Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 80

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 80
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 which would
materially harm our business, results of operations, and financial condition.

If the VIE fails to prevent security breaches, improper access to or disclosure of data on the network, or other hacking and attacks, we may lose users, and our business, reputation, financial condition and results of operations may be materially and adversely affected.

The VIE’s business
and technology involve decentralized and distributed storage, which end users may use for the transmission of potentially sensitive or
confidential data.

The VIE has privacy and
data security policies in place that are designed to prevent security breaches and the VIE has employed significant resources to develop
its security measures against breaches. However, as newer technologies evolve, and the portfolio of the service providers with which
the VIE shares confidential information with grows, the VIE could be exposed to increased risk of breaches in security and other illegal
or fraudulent acts, including cyberattacks. The evolving nature of such threats, in light of new and sophisticated methods used by criminals
and cyberterrorists, including computer viruses, malware, phishing, misrepresentation, social engineering and forgery, is making it increasingly
challenging to anticipate and adequately mitigate these risks.

The VIE is likely in the
future to be subject to these types of attacks. If the VIE is unable to avert these attacks and security breaches, the VIE could be subject
to significant legal and financial liabilities, its reputation would be harmed and the VIE could sustain substantial revenue loss from
lost sales and customer dissatisfaction. The VIE may not have the resources or technical sophistication to anticipate or prevent rapidly
evolving types of cyber-attacks. Cyber-attacks may target the VIE, its suppliers, customers or other participants, or the network infrastructure
on which the VIE depends. Actual or anticipated attacks and risks may cause the VIE to incur significantly higher costs, including costs
to deploy additional personnel and network protection technologies, train employees, and engage third-party experts and consultants.
As the VIE does not carry cybersecurity insurance, the VIE will not be able to mitigate such risks to any third party. Cybersecurity breaches would
not only harm the VIE’s reputation and business, but also could materially decrease its revenue and net income.

The VIE’s failure to comply with data protection laws and regulations could lead to government enforcement actions and significant penalties against the VIE, and adversely impact its operating results.

Regulatory authorities in
China have implemented and are considering a number of legislative and regulatory proposals concerning data