Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 88

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 88
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 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 more difficult to evaluate the effectiveness of these accounting firms’ audit procedures or quality control
procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and potential
investors in issuers operating in China to lose confidence in such issuers’ procedures and reported financial information and the
quality of financial statements.

On December 15, 2022, the
PCAOB released a statement confirming it has secured complete access to inspect and investigate registered public accounting firms headquartered
in mainland China and Hong Kong, and it issued the 2022 HFCAA Determination Report to vacate its precious determinations to the contrary.
The PCAOB is continuing to demand complete access, and it will act immediately to reconsider such determinations should China obstruct,
or otherwise fail to facilitate the PCAOB’s access, at any time.

Our auditor, TPS, an independent