Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 676

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 5
Chunk 676
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 cost on the
balance sheet and adjusted for amortization, abandonments, and impairments (see Note 8). Acquired identifiable intangible assets are
valued at the acquisition date primarily by using a discounted cash flow method. Amortization is computed using the straight-line method
over their estimated useful lives of 5 to 20 years. Amortization for filed patents not yet issued will begin upon the date of issuance.
The Company evaluates intangible assets for impairment and writes off assets that are not used in any products. During the
years ended March 31, 2025 and 2024, there were no impairment expenses for intangible assets. 

Impairment
of Long-Lived Assets

The
Company reviews its long-lived assets for impairment whenever events or circumstances exist that indicate the carrying amount of an asset
or asset group may not be recoverable. The recoverability of long-lived assets is measured by a comparison of the carrying amount of
the asset or asset group to the future undiscounted cash flows expected to be generated by that asset group. If the asset or asset group
is considered to be impaired, an impairment loss is recorded to adjust the carrying amounts to the estimated fair value. The excess of
the carrying value of the reporting unit over the estimated fair value was first allocated to the intangibles and then to goodwill. Fair
value was determined using the income approach. During the
years ended March 31, 2025 and 2024, there has been no impairment of long lived assets.

Revenue
Recognition

The
Company’s revenues result from the sale of products and reflect the consideration to which the Company expects to be entitled.
The Company records revenue based on a five-step model in accordance with ASC 606, Revenue from Contracts with Customers (“ASC
606”). For its contracts with customers, the Company identifies the performance obligations (goods or services), determines the
transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the
performance obligation is transferred to the customer. A good or service is transferred when (or as) the customer obtains control of
that good or service. The Company satisfies its performance obligation and recognizes revenue at the time the customer obtains the rights
to the product, which is generally when goods are shipped. As a result, the majority of the Company’s revenue is recognized at
a point in time, at shipment.

Provisions
for customer volume rebates, product returns, discounts and allowances