Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 292

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 292
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 31, 2024 
     —  
     —  
     —  
     — 
  
    Options
    granted 
     3,236,500  
     0.86  
     3.44  
     — 
  
    Forfeited 
     20,000  
     0.75  
     —  
     — 
  
    Outstanding
    as of March 31, 2025 
     3,216,500  
     0.79  
     3.44  
     — 
  
    Exercisable
    as of March 31, 2025 
     —  
     —  
     —  
     — 

During
the year ended March 31, 2025, the Company issued 3,236,500 common stock options, with an
aggregate grant date fair value of $0.9 million, as determined utilizing the Black-Scholes model, to employees and a nonemployee member
of the Board of Directors. The 48,000 stock options awarded to the member of the Board of Directors for continual service will vest on
August 14, 2025. The remaining 3,188,500 stock options awarded to employees will vest on an annual basis over five years from each awards’
respective grant date. In accordance with the Equity Plan, the 20,000 options that were forfeited are available again to be granted.
No stock options had vested or were exercised as of March 31, 2025.

During
the year ended March 31, 2025, the Company recognized $0.1 million in stock based compensation, included in general and administrative
expenses in the accompanying statements of operations and comprehensive income (loss). As of March 31, 2025 there was $0.8 million of
unrecognized share based compensation expense related to unvested stock options over a weighted average term of 3.4 years.

The
assumptions used to calculate the fair value of the options are summarized as follows:

 Schedule
of Fair Value Assumptions of The Options

    March
    31, 2025
  
    Volatility 
     36%
                                            - 75%
  
    Risk-free rate 
     3.5%
                                            - 4.6%
  
    Expected life (in years)