Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 297

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 297
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 agreements, which are applied against trade accounts payable when the materials or services are
received. These advances are interest free, unsecured, short-term in nature and are reviewed periodically to determine whether their
carrying value has become impaired.

The Company reviews a supplier’s credit
history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting
in an impairment of their ability to deliver goods or provide services, the Company would recognize expense in the period they are considered
unlikely to be collected.

Deposits and other current assets mainly represents
security deposits on rental and other miscellaneous receivables from staffs and subsidies receivables from governments.

Property and Equipment, net

Property and equipment are recorded at cost less accumulated depreciation.
Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of
the assets with 5% of residual value, as follows:

|                                    |     | Useful lives |         |
| Research and development equipment |     |              | 5       
 years   |
| Office and electronic equipment    |     |              | 5       
 years   |
| Leasehold improvement              |     |              | 5 years |

| F-12 |

Expenditures for maintenance and repairs, which
do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments
which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired
or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other
comprehensive income in other income or expenses.

Intangible Assets

Intangible assets consist of licensed software,
patent right and software in development which are recorded at cost less accumulated amortization. Intangible assets are amortized using
the straight-line method with the following estimated useful lives:

|                   |     | Useful 
 lives  |
| Licensed Software |     | 10     
 years  |
| Patent right      |     | 10     
 years  |

Impairment of Long-lived Assets

The Company’s management reviews the carrying
values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence
or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets
performance, cash flows for maintaining the asset are higher than forecast