Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 579

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 3
Chunk 579
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 Trust totaled $37,000
and $30,000 respectively.

On
March 31, 2024 the Stauss Family Administrative Trust and the Company agreed to extend the maturity date of the Notes Payable to the
trust to December 31, 2025.

On
March 27, 2025 the Stauss Family Administrative Trust and the Company agreed to extend the maturity date of the Notes Payable to the
trust to December 31, 2027.

26

Off-Balance
Sheet Arrangements 

ZRCN
has no off-balance sheet arrangements.

Contractual
Obligations and Commitments

As
of March 31, 2025, we had contractual obligations for building leases, a line of credit with FGI, and notes payable with the Stauss
Family Administrative Trust. The building leases include our corporate office in Campbell, CA that will expire in December 2027. As
of March 31, 2025, our future contractual commitments for our leases were $0.6 million and our long-term debt obligations were $8.4
million. For additional information on our leases and timing of future payments, please see Note 10 and Note 14 to the consolidated
financial statements included in this Annual Report on this Form 10-K. 

Estimates,
Judgments and Assumptions

ZRCN
prepares its consolidated financial statements in accordance with US GAAP, which require management to make estimates and assumptions
that affect the amounts of its assets and liabilities, the information provided regarding future assets and liabilities as well as the
amounts of revenues and expenses for the relevant periods. Readers are invited to refer to Note 3 of the financial statements for the
year ended March 31, 2025, for details.

Critical
Accounting Policies and Estimates

Please
refer to Note 3 Summary of Significant Accounting Policies of the Financial Statements for disclosures regarding the critical accounting
policies related to our business.

Recently
Issued Accounting Standards

Our
recently issued accounting standards are included in Note 3 Summary of Significant Accounting Policies of the Financial Statements for
disclosures regarding the critical accounting policies related to our business.

ITEM
7A. Quantitative and Qualitative Disclosures About Market Risk

Interest
Rate Risk

ZRCN’s
exposure to changes in interest rates relates primarily to Zircon’s cash, cash equivalents and outstanding debts.

Foreign
Currency & Exchange Risk

ZRCN
sources parts and materials from