Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 169

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 169
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%  |     | $ | 4,902,503 |     | 86.30%  |
| Enterprise Data Base Station Node Software and Hardware |             |                                          |   122,853 |     | 2.10%   |     |   |         – |     | –       |
| Smart Metaverse Box                                     |             |                                          |    37,024 |     | 0.60%   |     |   |   143,118 |     | 2.52%   |
| Decentralization Application Software                   |             |                                          |   434,369 |     | 7.40%   |     |   |   635,046 |     | 11.18%  |
| Total                                                   |             | $                                        | 5,906,162 |     | 100.00% |     | $ | 5,680,667 |     | 100.00% |

| 101 |

Our Business Model

We currently generate our
revenue primarily from software sales and related post-contract services, along with a portion from sales of complementary embedded hardware-software
integrated products.

As of the date of this
prospectus, we rely completely on our distribution network to promote and sell, and its distribution footprint is concentrated only in
China. We sold 100% of our software products through distributors during fiscal years 2024 and 2023.

Distributors and End-Users

Our distributors refer to
those individuals or entities who purchase our products at the specified price stipulated in their purchase agreements with us and distribute
the products in the designated region where they are located or through their offline and online channels to resell the products to end-users.

While we do not possess
all of the details regarding the end-users or the particular projects utilizing our software products, we generally categorize our end-users
as individuals or enterprises who seek access to the distributed network and leverage our software products to create decentralized applications,
or DApps, for their specific needs. DApps are applications that operate on a decentralized network, often utilizing blockchain or other
decentralized technologies. DApps differ from traditional centralized applications in key ways, including decentralization, open source
code, decentralized storage, autonomy and governance.

Adopting a distribution
model is advantageous for rapidly reaching end-users through the sales network of distributors, creating sales scale, and concurrently
establishing firewall between the Company and end-user data through the distributor channel.