Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 383

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1B
Chunk 383
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 and $0 as of March 31, 2025 and March 31, 2024, respectively, which will begin to expire after March 31, 2045.

    F-27

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

The
Company has state net operating loss carryforwards of $1.5 million and $0 as of March 31, 2025 and March 31, 2024, respectively, which
will begin to expire after March 31, 2045 and which are not believed to be subject to Section 382 annual limitations.

The
Company files a US federal tax return, a California state tax return, and a Chinese tax return. The federal tax returns for the March
31, 2021 and later years are open to examination, while the California tax returns for the March 31, 2020 and later years are open to
examination. The Chinese tax returns are subject to various statutes of limitations. The Chinese tax provision is de minimis as the Company
has limited operations in China. Affiliates of the Company file income tax returns in Mexico and the UK, which are subject to various
statutes of limitations.

The
Company has unrecognized tax benefits as of March 31, 2025 and 2024 of $0.6 million and $0.6 million, respectively.

Schedule
of Unrecognized tax Benefits  

    As of March 31, 2025  
    As of March 31, 2024 
  
    (In thousands) 

    Unrecognized tax benefits, beginning balance 
    $550  
    $— 
  
    Current year increases in unrecognized tax benefits due to tax positions taken in current period 
     —  
     528 
  
    Recognized interest and penalties 
     7  
     22 
  
    Unrecognized tax benefits, end balance 
    $557  
    $550 

The
Company acquired federal net operating losses of approximately $2.5 million via the acquisition of Harmony Energy Technologies Corporation
and has used approximately $0.2 million of these net operating losses from the acquisition period through the year ended March 31, 2025.
The tax benefits of these net operating losses is deemed to be an unrecognized tax benefit. The Company additionally has federal net
operating