Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 122

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 122
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 corporate governance
practices in the Cayman Islands, which is our home country, differ significantly from requirements for companies incorporated in other
jurisdictions such as the United States. To the extent we choose to follow home country practice with respect to corporate governance
matters, our shareholders may be afforded less protection than they otherwise would under rules and regulations applicable to U.S.
domestic issuers.

As a result of all of the
above, our public shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members
of the Board of Directors or controlling shareholders than they would as public shareholders of a company incorporated in the United
States. For a discussion of significant differences between the provisions of the Companies Act (Revised) of the Cayman Islands and the
laws applicable to companies incorporated in the United States and their shareholders, see “Description of Share Capital — Differences in Corporate Law.”

We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.

As discussed above, we are
a foreign private issuer, and therefore, we are not required to comply with all of the periodic disclosure, current reporting requirements
and shareholder proxy rules of the Exchange Act. The determination of foreign private issuer status is made annually on the last business
day of an issuer’s most recently completed second fiscal quarter. We would lose our foreign private issuer status if, for example,
more than 50% of our Ordinary Shares are directly or indirectly held by residents of the U.S. and we fail to meet additional requirements
necessary to maintain our foreign private issuer status. If we lose our foreign private issuer status, we will be required to file with
the SEC periodic reports and registration statements on U.S. domestic issuer forms, which are more detailed and extensive than the forms
available to a foreign private issuer. We will also have to mandatorily comply with U.S. federal proxy requirements, and our officers,
directors and principal shareholders will become subject to the short-swing profit disclosure and recovery provisions of Section 16
of the Exchange Act. In addition, we will lose our ability to rely upon exemptions from certain corporate governance requirements under
the Nasdaq listing rules. As a U.S. public company that is not a foreign private issuer, we will incur significant additional legal,
accounting and other expenses that we would not incur as a foreign private issuer, in order to maintain a listing on a U.S. securities
exchange.

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