Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 71

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 71
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 by, its competitors. Any failure
in protecting or enforcing the VIE’s intellectual property rights could have a material adverse effect on our business, financial
condition and results of operations.

Changes in U.S. and international trade policies, particularly with regard to China, may adversely impact the VIE’s business and operating results.

The U.S. government has
recently made statements and taken certain actions that may lead to potential changes to U.S. and international trade policies, including
recently imposed tariffs affecting certain products manufactured in China. It is unknown whether and to what extent new tariffs (or other
new laws or regulations) will be adopted, or the effect that any such actions would have on the VIE or its industry and customers. If
the VIE plans to sell its products internationally in the future, any unfavorable government policies on international trade, such as
capital controls or tariffs, may affect the demand for the VIE’s products, impact the competitive position of the VIE’s products
or prevent the VIE from being able to sell products in certain countries. If any new tariffs, legislation and/or regulations are implemented,
or if existing trade agreements are renegotiated or, in particular, if the U.S. government takes retaliatory trade actions due to the
recent U.S.-China trade tension, such changes could have an adverse effect on the VIE’s business, financial condition, and results
of operations.

The VIE has no business liability or disruption insurance, which could expose the VIE to significant costs and business disruption.

The insurance industry in
China is still at an early stage of development, and insurance companies in China currently offer limited business-related insurance
products. The VIE does not have any business liability or disruption insurance to cover its operations. The VIE has determined that the
costs of insuring for these risks and the difficulties associated with acquiring such insurance on commercially reasonable terms make
it impractical for the VIE to have such insurance. Any uninsured risks may result in substantial costs and the diversion of resources,
which could adversely affect the VIE’s results of operations and financial condition.

If we do not obtain substantial additional financing, including the financing sought in this offering, the VIE’s ability to execute its business plan as outlined in this prospectus will be impaired.

The VIE’s plans for
business expansion and development are dependent upon its raising significant additional capital, including the capital sought in this
offering. The VIE’s plans call for significant new investments in research and development,