Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 290

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 290
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 Family Administrative Trust totaled $37,000
and $30,000, 
respectively.

Loan
Repayment

Section
13(k) of the Exchange Act provides that it is unlawful for a company, such as ZRCN, that has a class of securities registered under Section
12 of the Exchange Act to, directly or indirectly, including through any subsidiary, extend or maintain credit in the form of a personal
loan to or for any director or executive officer of the Company. In March 2022, Zircon Corporation, the Company’s wholly-owned
subsidiary, loaned our chief executive officer funds to pay certain tax obligations, which was still outstanding when Zircon was acquired
in April 2023, which may have violated Section 13(k) of the Exchange Act as a result of the transition from private to public company
accounting. The loan was repaid in August 2023 as soon as management became aware of the possible violation. The loan repayment was made
by means of an offset to beneficial amounts of our chief executive officer in certain loans to the Company to which offset he did not
object. Issuers that are found to have violated Section 13(k) of the Exchange Act may be subject to civil sanctions, including injunctive
remedies and monetary penalties, as well as criminal sanctions. In accordance with ASC 450, Contingencies, no amounts have been
accrued for a loss contingency as it is not estimable as of March 31, 2025. The imposition of any of such sanctions could have a material
adverse effect on our business, financial position, results of operations or cash flows.

11.
Profit Sharing and 401(k) Plan

The
Company has a defined contribution profit sharing plan for all eligible employees. Contributions to the profit sharing plan are determined
annually by the Board of Directors. There were no profit sharing contributions made during the
years ended March 31, 2025 and 2024.

All
eligible employees are also allowed to participate in the Company’s 401(k) plan. The Company’s contributions to the plan
are based on a specified percentage of each participant’s eligible contribution, decided annually by the Board of Directors, as
defined in the plan document. For the years ended March
31, 2025 and 2024, the Company made contributions to the 401(k) plan of less than $0.1 million, respectively.

    F-21

ZRCN
                                            Inc