Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 131

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 131
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 successfully avoid, manage, defend, litigate and accrue for claims and litigation could negatively impact our
results of operations or cash flows.

We
are exposed to and may become involved in various litigation matters arising out of the ordinary routine conduct of our business, including,
from time to time, actual or threatened litigation relating to such items as commercial transactions, product liability, workers compensation,
arrangements between us and our distributors, franchisees or vendors, intellectual property claims and regulatory actions.

In
addition, we are subject to environmental laws in each jurisdiction in which business is conducted. Some of our products incorporate
substances that are regulated in some jurisdictions in which we conduct manufacturing operations. We have been, and could be in the future,
subject to liability if we do not comply with these regulations. In addition, we may in the future be, held responsible for remedial
investigations and clean-up costs resulting from the discharge of hazardous substances into the environment, including sites that have
never been owned or operated by us but at which we have been identified as a potentially responsible party under federal and state environmental
laws and regulations. Changes in environmental and other laws and regulations in both domestic and foreign jurisdictions could adversely
affect our operations due to increased costs of compliance and potential liability for non-compliance.

We
manufacture products and perform various services that create exposure to product and professional liability claims and litigation. The
failure of our products and services to be properly manufactured, configured, installed, designed or delivered, resulting in personal
injuries, property damage or business interruption could subject us to claims for damages. The costs associated with defending ongoing
or future product liability claims and payment of damages could be substantial. Our reputation could also be adversely affected by such
claims, whether or not successful.

There
can be no assurance that we will be able to continue to successfully avoid, manage and defend such matters. In addition, given the
inherent uncertainties in evaluating certain exposures, actual costs to be incurred in future periods may vary from our estimates
for such contingent liabilities.

15

Our
products could be recalled.

We
maintain an awareness of and responsibility for the potential health and safety impacts on our customers. Our product development processes
include product safety reviews and extensive testing. Safety reviews are performed at various product development milestones, including
a review of product labeling and marking to ensure safety and operational hazards are identified for the customer.

Despite
safety and quality reviews, the Consumer Product Safety Commission or other applicable regulatory bodies may