Company: ZRCN
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006748
Chunk: 33

Company: ZRCN Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 33
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 products. Gross profit for the nine months ended December 31, 2024 was $9.4
million, or 42% compared to $10.4 million, or 44%, during the nine months ended December 31, 2023, which was a decrease in gross profit
of $1.0 million, or 10%, and a 2% decrease in gross margin, respectively. The decrease in gross profit is driven by reduced unit volumes
for the aforementioned products.

Research
and development

Research
and development expenses for the three months ended December 31, 2024 were $0.4 million compared to $0.5 million for the three months
ended December 31, 2023. This decrease of $74,000, or 16%, was driven primarily by reduced payroll expenses.

26

Research
and development expenses for the nine months ended December 31, 2024 were $1.2 million compared to $1.5 million for the nine months ended
December 31, 2023. This decrease of $0.2 million, or 14%, was driven primarily by reduced payroll expenses.

General
and Administrative expenses

General
and administrative expenses for the three months ended December 31, 2024 were $1.7 million compared to $1.5 million for the three months
ended December 31, 2023 which was an increase of $0.2 million, or 14%. This increase was driven primarily by increased payroll, bank
fees, and legal expenses.

General
and administrative expenses for the nine months ended December 31, 2024 were $5.2 million compared to $4.9 million for the nine months
ended December 31, 2023 which was an increase of $0.3 million, or 6%. This increase was driven primarily by increased bank fees and payroll
expenses.

Marketing
and Selling expenses

Marketing
and selling expenses for the three months ended December 31, 2024 were $1.3 million compared to $1.2 million for the three months ended
December 31, 2023 which was a increase of $0.2 million, or 13%. This increase was driven primarily by an increase in sales payroll expenses
and marketing consulting expenses.

Marketing
and selling expenses for the nine months ended December 31, 2024 were $3.3 million compared to $3.4 million for the nine months ended
December 31