Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 235

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 235
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in the future. While we have reserves set aside for doubtful accounts, a business failure by one of our major accounts could adversely
impact our profits and operating results.

Legal,
Tax, Regulatory and Compliance Risks

Our
brand names are important assets of our businesses and violation of our intellectual property or trademark rights, or the failure of
our licensees or vendors to comply with our product quality, manufacturing requirements, marketing standards, and other requirements
could negatively impact revenues and brand reputation.

We
seek to protect our intellectual property rights and our tradenames in the normal course of our business operations. Any inability to
protect our other intellectual property rights could also reduce the value of our products and services or diminish our competitiveness.
Assertion by us of our intellectual property and trademark rights can also be costly and time-consuming and may materially adversely
affect our financial condition and operating results. If we are not able to access the additional liquidity internally or through external
means to assert our intellectual property rights, we could incur damage to our brand identity and our sales and results of operations.

14

Cybersecurity
incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely affect our reputation
and results of operations.

We
regularly move data across national borders, and consequently the Company is subject to a variety of continuously evolving and developing
laws and regulations in the United States and abroad regarding privacy, data protection and data security. The scope of the laws that
may be applicable to us is often uncertain and may be conflicting, particularly with respect to foreign laws. For example, the European
Union’s General Data Protection Regulation (“GDPR”), which became effective in May 2018, greatly increased the jurisdictional
reach of European Union law and added a broad array of requirements for handling personal data, including the public disclosure of significant
data breaches. Similarly, the California Consumer Privacy Act of 2018 (“CCPA”), which became effective in January 2020, provided,
among other things, a new private right of action for data breaches, required companies that process information on California residents
to make new disclosures to consumers about their data collection, use and sharing practices, and provided consumers with additional rights.
The California Privacy Rights Act of 2020, which became effective on January 1, 2023, amends and expands the CCPA, creating new industry
requirements, consumer privacy rights and enforcement mechanisms. Virginia and Colorado have also passed robust privacy laws that came
into effect on January 1,