Company: ECIA
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001079973-25-001326
Chunk: 24

Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 24
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 the SEC’s rules and forms. Based on that evaluation, and taking the matters described below into account, the Company’s
CEO and PFAO have concluded that our disclosure controls and procedures over financial reporting were not effective during the reporting
period ending June 30, 2025.

Remediation Activities Regarding Material Weakness

As disclosed in our Annual Report on Form 10-K for
the March 31, 2025, fiscal year, management determined that our internal control over financial reporting was not effective as of March
31, 2025 for the following reasons (i) there is an inadequate segregation of duties consistent with control objectives as management is
comprised of only two person, one of which is our principal executive offers as and the other is the principle financial officer.

Management has been actively engaged in remediating
the material weaknesses described above. The following remedial actions have been taken:

·We have evaluated additional
review and approval processes for key financial reporting activities to mitigate segregation of duties issues. 

·We have expanded documentation
of internal controls and policies to ensure consistency and accountability.

·Evaluated opportunities to restructure
financial reporting responsibilities as resources allow.

·Began evaluating options to
hire external consultants to assist with the design and implementation of improved internal control procedures.

While progress has been made to enhance our internal
control over financial reporting, we are still in the process of implementing these processes, procedures, and controls. Additional time
is required to complete implementation and to assess and ensure the sustainability of these procedures. We believe the above actions will
be effective in remediating the material weaknesses described above, and we will continue to devote significant time and attention to
these remedial efforts. However, the material weaknesses cannot be considered remediated until the applicable remedial controls operate
for a sufficient period of time and management has concluded that these controls are operating effectively.

Changes In Internal Control Over Financial Reporting

Other than the applicable remediation efforts described
above, there were no significant changes in our internal control over financial reporting during the quarter ended June 30, 2025, that
has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

17 

PART II.	

    Item 1. 
    Legal Proceedings

From time to time, we may become involved in legal
proceedings arising in the ordinary course of our business. We are not currently aware of any such proceedings or claims that we believe
will have, individually or in the