Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 53

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 53
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 five years. During the year ended March 31,
2025, various fully vested five-year stock options to purchase 65,000 shares of common stock of us previously granted to board members
and employees expired unexercised.

The assumptions for employee stock options are
summarized as follows:

    Summary of assumptions for employee stock options 

    Year Ended 
    March 31, 2025 
  
    Dividend yield 
     0%
  
    Expected volatility 
     74% to 88% 
  
    Risk-free interest rate 
      3.9% to 4.61% 
  
    Expected life (in years) 
     5.0 
  
    Stock price 
     $0.29 to $0.70 
  
    Exercise price 
     $0.30 to $0.48 

Cumulative compensation cost recognized in net
income or loss with respect to options that are forfeited prior to vesting is adjusted as a reduction of compensation expense in the period
of forfeiture. The volatility of the stock is based on the historical volatility for the period that approximates the expected lives of
the options being valued. Fair value computations are highly sensitive to the volatility factor; the greater the volatility, the higher
the computed fair value of options granted.

The total fair value of options granted was computed
to be approximately $110,203 and $40,025 for the fiscal years ended March 31, 2025 and 2024, respectively. For disclosure purposes, these
amounts are amortized ratably over the vesting periods of the options. Effects of stock-based compensation, net of the effect of forfeitures,
totaled $46,000 and $53,552 for fiscal years 2025 and 2024, respectively.

The Black-Scholes model was developed for use
in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation
models require the use of assumptions, including the expected stock price volatility. Because our employee stock options have characteristics
significantly different than those of traded options, and because changes in the subjective input assumptions can materially affect the
fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair
value of our employee stock options. A summary of our stock option activity and related information for equity compensation plans approved
by security holders for each of the fiscal years ended March