Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 47

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 47
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 product revenue, we do not believe
further disaggregation is necessary as substantially all our product revenue comes from multiple products within a line of medical devices.
Our engineering service contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed.

We determine revenue recognition through the
following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract;
(3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract (where
revenue is allocated on a relative standalone selling price basis by maximizing the use of observable inputs to determine the standalone
selling price for each performance obligation); and (5) recognition of revenue when, or as, we satisfy a performance obligation

Topic 606 requires the disaggregation of revenue
into broad categories, which we have defined as shown below.

    Schedule of disaggregation revenue  

    March 31, 2025  
    March 31, 2024 
  
    Product revenue 
    $6,217,687  
    $6,431,969 
  
    Service revenue 
     337,628  
     153,913 
  
    Total revenues 
    $6,555,315  
    $6,585,882 

    30 

Sales Taxes. We collect sales tax from
customers and remit the entire amount to each respective state. We recognize revenue from product sales net of sales taxes.

Research and Development Expenses. We
expense research and development costs for products and processes as incurred.

Advertising Costs. We expense advertising
costs as incurred. Advertising expense for the years ended March 31, 2025 and 2024 was minimal.

Stock-Based Compensation.  Stock-based
compensation is presented in accordance with the guidance of ASC Topic 718, “Compensation – Stock Compensation” (“ASC
718”). Under the provisions of ASC 718, companies are required to estimate the fair value of share-based payment awards on the date
of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense
over the requisite service periods in our statements of operations.

ASC 718 requires companies to estimate the fair
value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is
ultimately expected to vest is recognized as expense over the