Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 0

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 0
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CONDENSED
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE NINE MONTHS ENDED DECEMBER 31, 2024 AND 2023

1.
Organization

The
Business

Zircon
Corporation, ZRCN’s wholly-owned subsidiary, was incorporated in California in 1977. The Company, through Zircon, is principally
engaged in the design and manufacture of electronic-based consumer hardware and sells its products primarily to retail outlets located
throughout the United States, Canada, Japan and Europe. The Company and Zircon operate from their headquarters located in Campbell, California
and an affiliate entity of Zircon, Zircon de Mexico S.A. de C.V., located in Ensenada, Mexico. The operations of the Company and Zircon
are supported also by an affiliated entity of Zircon, Zircon Corporation Limited, located in the United Kingdom.

On
April 14, 2023 (the “Closing Date”), Zircon Corporation (“Zircon”) effectuated a merger and reorganization with
Harmony Energy Technologies, Inc. (“Harmony”), a Delaware Corporation, ZRCN Inc., a California corporation and a wholly owned
subsidiary of Harmony (the “Merger Sub”). The merger leverages Zircon’s sensor-based, ASIC (“Application-Specific
Integrated Circuits”) processor technology and patent portfolio, to accelerate growth in its product lines and global markets as
a publicly disclosed company, in accordance with the Securities Act of 1933 and the Exchange Act of 1934, both as amended. The combination
of Harmony and Zircon was effectuated through a merger (the “Merger”) of Merger Sub into Zircon. The separate existence of
Merger Sub ceased, and Merger Sub was merged with and into Zircon (Zircon, as the surviving corporation following the Merger). Upon completion
of the Merger, Harmony changed its name to ZRCN Inc. (“ZRCN” or the “Company”). While Harmony was the legal acquirer
of Zircon in the Merger, the Merger is treated as a reverse recapitalization, whereby Zircon is deemed to be the accounting acquirer,
and the historical financial statements of Zircon became the historical financial statements of Harmony (renamed ZRCN Inc.) upon the
closing of the Merger. Under this method of accounting, Harmony was treated as the “acquired” company and Zircon is treated