Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 652

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 5
Chunk 652
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    (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) 
     (19)
  
    Benefit from (Provision
    for) income taxes 
     (573) 
     70 
  
    Net
    income (loss) 
    $(2,890) 
    $51 

    Foreign currency translation
    adjustment 
     (160) 
     (203)
  
    Comprehensive income
    (loss) 
    $(3,050) 
    $(152)

Sales
revenue and gross margin

Revenue
for fiscal 2025 was $28.1 million compared to $31.5 million in fiscal 2024 which was a decrease of $3.4 million, or 11%. This decrease
was driven primarily by decreased sales in the United States from one key customer. Gross profit for fiscal 2025 was $11.1 million, or
39.7% compared to $13.8 million, or 43.9%, which was a decrease of $2.7 million, or 19%, and 4