Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 132

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 132
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 require, or Zircon may voluntarily
institute, the recall, repair or replacement of our products if those products are found to not be in compliance with applicable standards
or regulations. A recall could increase our costs and adversely impact our reputation.

Users
might not understand the product limitations.

Certain
of our tools are designed to detect objects behind opaque surfaces, such as electrical wiring or pipes. However, these tools have known
technical limitations. In particular, they may not detect alternating current (AC) activity or other objects if the wires or components
are located mor than two inches (5 cm) behind the scanned surface, embedded in concrete, encased in conduit or shielded cable, behind
a plywood shear wall or metallic wall covering or wall covering that includes metallic or similar particles, or if there is moisture
in the scanned wall covering surface material of surrounding environment.

Users
may not comply with safety instructions.

Users
are expressly warned not to rely exclusively on our tools for locating concealed items. Safe and effective use of the product requires
that users supplement tool readings with additional information, such as construction plans, visual identification of entry points for
wiring and piping (e.g. in basements), and general knowledge of standard construction practices, including stud-spacing conventions.
Users are further warned not to assume that the absence of a detection reading equates to the absence of live electrical wiring. Before
drilling, cutting, or otherwise penetrating any wall or surface, users are strongly advised to shut off all electrical, gas, and water
supplies. Failure to follow these instructions may result in electric shock, fire, severe injury, or significant property damage.

We
cannot guarantee that users will comply with all safety instructions or that all hazards will be identified by the tool under all conditions.
As such, improper use of our products may result in liability, personal injury (up to and including death)), property damage, or reputational
harm, any of which could adversely affect our business, financial condition, results of operations, and cash flows.

Other
Risks

Our
results of operations and earnings may not meet guidance or future expectations.

Our
results of operations and earnings may not meet guidance or future expectations. We may provide public guidance on expected results of
operations for future periods. This guidance would be comprised of forward-looking statements subject to risks and uncertainties, including
the risks and uncertainties described in this Report and in our other public filings and public statements, and would be based necessarily
on assumptions we make at the time we