Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 70

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 70
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 transfer agreements for these
aforementioned two patents have been lost, we cannot assure that such transfers are valid or will be considered legally binding, and
may exposed to litigation risk. However, for us, these two patents are not our core patents.

The VIE may not be able to prevent others from unauthorized use of its intellectual property, which could harm its business and competitive position.

The VIE relies on a combination
of trademark, fair trade practice, patent, copyright and trade secret protection laws in China, as well as confidentiality procedures
and contractual provisions, to protect its intellectual property rights. The VIE intends to enter into confidentiality agreements with
their employees that include terms identifying all employee-developed intellectually property as service inventions belonging to the
VIE. In addition, the VIE strives to remain current in its annual patent fee payments. The VIE regards its trademarks, patents, know-how,
proprietary technologies, and similar intellectual property as critical to its success. The VIE may become an attractive target to intellectual
property attacks in the future with the increasing recognition of its brand. Any of the VIE’s intellectual property rights could
be challenged, invalidated, circumvented or misappropriated, or such intellectual property may not be sufficient to provide the VIE with
competitive advantages. In addition, there can be no assurance that (i) all of the VIE’s intellectual property rights will
be adequately protected, or (ii) the VIE’s intellectual property rights will not be challenged by third parties or found by
a judicial authority to be invalid or unenforceable. Intellectual property protection may not be sufficient in China. Confidentiality
agreements may be breached by counterparties, and there may not be adequate remedies available to the VIE for any such breach. Accordingly,
the VIE may not be able to effectively protect its intellectual property rights or to enforce its contractual rights in China. In addition,
policing any unauthorized use of the VIE’s intellectual property is difficult, time-consuming and costly and the steps the VIE
has taken may be inadequate to prevent the misappropriation of its intellectual property.

| 39 |

In the event that the VIE
resorts to litigation to enforce its intellectual property rights, such litigation could result in substantial costs and a diversion
of their managerial and financial resources. We can provide no assurance that the VIE will prevail in such litigation. In addition, the
VIE’s trade secrets may be leaked or otherwise become available to, or be independently discovered