Related Party Transactions |
12 Months Ended |
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Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | 14. 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. For fiscal 2026 and 2025, Zircon incurred expenses from the Contractor of $1.3 million and $1.3 million, respectively and had a net payable balance with the Contractor of $1.6 million and $1.1 million, respectively.
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 the premerger ownership of Zircon.
The Company leases from the Stauss Family Administrative Trust a 14,000 square foot facility owned by the Trust.
ZRCN Inc.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2026 AND 2025
The Company has notes payable to the Stauss Family Administrative Trust to repay loans made to the Company. As of March 31, 2026, 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, 2026 and 2025, the interest expense on notes payable to the Stauss Family Administrative Trust totaled less than $0.1 million, respectively.
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