Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 311

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 311
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6. The Company does not plan
to cancel the existing lease agreements for its existing facilities prior to the expiration date. When determining the lease term, the
Company considers options to extend or terminate the lease when it is reasonably certain that it will exercise or not exercise that option.
The Company’s lease arrangements may contain both lease and non-lease components. The Company has separately accounted for lease
and non-lease components based on their nature. Payments under the Company’s lease arrangement are fixed. The discount rate is the
company’s incremental borrowing rate.

The following tables show ROU assets and lease liabilities, and the
associated financial statement line items:

| Assets                                           |     | As of 
 2024  | September 30, |     | As of 
 2023  | September 30, |
|:-------------------------------------------------|:----|:------|--------------:|:----|:------|--------------:|
| Operating lease right-of-use assets, net         |     | $     |     1,065,514 |     | $     |     1,453,644 |
| Liabilities                                      |     |       |               |     |       |               |
| Operating lease liabilities, current             |     | $     |       500,124 |     | $     |       440,787 |
| Operating lease liabilities, non-current         |     | $     |       685,585 |     | $     |     1,140,465 |
| Weighted average remaining lease term (in years) |     |       |          2.25 |     |       |          3.25 |
| Weighted average discount rate (%)               |     |       |          3.45 |     |       |          3.45 |

| F-26 |

Rent expense charged to operations is calculated
by allocating total rental payments on a straight-line basis over the term of the lease. For the years ended September 30, 2024 and 2023,
the Company incurred operating lease expense amounted to $482,553 and $492,885 respectively. The operating cash flows from operating leases
are cash paid for lease obligations with amounts of $494,705 and $487,033 for the years ended September 30, 2024 and 2023, respectively.

Maturities of lease liabilities were as follows:

| Twelve months ending September 30, |     | Payment due |           |
|:-----------------------------------|:----|:------------|