Company: ZDAN
Filing Date: 2025-07-28
Form Type: F-1/A
Source: 0001683168-25-005450
Chunk: 300

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-07-28
Form: F-1/A
Chunk 300
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for income taxes in accordance with ASC 740 (“ASC 740”), Income Taxes. The Company accounts for current income taxes in accordance
with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases
of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period
including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected
to be realized.

The Company is not subject to tax on income or
capital gain under the current tax laws of U.S. And the Company is subject to tax on income or capital gain under the tax laws of PRC.

Statutory surplus reserves

The Company’s PRC subsidiaries are required
to allocate at least 10% of their after-tax profit to the general reserve in accordance with the PRC accounting standards and regulations.
The allocation to the general reserve will cease if such reserve has reached to 50% of the registered capital of respective company. These
reserves can only be used for specific purposes and are not transferable to the Company in form of loans, advances, or cash dividends.
There is no such regulation of providing statutory reserve in Hong Kong. The statutory surplus reserves that recognized for the years
ended September 30, 2024 and 2023 were $271,127 and $252,285, respectively.

| F-17 |

Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain
members of the Company’s management team. Consequently, the Company has determined that it has only one reportable operating segment.

Comprehensive income

Comprehensive income includes all changes in
equity from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions
to owners. For the years presented, total comprehensive income included foreign currency translation adjustments.

Related parties

In general, related parties exist when there is
a relationship that offers the potential for transactions at less than arm’s-length, favorable treatment, or the ability to influence
the outcome of events different from that which might result in the absence of that relationship. A related party may be any of the following