Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 745

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 7
Chunk 745
---
 

    Cash paid for interest 
    $740  
    $665 
  
    Cash paid for taxes 
    $473  
    $149 

    Noncash investing and financing
    activities: 

    Right-of-use assets
    obtained in exchange for operating lease liability 
    $55  
    $— 
  
    Stockholder distributions
    accrued 
    $—  
    $659 
  
    Common stock issued
    in connection with Harmony merger 
    $—  
    $19 
  
    Fair value of Advisor
    Warrants issued to effectuate Harmony Merger 
    $—  
    $302 
  
    Assets acquired in Harmony
    Merger 
    $—  
    $1 
  
    Liabilities assumed
    in Harmony Merger 
    $—  
    $(579)
  
    Noncash settlement of
    Stauss note payable for settlement of note receivable from 
    $—  
    $240 

The
accompanying notes are an integral part of these consolidated financial statements.

F-5

ZRCN
Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

1.
Organization

The
Business

Zircon
Corporation (“Zircon”), ZRCN Inc. (“ZRCN” or the “Company”) wholly-owned subsidiary, was incorporated
in California in 1977. The Company, through Zircon, is principally engaged in the design and manufacture of electronic-based consumer
hardware and sells its products primarily to retail outlets located throughout the United States, Canada, Japan and Europe. The Company
and Zircon operate from their headquarters located in Campbell, California and an affiliate entity of Zircon, Zircon de Mexico S.A. de
C.V., located in Ensenada, Mexico. The operations of the Company and Zircon are supported also by an affiliated entity of Zircon, Zircon
Corporation Limited, located in the United Kingdom.

On
April 14, 2023 (the “Closing Date”), Zircon Corporation effectuated a merger and reorganization with Harmony Energy Technologies,
Inc. (“Harmony”), a Delaware Corporation, ZRCN Inc., a California corporation and a wholly owned subsidiary of Harmony (the
“Merger Sub”). The merger leverages Zircon’s sensor-based, ASIC (“Application-Specific Integrated Circuits