Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 459

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1C
Chunk 459
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 Decker, Inc. (“SBD”) in the Federal
District Court in the Northern District of California in December 2019, was released on May 8, 2024 following disposition of the International
Trade Commission (“ITC”) matter between the parties filed by Zircon. The parties met and conferred and participated in a
Court supervised mediation on September 18, 2024 that resulted in a Settlement Agreement entered into on October 15, 2024. Pursuant to
the Settlement Agreement, Zircon and Stanley provided releases to one another and their respective subsidiaries and affiliates and Stanley
received a fully paid patent license under certain Zircon patents in exchange for payment to Zircon of $0.8 million and dismissal with
prejudice of the subject litigation. The payment has been made and dismissal filed. Zircon included the settlement amount in the other
income line item in the Consolidated Statement of Operations for the year ended March 31, 2025. The matter is closed.

Claim
Asserted by Mr. Michael Green

In
April 2024, Mr. Michael Green, an individual in Great Britain, asserted violation by Zircon in its U.S. website of certain privacy protections
under the laws of Great Britain. The Company believes its U.S. website has not violated the laws of Great Britain and that, in any event,
has responded stating such laws do not apply outside Great Britain. As of the date of filing these financial statements, Mr. Green has
not responded to the Company and has not asserted any claim for damages.

Leases

The
Company’s corporate headquarters in Campbell, California are leased from the trust of one of the former shareholders of the
Company for
approximately $19,000 per month under a lease expiring in December 2027. The lease requires the Company to pay utilities,
maintenance and real estate taxes. Rent expense was approximately $0.2 million
and $0.2 million
for the years ended March 31, 2025 and 2024, respectively.

The
Company leases office equipment through a lease that expires in June 2026 and requires monthly lease payments of less than $0.1 million
for a period of five years. The total lease expense for the years ended March 31, 2025 and 2024 amounted to less than $0.1 million in
each respective period.

The
Company had leased a vehicle that expired on July 2024 and required monthly lease payments of less than $0