Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 63

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 63
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 Financial Reporting

There have been no changes in our internal control
over financial reporting that occurred during our fourth fiscal quarter that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.

Management’s Annual Report on Internal
Control over Financial Reporting

Management is responsible for establishing and maintaining
adequate internal control over financial reporting. As defined in Rules 13a-15(f) under the Securities Exchange Act of 1934, internal
control over financial reporting is a process designed by, or under the supervision of, the Company’s principal executive, principal
operating and principal financial officers, or persons performing similar functions, and effected by the Company’s board of directors,
management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with GAAP.

Our internal control over financial reporting includes
those policies and procedures that (1) pertain to the maintenance of records, that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the Company’s assets; (2) provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures
of the Company are being made only in accordance with authorizations of the Company’s management and directors; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets
that could have a material effect on the financial statements.

Because of its inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

Our management, including our principal executive
officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting at March 31, 2025.
In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) in Internal Control—Integrated Framework (2013). Based on that assessment under those criteria, management has determined
that, as of March 31,2025, our internal control over financial reporting was not effective.

Our internal controls are not effective for the following
reason: (i) there is an inadequate segregation of duties consistent with control objectives as management is comprised