Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 303

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 303
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% of the registered capital of respective company.
These reserves can only be used for specific purposes and are not transferable to the Company in form of loans, advances, or cash dividends.
There is no such regulation of providing statutory reserve in Hong Kong. The statutory surplus reserves that recognized for the years
ended September 30, 2024 and 2023 were $271,127 and $252,285 respectively.

| F-17 |

Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain
members of the Company’s management team. Consequently, the Company has determined that it has only one reportable operating segment.

Comprehensive income

Comprehensive income includes all changes in
equity from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions
to owners. For the years presented, total comprehensive income included foreign currency translation adjustments.

Related parties

In general, related parties exist when there
is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to
influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any
of the followings: a) affiliate, a party that directly or indirectly controls, is controlled by, or is under common control with another
party; b) principle owner, the owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management,
persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of
management or principal owners; e) a parent company and its subsidiaries; f) other parties that has ability to significant influence
the management or operating policies of the entity.

Comprehensive income

Comprehensive income consists of two components,
net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains and losses that under GAAP are
recorded as an element of equity but are excluded from net income. Other comprehensive income consists of a foreign currency translation
adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

Earnings per share

The Company computes earnings per share (“EPS”)
in accordance with ASC 260, Earnings per Share. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured
as net income divided by the weighted average common share outstanding for the