Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 30

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 30
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 this report.

OVERVIEW

Zircon
is a Silicon Valley-based company operating in Northern California since 1977. leveraging its proprietary sensor-based technology across
a mix of global markets, including commercial and residential buildings, government infrastructure and building information modeling.
Zircon is focused on creating new, technical solutions for global applications in the areas of home and workplace safety, project efficiency,
and structural data analysis.

Zircon
benefits from a multi-generational customer base of professional contractors and do-it-yourselfers who rely on Zircon’s innovative
and easy-to-use products to get the job done.

RESULTS
OF OPERATIONS

During
the nine months ended December 31, 2024, and at March 31, 2024, Zircon’s selected financial information is the following (in thousands):

Financial
Position Analysis

The
information presented below as of December 31, 2024 as compared to March 31, 2024 for ZRCN Inc (in thousands):

    December 31, 2024  

    In thousands 
    (Unaudited)  
    March 31, 2024 
  
    Assets 
    $26,224  
    $27,615 
  
    Liabilities 
    $17,963  
    $18,688 
  
    Equity 
    $8,261  
    $8,927 

Assets

Total
assets on December 31, 2024 were $26.2 million compared to $27.6 million on March 31, 2024, which was a decrease of approximately $1.4
million. This decrease was driven primarily by decreases in accounts receivable of $1.7 million, inventories $1.2 million, and intangible
and right-of-use assets of $0.2 million offset by an increase in cash of $1.4 million, and deferred financing costs of $0.3 million.

Liabilities

Total
liabilities on December 31, 2024 were $18.0 million compared to $18.7 million on March 31, 2024, which was a decrease of approximately
$0.7 million. This decrease was driven primarily by a decrease in accounts payable and accrued expenses of $1.4 million, a decrease in
our operating lease liability of $0.1 million, a decrease in notes payable of $75,000 offset by an increase in our line of credit of
$0.9 million