Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 221

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 221
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Our
business, results of operations and financial condition, and reputation as well as the price of our stock, if trading, can be affected
by a number of factors, whether currently known or unknown, including those described below. When any one or more of these risks materialize
from time to time, ZRCN’s business, results of operations and financial condition, as well as the price of our stock, can be materially
and adversely affected.

You
should consider carefully the risks described below together with the other information contained in this current report on Form 10-K.
This report also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially
from those anticipated in the forward-looking statements as a result of specific factors, including the risks described below.

Because
of the following factors, as well as other factors affecting our results of operations and financial condition, past financial performance
should not be considered to be a reliable indicator of future performance, and investors should not use historical trends to anticipate
results or trends in future periods. This discussion of risk factors contains forward-looking statements.

This
section should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
and the consolidated financial statements and accompanying notes in Part II, Item 8, “Financial Statements and Supplementary Data”
of this Report.

7

Macroeconomic
and Industry Risks

Our
operations and performance depend significantly on global and regional economic conditions and adverse economic conditions can materially
adversely affect our business, results of operations and financial condition.

We
generate sales revenue primarily in the North American market with additional sales revenues coming from Europe and Asia. In addition,
some of our global supply chain and our manufacturing partners, are located in Mexico and China. As a result, our operations and performance
depend significantly on global and regional economic conditions. We take steps to mitigate manufacturing risks through redundancies and
regular monitoring of business conditions, but there is no guarantee that these efforts will mitigate all associated risks and variables
in the global supply chain can have a material impact on our revenue and profitability.

Adverse
macroeconomic conditions, including inflation, slower growth or recession, new or increased tariffs and other barriers to trade, changes
to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment and currency fluctuations can materially adversely
affect demand for our products. In addition, consumer confidence and spending can be adversely affected in response to financial market
volatility, negative financial news, high inflation and interest