Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 135

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 135
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 fluctuations, then we may become involved in
this type of litigation, which would be expensive and divert management’s attention and resources from managing our business.

In
the event we become a publicly listed company, we may also from time to time make forward-looking statements about future operating results
and provide some financial guidance to the public markets. Projections may not be made timely or set at expected performance levels and
could materially affect the price of our shares. Any failure to meet published forward-looking statements that adversely affect the stock
price could result in losses to investors, stockholder lawsuits or other litigation, sanctions or restrictions issued by the SEC.

Our
common stock may trade below $5.00 per share and be deemed a “penny stock,” which could make it more difficult for investors
to sell their shares.

The
SEC has adopted rule 3a51-1 which establishes the definition of a “penny stock,” for the purposes relevant to us, as any
equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject
to certain exceptions. For any transaction involving a penny stock, unless exempt, Rule 15g-9 requires:

    ●
    that
    a broker or dealer approves a person’s account for transactions in penny stocks, and

    ●
    the
    broker or dealer receives from the investor a written agreement to the transaction, setting forth the identity and quantity of the
    penny stock to be purchased.

In
order to approve a person’s account for transactions in penny stocks, the broker or dealer must:

    ●
    obtain
    financial information and investment experience objectives of the person, and

    ●
    make
    a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge
    and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

The
broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to
the penny stock market, which, in highlight form:

    ●
    sets
    forth the basis on which the broker or dealer made the suitability determination and

    ●
    that
    the broker or dealer received a signed, written agreement from the investor prior to the transaction.

17

Generally,
brokers may be less willing to execute transactions in securities subject to the “penny stock” rules