Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 511

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 511
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, results of operations and cash flows of the Company in accordance with U.S. GAAP.

As
a result of the restatement, the Company prepared the following table to illustrate the effect on the financial statements for the year
ended March 31, 2024.

Schedule
of Restatement of Financial Statements

    As
    Reported  
    As
    Revised  

    March
    31, 2024  
    March
    31, 2024  
    Difference 
  
    Liabilities 

    Accrued expenses 
    $2,130  
    $2,789  
    $(659)

    Total equity attributable to ZRCN Inc. stockholders 

    Retained earnings 
    $7,421  
    $6,762  
    $659 

Principles
of Consolidation 

The
accompanying consolidated financial statements include the accounts of ZRCN as well as its variable interest entities. The Company consolidates
all entities over which the Company has the power to govern the financial and operating policies and therefore exercises control, and
upon which the Company has a controlling financial interest. The entities are consolidated from the date at which the Company obtains
control and are de-consolidated from the date at which control ceases. All intercompany balances and transactions have been eliminated.
Accounting policies of the entities have been revised where necessary to ensure consistency with the policies adopted by the Company.

Under
Accounting Standards Codification (“ASC”) Topic 810-10-25, Consolidation, Zircon de Mexico S.A. de C.V. (“ZDM”)
and Zircon Corporation Limited (“Zircon UK”) have been determined to be variable interest entities with Zircon as the primary
beneficiary. Therefore, the financial statements of ZDM and Zircon UK are consolidated with Zircon and the Company, and all significant
intercompany transactions and balances have been eliminated.

    F-7

ZRCN
Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

Non-controlling
Interests

The
Company follows ASC 810, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in
partially owned consolidated entities and the loss of control of those entities. Non-controlling interest positions, which represent
100% of the activity in the Company’s