Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 129

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 129
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 develop and manufacture our products.
As we seek to access capital for growth, tight debt and equity capital markets could impede our ability to access such additional capitalization
and impede or delay our growth plans and strategies.

We
are exposed to credit risk on our accounts receivable.

Our
outstanding trade receivables are not generally covered by collateral or credit insurance. While we have procedures to monitor and limit
exposure to credit risk on our trade and non-trade receivables, there can be no assurance such procedures will effectively limit our
credit risk and avoid losses, which could have an adverse effect on our financial condition and operating results.

We
are not aware of any material credit risks with any of our customers, but there can be no guarantee that such risks will not develop
in the future. While we have reserves set aside for doubtful accounts, a business failure by one of our major accounts could adversely
impact our profits and operating results.

Legal,
Tax, Regulatory and Compliance Risks

Our
brand names are important assets of our businesses and violation of our intellectual property or trademark rights, or the failure of
our licensees or vendors to comply with our product quality, manufacturing requirements, marketing standards, and other requirements
could negatively impact revenues and brand reputation.

We
seek to protect our intellectual property rights and our tradenames in the normal course of our business operations. Any inability to
protect our other intellectual property rights could also reduce the value of our products and services or diminish our competitiveness.
Assertion by us of our intellectual property and trademark rights can also be costly and time-consuming and may materially adversely
affect our financial condition and operating results. If we are not able to access the additional liquidity internally or through external
means to assert our intellectual property rights, we could incur damage to our brand identity and our sales and results of operations.

14

Cybersecurity
incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely affect our reputation
and results of operations.

We
regularly move data across national borders, and consequently the Company is subject to a variety of continuously evolving and developing
laws and regulations in the United States and abroad regarding privacy, data protection and data security. The scope of the laws that
may be applicable to us is often uncertain and may be conflicting, particularly with respect to foreign laws. For example, the European
Union’s General Data Protection Regulation (“GDPR”), which became effective in May 2018, greatly increased the jurisdictional
reach of