Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 462

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 1C
Chunk 462
---
 Trust.

    F-25

ZRCN
                                            Inc.

NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED MARCH 31, 2025 AND 2024

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 in December 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 the bank and no payment is to be made on the note without prior
approval from the Company’s lender. For the years ended March 31, 2025 and 2024, the interest expense on notes payable to the Stauss
Family Administrative Trust totaled less than $0.1 million, respectively.

16.
Income Taxes

The
components of income tax expense (benefit) consists of the following:

 Schedule
of Components of Income Tax Expense Benefit 

    2025  
    2024 

    For
    the Years Ended March 31, 
  
    (In
    thousands) 
    2025  
    2024 
  
    Current: 

    Federal 
    $(32) 
    $340 
  
    State 
     25  
     4 
  
    International 
     81  
     85 
  
    Total
    current expense 
     74  
     429 
  
    Deferred: 

    Federal 
     443  
     (443)
  
    State 
     56  
     (56)
  
    Total
    deferred (benefit) expense 
     499  
     (499)
  
    Income
    tax (benefit) expense 
    $573  
    $(70)

A
reconciliation of total income tax provision and the amount computed by applying the federal statutory income tax rate of 21.0% to loss
before provision from income taxes is as follows:

 Schedule
of Reconciliation of Income Tax Rate 

    2025  
    2024 

    For
    the Years Ended March 31, 
  
    (In
    thousands) 
    2025  
    2024 
  
    Tax
    (benefit) expense