Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 4

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 4
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 purposes. The VIE Shareholders may not act in the best interests of our Company or may not perform their obligations under
these contracts. We are also subject to the risk that the PRC government could disallow the VIE structure, which would likely result
in a material change in our operations and, as a result, the value of our Ordinary Shares may depreciate significantly or become worthless.

Investing in our Ordinary Shares involves a high degree of risk, including the risk of losing your entire investment. See “ Risk Factors” beginning on page 23 to read about factors you should consider before buying our Ordinary Shares.

Pursuant to the Holding
Foreign Companies Accountable Act (the “HFCAA”), which was enacted on December 18, 2020 and amended by the Consolidated Appropriations
Act, 2023 enacted on December 29, 2022, if the SEC determines that we have filed audit reports issued by a registered public accounting
firm that has not been subject to inspection by the PCAOB for two consecutive years, the SEC shall prohibit our shares from being traded
on any U.S. stock exchange. The Consolidated Appropriations Act, 2023 reduced the number of consecutive non-inspection years required
for triggering the prohibitions under the HFCAA from three years to two years. On December 16, 2021, the PCAOB issued its report notifying
the SEC of its determination that it was unable to inspect or investigate completely registered public accounting firms headquartered
in mainland China or Hong Kong. On December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021 determination and
removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered
public accounting firms. Our auditor, TPS Thayer, LLC (“TPS”), is an independent registered public accounting firm headquartered
in Sugar Land, Texas, and has been inspected by the PCAOB on a regular basis, with the last inspection in September of 2022. Each year,
the PCAOB will determine whether it can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions.
If the PCAOB determines in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland
China and Hong Kong and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial
statements filed with the SEC, we would be identified as a “Commission-Ident