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

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 10
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N by the weighted average number
of shares of common stock outstanding for the period. Diluted loss per share excludes, when applicable, the potential impact of stock
options, warrant shares, and other dilutive instruments because their effect would be anti-dilutive. Diluted net income per share, when
applicable, includes the stock options and warrant shares because their effect would be dilutive. The dilutive securities outstanding
are as follows:

 Schedule
of Dilutive Securities Outstanding

    December 31, 2024  
    March 31, 2024 
  
    Stock options 
     419,000  
     — 
  
    Warrants 
     217,184  
     217,184 

Leases

In
February 2016, the FASB issued an accounting standard, ASC Topic 842, related to leases to increase transparency and comparability among
organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. Most
significant among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified
as operating leases under previous U.S. GAAP. Under this standard, disclosures are required to meet the objective of enabling users of
financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases.

    13

ZRCN
Inc.

CONDENSED
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE NINE MONTHS ENDED DECEMBER 31, 2024 AND 2023

The
Company’s lease arrangements relate primarily to office space, a vehicle, and office equipment. The Company’s leases may
include renewal options and rent escalation clauses. The Company is typically required to make fixed minimum rent payments relating to
its right to use an underlying leased asset.

The
Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are presented
as right-of-use (“ROU”) assets and the corresponding lease liabilities are included in operating lease liabilities, current
and operating lease liabilities on the Company’s unaudited consolidated balance sheets. ROU assets represent the Company’s
right to use an underlying asset, and lease liabilities represent the Company’s obligation for lease payments in exchange for the
ability to use the asset for the duration of the lease term. The Company does not recognize short term leases that have a term of