Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 379

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1B
Chunk 379
---
    effects of discounting 
     (75)
  
    Present
    value of future minimum lease liabilities 
     586 
  
    Less
    current portion of operating lease liability 
     (213)
  
    Operating
    lease liability, net of current portion 
    $373 

Executive
Agreement

On
October 1, 2012, Zircon Corporation (the” Company”) and John R. Stauss (the “Executive”) entered into an Employment
Agreement (“Agreement”). The Agreement established an annual Base Salary of not less than $300,000 paid in periodic installments
in accordance with the Company’s regular payroll practices. The Agreement also provides for a bonus equal to 20% of net income
based on revenue and profitability targets as set forth in the Company’s Business Plan. The performance bonus is calculated and
paid on a quarterly basis. Under the terms of the Agreement, Mr. Stauss was paid $43,031 in October 2023 for the performance results
through the quarter ended September 30, 2023. The Agreement also entitles the Executive to participate in employee benefit plans of the
Company consistent with the benefit plan requirements for all employees. The Executive is also entitled to prompt reimbursement by the
Company for all reasonable ordinary and necessary travel, entertainment and other expenses incurred by the Executive during the employment
period. The Agreement has been extended through March 31, 2027.

15.
Related Party Transactions

Zircon
is a member of a controlled group of companies and has revenue and cost-sharing activities with other members of the controlled group.
Results of operations and financial condition may not represent amounts that would have been reported if Zircon operated as an unaffiliated
entity.

Zircon
has an exclusive manufacturing and technical assistance agreement with Zircon de Mexico S.A. de C.V. (the “Contractor”),
an entity which is owned by certain shareholders of Zircon. Under the terms of the agreement, Zircon provides materials, technical assistance,
and expertise to the Contractor, and the Contractor assembles certain of Zircon’s products.

In
September 2017, an affiliated company, Zircon Corporation Limited, was established in the United Kingdom to facilitate the sale of Zircon’s
products to European customers and operations began during the year ended March 31, 2019. The ownership structure of the affiliate is
similar to the ownership of the premerger ownership of Zircon.

The
Company leases from the Stauss