Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 34

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 34
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, 2023 which was a decrease of $11,000 million, or less than 1%. This decrease was driven primarily by a reduction in the
consulting.

Stock
based compensation.

During
the three months ended December 31, 2024 the company recorded stock compensation expense of approximately $13,000. During the three months
ended December 31, 2023, Zircon did not record any stock-based compensation. The increase is due to the implementation of a new stock
option plan for the Company.

During
the nine months ended December 31, 2024 the Company recorded stock-based compensation expense of approximately $22,000. During the nine
months ended December 31, 2023, Zircon did not record any stock-based compensation.

Warrants
with a fair value of $0.3 million were issued during the year ended March 31, 2024.

27

Other
income and expenses

Other
income related to a settlement of litigation was $0.8 million for the three and nine months ended December 31, 2024. There was no other
income for the three and nine months ended December 31, 2023.

Other
expenses for the three months ended December 31, 2024 were approximately $0.2 million compared to $0.3 million for the three months ended
December 31, 2023 which was a decrease of approximately $0.1 million, or 34%. This decrease was driven primarily by a decrease in foreign
exchange losses of $71,000.

Other
expenses for the nine months ended December 31, 2024 were approximately $0.5 million compared to $0.7 million for the nine months ended
December 31, 2023 which was a decrease of approximately $0.2 million, or 28%. This decrease was driven primarily by an increase in interest
expense of $68,000 and a decrease in foreign exchange losses of $0.2 million.

Zircon
has notes payable to the Stauss Family Administrative Trust to repay loans made to Zircon. The principal balance of $0.7 million is due
and payable in December 2025. Interest accrued at 5.5% per annum is paid quarterly and included in accrued expenses. The note is subordinated
to the line of credit payable to the bank and no payment is to be made on the note without prior approval from the bank. On March 31,
2024 the Sta