Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 602

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 3
Chunk 602
---

asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on
the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence,
it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions
in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions
to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination
as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as
consideration of the available facts and circumstances. Management believes estimates related to income tax uncertainties are appropriate
based on current facts and circumstances. The Company’s conclusions regarding uncertain tax positions may be subject to review
and adjustment at a later date based upon ongoing analyses of tax laws, regulations and interpretations thereof, as well as, other factors.
Any interest and penalties related to income tax matters are classified as a component of income tax expense.

    F-13

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

As
of April 14, 2023, Zircon’s election to be an S Corporation under the Internal Revenue Code was no longer in effect.

Net
Loss Per Share

Basic
net loss per share of common stock is computed by dividing net income or loss attributable to ZRCN 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. Potentially dilutive securities outlined in the
table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been
anti-dilutive. The dilutive securities outstanding are as follows:

 Schedule