Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 47

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 3
Chunk 47
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 financial reporting as such term is defined
in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed under the supervision and with the participation
of our management, including our principal executive officer and principal financial officer, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting
principles generally accepted in the U.S All internal control systems, no matter how well designed, have inherent limitations. Therefore,
even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and
presentation.

As
of December 31, 2024, under the supervision and with the participation of our management, including our principal executive officer and
principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on
the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on this assessment, our management concluded that, as of December 31, 2024, our internal control over financial reporting
had material weaknesses that lack adequate segregation of duties within account processes due to limited personnel and insufficient written
policies and procedures for accounting, IT and financial reporting and record keeping and we are implementing plans to improve such internal
control.

Changes
in Internal Control Over Financial Reporting

There
has been no change in our internal control over financial reporting during the three months ended December 31, 2024 that has materially
affected, or is reasonably likely to materially affect, our internal control over financial reporting.

32

PART
II OTHER INFORMATION

Item
1. Legal Proceedings

From
time to time and in the normal course of operations, we may become involved in legal proceedings or be subject to claims arising in the
ordinary course of our business. Other than as indicated below, we are not presently a party to any legal proceedings that, if determined
adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition
or cash flows.

Zircon
is engaged in procedures to protect its proprietary rights and Zircon has filed complaints with the Federal Trade Commission and the
Customs and Border Patrol.

Zircon
previously reported a claim asserted by Mr. Michael Green, an individual in Great Britain, that Zircon violated in its U.S. website of
certain privacy protections under the laws of Great Britain. The Company believes its U