Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 301

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 301
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842)”. The amendments in this ASU require that a lessee recognize the assets and liabilities that arise from
operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability)
and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or
less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease
liabilities. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments — Credit losses (Topic 326), Derivative and
Hedging (Topic 815), and Lease (Topic 842): Effective Date. ASU2019-10 amends the effective dates for ASU No. 2016-02. The Group fits
the requirement for other entities and has adopted ASU2016-02 for fiscal year ended September 30, 2023. The Company has adopted the amendments
with no material change to the balance sheet to recognize right-of-use assets and related lease liabilities for operating leases.

Recent accounting pronouncements

The Group expects to be an emerging growth company
(“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC
can take advantage of extended transition periods for complying with new or revised accounting standards. This allows an EGC to delay
adoption of certain accounting standards until those standards would otherwise apply to private companies. The Group elected to take advantage
of the extended transition periods. Therefore, the Group’s financial statements may not be comparable to companies that comply with
public company effective dates. However, this election will not apply should the Group cease to be classified as an EGC.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Loss