Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 79

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 79
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 its customer support teams and, in some cases, its channel partners. Further, when new or updated elements of the VIE customers’
infrastructure or new industry standards or protocols are introduced, the VIE may have to update or enhance its technologies and infrastructure
to allow the VIE to continue to provide products to customers. The VIE’s competitors or other vendors may refuse to work with the
VIE to allow their products to interoperate with the VIE’s platform and products, which could make it difficult for the VIE’s
platform and products to function properly in customer internal networks and infrastructures that include these third-party products.

| 43 |

The VIE may not deliver
or maintain interoperability quickly or cost-effectively, or at all. These efforts require capital investment and engineering resources.
If the VIE fails to maintain compatibility of its solutions, platform and products with its distributors’ internal networks and
infrastructures, the VIE’s customers may not be able to fully utilize the VIE’s solutions, platform and products, and the
VIE may, among other consequences, lose or fail to increase its market share and experience reduced demand for its products, which would
materially harm our business, results of operations, and financial condition.

If the VIE fails to prevent security breaches, improper access to or disclosure of data on the network, or other hacking and attacks, we may lose users, and our business, reputation, financial condition and results of operations may be materially and adversely affected.

The VIE’s business
and technology involve decentralized and distributed storage, which end users may use for the transmission of potentially sensitive or
confidential data.

The VIE has privacy and
data security policies in place that are designed to prevent security breaches and the VIE has employed significant resources to develop
its security measures against breaches. However, as newer technologies evolve, and the portfolio of the service providers with which
the VIE shares confidential information with grows, the VIE could be exposed to increased risk of breaches in security and other illegal
or fraudulent acts, including cyberattacks. The evolving nature of such threats, in light of new and sophisticated methods used by criminals
and cyberterrorists, including computer viruses, malware, phishing, misrepresentation, social engineering and forgery, is making it increasingly
challenging to anticipate and adequately mitigate these risks.

The VIE is likely in the
future to be subject to these types of attacks. If the VIE is unable to avert these attacks and security