Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 149

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1
Chunk 149
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 amended on July 15, 2024, the Company
will issue an additional 49,998 common shares to SCE earned during the period from March 31, 2025 through September 4, 2025. As of
September 4, 2025 the Company’s agreement with SCE has been terminated.

During
the year ended March 31, 2025, the Company issued 289,490 common shares primarily to two legal firms in lieu of cash payments to
settle outstanding liabilities for services related to patent infringement litigation and patent acquisition. These shares also
include the shares issued or to be issued to SCE.

Related
Party Transactions 

Zircon
is a member of a controlled group of companies and has revenue and cost-sharing activities with other members of the controlled group.
Results of operations and financial condition may not represent amounts that would have been reported if Zircon operated as an unaffiliated
entity.

Zircon
has an exclusive manufacturing and technical assistance agreement with Zircon de Mexico S.A. de C.V. (the “Contractor”),
an entity which is owned by certain shareholders of Zircon. Under the terms of the agreement, Zircon provides materials, technical assistance,
and expertise to the Contractor, and the Contractor assembles certain of Zircon’s products.

In
September 2017, an affiliated company, Zircon Corporation Limited, was established in the United Kingdom to facilitate the sale of Zircon’s
products to European customers and operations began during the year ended March 31, 2019. The ownership structure of the affiliate is
similar to the ownership of Zircon.

The
Company leases a 14,000 square foot facility from a trust owned by the Stauss Family Administrative Trust.

The
Company has notes payable to the Stauss Family Administrative Trust to repay loans made to the Company. As of March 31, 2025, principal
balance of $0.7 million is due and payable on December 31, 2027. Interest accrued at 5.5% per annum is paid quarterly and included in
accrued expenses. The note is subordinated to the line of credit note payable to FGI and no payment is to be made on the note without
prior approval from FGI. In the second quarter of 2023, a portion of the note payable to Stauss Family Administrative Trust was settled
as a non-cash transaction against the note receivable from one stockholder for $240,190.

For
the years ended