Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 698

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 5
Chunk 698
---
 issuance,
have an exercise price of $0.20 per share, and are classified within equity. The Company determined the fair value of the Advisor Warrants
of $0.3 million using the intrinsic value method based on a stock price established in the Merger of $1.60 per share.

The
following table provides the activity for all warrants for the years ended March 31, 2025 and 2024:

 Schedule of Warrants Activity

    Total
    Warrants  
    Weighted
                                                                                Average
                                            Remaining Term  
    Weighted
                                                                                Average
                                            Exercise Price 
  
    Outstanding
    as of March 31, 2024 
     217,184  
     9.2  
    $0.20 
  
    Outstanding
    as of March 31, 2025 
     217,184  
     8.2  
    $0.20 

    F-23

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

14.
Commitments and Contingencies

Legal
Proceedings

Zircon
is engaged in procedures to protect its proprietary rights and has filed complaints with the Federal Trade Commission and the Customs
and Border Patrol.

Zircon
Corporation v. Stanley Black & Decker, Inc.

A
stay, placed on Zircon’s patent infringement suit filed against Stanley Black & Decker, Inc. (“SBD”) in the Federal
District Court in the Northern District of California in December 2019, was released on May 8, 2024 following disposition of the International
Trade Commission (“ITC”) matter between the parties filed by Zircon. The parties met and conferred and participated in a
Court supervised mediation on September 18, 2024 that resulted in a Settlement Agreement entered into on October 15, 2024. Pursuant to
the Settlement Agreement, Zircon and Stanley provided releases to one another and their respective subsidiaries and affiliates and Stanley
received a fully paid patent license under certain Zircon patents in exchange for payment to Zircon of $0.8 million and dismissal with
prejudice of the subject litigation. The payment has been made and dismissal filed. Zircon included the settlement amount in the other
income line item in the Consolidated Statement of Operations for the year ended March 31,