Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 307

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 307
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 an EGC.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, or ASU 2018-19, which clarifies certain topics included within ASU 2016-13. ASU 2016-13 and ASU 2018-19 are effective for the annual reporting period beginning after December 15, 2019, including interim periods within that reporting period. On January 1, 2023, the Company started using the CECL model. The Company’s accounts receivable and other receivables are within the scope of ASC Topic 326. The Company has identified the relevant risk characteristics of its customers and the related accounts receivable and other payables based on their credit rating. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Company considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Company’s receivables. Additionally, macroeconomic factors are also considered. The Company also performs case-by-case analysis on specific customers and makes specific allowance for credit loss accordingly. This is assessed each year based on the Company’s specific facts and circumstances. For the fiscal years ended September 30, 2024 and 2023, the Company recorded expected credit loss of $62,731 and $157,656, respectively.

In August 2018, the FASB issued ASU No. 2018-13,
“Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value
Measurement”. The amendments in this ASU eliminate, add and modify certain disclosure requirements for fair value measurements.
The amendments in this ASU, among other things, require public companies to disclose the