Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 13

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 9A
Chunk 13
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 TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The
following includes a summary of transactions since March 31, 2023 to which we have been a party, including transactions in which the
amount involved in the transaction exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end for the last two
completed fiscal years, and in which any of our directors, executive officers or, to our knowledge, beneficial owners of more than 5%
of our capital stock or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material
interest, other than equity and other compensation, termination, change in control and other arrangements, which are described elsewhere
in this Annual Report on Form 10-K. We are not otherwise a party to a current related party transaction, and no transaction is currently
proposed, in which the amount of the transaction exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end
for the last two completed fiscal years and in which a related person had or will have a direct or indirect material interest.

Zircon
is a member of a controlled group of companies and has revenue and cost-sharing activities with other members of the controlled group.
Results of operations and financial condition may not represent amounts that would have been reported if the company operated as an unaffiliated
entity.

Zircon
has an exclusive manufacturing and technical assistance agreement with Zircon de Mexico S.A. de C.V. (the “contractor”),
an entity which is owned by certain shareholders of Zircon.

Under
the terms of the agreement, Zircon provides materials, technical assistance, and expertise to the contractor, and the contractor assembles
certain of Zircon’s products. Zircon paid the contractor for costs incurred in manufacturing Zircon’s products, as defined
in the contract, plus a profit percentage of approximately 5% of actual cost during the 12-month periods ended March 31, 2025, and 2024.
Total payments including the profit percentage amounted to $3.1 million and $3.0 million for the 12month periods ended March 31, 2025
and 2024, respectively.

Zircon
has a note payable to the contractor. The note was established for the purpose of reducing the payable balance and to satisfy the company’s
lender’s requirements. During the period December 31, 2021, Zircon