ZRCN Inc. reported a net loss of $1.37 million for the three months ended December 31, 2025, compared to a net income of $48,000 in the same period of the prior year. For the nine months ended December 31, 2025, the net loss was $3.87 million, compared to a net loss of $69,000 in the prior year. Total assets decreased to $22.0 million as of December 31, 2025, from $23.4 million as of March 31, 2025. Total liabilities increased to $20.0 million from $17.8 million during the same period. Equity attributable to ZRCN Inc. stockholders significantly decreased to $131,000 as of December 31, 2025, from $3.89 million as of March 31, 2025. The company secured a new $12.5 million senior secured revolving credit facility on March 17, 2026, which was used to repay its previous $15.0 million credit facility with FGI Worldwide, LLC. Despite the new financing, the company's ability to continue as a going concern remains in doubt due to recurring losses and non-compliance with previous credit facility covenants. Tariffs on imported goods significantly impacted cost of goods sold, contributing to a decrease in gross margin. The company is implementing actions to mitigate tariff impacts, including adjusting sourcing strategies, selective price increases, and improving operational efficiencies.