Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 293

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 293
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 losses of accounts receivable, useful lives of long-lived assets, impairment of long-lived assets, allowance
for deferred tax assets, and uncertain tax position.

| F-10 |

Actual results could differ from these estimates.

Functional currency and foreign currency translation

The reporting currency of the Company is the
United States dollar (“US$”). The Company’s operations are principally conducted through its subsidiaries in PRC in
the local currency, Renminbi (RMB), as its functional currency. The functional currency of the Company’s entities incorporated
in Hong Kong is the Hong Kong dollars (“HK$”). The determination of the respective functional currency is based on the criteria
of Accounting Standard Codification (“ASC”) 830, Foreign Currency Matters. Assets and liabilities are translated at the exchange
rate as quoted by the Federal Reserve at the balance sheet date. The statement of income accounts is translated at the average exchange
rates for the periods and the equity accounts are translated at historical rates. Translation adjustments resulting from this process
are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations
on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Translation adjustments included in accumulated
other comprehensive income (loss) amounted to $350,555 and ($208,960) as of September 30, 2024 and 2023, respectively. The shareholders’
equity accounts were stated at their historical rate. Cash flows are also translated at average translation rates for the periods, therefore,
amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated
balance sheets.

Translation of foreign currencies into US$1 have been made at the
following exchange rates for the respective periods:

|                                        |     | As of September 30, |        |     |      |        |
|                                        |     |                2024 |        |     | 2023 |        |
| Period-end RMB: US$1 exchange rate     |     |                     | 7.0176 |     |      | 7.2960 |
| Period-average RMB: US$1 exchange rate |     |                     | 7.2043 |     |      | 7.0533 |

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of
cash and deposits with financial institutions which are unrestricted as to withdrawal and use. Cash equivalents consist of highly liquid
investments that are readily convertible to