Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 831

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 7A
Chunk 831
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 those annual reporting periods. The amendments
in this update require that an entity apply the new guidance prospectively to any acquisition transaction that occurs after the initial
application date. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company is currently
evaluating the disclosure impact that ASU 2025-03 may have on its consolidated financial statement presentation and disclosures.

In
May 2025, the FASB issued ASU 2025-04, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic
606) (“ASU 2025-04”), which clarifies the requirements for share-based consideration payable to a customer. The amendments
in this update are effective for all entities for annual reporting periods (including interim reporting periods within annual reporting
periods) beginning after December 15, 2026. Early adoption is permitted for all entities. The Company is currently evaluating the disclosure
impact that ASU 2025-04 may have on its consolidated financial statement presentation and disclosures.

In
July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”).
This standard introduces a practical expedient that companies can choose to apply when determining allowances for credit losses. Specifically,
it permits companies to assume that the current conditions as of the balance sheet date remain unchanged throughout the remaining life
of the assets. This standard is effective for the Company for annual reporting periods beginning after December 15, 2025, and requires
prospective application. The Company is currently evaluating the impact of ASU 2025-05, however, does not expect it to have a material
impact on its consolidated financial statements.

4.
Merger with Harmony Energy Technologies Corporation

On
April 14, 2023 (the “Closing Date”), Harmony closed the Merger with Zircon, as a result of which Zircon became a wholly-owned
subsidiary of Harmony. While Harmony was the legal acquirer of Zircon in the Merger, for accounting purposes, the Merger is treated as
a reverse recapitalization, whereby Zircon is deemed to be the accounting acquirer, and the historical financial statements of Zircon
became the historical financial statements of Harmony (renamed ZRCN Inc.) upon the closing of the Merger. Under this method of accounting,
Harmony was treated as the “acquired