Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 114

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 114
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 to shipping and receiving necessary components
from offshore suppliers.

In
September 2017, an affiliated company, Zircon Corporation Limited, was established in the United Kingdom to facilitate the sale of our
products to European customers and operations began during the year ended March 31, 2019. The principal shareholders of ZRCN are the
shareholders of the affiliates and the affiliates are operated solely for the benefit of Zircon.

Research
and Development

During
fiscal 2025 and fiscal 2024, we incurred research and development (R&D) expenses of $1.7 million and $1.9 million, respectively.
Research and development costs that are not capitalizable under ASC 735-10-25 are expensed as incurred. We engage in research & development
as a regular, ongoing part of our operations. Our products include proprietary technology, which we believe creates significant product
performance advantages relative to products of our competitors and creates key competitive advantages for the Company. We intend to continue
to invest materially in R&D to maintain the competitiveness of our existing products, and to develop and commercialize new technologies
for future product and product portfolio expansion activities.

6

We
do not currently maintain any target or standardized rate of R&D expenditure but may establish such targets in the future.

Employees
& Contractors

We
strive to build a talented, motivated, and dedicated team. As of March 31, 2025, we had 32 full-time equivalent employees of which 7
were in R&D, 6 were in Sales, 8 were in Marketing and 10 were in G&A, and 1 was in Operations. As of March 31, 2025, Zircon de Mexico had 77 full-time equivalent employees of which 42 were in Operations, 7 were
in Marketing, 12 were in R&D, and 16 were in Administration.

We
utilize contractors and consultants, including financial advisors, SEC reporting consultants, Investor Relations consultants, Marketing
consultants and other such providers that management deems appropriate for achieving the goals and objectives laid out by the Board of
Directors.

Available
Information

When
filed, the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to
reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
are filed