Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 33

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 9B
Chunk 33
---
ircon. The company pays certain administrative and selling expenses of the affiliate. During the 12-month
periods ended March 31, 2025, and 2024, the company recorded sales to the affiliate of approximately $35,000 and $35,000, respectively.
As of December 31, 2025, and 2024, the company had a receivable from the affiliate of approximately $0.1 million and $0.1 million, respectively.

Notes
Payable

The
Company has notes payable to the Stauss Family Administrative Trust to repay loans made to the Company. As of March 31, 2025, the principal
balance of approximately $0.7 million is due and payable in December 2025. Interest accrues at 5.5% per annum, is paid quarterly and
included in accrued expenses. The note is subordinated to the Credit Agreement and no payment is to be made on the note without prior
approval from the lender.  On March 27, 2025, the Stauss Family Administrative Trust and the Company agreed to extend the maturity
date of the Notes Payable to the trust to December 31, 2027. There was no change to the principal amount or the annual interest rate.
For the years ended March 31, 2025 and 2024 the interest expense on the notes payable to the Stauss Family Administrative Trust was $37,000
and $30,000, respectively.

Director
Independence

Our
board of directors undertook a review of the independence of our directors and considered whether any director has a relationship with
us that could compromise that director’s ability to exercise independent judgment in carrying out that director’s responsibilities.
Our board of directors has determined that Mr. Stauss and Mr. Wyler are not independent directors Our non-employee directors, Mr. Bronson,
Ms. Graebner, and Mr. Wong, are all independent directors as that term is defined under the Nasdaq rules.

ITEM
14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Audit
Fees

Assurance
Dimensions LP resigned as the Company’s independent registered public accounting firm on May 3, 2025. The Company engaged Kreston
GTA LP as its new accounting firm on May 13, 2025.

The
aggregate fees billed to us by Kreston GTA LP and Assurance Dimensions LP, our independent registered public accounting firms, for the
indicated services for each of