Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 298

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 298
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2024, the interest expense on notes payable to the Stauss
Family Administrative Trust totaled less than $0.1 million, respectively.

16.
Income Taxes

The
components of income tax expense (benefit) consists of the following:

 Schedule
of Components of Income Tax Expense Benefit 

    2025  
    2024 

    For
    the Years Ended March 31, 
  
    (In
    thousands) 
    2025  
    2024 
  
    Current: 

    Federal 
    $(32) 
    $340 
  
    State 
     25  
     4 
  
    International 
     81  
     85 
  
    Total
    current expense 
     74  
     429 
  
    Deferred: 

    Federal 
     443  
     (443)
  
    State 
     56  
     (56)
  
    Total
    deferred (benefit) expense 
     499  
     (499)
  
    Income
    tax (benefit) expense 
    $573  
    $(70)

A
reconciliation of total income tax provision and the amount computed by applying the federal statutory income tax rate of 21.0% to loss
before provision from income taxes is as follows:

 Schedule
of Reconciliation of Income Tax Rate 

    2025  
    2024 

    For
    the Years Ended March 31, 
  
    (In
    thousands) 
    2025  
    2024 
  
    Tax
    (benefit) expense at statutory rates 
    $(508) 
    $5 
  
    Effect
    of: 

    Research
    and development credits generated 
     (67) 
     — 
  
    Return
    to provision 
     (124) 
     — 
  
    Valuation
    allowance 
     1,053  
     — 
  
    Conversion
    of S corporation to C corporation 
     —  
     (163)
  
    State
    income taxes, net of federal benefit 
     125  
     (41)
  
    ASC
    740-10 penalty 
     —  
     22 
  
    International 
     81  
     85 
  
    Other
    items