Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 114

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 114
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 States holders of our Ordinary Shares to significant adverse United States federal income tax consequences.

A non-United States corporation
will be a passive foreign investment company, or PFIC, for United States federal income tax purposes for any taxable year if either (i) at
least 75% of its gross income for such taxable year is passive income or (ii) at least 50% of the value of its assets (based on
average of the quarterly values of the assets) during such year is attributable to assets that produce or are held for the production
of passive income. Based on the current and anticipated value of our assets and the composition of our income assets, we do not expect
to be a PFIC for United States federal income tax purposes for our current taxable year ended September 30, 2021, or in the foreseeable
future. However, the determination of whether or not we are a PFIC according to the PFIC rules is made on an annual basis and will
depend on the composition of our income and assets and the value of our assets from time to time. Therefore, changes in the composition
of our income or assets or value of our assets may cause us to become a PFIC. The determination of the value of our assets (including
goodwill not reflected on our balance sheet) may be based, in part, on the quarterly market value of Ordinary Shares, which is subject
to change and may be volatile.

The classification of certain
of our income as active or passive, and certain of our assets as producing active or passive income, and hence whether we are or will
become a PFIC, depends on the interpretation of certain United States Treasury Regulations as well as certain Internal Revenue Service,
or IRS, guidance relating to the classification of assets as producing active or passive income. Such regulations guidance is potentially
subject to different interpretations. If due to different interpretations of such regulations and guidance the percentage of our
passive income or the percentage of our assets treated as producing passive income increases, we may be a PFIC in one or more taxable years.

If we are a PFIC for any
taxable year during which a United States person holds Ordinary Shares, certain adverse United States federal income tax consequences
could apply to such United States person. For more information see “Taxation — Material U.S. Federal Income
Tax Consequences — Passive Foreign Investment Company.”

For as long as we are an emerging growth company, we will not be required to comply with certain reporting requirements, including those relating to