Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 894

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 8
Chunk 894
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and other current liabilities approximated their fair values as of March 31, 2025 and March 31, 2024 due to their short-term nature.
All carrying amounts of other applicable assets and liabilities on the Company’s balance sheet approximate fair value. For long-term
debt, the estimated fair value approximates its carrying value, as the interest rate is in line with the market interest rates for this
type of debt.

Foreign
Operations and Foreign Currency

The
Company’s reporting currency is the U.S. dollar and the Company’s records are maintained in U.S. dollars. Assets and liabilities,
including any amounts due or receivable from foreign entities, are translated into the reporting currency using the exchange rates in
effect on the consolidated balance sheet dates. Equity accounts are translated at historical rates, except for the change in retained
earnings during the year, which is the result of the consolidated statement of operations translation process. Any revenues or expenses
that are billed in foreign currency are converted at the average rates of exchange prevailing during each period. Realized and unrealized
foreign currency exchange gains and losses arising from transactions denominated in currencies other than the U.S. dollar are reflected
in earnings. The cumulative translation adjustments associated with the net assets of foreign entities are recorded in accumulated other
comprehensive loss in the accompanying consolidated statements of changes in stockholders’ equity.

Operations
outside the United States include entities in Mexico, conducting business in Mexican Pesos, and the United Kingdom, conducting business
in the British Pound. The Company also transacts business in other foreign countries. Foreign operations are subject to risks inherent
in operating under different legal systems and various political and economic environments. Among the risks are changes in existing tax
laws, possible limitations on foreign investment and income repatriation, government price or foreign exchange controls, and restrictions
on currency exchange.

Income
Taxes

Income
taxes are recorded in accordance with ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an
asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on
the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence,
it is more likely than not that some or all