Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 305

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 305
---
 reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain
members of the Company’s management team. Consequently, the Company has determined that it has only one reportable operating segment.

Comprehensive income

Comprehensive income includes all changes in
equity from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions
to owners. For the years presented, total comprehensive income included foreign currency translation adjustments.

Related parties

In general, related parties exist when there
is a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to
influence the outcome of events different from that which might result in the absence of that relationship. A related party may be any
of the followings: a) affiliate, a party that directly or indirectly controls, is controlled by, or is under common control with another
party; b) principle owner, the owner of record or known beneficial owner of more than 10% of the voting interest of an entity; c) management,
persons having responsibility for achieving objectives of the entity and requisite authority to make decision; d) immediate family of
management or principal owners; e) a parent company and its subsidiaries; f) other parties that has ability to significant influence
the management or operating policies of the entity.

Comprehensive income

Comprehensive income consists of two components,
net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains and losses that under GAAP are
recorded as an element of equity but are excluded from net income. Other comprehensive income consists of a foreign currency translation
adjustment resulting from the Company not using the U.S. dollar as its functional currencies.

Earnings per share

The Company computes earnings per share (“EPS”)
in accordance with ASC 260, Earnings per Share. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured
as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a
per-share basis of the potential Ordinary Shares (e.g., convertible securities, options and warrants) as if they had been converted at
the beginning of the periods presented, or issuance date, if later. Potential Ordinary Shares that have an anti-dilutive effect (i.e.,
those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Contingencies

From time to time, the Company is a party