Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 36

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 36
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1,591 

28

Operating
activities

During
the nine months ended December 31, 2024, net cash provided by operating activities was $1.6 million. This increase was due primarily
to a small net loss of approximately $69,000 offset by non-cash expenses for depreciation, amortization, a provision for credit losses
and inventory obsolescence impairment of $1.2 million, a decrease in accounts receivable of $1.6 million, a decrease in inventories of
$1.0 million, and common stock issued for advisory services of $65,000 offset by a decrease in accounts payable, accrued expenses, and
operating lease liabilities of $1.6 million, an increase in deferred financing costs of $0.3 million, a foreign currency gain of $0.2
million and an increase in prepaids and other assets of $0.1 million.

During
the nine months ended December 30, 2023, net cash provided by operating activities was $1.2 million. This increase was due to a net loss
of $22,000 in addition to non-cash expenses for depreciation and amortization, inventory obsolescence impairment, and provisions for
bad debt and currency losses of $0.7 million, a decrease in accounts receivable, prepaids and other assets of $0.5 million, an increase
in accounts payable, accrued expenses, and operating lease liabilities of $0.7 million, offset by an increase in inventories of $0.7
million.

Investing
Activities

During
the nine months ended December 31, 2024, net cash used in investing activities was $0.7 million. This decrease was due to purchases of
property and equipment of $0.7 million.

During
the nine months ended December 31, 2023, net cash used in investing activities was $1.2 million. This decrease was due to the impact
of the Harmony merger, net of cash acquired of $0.5 million, purchases of property and equipment of $0.6 million and purchases if intangible
assets of $0.1 million.

Financing
Activities

During
the nine months ended December 31, 2024, net cash provided by financing activities was $0.2 million. This increase was due to borrowings
on lines of credit of $19.5 million offset by repayments of $18.6 million, shareholder distributions of $