Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 296

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 296
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 |
| Licensed Software |     | 10     
 years  |
| Patent right      |     | 10     
 years  |

Impairment of Long-lived Assets

The Company’s management reviews the carrying
values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence
or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets
performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered
through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its
eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair
value.

There was no impairment charge recognized for
long-lived assets for the years ended September 30, 2024 and 2023.

Deferred IPO cost

Deferred IPO cost consist of legal, accounting,
underwriting fee and other costs incurred through the balance sheet date that are directly related to the proposed public offering. These
costs, together with the underwriting discounts and commissions, will be charged to additional paid-in capital upon completion of
the proposed public offering. Should the proposed public offering prove to be unsuccessful, the deferred cost, as well as additional
expenses to be incurred, will be charged to operations.

Fair value of financial instruments

ASC 825-10 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes
the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use
of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

| · | Level 1 — inputs                                                                                                                   
 to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.                 |
| · | Level 2 — inputs                                                                                                                   
 to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for  
 identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived 
 from or corroborated by observable market data.                                                                                    |