Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 148

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 148
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 of provision for credit loss and
professional services.

| 83 |

Research and development expenses

Our research and development
(“R&D”) expenses were $47,909 and $124,100 for the fiscal years ended September 30, 2024 and 2023, respectively. Our R&D
expenses are all costs associated with the research and development of our potential new software or service offerings, as well as improvements
in existing software. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred on an ongoing
basis. There were no material changes in our R&D expenses on a year-over-year basis.

Other income (expenses)

Other income was $440,299
and $581,146 for the fiscal years ended September 30, 2024 and 2023, respectively, which consisted primarily of VAT refund received for
sales of software.

Provision for income tax

For the fiscal years ended
September 30, 2024 and 2023, we made a current income tax provision of $235,195 and $277,576, respectively. For the fiscal years ended
September 30, 2024 and 2023, we recorded a deferred tax credit of $7,841 and $19,708, respectively.

Net income

As a result of the foregoing,
we recorded net income of $2,711,275 and $2,522,852 in the fiscal years ended September 30, 2024 and 2023, respectively.

Liquidity and Capital Resources

Our primary sources of liquidity
consist of existing cash balances and cash flows from our operating activities, capital contribution from shareholders and loan from
related parties and banks. We received proceeds from short-term bank loan of $694,028 and $425,332 for the fiscal years ended September
30, 2024 and 2023, respectively. We made a repayment of short-term bank loan of $416,417 for the fiscal year ended September 30, 2024.
We received a capital contribution from our shareholders of nil and $238,113 for the fiscal years ended September 30, 2024 and 2023,
respectively. We received a loan from related parties of $13,881 and $1,458,321 for the fiscal years ended September 30, 2024 and 2023,
respectively. We made a prepayment of loan from related parties of $13,881 and $663,669 for the fiscal years