Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 224

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 224
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 products with short product life cycles. Although customers and retailers often seek new product ideas, the industry
is not known for rapid adoption of technological advancements. New product ideas often take a year or two to be phased into the Plan-o-gram
and onto the retailers’ walls. The electronic tool category has had more innovation than most tools and consequently, more competition
has emerged.

Our
ability to compete successfully depends heavily on ensuring the continuing and timely introduction of innovative new products to the
marketplace. We design and develop our products. As a result, we must make significant investments in R&D. There can be no assurance
these investments will achieve the expected returns, and we may not be able to develop and market new products successfully. If we are
unable to continue to develop and sell innovative new products with attractive margins, our ability to maintain a competitive advantage
could be adversely affected.

We
are responsible for creating the electronic wall scanning product category and have over 40 years of experience developing and marketing
such tools. Nevertheless, we face substantial competition from companies that have significant technical, marketing, distribution, and
other resources. In addition, some of our competitors have broader product lines, lower-priced products, a larger client base, and a
longer operating history. Certain competitors have the resources, experience, or cost structures to provide products at little or no
profit or even at a loss.

Our
business, results of operations and financial condition will depend on our ability to continually improve our products to maintain their
functional and design advantages. There can be no assurance we will be able to continue to provide products that compete effectively.

Business
Risks

To
remain competitive and stimulate customer demand, we must successfully manage frequent introductions and transitions of products.

Due
to the competitive nature of the industry in which we compete, we must continue to introduce new product features and innovations and
enhance existing products. We must continue to develop new technologies to stimulate consumer demand for new and upgraded products. We
must successfully manage the transition to these new and upgraded products. The success of new product introductions depends on a number
of factors, including timely and successful development, market acceptance, our ability to manage the risks associated with production
ramp-up issues, the effective management of inventory levels in line with anticipated product demand, the availability of products in
appropriate quantities and at expected costs to meet anticipated demand, and the risk that new products may have quality or other defects
or deficiencies. There can be no assurance we will successfully