Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 117

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 117
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 an internal audit function as well as engaging an external consulting firm to assist us with assessment of Sarbanes-Oxley
compliance requirements and improvement of overall internal control. However, the implementation of these measures may not fully address
the material weaknesses in our internal control over financial reporting. Our failure to correct the material weaknesses or our failure
to discover and address any other material weaknesses or control deficiencies could result in inaccuracies in our financial statements
and could also impair our ability to comply with applicable financial reporting requirements and related regulatory filings on a timely
basis. As a result, our business, financial condition, results of operations and prospects, as well as the eventual trading price of
our Ordinary Shares, may be materially and adversely affected. Moreover, ineffective internal control over financial reporting significantly
hinders our ability to prevent fraud.

Upon the completion of this
offering, we will become a public company in the United States subject to the Sarbanes-Oxley Act of 2002. Pursuant to Section 404
of the Sarbanes-Oxley Act, we will be required to file a report by our management on our internal control over financial reporting, including
an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. However,
while we remain an emerging growth company, we will not be required to include an attestation report on internal control over financial
reporting issued by our independent registered public accounting firm. The presence of material weaknesses in internal control over financial
reporting could result in financial statement errors which, in turn, could lead to errors in our financial reports and/or delays in our
financial reporting, which could require us to restate our operating results. We might not identify one or more material weaknesses in
our internal controls in connection with evaluating our compliance with Section 404 of the Sarbanes-Oxley Act. In order to maintain
and improve the effectiveness of our disclosure controls and procedures and internal controls over financial reporting, we will need
to expend significant resources and provide significant management oversight. Implementing any appropriate changes to our internal controls
may require specific compliance training of our directors and employees, entail substantial costs in order to modify our existing accounting
systems, take a significant period of time to complete and divert management’s attention from other business concerns. These changes
may not, however, be effective in maintaining the adequacy of our internal control.

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If we are unable to conclude
that we have effective internal controls over financial reporting, investors