Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 167

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 167
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    Total
    current assets 
    $46  
    $9 

    LIABILITIES 

    Current liabilities: 

    Accounts payable 
    $126  
    $33 
  
    Total
    current liabilities 
    $126  
    $33 

Use
of Estimates

The
preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and
the reported amounts of revenues and expenses. Significant estimates used in preparing these consolidated financial statements include
the provision for credit losses, allowance for inventory obsolescence, allocation of overhead to inventory, estimated future benefit
and fair value of intangible assets, accrued rebates and advertising allowances, useful lives and depreciation methods of property and
equipment, uncertain tax positions, and share-based compensation. It is at least reasonably possible that the significant estimates used
will change within the next year.

Cash

The
carrying value of cash approximates fair value due to its short-term nature. From time to time, the Company may be in the position of
a “book overdraft” in which outstanding checks exceed cash. The Company classifies book overdrafts in accounts payable within
its consolidated balance sheets, and classifies the change in accounts payable associated with book overdrafts as an operating activity
within the consolidated statement of cash flows. As of March 31, 2025, the book overdraft included within accounts payable was less than
$0.1 million. As of March 31, 2024, the book overdraft included within accounts payable
was $0.4 million.

    F-9

ZRCN
Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

Accounts
Receivable, Net

Accounts
receivables are stated at the amount the Company expects to collect. The Company provides credit without requiring collateral, in the
normal course of business, to credit-worthy customers as determined by management’s review of references and credit reports. Bad
debts are charged against the provision for credit losses. The provision for credit losses is adjusted to provide a specific and general
allowance for estimated uncollectible accounts, which is based on management’s judgment based on a number of factors, including
the length of time the receivables are past