Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 72

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 72
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atory trade actions due to the
recent U.S.-China trade tension, such changes could have an adverse effect on the VIE’s business, financial condition, and results
of operations.

The VIE has no business liability or disruption insurance, which could expose the VIE to significant costs and business disruption.

The insurance industry in
China is still at an early stage of development, and insurance companies in China currently offer limited business-related insurance
products. The VIE does not have any business liability or disruption insurance to cover its operations. The VIE has determined that the
costs of insuring for these risks and the difficulties associated with acquiring such insurance on commercially reasonable terms make
it impractical for the VIE to have such insurance. Any uninsured risks may result in substantial costs and the diversion of resources,
which could adversely affect the VIE’s results of operations and financial condition.

If we do not obtain substantial additional financing, including the financing sought in this offering, the VIE’s ability to execute its business plan as outlined in this prospectus will be impaired.

The VIE’s plans for
business expansion and development are dependent upon its raising significant additional capital, including the capital sought in this
offering. The VIE’s plans call for significant new investments in research and development, marketing, expanded production capacity,
and working capital for materials and other items. Management estimates that our capital needs for expanding our research and development
department and management department, including but not limited to, hiring high-end internet ecosystem talents and management personnel
with international and professional backgrounds, will be approximately USD$1.6 million and USD$400,000, respectively. Although
the Company expects the proceeds of this offering and net earnings to substantially fund the VIE’s planned growth and development,
management will be required to properly and carefully administer and allocate these funds. Should the VIE’s capital needs be higher
than estimated, or should additional capital be required after the close of this offering, we will be required to seek additional investments,
loans or debt financing to fully pursue our business plans. Such additional investment may not be available to us in sufficient amounts
or on terms which are favorable or acceptable. Should we be unable to meet the VIE’s full capital needs, its ability to fully implement
its business plan will be impaired.

Pandemics and epidemics, natural disasters, terrorist activities, political unrest, and other outbreaks could disrupt the VIE’s delivery and operations, which could materially and adversely affect the VIE’s business, financial condition