Related Party Transactions |
3 Months Ended |
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Jun. 30, 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 7would 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 the Company. 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.
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 premerger ownership of Zircon.
The Company leases from the Stauss Family Administrative Trust a 14,000 square foot facility owned by the Trust.
The Company has notes payable to the Stauss Family Administrative Trust to repay loans made to the Company. As of June 30, 2026, principal balance of $1.2 million is due and payable in December 2027. Interest for the initial loan balance of $0.7 million accrues at 5.5% per annum, is paid quarterly, and is included in accrued expenses. The second borrowing of $0.5 million, which occurred during June 2026, accrues at 6.0% per annum, is paid quarterly, and is included in accrued expenses. The notes are subordinated to the Lender and no principal payment is to be made on the notes without prior approval from the Lender. For the three months ended June 30, 2026 and 2025, the interest expense on notes payable to the Stauss Family Administrative Trust totaled less than $0.1 million, respectively.
ZRCN Inc. CONDENSED NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED JUNE 30, 2026 AND 2025
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