Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 414

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1C
Chunk 414
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 million, a decrease in accounts payable and accrued expense of $1.0
million, a decrease in lease liabilities of $0.2 million, and a foreign exchange gain of $0.2 million.

During
the year ended March 31, 2024, net cash provided by operating activities was $1.2 million. This increase was due to net income of $51,000,
non-cash expenses for depreciation, amortization, and inventory obsolescence impairment of $1.3 million, provision for bad debt and foreign
currency losses of $89,000, a decrease in prepaids and other assets of $0.2 million, and common stock issued for advisory services of
$0.1 million, an increase in accounts payable and accrued expenses and other current liabilities of $2.8 million, offset by an increase
in accounts receivable of $1.1 million, an increase in inventory of $1.4 million, and increase in deferred tax assets of $0.5 million,
an increase in the federal tax deposit of $78,000, and a decrease in operating lease liabilities of $0.2 million.

24

Investing
Activities

During
the year ended March 31, 2025, net cash used in investing activities was $0.8 million. This decrease was due to purchases of property
and equipment of $0.8 million,

During
the year ended March 31, 2024, net cash used in investing activities was $1.2 million. This decrease was due to purchases of property
and equipment of $0.6 million, the net effect of the Harmony merger of $0.5 million, and investments in intangible assets of $68,000.

Financing
Activities

During
the year ended March 31, 2025, net cash used in financing activities was $0.7 million. This decrease was due to borrowings under the
Company’s line of credit of $25.0 million offset by repayment of borrowings of $24.6 million, net shareholder distributions of
approximately $0.7 million, deferred financing costs of $0.3 million, and repayment of debt assumed as part of the Harmony merger of
$75,000.

During
the year ended March 31, 2024, net cash provided by financing activities was $0.6 million. This increase was due to borrowings under
the Company’s line of credit of $10.9 million offset by repayment