Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 151

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 151
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  1,641,923 |   |

| 86 |

Net cash used in operating
activities for the fiscal year ended September 30, 2024 was $1,825,252, which was primarily attributable to a net income of $2,711,275,
adjusted for non-cash items for $885,823 and adjustments for changes in working capital of $5,422,350. The adjustments for changes
in working capital mainly included:

| (i)   | increase                                                                                                                                         
 in payments of Pre-IPO expenses of $237,797 during the fiscal year ended September 30, 2024.                                                     |
| (ii)  | increase in prepayments                                                                                                                          
 of $2,182,082 to retain various marketing and promotion activities after the company began the IPO                                               
 process.                                                                                                                                         |
| (iii) | increase in accounts receivable of $3,148,563 from Zhenglian Shenzhen’s customers’ credit sales during the fiscal year ended September 30, 2024. |
| (iv)  | decrease in operating                                                                                                                            
 lease liabilities of $446,396 as the company pays operating lease payments during the year.                                                      |

Net cash used in
operating activities for the fiscal year ended September 30, 2023 was $1,393,210, which was primarily attributable to a net income
of $2,522,852, adjusted for non-cash items for $859,846 and adjustments for changes in working capital of $4,775,908. The
adjustments for changes in working capital mainly included:

| (i)   | increase in payments of Pre-IPO                                                                                   
 expenses of $1,913,653 during the fiscal year ended September 30, 2023.                                           |
| (ii)  | increase in prepayments                                                                                           
 of $1,997,587 to retain various marketing and promotion activities after the company successfully launch its IPO. |
| (iii) | increase in accounts receivable of $305,708 from Zhenglian                                                        
 Shenzhen’s customers’ credit sales during the fiscal year                                                         
 ended September 30, 2023.                                                                                         |
| (iv)  | decrease in operating lease liabilities of $422,663                                                               
 as the company pays operating lease payments during the year.                                                     |

Investing Activities:

Net cash used in investing
activities was approximately $12,210 for the fiscal year ended September 30, 2024, attributable to the payments related
to