Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 17

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 17
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 and independent sales representatives and optimize their performance could adversely affect our financial results.

We may need additional funding to support
our operations. We were formed in 1991 and have incurred losses of approximately $23 million since that date. We have primarily financed
research, development and operational activities with issuances of our common stock and warrants, the exercise of stock options to purchase
our common stock, loans, and, in some years, by operating profits. For the fiscal year ended March 31, 2025, our cash used in operations
was $54,948. At March 31, 2025, we had cash and equivalents of $257,433. If we are unable to maintain cash flows sufficient to support
ongoing operations, we will need to seek additional financing. There is no assurance that we will be able to raise additional capital
on acceptable terms or at all. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage
ownership of our existing stockholders could be diluted, and these newly issued securities may have rights, preferences or privileges
senior to those of existing stockholders. If we raise additional funds through debt financing, which may involve restrictive covenants,
our ability to operate our business may be restricted. If adequate funds are not available or are not available on acceptable terms, if
and when needed, our ability to fund our operations, our business, results of operations and financial condition could be materially and
adversely affected.

We may not be able to compete successfully
against current manufacturers of conventional (“unshielded, unmonitored”) electrosurgical instruments or against competitors
who manufacture products that are based on surgical technologies that are alternatives to monopolar electrosurgery. The electrosurgical
products market is intensely competitive. We expect that manufacturers of “unshielded, unmonitored” electrosurgical instruments
will resist any loss of market share that might result from the presence of our “shielded and monitored” instruments in the
marketplace. We also believe that manufacturers of products that are based upon surgical technologies that are alternatives to monopolar
electrosurgery are our competitors. These technologies include bipolar electrosurgery, the harmonic scalpel and lasers. The alternative
technologies may gain market share and new competitive technologies may be developed and introduced. Most of our competitors and potential
competitors have significantly greater financial, technical, product development, marketing and other resources than we do. Most of our
competitors also currently have substantial