Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 60

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 60
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uation allowance 
     (2,296,000) 
     (2,616,000)
  
    Long-term deferred tax assets 
     —  
     — 

    Total deferred tax assets 
     —  
     — 
  
    Valuation allowance 
     —  
     — 
  
    Long-term deferred tax liabilities 
     —  
     — 

    Total deferred tax liabilities 
     —  
     — 

    Net deferred tax assets (liabilities) 
    $—  
    $— 

    37 

The primary components of our deferred tax assets
are described below:

    Years Ended 
    March
    31, 2025  
    March
    31, 2024 
  
    Differences in reporting long-term 	assets 
    $17,000  
    $16,000 
  
    Credits and net operating loss carryforwards 
     2,296,000  
     2,616,000 
  
    Less valuation allowance 
     (2,313,000) 
     (2,600,000)
  
    Total deferred tax assets 
    $—  
    $— 

In assessing the realizability of deferred tax
assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which
net operating losses and reversal of timing differences may offset taxable income. Management considers the scheduled reversal of deferred
tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. A valuation allowance is provided
when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to our lack of earnings history,
the net deferred tax assets have been fully offset by a valuation allowance.

As of March 31, 2025, we had approximately $8.2
million of net operating loss carryovers for tax purposes. Additionally, we have approximately $239,000 of research and development tax
credits available to offset future federal income taxes. The net operating loss and credit carryovers begin to expire in the fiscal year
ended March 31, 2026. In fiscal years ended after March 31, 2025, net operating losses expire at various dates through March 31,