Company: ZRCN
Filing Date: 2025-09-25
Form Type: 8-K
Source: 0001493152-25-014988
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Company: ZRCN Inc.
Filing Date: 2025-09-25
Form: 8-K
Item: Item 2.04
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Item 2.04      Triggering                                                                                  

As
previously announced, on July 15, 2025, ZRCN, Inc. (the “ Company”), and its wholly owned subsidiary, Zircon Corporation (“ Zircon”),
and its affiliates, Zircon de Mexico, S. A. de C. V. and Zircon Corporation Ltd. (collectively the “ Affiliates”), entered into
a forbearance agreement and first amendment to Credit Agreement (the “ Forbearance Agreement”) with FGI Worldwide LLC, as
Agent for the lender (“ Lender”) amending, modifying and other wise affecting that certain Revolving Credit Agreement, dated
May 31, 2024 (the “ Credit Agreement”). The Forbearance Agreement, among other things, required the Company to maintain certain
minimum consolidated EBITDA through the Forbearance Period (the “ EBITDA Covenant”).

On
September 17, 2025, the Company and its Affiliates received a Notice of Default under the Credit Agreement (the “ Notice”)
as a result of its failure to satisfy the EBITDA Covenant (the “ Specified Defaults”).

The
Notice constitutes a notice of default under Section 10.5 of the Credit Agreement. The Notice advises, and the Credit Agreement provides,
that upon the occurrence of an event of default, the Lender may exercise a variety of remedies afforded to the Lender under the Credit
Agreement or by applicable law or equity, including without limitation, acceleration of the due date of the unpaid principal balance
of the Credit Agreement and all accrued but unpaid interest thereon. Further, according to the Credit Agreement, the Lender may, during
an event of default and in accordance with applicable law, foreclose on the Company’s assets and its security interest in the Company’s
personal property and exercise any other remedies provided therein.

At
this time, the Lender has not: (i) accelerated or demanded any payment; (ii) applied interest under the Credit Agreement at the default
rate; (iii) foreclosed on all or any part of any lien or security interest created by any of the loan documents; and (iv) exercised any
other right or remedy that may be available to it. The Company has no assurance that the Lender will not seek to enforce its rights in
the future. The Company is currently continuing to work with the Lender to address the Specified Defaults, however, there can be no assurance