Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 730

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 7
Chunk 730
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 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 4.2%, respectively. The decrease in gross
profit was driven primarily by reduced revenue from one key customer and the decrease in gross margin was driven by a more unfavorable
product mix and reduced absorption of manufacturing expenses due to reduced unit volume.

Research
and development

Research
and development expenses for fiscal 2025 were $1.7 million compared to $1.9 million in fiscal 2024. The decrease in 2025 was $0.2 million,
or 11%, and was driven primarily by reduced consulting expenses.

Marketing
and selling 

Marketing
and selling expenses for fiscal 2025 were $4.5 million compared to $4.4 million in fiscal 2024 which was an increase of $0.1 million,
or 4%. This increase