Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 524

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 524
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 using a Black Scholes valuation
approach with assumptions relevant on the date of issuance and the fair value of the advisor warrants issued in connection with the Merger
was estimated using the intrinsic value method (see note 13).

Recently
Issued Accounting Pronouncements

As
an emerging growth company, the Company will have the option of adopting new accounting pronouncements on a delayed basis and has opted
to take advantage of this option. As a result, the Company has been adopting new accounting standards based on the timeline for adoption
afforded to privately held companies, unless it chooses to early adopt a new accounting standard.

Accounting
Standards Adopted

In
November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The new standard
requires a company to disclose incremental segment information on an annual and interim basis, including significant segment expenses
and measures of profit or loss that are regularly provided to the chief operating decision maker. The standard was effective for the
Company beginning in fiscal year 2024 and interim periods within fiscal year 2025, with early adoption permitted. As of March 31, 2025,
ASU 2023-07 became effective and the Company’s management adopted ASU 2023-07 in its financial statements and related disclosures.

Recently
Issued Accounting Standards Not Yet Adopted

In
December 2023, the FASB also issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The new standard
requires a company to expand its existing income tax disclosures, specifically related to the rate reconciliation and income taxes paid.
The standard is effective for the Company for annual periods beginning after December 15, 2024, with early adoption permitted. The Company
does not expect to early adopt the new standard. The new standard is expected to be applied prospectively, but retrospective application
is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

In
March 2024, FASB issued ASU No. 2024-01, “Compensation- Stock Compensation (Topic 718): Scope Application of Profits Interest and
Similar Awards.” ASU 2024-01 provides an illustrative example that includes four fact patterns to demonstrate how an entity should
apply the scope guidance in paragraph 718-