Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 196

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 196
---
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 
     13  
     22 
  
    Total 
    $573  
    $(70)

    F-26

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

The
tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows:

 Schedule
of Deferred Tax Assets and Liabilities 

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

    Deferred tax assets: 

    Accrued vacation 
    $89  
    $105 
  
    Inventory reserve 
     288  
     122 
  
    Capitalized research and development 
     787  
     558 
  
    Interest expense limitation 
     148  
     — 
  
    Lease liability 
     160  
     215 
  
    Net operating loss carryforward 
     104  
     — 
  
    Research and development tax credit 
     38  
     — 
  
    Other 
     21  
     15 
  
    Total gross deferred tax assets 
     1,635  
     1,015 
  
    Less: Valuation allowance 
     (1,345) 
     — 
  
    Total deferred tax assets 
     290  
     1,015 

    Deferred tax liabilities 

    ROU Asset 
     (153) 
     (206)
  
    Fixed assets 
     (137)