Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 510

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 510
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 risk, there can be no assurance
that they will be successful in eliminating the substantial doubt.

3.
Summary of Significant Accounting Policies

Basis
of Presentation

The
accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting
principles generally accepted in the United States of America (GAAP). On this basis, revenue and the related assets are recognized when
services are performed and products are sold, and expenses and related liabilities are recorded when the obligation is incurred.

    F-6

ZRCN
Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

During
the preparation of the Company’s consolidated financial statements for the year ended March 31, 2025, the Company’s management
identified immaterial error related to previously issued consolidated financial statements in the prior year.

    a.
    Management
    determined that the Shareholder distribution for approximately $0.7 million should have been reported in the year ended March 31,
    2024 financial statements. The Company previously reported the Shareholder distribution in the first quarter of the 2025 fiscal year.

In
accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering
the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated
the correction and has determined that the related impact was not material to the previously issued financial statements that contained
the error, based on overall considerations of both quantitative and qualitative factors. The Company has concluded that prior period
financial statements as of and for the year ended March 31, 2024, were not materially misstated and can continue to be relied upon. Accordingly,
the Company has corrected the previously reported immaterial error in the current period financial statements by adjusting the opening
balances of the affected accounts.

In
accordance with ASC 250, Accounting Changes and Error Corrections, the Company has recorded the impact of the prior period error through
opening retained earnings in the current period financial statements. The affected prior period balances are displayed below and had
no change on the Consolidated Statements of Operations and Comprehensive Loss, or Net Loss per Share.

Management
and the Audit Committee have reviewed this adjustment and concluded that the financial statements, as corrected, present fairly, in all
material respects, the balance sheet