Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 16

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 16
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 is concentrated only in
China. We sold 100% of our software products through distributors during fiscal years 2024 and 2023.

Distributors and End-Users

Our distributors refer to
those individuals or entities who purchase our products at the specified price stipulated in their purchase agreements with us and distribute
the products in the designated region where they are located or through their offline and online channels to resell the products to end-users.

While we do not possess
all of the details regarding the end-users or the particular projects utilizing our software products, we generally categorize our end-users
as individuals or enterprises who seek access to the distributed network and leverage our software products to create the decentralized
applications for their specific needs.

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Adopting a distribution
model is advantageous for rapidly reaching end-users through the sales network of distributors, creating sales scale, and concurrently
establishing firewall between the Company and end-user data through the distributor channel.

We typically enter into
purchase agreements with our distributors, which specify the cooperation scope, payment terms, rights and obligations of both parties,
restrictive covenants, delivery terms, refunds or replacements, breach and termination, and dispute resolutions. The distributors make
payment to us in accordance with the agreed-upon terms and then leverage their sales networks to sell our software products to end-users.
After the payment has been received from the distributors, our software products are delivered in accordance with the contractual obligations
in the purchase agreements to the distributors through an activation code. The distributors subsequently deliver the software products
to end-users by sharing this activation code. We do not deliver software products directly to any end-user.

Our distributors are considered
our customers. As of September 30, 2024, we had 35 distributors in China. These distributors cover 9 provinces and 11 municipalities
in China, including Guangdong, Chongqing, Zhejiang, Hainan, Hubei, Liaoning, Shandong, Sichuan, and Hebei.

Our distributors normally
do not disclose to us the detailed information of the end-users or any specific project the software products are being used in. Additionally,
we work together with distributors to provide after-sales support and maintenance services.

Customer Relationships

The top 3 customers for
the fiscal year ended September 30, 2024 are the following: (1) Guangdong Lightning Cat New Energy Technology Co., Ltd (“Guangdong
Lightning”), (2) Chongqing Shenghong