Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 70

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 70
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 and time consuming and may significantly
divert the efforts and resources of the VIE’s technical and management personnel. Furthermore, an adverse determination in any
such litigation or proceedings to which the VIE may become parties could cause them to:

| · | pay damage awards;                |
| · | seek licenses from third parties; |
| · | pay ongoing royalties;            |
| · | redesign products; or             |
| · | be restricted by injunctions,     |

each of which could effectively prevent the VIE
from pursuing some or all of its business and result in its distributors or potential distributors deferring or limiting their purchase
or use of the VIE’s products, which could have a material adverse effect on our financial condition and results of operations.

In addition, the VIE currently
holds two patents which were acquired through assignment from the transferor, Xin Jianfang. However, the transfer agreements for these
aforementioned two patents have been lost, we cannot assure that such transfers are valid or will be considered legally binding, and
may exposed to litigation risk. However, for us, these two patents are not our core patents.

The VIE may not be able to prevent others from unauthorized use of its intellectual property, which could harm its business and competitive position.

The VIE relies on a combination
of trademark, fair trade practice, patent, copyright and trade secret protection laws in China, as well as confidentiality procedures
and contractual provisions, to protect its intellectual property rights. The VIE intends to enter into confidentiality agreements with
their employees that include terms identifying all employee-developed intellectually property as service inventions belonging to the
VIE. In addition, the VIE strives to remain current in its annual patent fee payments. The VIE regards its trademarks, patents, know-how,
proprietary technologies, and similar intellectual property as critical to its success. The VIE may become an attractive target to intellectual
property attacks in the future with the increasing recognition of its brand. Any of the VIE’s intellectual property rights could
be challenged, invalidated, circumvented or misappropriated, or such intellectual property may not be sufficient to provide the VIE with
competitive advantages. In addition, there can be no assurance that (i) all of the VIE’s intellectual property rights will
be adequately protected, or (ii) the VIE’s intellectual property rights will not be challenged by third parties or found by
a judicial authority to be invalid or unenforceable. Intellectual property protection may not be sufficient