Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 324

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1B
Chunk 324
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18

ITEM
1C. CYBERSECURITY 

We
believe cybersecurity is critical to advancing our technological developments. As a manufacturing and technology company, we face a multitude
of cybersecurity threats that range from attacks common to most industries, such as ransomware and denial-of service. Our customers,
suppliers, subcontractors, and business partners face similar cybersecurity threats, and a cybersecurity incident impacting us or any
of these entities could materially adversely affect our business strategy, performance, and results of operations. These cybersecurity
threats and related risks make it imperative that we expend resources on cybersecurity.

Risk
Management

We
engage third-party services to conduct evaluations of our security controls, whether through penetration testing, independent audits,
or consulting on best practices to address new challenges. We have established cybersecurity security awareness training and ongoing
monitoring.

In
the event of an incident, we intend to follow our cybersecurity incident response plan, which outlines the steps to be followed from
incident detection to mitigation, and notification. We contract with external firms that have extensive information technology and program
management experience. We have implemented a governance structure and processes to assess, identify, manage, and report cybersecurity
risks. As a public company, we must comply with extensive regulations, including requirements for reporting cybersecurity incidents to
the SEC. We believe we are positioned to meet the requirements of the SEC. In addition to following SEC guidance and implementing pre-existing
third party frameworks, we have developed our own practices and frameworks, which we believe enhance our ability to identify and manage
cybersecurity risks. Assessing, identifying, and managing cybersecurity related risks are factored into our overall business approach.
We rely heavily on our supply chain to deliver our products and services, and a cybersecurity incident at a clinical site, subcontractor,
or business partner could materially adversely impact us. We require that our subcontractors report cybersecurity incidents to us so
that we can assess the direct impact of the incident.

ITEM
2. PROPERTIES

We
lease facilities under an operating lease in Campbell, CA. through 2027. ZRCN and Zircon are headquartered in a 14,000 square foot building
in Campbell, CA. The Company also has inventory located in Ensenada, Mexico, the Netherlands, Canada, the United Kingdom and two of our
manufacturing subcontractors located in China.

We
believe our facilities are suitable for their present and intended purposes and are operating at a level consistent with the requirements
of the industry in which we operate