Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 159

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 159
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 used in satisfying future performance obligations of the contract and the costs
are expected to be recovered. Capitalized contract fulfillment costs generally include contracted services, direct labor, materials,
and allocable overhead directly related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost
of revenue during the period that the related costs are expected to contribute directly or indirectly to future cash flows, which is
generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs are
related. There were no contract acquisition costs and fulfillment costs as of September 30, 2024 and 2023.

| 92 |

Contract balance

When a revenue contract
has been performed, the Company presents the contract in the consolidated balance sheet as a contract asset or a contract liability,
depending on the relationship between the Company’s performance and the customer’s payment. The contract assets consist of
accounts receivable and deferred cost. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing
when the Company has satisfied its performance obligation and has unconditional right to the payment. Deferred cost is deferred for the
contract preparation and will be recognized as cost of revenues when goods or services are transferred to customers.

The contract liabilities
consist of advance from customers, which represent the billings or cash received for services or product sales in advance of revenue
recognition and is recognized as revenue when all of the Company’s revenue recognition criteria are met. For the fiscal years ended
September 30, 2024 and 2023, the contract liabilities at the beginning of the reporting period, which amounted to $287,369 and $5,909,534
respectively, have been recognized as revenue during the years. The Company’s contract liability amounted to $420,756 and $363,433
as of September 30, 2024 and 2023, respectively. The Company expects to recognize this balance as revenue over the next 12 months.

Disaggregated information of revenues

For the Fiscal Years Ended September 30, 2024 and 2023

The following table presents revenue disaggregation
by revenue stream for the fiscal years ended September 30, 2024 and 2023:

|                                                 | Revenue disaggregation | Fiscal Years Ended September 30, |      2024 |     |   |      2023 |
|:------------------------------------------------|:-----------------------|:---------------------------------|----------:|:----|:--|----------: