Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 60

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 60
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 number of nodes. As for the user base, because can expand the user base according to the demands in different scenarios and has  
 the business to have flexible scalability, may have minimum requirement for the user base to make it profitable. For us, we only 
 focus on the minimum nodes;                                                                                                      |
| · | there may be adverse changes in user                                                                                             
 sentiment about the quality or usefulness of decentralized applications on networks created by the VIE’s proprietary technology; |
| · | there may be concerns about privacy implications, safety or security                                                             
 of decentralized applications on networks created by the VIE’s proprietary technology, although its designed to be resistant     
 to even quantum computing;                                                                                                       |
| · | technical or other problems may frustrate the experience of the users,                                                           
 particularly if those problems prevent the decentralized applications from running in a fast and reliable manner;                |
| · | since the VIE does not communicate directly with end-users, others                                                               
 (including customers of the distributors and developers) may fail to provide adequate service to end-users;                      |
| · | the VIE or other companies in its industry may be the subject of adverse                                                         
 media reports or other negative publicity;                                                                                       |

| 33 |

| · | the VIE may not maintain its brand image or reputation may be damaged;                                                   |
| · | the VIE may be subject to denial of service or other attacks from hackers                                                
 that result in service downtime, although it’s particularly difficult to hack multiple nodes in a decentralized network; |
| · | the VIE may be unable to adapt software products to the rapidly changing                                                 
 Web3;                                                                                                                    |
| · | decentralized distributed networks may become poorly received as companies                                               
 begin to make their debut, changing sentiment and demand for our software products; and                                  |
| · | the hardware that has been established as a node on a network fails                                                      
 for any reason and there aren’t enough other nodes on the network to allow applications to run successfully.             |

The success of a network
created using our proprietary technology depends on maintaining a minimum user base, which translates to a minimum number of nodes. If
the number of nodes on a network running one application decreases below three, application failure on the network is more likely. If
the number of nodes on the distributed network decreases below 160, To ensure that users continue to run decentralized applications on
network created using the VIE’s proprietary technology, the VIE must make sure its software packages can create and update nodes