Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 116

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 116
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 In other words, an “emerging growth
company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
We have elected to take advantage of the extended transition period. As a result of this election, our future financial statements may
not be comparable to other public companies that comply with the public company effective dates for these new or revised accounting standards.

To the extent that we rely
on any of the exemptions available to emerging growth companies, you will receive less information about our executive compensation and
internal control over financial reporting than issuers that are not emerging growth companies. If some investors find our Ordinary Shares
to be less attractive as a result, there may be a less active trading market for our Ordinary Shares and our share price may be more
volatile.

If we fail to implement and maintain an effective system of internal controls or fail to remediate the material weaknesses in our internal control over financial reporting that have been identified, we may fail to meet our reporting obligations or be unable to accurately report our results of operations or prevent fraud, and investor confidence and the market price of our Ordinary Shares may be materially and adversely affected.

Prior to this offering,
we have been a private company with limited accounting personnel and other resources with which to address our internal controls and
procedures. Our independent registered public accounting firm has not conducted an audit of our internal control over financial reporting.
However, in preparing our consolidated financial statements as of and for the fiscal years ended September 30, 2024 and 2023, and balance
sheet data as of September 30, 2024 and 2023, we and our independent registered public accounting firm have identified material weaknesses
in our internal control over financial reporting, as defined in the standards established by the PCAOB, and other control deficiencies.
The material weaknesses identified included (i) a lack of accounting staff and resources with appropriate knowledge of U.S. GAAP
and SEC reporting and compliance requirements; and (ii) a lack of formal internal controls over financial closing and reporting
processes. Following the identification of the material weaknesses and control deficiencies, we plan to continue to take remedial measures
including (i) hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications
to strengthen the financial reporting function and to set up a financial and system control framework; (ii) implementing regular
and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel; and
(iii) setting up