Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 292

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 292
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 receivables from staffs and subsidies receivables from governments.

Property and Equipment, net

Property and equipment are recorded at cost less accumulated depreciation.
Depreciation commences upon placing the asset in usage and is recognized on a straight-line basis over the estimated useful lives of the
assets with 5% of residual value, as follows:

|                                    |     | Useful lives |         |
| Research and development equipment |     |              | 5 years |
| Office and electronic equipment    |     |              | 5 years |
| Leasehold improvement              |     |              | 5 years |

| F-12 |

Expenditures for maintenance and repairs, which
do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments
which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired
or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other
comprehensive income in other income or expenses.

Intangible Assets

Intangible assets consist of licensed software, patent right and software
in development which are recorded at cost less accumulated amortization. Intangible assets are amortized using the straight-line method
with the following estimated useful lives:

|                   |     | Useful lives |
| Licensed Software |     | 10 years     |
| Patent right      |     | 10 years     |

Impairment of Long-lived Assets

The Company’s management reviews the carrying
values of long-lived assets whenever events and circumstances, such as a significant decline in the asset’s market value, obsolescence
or physical damage affecting the asset, significant adverse changes in the assets use, deterioration in the expected level of the assets
performance, cash flows for maintaining the asset are higher than forecast, indicate that the net book value of an asset may not be recovered
through expected future cash flows from its use and eventual disposition. If the estimated cash flows from the use of the asset and its
eventual disposition are below the asset’s carrying value, then the asset is deemed to be impaired and written down to its fair
value.

There was no impairment charge recognized for
long-lived assets for the years ended September 30, 2024 and 2023.

Deferred IPO cost

Deferred IPO cost consist of legal, accounting,
underwriting fee and other costs incurred through the balance sheet date that are directly related to the proposed public offering. These