Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 674

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 5
Chunk 674
---
 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 due, significant one-time events and historical experience. Balances that are still outstanding
after management has used reasonable collection efforts are written off through a charge to the provision for credit losses and a credit
to accounts receivable. Based on management’s assessment of the credit history with customers having outstanding balances and current
relationships with them, management believes that losses on balances outstanding will not exceed the provision for credit losses.

Accounts
receivable consisted of the following:

Schedule
of Accounts Receivable 

    (In
    thousands) 
    March
    31, 2025  
    March
    31, 2024 
  
    Accounts
    receivable 
    $6,155  
    $8,658 
  
    Less
    provision for credit losses 
     (53) 
     (14)
  
    Accounts
    receivable, net 
    $6,102