Company: ZDAN
Filing Date: 2025-01-10
Form Type: DRS/A
Source: 0001683168-25-000168
Chunk: 321

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-01-10
Form: DRS/A
Chunk 321
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of.

Zhenglian Shenzhen has a contract dispute
with one of its previous suppliers, Shenzhen Youwei Communication Technology Co., Ltd. (“Youwei”). Zhenglian
Shenzhen sued Youwei on March 23, 2023 in connection with a cooperative purchasing agreement and a relevant supplementary agreement
(the “Youwei Purchase Agreements”) between Youwei and Zhenglian Shenzhen
in Shenzhen Qianhai Cooperation Zone People's Court (“Qianhai Court”). Zhenglian
Shenzhen claimed that Youwei failed to provide Zhenglian Shenzhen with the customized mobile phones that meet Zhenglian
Shenzhen’s requirements in accordance with the Youwei Purchase Agreements. Zhenglian Shenzhen has claimed total compensation
of approximately $1.1 million. Since then Youwei filed a counterclaim against Zhenglian Shenzhen and, as of September 30, 2024, the
case was still pending the Qianhai Court’s judgement. We do not believe this legal proceeding will have any material adverse
effect on our operation in China.

22. Subsequent events

The Company evaluated all events and transactions
that occurred after September 30, 2024 up through January 10, 2025, the date the Company confidentially filed these consolidated
financial statements for disclosure or recognition in the consolidated financial statements of the Company, as appropriate.

On Oct 11, 2024, the Company obtained $270,748 borrowings from Bank of Communications Co., Ltd. Shenzhen Branch with interest rate of 3%.

This short-term loan was guaranteed by the below intangible
assets of the Company.

| Categories        |     | Intangible Assets pledged for bank loan                                           |     | Carrying Amount          
 As of September 30, 2024 |        |
|:------------------|:----|:----------------------------------------------------------------------------------|:----|:-------------------------|-------:|
| Patent right      |     | An improvement method of k-bucket structure of kademlia protocol                  |     | $                        |  2,209 |
| Licensed software |     | Distributed peer-to-peer network for large-scale clusters with billions of scales |     |                          |  5,790 |
| Patent right      |     | A distributed network and its construction method                                 |     |                          | 32,534 |
| Total             |     |                                                                                   |     | $                        | 40,533 |

| F-32 |

On Oct 24, 2024, the Company obtained $712,494 borrowings