Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 130

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 130
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 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, 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