Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 241

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 241
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to sell their shares.

The
SEC has adopted rule 3a51-1 which establishes the definition of a “penny stock,” for the purposes relevant to us, as any
equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject
to certain exceptions. For any transaction involving a penny stock, unless exempt, Rule 15g-9 requires:

    ●
    that
    a broker or dealer approves a person’s account for transactions in penny stocks, and

    ●
    the
    broker or dealer receives from the investor a written agreement to the transaction, setting forth the identity and quantity of the
    penny stock to be purchased.

In
order to approve a person’s account for transactions in penny stocks, the broker or dealer must:

    ●
    obtain
    financial information and investment experience objectives of the person, and

    ●
    make
    a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge
    and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

The
broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to
the penny stock market, which, in highlight form:

    ●
    sets
    forth the basis on which the broker or dealer made the suitability determination and

    ●
    that
    the broker or dealer received a signed, written agreement from the investor prior to the transaction.

17

Generally,
brokers may be less willing to execute transactions in securities subject to the “penny stock” rules. This may make it more
difficult for investors to dispose of our common stock and cause a decline in the market value of our stock.

We
have elected to avail ourself of the extended transition period for complying with new or revised accounting standards pursuant to Section
102(b)(1) of the JOBS Act, and further the JOBS Act will allow us to postpone the date by which we must comply with some of the laws
and regulations intended to protect investors and to reduce the amount of information we provide in our reports filed with the SEC, which
could undermine investor confidence in the Company.

For
so long as we remain an “emerging growth company” as defined in the Jumpstart our Business Startups Act of 2012, or the JOBS
Act,