Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 500

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 500
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2025, for details.

Critical
Accounting Policies and Estimates

Please
refer to Note 3 Summary of Significant Accounting Policies of the Financial Statements for disclosures regarding the critical accounting
policies related to our business.

Recently
Issued Accounting Standards

Our
recently issued accounting standards are included in Note 3 Summary of Significant Accounting Policies of the Financial Statements for
disclosures regarding the critical accounting policies related to our business.

ITEM
7A. Quantitative and Qualitative Disclosures About Market Risk

Interest
Rate Risk

ZRCN’s
exposure to changes in interest rates relates primarily to Zircon’s cash, cash equivalents and outstanding debts.

Foreign
Currency & Exchange Risk

ZRCN
sources parts and materials from foreign vendors and sells its products in various foreign markets around the world. Changes in foreign
currency exchange for the purchase of components from vendors and the sale of products in foreign markets can have a material impact
on the Company’s results of operations and liquidity. The Company could hedge or take other steps to mitigate the impact from foreign
currency exchange rates, but there is no guarantee that these efforts will be successful in every instance.

27

ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Index
to Financial Statements

    Report of Independent Registered Public Accounting Firm (PCAOB ID: 5036)
    F-1

    Balance
    Sheets
    F-2

    Statements
    of Operations
    F-3

    Statements
    of Stockholders’ Equity
    F-4

    Statements
    of Cash Flows
    F-5

    Notes
    to Financial Statements
    F-6

28

REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To
the Board of Directors and Stakeholders of ZRCN Inc.

Opinion
on the Financial Statements

We
have audited the accompanying consolidated balance sheets of ZRCN Inc. (the “Company”) as of March 31, 2025, and the related
consolidated statements of operations and comprehensive loss, stockholders’ equity, and cash flows for the year ended March 31,
2025, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of March 31, 2025, and the results of its operations and its
cash flows for the year ended March