Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 170

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 170
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We typically enter into
purchase agreements with our distributors, which specify the cooperation scope, payment terms, rights and obligations of both parties,
restrictive covenants, delivery terms, refunds or replacements, breach and termination, and dispute resolutions. The distributors make
payment to us in accordance with the agreed-upon terms and then leverage their sales networks to sell our software products to end-users.
After the payment has been received from the distributors, our software products are delivered in accordance with the contractual obligations
in the purchase agreements to the distributors through an activation code. The distributors subsequently deliver the software products
to end-users by sharing this activation code. We do not deliver software products directly to any end-user.

Our distributors are considered
our customers. As of September 30, 2024 and September 30, 2023, we had 35 and 28 distributors in China, respectively. These distributors
cover 9 provinces and 11 municipalities in China, including Guangdong, Chongqing, Zhejiang, Hainan, Hubei, Liaoning, Shandong, Sichuan,
and Hebei.

Our distributors normally
do not disclose to us the detailed information of the end-users or any specific project the software products are being used in. We only
collect basic registration information of the end-users for after-sales service purposes. Additionally, we work together with distributors
to provide after-sales support and maintenance services.

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Suppliers

When developing software
component tools, we require support for the development and testing networks for distributed development. This involves the procurement
of hardware devices and the purchase of data center services for online operations. Additionally, for the nodes we develop (such as the
Smart Metaverse Box), we rely on hardware suppliers for components like mainboards, storage devices, computing equipment, and software
components.

As of September 30, 2024
and September 30, 2023, we had 1 and 14 suppliers in China, respectively, and we have maintained good relationships and contact with
most of these suppliers to ensure adequate and timely supply of its software products. We typically purchase these devices and services
on a purchase-order basis.

Software Support and Maintenance

We work with our distributors
to offer software support and maintenance services.

Currently, we do not have
any customer service representatives to provide support directly to end-users. Instead, we rely on our network of distributors’
customer service representatives to carry out the after-sales service, which typically starts with the