Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 35

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 35
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uss Family Administrative Trust and the Company agreed to extend the maturity date of the Notes Payable to the trust to December
31, 2025. The principal amount was classified from non-current to current liabilities as of December 31, 2024,

Interest
expense on these notes for the three months ended December 31, 2024 and 2023, respectively, was approximately $9,000 and $9,000 respectively.
Interest expense on these notes for the nine months ended December 31, 2024 and 2023, respectively, was approximately $37,000 and $35,000,
respectively.

Benefit
from/Provision for income taxes

The
provision for income taxes for the three months ended December 31, 2024 was approximately $0.2 million compared to a provision for income
taxes of approximately $23,000 for the three months ended December 31, 2023 which was an unfavorable change of approximately $0.1 million.
This unfavorable change was driven by a change in the deferred tax position in our US entity.

The
benefit from income taxes for the nine months ended December 31, 2024 was approximately $4,000 compared to a provision for income taxes
of approximately $56,000 for the nine months ended December 31, 2023 which was a favorable change of approximately $60,000 million. This
favorable change was driven by a change in our deferred tax asset position in the US entity.

Other
comprehensive income (loss)

Comprehensive
income (loss) for all periods presented is comprised primarily of net income (loss) and foreign currency translation adjustments. The
change in foreign currency translation adjustment was a loss of $8,000 for the three months ended December 31, 2024 and approximately
$0.1 million for the nine months ended December 31, 2024.

Cash
Flow Analysis

    For the Nine Months Ended December 31, 
  
    In thousands 
    2024  
    2023 
  
    Operating activities 
    $1,626  
    $1,230 
  
    Investing activities 
     (708) 
     (1,215)
  
    Financing activities 
     204  
     1,572 
  
    Effect of exchange rate changes 
     246  
     4 
  
    Net increase (decrease) in cash 
    $1,368  
    $