Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 62

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 62
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ures or hackers, this could result in network interruptions and consequently interruptions to applications on the network. Issues
with the VIE’s programming code and damage to enough nodes on a network could damage our brand and have a material adverse effect
on our business, results of operations or financial condition.

If the VIE continues to sell hardware products, a significant interruption in the VIE’s suppliers could potentially disrupt the VIE’s operations.

The VIE has limited control
over the operations of their third-party suppliers. Any significant interruption in such suppliers’ operations may have an adverse
impact on the VIE operations. We generally rely on our suppliers for hardware equipment, motherboards, storage devices, computing devices,
and software component materials and other related products to operate our software products. For example, significant interruptions
in the operations of the suppliers’ manufacturing facilities could cause delay or failure of shipment of such hardware equipment,
services, devices, or software component materials to the VIE, which in turn, may cause delay or failure to manufacture and ship ordered
products to customers, resulting in damage to the VIE’s customer relationships. If the VIE is unable to adequately address the
impact of the interruptions of operations of their third-party suppliers, the VIE’s business operations and financial results may
be materially and adversely affected.

| 34 |

Although the VIE believes
that it could establish alternate sources from other suppliers, there can be no assurance that such replacement suppliers will provide
the hardware equipment, services, devices, or software component materials that are needed by the VIE in the quantities requested, at
the quality required, or at the prices that the VIE is willing to pay. Any shortage in such hardware equipment, services, devices, or
software component materials, deficiency in quality or any increase in prices could adversely affect the VIE’s reputation, financial
conditions and results of operations.

The VIE does not have long-term contracts with its hardware product suppliers and the suppliers can reduce order quantities or terminate their sales to the VIE.

The VIE does not have long
term contracts with its suppliers. If the VIE’s supply of certain services is disrupted or delayed, there can be no assurance that
additional supplies or services can serve as adequate replacements or that supplies will be available on terms that are favorable to
the VIE, if at all. Moreover, even if the VIE can identify adequate replacements on substantially similar terms, its business could be
adversely affected until those efforts were completed. Any disruption or delay