Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 515

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 515
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, 2025 AND 2024

Accounts
Receivable, Net

Accounts
receivables are stated at the amount the Company expects to collect. The Company provides credit without requiring collateral, in the
normal course of business, to credit-worthy customers as determined by management’s review of references and credit reports. Bad
debts are charged against the provision for credit losses. The provision for credit losses is adjusted to provide a specific and general
allowance for estimated uncollectible accounts, which is based on management’s judgment based on a number of factors, including
the length of time the receivables are past due, significant one-time events and historical experience. Balances that are still outstanding
after management has used reasonable collection efforts are written off through a charge to the provision for credit losses and a credit
to accounts receivable. Based on management’s assessment of the credit history with customers having outstanding balances and current
relationships with them, management believes that losses on balances outstanding will not exceed the provision for credit losses.

Accounts
receivable consisted of the following:

Schedule
of Accounts Receivable 

    (In
    thousands) 
    March
    31, 2025  
    March
    31, 2024 
  
    Accounts
    receivable 
    $6,155  
    $8,658 
  
    Less
    provision for credit losses 
     (53) 
     (14)
  
    Accounts
    receivable, net 
    $6,102  
    $8,644 

Activity
related to the Company’s provision for credit losses was as follows:

 Schedule
of  Provision for Credit losses

    (In
    thousands) 
    March
    31, 2025  
    March
    31, 2024 
  
    Balance,
    beginning of period 
    $14  
    $10 
  
    Credit
    loss provision 
     195  
     4 
  
    Write-offs 
     (156) 
     — 
  
    Balance,
    end of period 
    $53  
    $14 

Inventory,
net

Inventories,
which consist of raw materials, work in process, and finished goods, are stated at the lower of cost or net realizable value. The Company
states inventory cost utilizing the first-in, first-out (FIFO) method. Labor and overhead associated with inventory purchases are