Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 257

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 257
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by value) of the stock. In determining
the value and composition of our assets for purposes of the PFIC asset test: (1) the cash we raise in this offering will generally
be considered to be held for the production of passive income; and (2) the value of our assets must be determined based on the market
value of our Ordinary Shares from time to time, which could cause the value of our non-passive assets to be less than 50% of the value
of all of our assets (including the cash raised in this offering) on any particular quarterly testing date for purposes of the asset test.

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Based on our operations
and the composition of our assets we do not expect to be treated as a PFIC under the current PFIC rules. We must make a separate determination
each year as to whether we are a PFIC, however, and there can be no assurance with respect to our status as a PFIC for our current taxable
year or any future taxable year. Depending on the amount of cash we raise in this offering, together with any other assets held for the
production of passive income, it is possible that, for our current taxable year or for any subsequent taxable year, more than 50% of
our assets may be assets held for the production of passive income. We will make this determination following the end of any particular
tax year. Although the law in this regard is unclear, we are treating the VIE as being owned by us for United States federal income tax
purposes, not only because we control their management decisions, but also because we are entitled to the economic benefits associated
with the VIE for accounting purposes because we have met the conditions under U.S. GAAP to consolidate the VIE, and as a result, we are
treating the VIE as our wholly-owned subsidiary for U.S. federal income tax purposes. If we are not treated as owning the VIE for United
States federal income tax purposes, we would likely be treated as a PFIC. In addition, because the value of our assets for purposes of
the asset test will generally be determined based on the market price of our Ordinary Shares and because cash is generally considered
to be an asset held for the production of passive income, our PFIC status will depend in large part on the market price of our Ordinary
Shares and the amount of cash we raise in this offering. Accordingly, fluctuations in the market price of the Ordinary Shares may cause
us to become a