Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 65

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 65
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 use their market power to negotiate price concessions or reductions for their products making them more desirable than the VIE’s
products. If the VIE reduces its prices because of consolidation in the decentralized distributed technology industry, the VIE’s
revenues would decrease accordingly, which could have a material adverse effect on the VIE’s business, financial condition, and
results of operations.

The VIE may fail to effectively develop and commercialize new products, which would materially and adversely affect their business, financial condition, and results of operations.

The distributed technology
industry is developing rapidly and related technology trends are constantly evolving. This results in frequent introduction of new products,
short product life cycles and significant price competition. Consequently, the VIE’s future success depends on its ability to anticipate
technology development trends and identify, develop, and commercialize in a timely and cost-effective manner new and advanced products
that their customers demand. Whether the VIE is successful in developing and commercializing new products is determined by their ability,
among other things, to:

| · | accurately assess technology trends and customer needs and meet market                              
 demands;                                                                                            |
| · | optimize their manufacturing, procurement, and development processes                                
 to predict and control costs;                                                                       |
| · | manufacture or develop and deliver products                                                         
 in a timely manner;                                                                                 |
| · | ensure sufficient skilled labor and capital                                                         
 to develop, market, sell and successfully commercialize the software products into the marketplace; |
| · | increase customer awareness and acceptance of its products;                                         |
| · | anticipate and compete effectively with other developers, manufacturers                             
 and marketers;                                                                                      |
| · | price their products competitively; and                                                             |
| · | effectively integrate customer feedback into their research and development                         
 planning.                                                                                           |

We cannot assure you that
the VIE can effectively develop and commercialize new products. In the event the VIE fails to develop and commercialize new products,
it would materially and adversely affect the VIE’s business, financial condition, and results of operations.

| 36 |

If the VIE fails to develop other products, the VIE may be unable to grow its business.

As a significant part of
the VIE’s growth strategy, they intend to develop and commercialize additional hardware and software products through their research
and development program or by acquiring additional technologies and patents from third parties. The success of this strategy depends
largely upon the VIE’s ability to develop new technologies or identify, select and acquire the technologies and patents on terms
that