Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 52

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 4
Chunk 52
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 management, including our principal executive officer and
principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on
the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on this assessment, our management concluded that, as of December 31, 2024, our internal control over financial reporting
had material weaknesses that lack adequate segregation of duties within account processes due to limited personnel and insufficient written
policies and procedures for accounting, IT and financial reporting and record keeping and we are implementing plans to improve such internal
control.

Changes
in Internal Control Over Financial Reporting

There
has been no change in our internal control over financial reporting during the three months ended December 31, 2024 that has materially
affected, or is reasonably likely to materially affect, our internal control over financial reporting.

32

PART
II OTHER INFORMATION

Item
1. Legal Proceedings

From
time to time and in the normal course of operations, we may become involved in legal proceedings or be subject to claims arising in the
ordinary course of our business. Other than as indicated below, we are not presently a party to any legal proceedings that, if determined
adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition
or cash flows.

Zircon
is engaged in procedures to protect its proprietary rights and Zircon has filed complaints with the Federal Trade Commission and the
Customs and Border Patrol.

Zircon
previously reported a claim asserted by Mr. Michael Green, an individual in Great Britain, that Zircon violated in its U.S. website of
certain privacy protections under the laws of Great Britain. The Company believes its U.S. website has not violated the laws of Great
Britain and that, in any event, has responded stating such laws do not apply outside Great Britain. As of the date of filing this quarterly
report on Form 10-Q, Mr. Green has not responded to the Company and has not asserted any claim for damages.

Item
1A. Risk Factors

Information
regarding the primary risks and uncertainties that could materially and adversely affect our future performance or could cause actual
results to differ materially from those expressed or implied in our forward-looking statements, appears in Part I, Item 1A - “Risk
Factors” of our 2024 Form 10-K filed with the Securities and Exchange Commission on