Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 13

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 13
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 impact of ASU 2023-09 on its unaudited consolidated financial statements and related
disclosures.

In
March 2024, FASB issued ASU No. 2024-01, “Compensation- Stock Compensation (Topic 718): Scope Application of Profits Interest and
Similar Awards.” ASU 2024-01 provides an illustrative example that includes four fact patterns to demonstrate how an entity should
apply the scope guidance in paragraph 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance
with Topic 718. ASU 2024-01 is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the
impact of ASU 2024-01 on its unaudited consolidated financial statements and related disclosures.

In
November 2024, the FASB issued ASU 2024-03, the intent of which is to improve financial reporting and respond to investor input by requiring
public business entities to disclose additional information about certain expenses in the notes to financial statements in interim and
annual reporting periods. Among other provisions, the new standard requires disclosure of disaggregated amounts for expenses such as
employee compensation, depreciation, and intangible asset amortization included in each expense caption presented on the face of the
income statement. Public business entities are required to include certain amounts that are already required to be disclosed under GAAP
in the same disclosure as the other disaggregation requirements as well as a qualitative description of any amounts remaining in relevant
expense captions that are not separately disaggregated quantitatively. The new standard also requires disclosure of the total amount
of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. An entity is not precluded from
providing additional voluntary disclosures that may provide investors with additional decision-useful information.

The
amendments in the new standard are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods
beginning after December 15, 2027, with early adoption permitted. The amendments in the new standard should be applied either prospectively
to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented
in the financial statements. Management is evaluating the new standard and has not yet determined when, or the method by which, the Company
will adopt its amendments.

4.
Merger with Harmony Energy Technologies Corporation

On