Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 31

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 31
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Equity

Total
equity on December 31, 2024 was $8.3 million compared to $8.9 million on March 31, 2024, which was a decrease of approximately $0.6 million.
This decrease was driven primarily by a distribution to certain related party shareholders and one director of $0.7 million offset by
an increase in additional paid-in capital of approximately $0.1 million.

25

Operating
Results Analysis

    For the Three Months Ended
                                                                                December 31,  
    For the Nine Months Ended
                                                                                December 31, 
  
    (In thousands) 
    2024  
    2023  
    2024  
    2023 
  
    Net Sales 
    $7,236  
    $7,539  
    $22,409  
    $23,368 
  
    Cost of goods sold 
     4,208  
     4,485  
     13,024  
     12,980 
  
    Gross Profit 
     3,028  
     3,054  
     9,385  
     10,388 
  
    Gross Margin 
     41.8% 
     40.5% 
     41.9% 
     44.5%

    Operating Expenses 

    General & administrative 
     1,715  
     1,510  
     5,201  
     4,899 
  
    Marketing & selling 
     1,332  
     1,176  
     3,340  
     3,351 
  
    Research and development 
     391  
     465  
     1,248  
     1,453 
  
    Total Operating Expenses 
     3,438  
     3,151  
     9,789  
     9,703 
  
    (Loss) income from operations 
     (410) 
     (97) 
     (404) 
     685 

    Other (Income) Expense 

    Other income 
     800  
     0  
     800  
     0 
  
    Interest expense 
     (204) 
     (229) 
     (630) 
     (562)
  
    Other expense