Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 123

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 123
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 we will be required to file with
the SEC periodic reports and registration statements on U.S. domestic issuer forms, which are more detailed and extensive than the forms
available to a foreign private issuer. We will also have to mandatorily comply with U.S. federal proxy requirements, and our officers,
directors and principal shareholders will become subject to the short-swing profit disclosure and recovery provisions of Section 16
of the Exchange Act. In addition, we will lose our ability to rely upon exemptions from certain corporate governance requirements under
the Nasdaq listing rules. As a U.S. public company that is not a foreign private issuer, we will incur significant additional legal,
accounting and other expenses that we would not incur as a foreign private issuer, in order to maintain a listing on a U.S. securities
exchange.

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You must rely on the judgment of our management as to the use of the net proceeds from this offering, and such use may not produce income or increase the price of our Ordinary Shares.

Our management will have
considerable discretion in the application of the net proceeds received by us. You will not have the opportunity, as part of your investment
decision, to assess whether proceeds are being used appropriately. The net proceeds may be used for corporate purposes that do not improve
our efforts to maintain profitability or increase the Ordinary Share price. For instance, the net proceeds from this offering may be
placed in research and development projects that do not produce income or do not lead to finished products.

Some members of our management team lacks experience in managing a U.S. publicly-listed company. and complying with laws applicable to such company, the failure of which may adversely affect our business, financial conditions, and results of operations.

Some of our current management
team lacks experience in managing a company publicly traded in the U.S., interacting with public company investors and complying with
the increasingly complex laws pertaining to U.S.-listed public companies. Prior to the effectiveness of the registration statement of
which this prospectus forms a part, we mainly operate our businesses as a private company in the PRC. As a result of this offering, our
Company will become subject to significant regulatory oversight and reporting obligations under the U.S. federal securities laws and
the scrutiny of securities analysts and investors, and our management currently has no experience in complying with such laws, regulations
and obligations. Our management team may not successfully or efficiently manage our transition to becoming a U.S. public-listed company.
These new obligations and constituents will