Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 236

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 236
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 2023, and July 1, 2023, respectively. Our reputation and brand and our ability to attract new customers could
also be adversely impacted if we fail, or are perceived to have failed, to properly respond to security breaches of our third party’s
information technology systems. Such failure to properly respond could also result in similar exposure to liability.

Additionally,
other countries have enacted or are seeking to enact data localization laws that require data to stay within their borders. In many cases,
these laws and regulations apply not only to transfers between unrelated third parties but also to transfers between us and our subsidiaries,
vendors or manufacturing partners.

Evolving
compliance and operational requirements may impose costs that are likely to increase over time. Privacy laws that may be implemented
in the future, and court decisions impacting activities across borders, including the Schrems II decision invalidating the EU - U.S.
Privacy Shield, will continue to require changes to certain business practices, thereby increasing costs, or may result in negative publicity,
require significant management time and attention, and may subject us to remedies that may harm our business, including fines or demands
or orders that we modify or cease existing business practices.

Climate
change and climate change legislation or regulations may adversely affect our business.

Compliance
with government regulations, including environmental and climate change regulations, has not had, and based on current information and
the applicable laws and regulations currently in effect, is not expected to have a material effect on our capital expenditures, results
of operations or competitive position. However, laws and regulations may be changed, accelerated or adopted that impose significant operational
restrictions and compliance requirements upon us and which could negatively impact our operating results and financial condition.

Our
failure to continue to successfully avoid, manage, defend, litigate and accrue for claims and litigation could negatively impact our
results of operations or cash flows.

We
are exposed to and may become involved in various litigation matters arising out of the ordinary routine conduct of our business, including,
from time to time, actual or threatened litigation relating to such items as commercial transactions, product liability, workers compensation,
arrangements between us and our distributors, franchisees or vendors, intellectual property claims and regulatory actions.

In
addition, we are subject to environmental laws in each jurisdiction in which business is conducted. Some of our products incorporate
substances that are regulated in some jurisdictions in which we conduct manufacturing operations. We have been, and could be in the future,
subject to liability if we do not comply with