Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 448

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1C
Chunk 448
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 transaction costs and advisory fees allocated to ZRCN equity (refer to Note 13 for further detail regarding these warrants).

The
following table reconciles the elements of the Merger to the consolidated statements of changes in stockholders’ equity for the
year ended March 31, 2024:

Schedule
of Consolidated Statements of Changes in Stockholders Equity 

    (In
    thousands) 
    Recapitalization 
  
    Cash 
    $— 
  
    Non-cash
    net working capital assumed from Harmony 
     (579)
  
    Less:
    cash transaction costs and advisory fees allocated to ZRCN equity 
     (519)
  
    Effect
    of Merger, net of transaction costs 
    $(1,098)

The
following table details the number of shares of common stock issued immediately following the consummation of the Merger:

Schedule
of Number of Shares of Common Stock 

    Number
    of Shares 
  
    Common
    stock of Harmony prior to Merger 
     1,057,754 
  
    Shares
    issued for Warrant Exchange Agreement 
     25,284 
  
    Common
    stock owned by Harmony’s pre-Merger shareholders 
     1,083,038 
  
    Common
    stock issued in exchange for Zircon common stock 
     8,865,234 
  
    Total
    shares of common stock immediately after Merger 
     9,948,272 

Debt
Settlement Agreement

In
connection with the Merger, the Company entered into debt settlement agreements (the “Debt Settlement Agreements”) with certain
third-party creditors of the Company under which the Company agreed to make certain payments over the 12 months following the Merger
to the creditors in satisfaction of an aggregate of $0.4 million which was owed to them. During the year ended March 31, 2025, the Company
paid debt assumed in connection with the Harmony merger in the amount of less than $0.1 million. As of March 31, 2025, the Company has
repaid $0.4 million to the creditors and there was no remaining balance.

    F-17

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

5.
Revenue

Disaggregation
of Revenue from Contracts with