Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 600

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 3
Chunk 600
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 (loss) from operations, as the financial measures for making decisions. This enables the CODM to assess the overall level
of available resources and determine how best to deploy these resources across research and development projects in line with the long-term
company-wide strategic goals. Management reviews its business as a consolidated segment, using financial and other information rendered
meaningful only by the fact that such information is presented and reviewed in the aggregate. The measure of segment assets is reported
in the accompanying consolidated balance sheets as “Total assets.” There are no significant segment expenses as the expenses
that are included in consolidated loss from operations are general and administrative and research and development. There is no change
in the Company’s operating or reporting segments for the year ended March 31, 2025.

    F-12

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

Concentration
of Business and Credit Risk

As
of March 31, 2025, the Company maintained deposits in a single bank that exceeded the federal insured deposit limit of the Federal Deposit
Insurance Corporation (FDIC).

During
the years ended March 31, 2025 and 2024, respectively, the Company generated approximately 64% and 72% of its total revenue from three
customers.

As
of March 31, 2025 and March 31, 2024, respectively, 64% and 77% of its total accounts receivable were from three customers.

Fair
Value of Financial Instruments

In
accordance with FASB ASC 820 Fair Value Measurements and Disclosures, the Company uses a three-level hierarchy for fair value
measurements of certain assets and liabilities for financial reporting purposes that distinguishes between market participant assumptions
developed from market data obtained from outside sources (observable inputs) and our own assumptions about market participant assumptions
developed from the best information available to us in the circumstances (unobservable inputs). The fair value hierarchy is divided into
three levels based on the source of inputs as follows:

●Level
                                            1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical
                                            assets or liabilities in active markets;

●Level
                                            2 – inputs to the valuation methodology include quoted prices for similar assets and
                                            liabilities in active markets, and inputs that are observable for the asset or liability
                                            other than