Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 183

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 183
---
 contract dispute
with one of its previous suppliers, Youwei. The VIE sued Youwei on March 23, 2023 in connection with a cooperative purchasing agreement
and a relevant supplementary agreement (the “Youwei Purchase Agreements”) between Youwei and the VIE in Shenzhen Qianhai
Cooperation Zone People’s Court (“Qianhai Court”). The VIE claimed that Youwei failed to provide the VIE with the customized
mobile phones that meet the VIE’s specified requirements in accordance with the Youwei Purchase Agreements. The VIE has claimed
a total refund of approximately $0.162 million and all compensation of approximately $0.927 million. In June of 2023, Youwei filed a
counterclaim against the VIE. As of September 30, 2024, the case was still pending the court’s judgement. We do not believe this
legal proceeding will have any material adverse effect on the VIE’s operation in China. As of September 30, 2024 and 2023, the
Company was not aware of any other litigation or lawsuits against it.

We conduct our business in China through the VIE. The former description of our business is a description of the business of the VIE. For avoidance of doubt, all references in the prior section to the terms “our,” “us,” “we,” or “Company” refer to the VIE. See “ Corporate History and Structure— The VIE Agreements” for a summary of the contractual arrangements and “Risk Factors — Risks Related to Our Corporate Structure” for certain risks related to the contractual arrangements.

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<div align='center'>REGULATION</div>

This section sets forth a summary of applicable
laws, rules, regulations, government and industry policies and requirements that have a significant impact on our operations and business
in China. This summary does not purport to be a complete description of all laws and regulations that apply to our business and operations.
Investors should note that the following summary is based on relevant laws and regulations in force as of the date of this prospectus,
which may be subject to change.

Our PRC counsel has further
advised us that a translated version of this prospectus will be submitted to the CSRC within three (3) business days after it is submitted
to the SEC. As such, this prospectus is subject to review by, and comments from, the CSRC.

Regulations Relating to Foreign Investment

Investment activities in