Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 116

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 116
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 are located in Mexico and China. As a result, our operations and performance
depend significantly on global and regional economic conditions. We take steps to mitigate manufacturing risks through redundancies and
regular monitoring of business conditions, but there is no guarantee that these efforts will mitigate all associated risks and variables
in the global supply chain can have a material impact on our revenue and profitability.

Adverse
macroeconomic conditions, including inflation, slower growth or recession, new or increased tariffs and other barriers to trade, changes
to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment and currency fluctuations can materially adversely
affect demand for our products. In addition, consumer confidence and spending can be adversely affected in response to financial market
volatility, negative financial news, high inflation and interest 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