Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 125

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 125
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orruption; import, export and trade; foreign
exchange controls and cash repatriation restrictions; foreign ownership and investment; tax; and environmental, health and safety, including
electronic waste, recycling, and climate change.

Compliance
with these laws and regulations that affect our business can be onerous and expensive, increasing the cost of conducting our operations.
Changes to laws and regulations can adversely affect our business by increasing our costs, limiting our ability to offer a product to
customers, requiring changes to our supply chain and business practices or otherwise making our products less attractive to customers.
We have implemented policies and procedures designed to ensure compliance with applicable laws and regulations, but there can be no assurance
that our employees, contractors or agents will not violate such laws and regulations or our policies and procedures. If we are found
to have violated laws and regulations, it could materially adversely affect our business, results of operations and financial condition.
Regulatory changes and other actions that materially adversely affect our business may be announced with little or no advance notice
and we may not be able to mitigate all adverse impacts from such measures.

We
may have inadvertently violated Section 13(k) of the Exchange Act (implementing Section 402 of the Sarbanes-Oxley Act of
2002) as a result of the transition from private to public accounting and may be subject to sanctions as a result.

Section
13(k) of the Exchange Act provides that it is unlawful for a company, such as ours, that has a class of securities registered under Section
12 of the Exchange Act to, directly or indirectly, including through any subsidiary, extend or maintain credit in the form of a personal
loan to or for any director or executive officer of the company. In March 2022, Zircon Corporation, our wholly owned subsidiary, loaned
our chief executive officer funds to pay certain tax obligations, which was still outstanding when we acquired Zircon in April 2023,
which may have violated Section 13(k) of the Exchange Act as a result of the transition from private to public company accounting. The
loan was repaid in August 2023 as soon as management became aware of the possible violation. The loan repayment was made by means of
an offset to beneficial amounts of our chief executive officer in certain loans to the Company to which offset he did not object. Issuers
that are found to have violated Section 13(k) of the Exchange Act may be subject to civil sanctions, including injunctive remedies and
mon