Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 48

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 48
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 requisite service periods in the accompanying statements of operations.

Stock-based compensation expense recognized during
the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Stock-based
compensation expense recognized in our statements of operations for fiscal years 2024 and 2023 included compensation expense for share-based
payment awards granted prior to, but not yet vested as of March 31, 2025, based on the grant date fair value. Compensation expense for
all share-based payment is recognized using the straight-line, single-option method. As stock-based compensation expense recognized in
the accompanying statements of operations for fiscal years 2025 and 2024 is based on awards ultimately expected to vest, it has been reduced
for estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent
periods if actual forfeitures differ from those estimates.

We used the Black-Scholes option-pricing model
(“Black-Scholes model”) to determine fair value. Our determination of fair value of share-based payment awards on the date
of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and
subjective variables. These variables include, but are not limited to our expected stock price volatility over the term of the awards,
and actual and projected employee stock option exercise behaviors. Although the fair value of employee stock options is determined in
accordance with ASC 718 using an option-pricing model, that value may not be indicative of the fair value observed in a willing buyer/willing
seller market transaction.

Stock-based compensation expense recognized under
ASC 718 for fiscal years 2025 and 2024 was $46,001 and $53,552, respectively, which consisted of stock-based compensation expense related
to director and employee stock options.

Stock-based compensation expense related to director
and employee stock options under ASC 718 for fiscal years 2025 and 2024 was allocated as follows: 

    Schedule of stock-based compensation expense 

    Years Ended 
    March 31, 2025  
    March 31, 2024 
  
    Cost of sales 
    $950  
    $134 
  
    Sales and marketing 
     5,740  
     7,261 
  
    General and administrative 
     38,564  
     41,180 
  
    Research