Company: ECIA
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001079973-25-001326
Chunk: 1

Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 1
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 management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods
in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period
are not necessarily indicative of the results to be expected for the full year.

The Company had a net loss of $41,133 for the three
months ended June 30, 2025. At June 30, 2025, the Company had cash of $47,918, current borrowings of $320,440, and borrowing capacity
up to $679,560, as restricted by eligible accounts receivable, under the line of credit. Working capital was $1,172,666 an increase of
$135,816 from March 31, 2025. The Company decreased $209,515 of cash in the fiscal three months ended June 30, 2025, primarily because
of cash used by operating activities and repayment of borrowings. Management is developing plans to ensure the Company has the working
capital necessary to fund operations. The Company increased the pricing of products to mitigate higher material costs. Management concludes
that it is probable that cash resources and line of credit will be sufficient to meet cash requirements for twelve months from the issuance
of the unaudited condensed financial statements. Therefore, the accompanying unaudited condensed financial statements have been prepared,
assuming the Company will continue as a going concern.

Use of Estimates in the Preparation of Financial
Statements. Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates
and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of sales and expenses during the reporting period. Actual results could differ from
those estimates.

    4 
    ENCISION INC. NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS JUNE 30, 2025(Unaudited)

Cash and Cash Equivalents. For purposes of
reporting cash flows, the company considers all cash and highly liquid investments with an original maturity of three months or less to
be cash equivalents.

Fair Value of Financial Instruments. The financial
instruments consist of cash, trade receivables, payables, secured notes, and an Economic Injury Disaster Loan (“EIDL”) loan.
The carrying values of cash and trade receivables approximate their fair value due to their short maturities