Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 261

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 261
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 or disposition of the Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-market
gains previously included for such Ordinary Shares. Your basis in the Ordinary Shares will be adjusted to reflect any such income or
loss amounts. If you make a valid mark-to-market election, the tax rules that apply to distributions by corporations which are not
PFICs would apply to distributions by us, except that the lower applicable capital gains rate for qualified dividend income discussed
below under “— Taxation of Dividends and Other Distributions on our Ordinary Shares” generally would not apply.

The mark-to-market election
is available only for “marketable stock”, which is stock that is traded in other than de minimis quantities on at least 15 days
during each calendar quarter (“regularly traded”) on a qualified exchange or other market (as defined in applicable U.S.
Treasury regulations), including Nasdaq. If the Ordinary Shares are regularly traded on Nasdaq and if you are a holder of Ordinary Shares,
the mark-to-market election would be available to you if we were to be or become a PFIC.

Alternatively, a U.S. Holder
of stock in a PFIC may make a “qualified electing fund” election under Section 1295(b) of the US Internal Revenue
Code with respect to such PFIC to elect out of the tax treatment discussed above. A U.S. Holder who makes a valid qualified electing
fund election with respect to a PFIC will generally include in gross income for a taxable year such holder’s pro rata share
of the corporation’s earnings and profits for the taxable year. The qualified electing fund election, however, is available only
if such PFIC provides such U.S. Holder with certain information regarding its earnings and profits as required under applicable U.S.
Treasury regulations. We do not currently intend to prepare or provide the information that would enable you to make a qualified electing
fund election. If you hold Ordinary Shares in any taxable year in which we are a PFIC, you will be required to file U.S. Internal Revenue
Service Form 8621 in each such year and provide certain annual information regarding such Ordinary Shares, including regarding distributions
received on the Ordinary Shares and any gain realized on the disposition of the Ordinary Shares.

If you do not make a timely
“mark-to-market” election (as described above), and if we were a PFIC at any time during the period you hold our Ordinary
Shares,