Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 40

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 40
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 in accordance with US GAAP, which require management to make estimates and assumptions
that affect the amounts of its assets and liabilities, the information provided with regard to future assets and liabilities as well
as the amounts of revenues and expenses for the relevant periods. Readers are invited to refer to Note 3 of the financial statements
for the nine months ended December 31, 2024, for details.

QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest
Rate and Foreign Currency Risk

Interest
Rate Risk

ZRCN’s
exposure to changes in interest rates relates primarily to Zircon’s cash, cash equivalents and outstanding debts.

Foreign
Currency & Exchange Risk

ZRCN
sources parts from foreign vendors and sells its products in various foreign markets around the world. Changes in foreign currency exchange
for the purchase of components from vendors and the sale of products in foreign markets can have a material impact on the Company’s
results of operations and liquidity. The Company hedge or take other steps to mitigate the impact from foreign currency exchange rates,
but there is no guarantee that these efforts will be successful in every instance.

31

Controls
and Procedures

We
maintain “disclosure controls and procedures,” as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act that
are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure
controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed
by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including
our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Our
management, with the participation of our principal executive officer and principal accounting and financial officer, has evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the
end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our principal executive officer and principal
accounting and financial officer has concluded that as of December 31, 2024, our disclosure controls and procedures were not effective
as of such date