Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 123

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 123
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 increasing and interest
rates continue to rise, we may not be able to mitigate all adverse impacts on end user demand for our products through traditional methods
such as pricing adjustments or internal cost reductions.

A
significant portion of our revenue is dependent upon a small number of customers, and our two largest customers that collectively accounted
for approximately 61% and 63% of net revenue in fiscal 2025 and fiscal 2024, respectively. The loss of any one of these customers would
negatively impact our revenues and our results of operations.

Sales
to our top five customers accounted for approximately 76% and 78% of our net sales for the years ended March 31, 2025 and 2024,
respectively. Sales to our largest customer accounted for approximately 46% and 40% of our net sales, respectively, and another
customer accounted for approximately 15% and 23%, respectively, of our net sales for the years ended March 31, 2025 and 2024. No
other customer accounted for 10% or more of total sales. Contractual relationships with our major customers do not guarantee sales
volumes or longevity. Consequently, our relationship with our major customers could change at any time. Our business, results of
operations and financial condition would be materially and adversely affected if:

    ●
    we
    lose any of our other major customers;

    ●
    or
    any of our other major customers purchase fewer of our products; or

    ●
    we
    experience any other adverse change in our relationship with any of our other major customers.

If
the products that we offer do not reflect our customers’ tastes and preferences, our net sales and profit margins could decrease.

Our
success depends in part on our ability to offer products and services that reflect consumers’ tastes and preferences. Consumers’
tastes are subject to frequent, significant and sometimes unpredictable changes. If the merchandise we offer for sale fails to respond
to changes in customer preferences, our sales could suffer and we could be required to mark down unsold inventory, which could depress
profit margins, or we could be required to accept returned merchandise in exchange for full credit which could depress net sales and
profit margins. In addition, any failure to offer products and services in line with customers’ preferences could allow competitors
to gain market share, which could harm our business, results of operations and financial condition.

Our
success depends largely on the continued service and availability of highly skilled employees