Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 111

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 111
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 litigation following periods of market volatility. If we were to become involved
in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business
and harm our business, results of operations, financial condition and reputation. These factors may materially and adversely affect the
market price of our Ordinary Shares.

You will experience immediate and substantial dilution.

The initial public offering
price of our shares is substantially higher than the pro forma net tangible book value per share of our Ordinary Shares. Assuming
the completion of the offering, if you purchase shares in this offering, you will incur immediate dilution of approximately $[·]
per share or approximately [·]% from the offering price of $[·]
per share, and after deducting estimated underwriting discounts, non-accountable expense allowance and estimated offering expenses payable
by us. Accordingly, if you purchase shares in this offering, you will incur immediate and substantial dilution of your investment. See
“Dilution.”

Because we do not expect to pay dividends in the foreseeable future after this offering, you must rely on a price appreciation of the Ordinary Shares for a return on your investment.

We currently intend to retain
most, if not all, of our available funds and any future earnings after this offering to fund the development and growth of our business.
As a result, we do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in
the Ordinary Shares as a source for any future dividend income.

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A sale or perceived sale of a substantial number of our Ordinary Shares may cause the price of our Ordinary Shares to decline.

If our shareholders sell
substantial amounts of our Ordinary Shares in the public market, the market price of our Ordinary Shares could fall. Moreover, the perceived
risk of this potential dilution could cause shareholders to attempt to sell their shares and investors to short our Ordinary Shares.
These sales also make it more difficult for us to sell equity-related securities in the future at a time and price that we deem reasonable
or appropriate.

We may be subject to penny stock regulations and restrictions, and you may have difficulty selling our Ordinary Shares.

The SEC has adopted regulations
which generally define so-called “penny stocks” to be an equity security that has a market price of less than $5.00 per share
or an exercise price of less than $5.00 per share, subject to certain exemptions. If our Ordinary Shares become a “penny stock,”
we