Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 88

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 88
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 hinder our ability to offer or continue to offer securities
to our investors.

| 47 |

Uncertainties regarding
the enforcement of laws and the fact that rules and regulations in China may change with little advance notice, along with the risk that
the Chinese government may take actions to strengthen oversight and control over offerings conducted overseas and/or foreign investment
in China-based issuers which may intervene in or influence our operations, or could result in a material change in our or the VIE’s
operations, financial performance and/or the value of our Ordinary Shares or impair our ability to raise money.

If it is later determined that the PCAOB is unable to inspect and investigate completely our auditor, our securities will be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act (the HFCAA). The delisting of and prohibition from trading our securities, or the threat of their being delisted and prohibited from trading, may cause the value of our securities to significantly decline or become worthless.

Pursuant to the HFCAA, if
the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspections
by the PCAOB for two consecutive years, the SEC will prohibit our shares from being traded on any U.S. stock exchange.

On December 18, 2020, the
HFCAA was signed into law. The HFCAA has since then been subject to amendments by the U.S. Congress and interpretations and rulemaking
by the SEC. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act (the “AHFCAA”),
which proposes to reduce the period of time for foreign companies to comply with PCAOB audits from three to two consecutive years, thus
reducing the time period before the securities of such foreign companies may be prohibited from trading or delisted. On December 29,
2022, the Consolidated Appropriations Act was signed into law, which contained, among other things, an identical provision of the AHFCAA,
and reduced the number of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from three years
to two.

On December 16, 2021, the
PCAOB issued a report to notify the SEC of its determination relating to the PCAOB’s inability to inspect or investigate completely
registered public accounting firms headquartered in mainland China and Hong Kong. The inability of the PCAOB to conduct inspections of
auditors in China made it