIE for accounting purposes only because we met the conditions under U.S. GAAP to consolidate the VIE. Pursuant to the VIE Agreements,
the VIE shall pay service fees in an amount equivalent to all of its net income to WFOE, while WFOE has the power to direct the activities
of the VIE that can significantly impact the VIE’s economic performance, has the obligation to absorb the expected losses of the
VIE, and has the right to receive substantially all of the economic benefits of the VIE. Such contractual arrangements are designed so
that the operations of the VIE are solely for the benefit of WFOE and ultimately, the Company. As such, under U.S. GAAP, the Company is
deemed to have a controlling financial interest in, and be the primary beneficiary of, the VIE for accounting purposes and must consolidate
the VIE.

The Company’s total assets and liabilities
presented in the accompanying consolidated financial statements represent substantially all of the total assets and liabilities of the
VIE because the other entities in the consolidation are non-operating holding entities with nominal assets and liabilities. The following
financial statement amounts and balances of the VIE were included in the accompanying audited consolidated financial statements for the
years ended September 30, 2024 and 2023;

|                         |     | As of         
 September 30, |       2024 |     |   |       2023 |
|:------------------------|:----|:--------------|-----------:|:----|:--|-----------:|
| Current assets          |     | $             | 10,106,170 |     | $ |  6,003,357 |
| Non-current assets      |     |               |  3,353,046 |     |   |  4,025,795 |
| Total assets            |     | $             | 13,459,216 |     | $ | 10,029,152 |
| Current liabilities     |     | $             |  2,693,773 |     | $ |  1,870,659 |
| Non-current liabilities |     |               |    685,585 |     |   |  1,140,465 |
| Total liabilities       |     | $             |  3,379,358 |     | $ |  3,011,124 |
| Net