Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 330

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1B
Chunk 330
---
     (19)
  
    Benefit from (Provision
    for) income taxes 
     (573) 
     70 
  
    Net
    income (loss) 
    $(2,890) 
    $51 

    Foreign currency translation
    adjustment 
     (160) 
     (203)
  
    Comprehensive income
    (loss) 
    $(3,050) 
    $(152)

Sales
revenue and gross margin

Revenue
for fiscal 2025 was $28.1 million compared to $31.5 million in fiscal 2024 which was a decrease of $3.4 million, or 11%. This decrease
was driven primarily by decreased sales in the United States from one key customer. Gross profit for fiscal 2025 was $11.1 million, or
39.7% compared to $13.8 million, or 43.9%, which was a decrease of $2.7 million, or 19%, and 4.2%, respectively. The decrease in gross
profit was driven primarily by reduced revenue from one key customer and the decrease in gross margin was driven by a more unfavorable
product mix and reduced absorption of manufacturing expenses due to reduced unit volume.

Research
and development

Research
and development expenses for fiscal 2025 were $1.7 million compared to $1.9 million in fiscal 2024. The decrease in 2025 was $0.2 million,
or 11%, and was driven primarily by reduced consulting expenses.

Marketing
and selling 

Marketing
and selling expenses for fiscal 2025 were $4.5 million compared to $4.4 million in fiscal 2024 which was an increase of $0.1 million,
or 4%. This increase was driven primarily by an increase in payroll expense.

Administrative
expenses

General
and administrative expenses for fiscal 2025 were $7.3 million compared to $6.7 million in fiscal 2024 which was an increase of $0.4
million, or 6%. This increase was driven primarily by an increase of $0.4 million in non-interest bank charges such as audit and
legal expenses incurred by the lender and charged to the Company and $0.2 million of audit fees.

23

Other
income/expense

Other
income for fiscal 2025 was $0.8 million compared to zero in fiscal 2024 which was an increase of $0.8 million.