Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 516

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 516
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 estimated
and capitalized in inventory. The need for an allowance for inventory obsolescence is based on an evaluation of slow-moving or obsolete
inventory. For the years ended March 31, 2025 and 2024,
the Company recognized $0.6 million and $0.4 million in impairment expense, respectively.

Property
and Equipment, Net

Property
and equipment are stated at cost. Leasehold improvements are amortized over the shorter of the lease terms or estimated useful lives
of the respective assets. Depreciation is computed using the straight-line method over the following estimated useful lives of the respective
assets:

 Schedule
of Useful Life of Asset

    Leasehold
    improvement 
     7-20
                                            years 
  
    Computer
    equipment 
     3-5
                                            years 
  
    Manufacturing
    equipment 
     3-10
                                            years 
  
    Furniture
    and office equipment 
     7-10
                                            years 
  
    Vehicles 
     4-5
                                            years 

    F-10

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

Intangible
Assets, Net

Included
in intangible assets are external amounts paid to vendors as well as consulting and legal fees for purchased patents and the cost of
the exclusivity rights and licenses secured by the Company for certain technology. The intangible assets are recorded at cost on the
balance sheet and adjusted for amortization, abandonments, and impairments (see Note 8). Acquired identifiable intangible assets are
valued at the acquisition date primarily by using a discounted cash flow method. Amortization is computed using the straight-line method
over their estimated useful lives of 5 to 20 years. Amortization for filed patents not yet issued will begin upon the date of issuance.
The Company evaluates intangible assets for impairment and writes off assets that are not used in any products. During the
years ended March 31, 2025 and 2024, there were no impairment expenses for intangible assets. 

Impairment
of Long-Lived Assets

The
Company reviews its long-lived assets for impairment whenever events or circumstances exist that indicate the carrying amount of an asset
or asset group may not be recoverable. The recoverability of long-lived assets is measured by a comparison of the carrying amount of