Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 293

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 293
---
3
                                            - 5 
  
    Stock price 
    $0.75
                                       - 0.83 
  
    Exercise price 
    $0.75
                                       - 0.83 

    F-22

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

During
the year ended March 31, 2025, the Company issued common shares to a consultant, with each issuance valued at less than $0.1 million
at the following dates:

●On
                                            June 30, 2024, the Company issued 25,000 common shares with a value of approximately
                                            $22,000;

 ●On
                                            July 17, 2024, the Company issued an additional 8,329 common shares with a value of approximately
                                            $7,000;
     
 ●On
                                            October 24, 2024, the Company issued an additional 24,999 common shares with a value of approximately
                                            $19,000;
     
 ●On
                                            January 15, 2025, the Company issued an additional 24,999 common shares with a value of approximately
                                            $19,000;
     
 ●Between
                                            January 16, 2025 and February 19, 2025, the Company issued an additional 206,163 common shares
                                            with a value of approximately $0.2 million

As
these common shares were fully vested upon the date of grant, the grant date fair value was expensed in the respective period of the
grant date.

During
the year ended March 31, 2025, the Company made distributions of $0.7 million to certain related party shareholders and one director
shareholder for taxes due as a result of the Company converting from an S corporation to a C corporation, of which the total distribution
was paid in cash. During the year ended March 31, 2025, the Company made distributions to shareholders in the amount of $8.2 million,
which was subsequently reinvested into the Company.

See
Note 3 for an illustration of the reported balance and the revised balance for Retained earnings for the period ended March 31,
2024.

13.
Warrants

At
the closing of the Merger, the Company issued certain consultants and advisors warrants to purchase an aggregate of 217