Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 271

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1A
Chunk 271
---
 losses 
     (53) 
     (14)
  
    Accounts
    receivable, net 
    $6,102  
    $8,644 

Activity
related to the Company’s provision for credit losses was as follows:

 Schedule
of  Provision for Credit losses

    (In
    thousands) 
    March
    31, 2025  
    March
    31, 2024 
  
    Balance,
    beginning of period 
    $14  
    $10 
  
    Credit
    loss provision 
     195  
     4 
  
    Write-offs 
     (156) 
     — 
  
    Balance,
    end of period 
    $53  
    $14 

Inventory,
net

Inventories,
which consist of raw materials, work in process, and finished goods, are stated at the lower of cost or net realizable value. The Company
states inventory cost utilizing the first-in, first-out (FIFO) method. Labor and overhead associated with inventory purchases are estimated
and capitalized in inventory. The need for an allowance for inventory obsolescence is based on an evaluation of slow-moving or obsolete
inventory. For the years ended March 31, 2025 and 2024,
the Company recognized $0.6 million and $0.4 million in impairment expense, respectively.

Property
and Equipment, Net

Property
and equipment are stated at cost. Leasehold improvements are amortized over the shorter of the lease terms or estimated useful lives
of the respective assets. Depreciation is computed using the straight-line method over the following estimated useful lives of the respective
assets:

 Schedule
of Useful Life of Asset

    Leasehold
    improvement 
     7-20
                                            years 
  
    Computer
    equipment 
     3-5
                                            years 
  
    Manufacturing
    equipment 
     3-10
                                            years 
  
    Furniture
    and office equipment 
     7-10
                                            years 
  
    Vehicles 
     4-5
                                            years 

    F-10

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

Intangible
Assets, Net

Included
in intangible assets are external amounts paid to vendors as well as consulting and legal