Company: ZRCN
Filing Date: 2025-09-10
Form Type: 10-K
Source: 0001641172-25-027037
Chunk: 501

Company: ZRCN Inc.
Filing Date: 2025-09-10
Form: 10-K
Item: Item 2
Chunk 501
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 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

We
also have audited the adjustments described in Note 3 that were applied to restate the financial statements for the year ended March
31, 2024 to correct an error. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to
audit, review, or apply any procedures to the March 31, 2024 financial statements of the Company other than with respect to the adjustments
and, accordingly, we do not express an opinion or any other form of assurance on the March 31, 2024 financial statements taken as a whole.
The previously issued consolidated financial statements of the Company for the year ended March 31, 2024 were audited by another auditor
who expressed an unmodified opinion on those consolidated financial statements on July 15, 2024.

Material
Uncertainty Related to Going Concern

The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
2 to the financial statements, the Company was in violation of a financial covenant under its Revolving Credit Agreement as of March
31, 2025. Due to non-compliance with certain covenants the Company reclassified of the outstanding loan balance of $8.41 million from
non-current to current liabilities. These circumstances raise substantial doubt about the Company’s ability to continue as a going
concern. Management’s plans to address this matter are also described in Note 2. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.

Basis
for Opinion

These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal