Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 329

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1B
Chunk 329
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, 2024, which was a decrease of approximately
$1.5 million. This decrease was driven primarily by a decrease in accounts payable and accrued expenses of $1.7 million and a decrease
in operating lease liabilities of $0.2 million which was offset by an increase in the line of credit of $0.4 million.

Equity

Total
equity as of March 31, 2024, was $5.5 million compared to $8.9 million as of March 31, 2024, which was a decrease of approximately $2.7
million. This decrease was driven primarily by a net loss of $3.0 million offset by stock based payments of approximately $0.3 million.

22

Operating
Results Analysis

Readers
are invited to take into consideration the consolidated operating results of Zircon Corporation for the fiscal years ended March 31,
2025 and 2024.

    For
                                            the Twelve Months Ended
                                                                                March
                                            31, 
  
    (In thousands) 
    2025  
    2024 
  
    Net Sales 
    $28,075  
    $31,519 
  
    Cost of goods sold 
     16,936  
     17,690 
  
    Gross Profit 
     11,139  
     13,829 
  
    Gross Margin 
     39.7% 
     43.9%

    Operating Expenses 

    General & administrative 
     7,354  
     6,702 
  
    Marketing & selling 
     4,528  
     4,373 
  
    Research
    and development 
     1,712  
     1,918 
  
    Total Operating Expenses 
     13,594  
     12,993 
  
    Operating
    Income (Loss) 
     (2,455) 
     836 

    Other (Income) Expense 

    Settlement of litigation 
     (800) 
     0 
  
    Interest expense 
     804  
     739 
  
    Other expense 
     30  
     31 
  
    (Income)
    loss on foreign currency translation 
     (172) 
     85 
  
    Total other expenses 
     (138) 
     855 

    Income (Loss) before income taxes 
     (2,317)