Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 266

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 266
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the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated
the correction and has determined that the related impact was not material to the previously issued financial statements that contained
the error, based on overall considerations of both quantitative and qualitative factors. The Company has concluded that prior period
financial statements as of and for the year ended March 31, 2024, were not materially misstated and can continue to be relied upon. Accordingly,
the Company has corrected the previously reported immaterial error in the current period financial statements by adjusting the opening
balances of the affected accounts.

In
accordance with ASC 250, Accounting Changes and Error Corrections, the Company has recorded the impact of the prior period error through
opening retained earnings in the current period financial statements. The affected prior period balances are displayed below and had
no change on the Consolidated Statements of Operations and Comprehensive Loss, or Net Loss per Share.

Management
and the Audit Committee have reviewed this adjustment and concluded that the financial statements, as corrected, present fairly, in all
material respects, the balance sheet, results of operations and cash flows of the Company in accordance with U.S. GAAP.

As
a result of the restatement, the Company prepared the following table to illustrate the effect on the financial statements for the year
ended March 31, 2024.

Schedule
of Restatement of Financial Statements

    As
    Reported  
    As
    Revised  

    March
    31, 2024  
    March
    31, 2024  
    Difference 
  
    Liabilities 

    Accrued expenses 
    $2,130  
    $2,789  
    $(659)

    Total equity attributable to ZRCN Inc. stockholders 

    Retained earnings 
    $7,421  
    $6,762  
    $659 

Principles
of Consolidation 

The
accompanying consolidated financial statements include the accounts of ZRCN as well as its variable interest entities. The Company consolidates
all entities over which the Company has the power to govern the financial and operating policies and therefore exercises control, and
upon which the Company has a controlling financial interest. The entities are consolidated from the date at which the Company obtains
control and are de-consolidated from the date at which control ceases. All intercompany balances and transactions have been eliminated.
Accounting policies of the