Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 114

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 114
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 of the scrutiny and
negative publicity has centered on allegations of a lack of effective internal control over financial reporting resulting in financial
and accounting irregularities and mistakes, inadequate corporate governance policies or a lack of adherence thereto and, in many cases,
allegations of fraud. As a result, many of these companies are now conducting internal and external investigations into the allegations
and, in the interim, are subject to shareholder lawsuits and/or SEC enforcement actions.

It is not clear what effect
such negative publicity could have on us. If we were to become the subject of any unfavorable allegations, whether such allegations are
proven to be true or untrue, we could have to expend significant resources to investigate such allegations and/or defend ourselves. While
we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the
relevant short seller by principles of freedom of speech, applicable law or issues of commercial confidentiality. Such a situation could
be costly and time-consuming, and could distract our management from growing our business. Even if such allegations are ultimately proven
to be groundless, allegations against us could severely impact our business operations, and any investment in our Ordinary Shares could
be greatly reduced or even rendered worthless.

There can be no assurance that we will not be a passive foreign investment company (“PFIC”) for United States federal income tax purposes for any taxable year, which could subject United 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