Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 222

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 222
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 rate, declines in income or asset values, changes to fuel and other
energy costs, labor and healthcare costs and other economic factors.

In
addition to an adverse impact on demand for Zircon’s products, uncertainty about, or a decline in, global or regional economic
conditions can have a significant impact on Zircon’s suppliers, manufacturing partners, and logistics providers. Potential effects
include financial instability; inability to obtain credit to finance operations and purchases of our products; and insolvency.

A
downturn in the economic environment can also lead to increased business operation risks for the Company and limitations on our ability
to conduct and finance our operations. These and other economic factors can materially adversely affect our business, results of operations
and financial condition.

Our
business can be impacted by political events, trade and other international disputes, Force Majeure events like war, terrorism, natural
disasters, public health issues, industrial accidents and other unforeseen business disruptions.

Political
events, trade and other international disputes, war, terrorism, natural disasters, public health issues, industrial accidents and other
business interruptions can harm or disrupt international commerce and the global economy and could have unknown material adverse effects
on us and our customers, suppliers, manufacturing partners, and logistics providers.

We
believe that we benefit from growth in international trade. Trade and other international disputes can result in tariffs, sanctions,
and other measures that restrict international trade and can adversely affect our business. For example, tensions between the U.S. and
China have led to a series of tariffs being imposed by the U.S. on imports from mainland China, as well as other business restrictions.
Tariffs increase the cost of our products and the components and raw materials that go into making them. These increased costs adversely
impact the gross margin that we earn on our products. Tariffs can also make our products more expensive for customers, which could make
our products less competitive and reduce consumer demand. Countries may also adopt other measures, such as controls on imports, that
could adversely impact on our operations and supply chain and limit our ability to offer our products as designed. These measures can
require us to take various actions, including changing suppliers and restructuring business relationships. Changing our operations in
accordance with new or changed trade restrictions can be expensive, time-consuming, disruptive to our operations and distracting to management.
Such restrictions can be announced with little or no advance notice, and we may not be able to effectively mitigate all adverse impacts
from such measures. Political uncertainty surrounding