Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 519

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 519
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 operating segment to determine if it includes one or more components that constitute a business. If there are components
within an operating segment that meet the definition of a business, the Company evaluates those components to determine if they must
be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating
segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated. The Company
has one operating segment and therefore one reporting segment.

The
CODM reviews the financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources,
and evaluating the Company’s financial performance. The CODM utilizes financial metrics, such as consolidated revenue, gross profit,
and income (loss) from operations, as the financial measures for making decisions. This enables the CODM to assess the overall level
of available resources and determine how best to deploy these resources across research and development projects in line with the long-term
company-wide strategic goals. Management reviews its business as a consolidated segment, using financial and other information rendered
meaningful only by the fact that such information is presented and reviewed in the aggregate. The measure of segment assets is reported
in the accompanying consolidated balance sheets as “Total assets.” There are no significant segment expenses as the expenses
that are included in consolidated loss from operations are general and administrative and research and development. There is no change
in the Company’s operating or reporting segments for the year ended March 31, 2025.

    F-12

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

Concentration
of Business and Credit Risk

As
of March 31, 2025, the Company maintained deposits in a single bank that exceeded the federal insured deposit limit of the Federal Deposit
Insurance Corporation (FDIC).

During
the years ended March 31, 2025 and 2024, respectively, the Company generated approximately 64% and 72% of its total revenue from three
customers.

As
of March 31, 2025 and March 31, 2024, respectively, 64% and 77% of its total accounts receivable were from three customers.

Fair
Value of Financial Instruments

In
accordance with FASB ASC 820 Fair Value Measurements and Disclosures, the Company uses a three-level hierarchy for fair value