Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 322

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 322
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 or other matters may arise from time to time that may harm business. Management is not aware of any such
legal proceedings or claims that could have, individually or in the aggregate, a material adverse effect on the Company’s business,
financial condition, or operating results as of the date hereof.

Zhenglian Shenzhen has a contract dispute with one
of its previous suppliers, Shenzhen Youwei Communication Technology Co., Ltd. (“Youwei”). Zhenglian Shenzhen 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 Zhenglian Shenzhen in Shenzhen Qianhai Cooperation Zone People's Court
(“Qianhai Court”). Zhenglian Shenzhen claimed that Youwei failed to provide Zhenglian Shenzhen with the customized mobile
phones that meet Zhenglian Shenzhen’s requirements in accordance with the Youwei Purchase Agreements. Zhenglian Shenzhen has claimed
total compensation of approximately $1.1 million. Since then, Youwei filed a counterclaim against Zhenglian Shenzhen and, as of September
30, 2024, the case was still pending the Qianhai Court’s judgement. We do not believe this legal proceeding will have any material
adverse effect on our operations in China.

22. Subsequent events

The Company evaluated all events and transactions
that occurred after September 30, 2024 up through January 10, 2025, the date the Company confidentially filed these consolidated financial
statements for disclosure or recognition in the consolidated financial statements of the Company, as appropriate.

On Oct 11, 2024, the Company obtained $270,748 borrowings from Bank of Communications Co., Ltd. Shenzhen Branch with interest rate of 3%.

This short-term loan was guaranteed by the below
intangible assets of the Company.

| Categories        |     | Intangible Assets pledged for bank loan                                           |     | Carrying Amount          
 As of September 30, 2024 |        |
|:------------------|:----|:----------------------------------------------------------------------------------|:----|:-------------------------|-------:|
| Patent right      |     | An improvement method of k-bucket structure of kademlia protocol                  |     | $                        |  2,209 |
| Licensed software |     | Distributed peer-to-peer network for large-scale clusters with billions of scales |     |                          |  5,790 |
| Patent right      |     | A