Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 829

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 7A
Chunk 829
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 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 718-10-15-3 to determine whether a profits interest award should be accounted for in accordance
with Topic 718. ASU 2024-01 is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the
impact of ASU 2024-01 on its consolidated financial statements and related disclosures.

    F-15

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED