Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 290

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 290
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 a currency other than the functional currency are included in the results of operations as incurred.

Translation adjustments included in accumulated
other comprehensive income (loss) amounted to $350,555 and ($208,960) as of September 30, 2024 and 2023, respectively. The shareholders’
equity accounts were stated at their historical rate. Cash flows are also translated at average translation rates for the periods, therefore,
amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated
balance sheets.

Translation of foreign currencies into US$1 have been made at the following
exchange rates for the respective periods:

|                                        |     | As of September 30, |        |     |      |        |
|                                        |     |                2024 |        |     | 2023 |        |
| Period-end RMB: US$1 exchange rate     |     |                     | 7.0176 |     |      | 7.2960 |
| Period-average RMB: US$1 exchange rate |     |                     | 7.2043 |     |      | 7.0533 |

Cash and Cash Equivalents

Cash and cash equivalents primarily consist of
cash and deposits with financial institutions which are unrestricted as to withdrawal and use. Cash equivalents consist of highly liquid
investments that are readily convertible to cash generally with original maturities of three months or less when purchased. The Company
maintains most of its bank accounts in the PRC.

Accounts Receivable, net

Accounts receivable represent the Company’s
right to consideration in exchange for goods and services that the Company has transferred to the customers before payment is due. Accounts
receivable is stated at the historical carrying amount, net of an estimated allowance for credit losses. The Company reviews on a periodic
basis for expected losses for the outstanding trade receivable balances based on historical collection trends, aging of receivables and
other information available. Additionally, the Company evaluates individual customer’s financial condition, credit history, and
the current economic conditions to make specific provision of credit loss when it is considered necessary, based on (i) the Company’s
specific assessment of the collectability of all significant accounts; and (ii) any specific knowledge we have acquired that might indicate
that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing
its collectability. The allowance is based on management’s best estimates of