Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 229

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 229
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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, including key personnel.

Much
of our future success depends on the continued availability and service of key personnel, including our Chief Executive Officer, executive
team, and other highly skilled employees. Experienced personnel in the technology industry are in high demand and competition for their
talents is intense. If we are unable to recruit and retain highly skilled employees, it could materially adversely affect our business,
results of operations and financial condition.

11

Key
personnel may voluntarily terminate their relationship with us at any time, and competition for qualified personnel is intense. The process
of locating additional personnel with the combination of skills and attributes required to carry out our strategy could be lengthy, costly,
and disruptive.

If
we lose the services of key personnel or fail to replace the services of key personnel who depart