Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 61

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 61
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2046.
The Internal Revenue Code contains provisions, which may limit the net operating loss carryforwards available to be used in any given
year if certain events occur, including significant changes in ownership interests.

6.       Major
Customers/Suppliers

We depend on sales that are generated from hospitals’
ongoing usage of AEM surgical instruments. In fiscal year 2024, we generated sales from over 400 hospitals that have changed to AEM products.
Three vendors accounted for approximately 54% of our inventory purchases.

7.       Defined
Contribution Employee Benefit Plan

We have adopted a 401(k) Profit Sharing Plan,
which covers all full-time employees who have completed at least three months of full-time continuous service and are age eighteen or
older. Participants may defer up to 20% of their gross pay up to a maximum limit determined by law. Participants are immediately vested
in their contributions. We may make discretionary contributions based on corporate financial results for the fiscal year. To date, we
have not made contributions to the 401(k) Profit Sharing Plan. Vesting in a contribution account (our contribution) is based on years
of service, with a participant fully vested after five years of credited service.

8.       Related Party Transaction

The Company engaged Finance Vision Service, Inc., a company owned
by board member Robert Fries, for consulting services. The company paid $40,727 and $32,032 in fiscal years 2025 and 2024.

9. Subsequent Events

Management evaluated all of our activity and
concluded that, as of the date the financial statements were issued, no subsequent events have occurred that would require recognition
in the financial statements or disclosure in the notes to the financial statements.

38 

Item 9. Changes In and Disagreements with Accountants on Accounting
and Financial Disclosure.

On October 17, 2023, we were notified that Gries &
Associates, LLC (“Gries”), our independent registered public accounting firm, had completed a sale of its customers to GreenGrowth
CPAs Inc. (“GreenGrowth CPAs”). As a result of this transaction, Gries resigned its engagement with us immediately.

On October 18, 2023, upon the approval of our Audit
Committee, we engaged GreenGrowth CPAs as our new independent registered public accounting firm for our fiscal year ending March 31, 2024
and interim periods.

Gries’ reports on our