Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 12

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 12
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. We believe that by leveraging the proprietary technology, research and development capabilities
of the VIE and our subsidiaries, and accumulating valuable expertise through investments in relevant technological research, we can maintain
a competitive advantage in the industry.

| 2 |

We aim to stay
up-to-date on technical innovations by maintaining a large talent pool and will continue to invest in research and development to
upgrade the software solutions of our subsidiaries and the VIE. In 2022, the VIE and our subsidiaries obtained the national
high-tech enterprise certification in PRC. As of September 30, 2024, the VIE’s research and development team consisted of 23
researchers, programmers, and engineers, accounting for approximately 55% of the total number of employees.

The VIE has historically derived its revenue mainly from software product sales through distributors and related post-contract services. As of September 30, 2024 and 2023, we had 35 and 28 distributors in China, respectively. We consider these distributors to be our customers. Through this distribution network channel penetration, sales have extended to cover 9 provinces and 11 municipalities in China as of September 30, 2024.

We capitalized $0.012
million and $0.59 million of research and development expenditure for the fiscal years ended September 30, 2024 and 2023, respectively.
We also incurred research and development expenses of $0.048 million and $0.124 million for the fiscal years ended September 30, 2024
and 2023, respectively. Our allocation of resources towards innovation has fostered our growth, as a combined company including the VIE
and our subsidiaries. For the fiscal year ended September 30, 2024 and 2023, total revenue reached approximately $5.91 million and $5.68
million, respectively, and net income was approximately $2.71 million and $2.52 million, respectively.

Our Technology Advantages

We place a significant
emphasis on the innovation and research and development of the underlying infrastructure of the next generation of the internet. Through
continuous investment, we have achieved outstanding results, including obtaining the national high-tech enterprise certification, jointly
issued by the Shenzhen Science and Technology Innovation Committee, Shenzhen Finance Bureau, and the Shenzhen Tax Service of State Taxation
Administration, and the specialized and sophisticated small and medium sized enterprise (“SME”) recognition, issued by Shenzhen
Small and Medium-sized Enterprises Service Bureau,