Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 294

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 294
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 proposed public offering. Should the proposed public offering prove to be unsuccessful, the deferred cost, as well as additional expenses
to be incurred, will be charged to operations.

Fair value of financial instruments

ASC 825-10 requires certain disclosures regarding
the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes
the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use
of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

| · | Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;                                                                                                                                                                                                       |
| · | Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data; and |
| · | Level 3 — inputs to the valuation methodology are unobservable.                                                                                                                                                                                                                                                                           |

| F-13 |

The fair value of the Company’s financial
instruments, including cash, accounts receivable, other receivables – related party, accounts payable, and other current liabilities,
due to the related parties, and short-term bank loans, approximate their recorded values due to their short-term maturities as of September
30, 2023 and 2022.

Revenue recognition

The Company adopted ASC Topic 606, Revenue from
Contracts with Customers, effective as of January 1, 2019. Accordingly, the consolidated financial statements for the years ended September
30, 2024 and 2023 are presented under ASC 606. No practical expedients were used when adopting ASC 606. The core principle of the guidance
is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is the transaction price
the Company expects to be entitled to in exchange for the promised services in a contract in the ordinary course of the Company’s
activities and is recorded net of value-added tax (“VAT”). To achieve that core principle