Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 55

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 55
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 the VIE competes are characterized by rapidly changing technology, evolving industry standards, practices and techniques.
Also, the VIE may not be able to keep up with these rapid changes in the future, develop new technology, realize a return on its research
and development expenditures or remain competitive in the future.

In addition, although the
VIE’s network is decentralized and less susceptible to the following as a result of its decentralized nature, the VIE must still
protect its systems against physical damage from fire, earthquakes, power loss, telecommunications failures, computer viruses, hacker
attacks, physical break-ins and similar events. Any software or hardware damage or failure that causes interruption or an increase in
response time of the VIE’s proprietary technology could reduce client satisfaction and decrease usage of the VIE’s products
and network. This would also likely result in reputational damage to the VIE and consequently negatively affect its future performance.

| 30 |

The further development and acceptance of decentralized distributed technologies, which are part of a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of decentralized distributed technologies would have a material adverse effect on our business.

The growth of the distributed
technology industry in general, as well as the network on which our technologies rely, is subject to a high degree of uncertainty. The
factors affecting the further development of the distributed technology industry and networks, include, without limitation:

| · | worldwide                                                                                        
 growth in the adoption and use of decentralized distributed technologies;                        |
| · | the                                                                                              
 maintenance and development of protocols and standards for decentralized networks;               |
| · | innovation                                                                                       
 and the development of new technologies and the obsolescence of older technologies, technologies 
 including both hardware and software;                                                            |
| · | changes                                                                                          
 in consumer demographics and public tastes and preferences;                                      |
| · | changes                                                                                          
 in the popularity or acceptance of decentralized distributed technologies; and                   |
| · | general                                                                                          
 economic conditions and the regulatory environment relating to decentralized distributed         
 technologies.                                                                                    |

The distributed technology
industry has been characterized by rapid changes and innovations. Although it has experienced significant growth in recent years, the
slowing or stopping of the development, general acceptance and adoption and usage of decentralized networks, along with the innovation
or obsolescence of related technologies may materially adversely affect our business plans, financial results and prospects.

Changing technologies, even
those not directly pertaining to our industry, can have a material adverse