Company: ECIA
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001079973-25-001326
Chunk: 8

Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 8
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, 2024 
  
    Net (loss) income 
    $(41,133) 
    $22,041 
  
    Weighted-average basic shares outstanding 
     11,879,645  
     11,879,145 
  
    Effect of dilutive securities 
     —  
     31,773 
  
    Weighted-average diluted shares 
     11,879,645  
     11,906,918 
  
    Basic net (loss) income per share 
    $(0.00) 
    $0.00 
  
    Diluted net (loss) income per share 
    $(0.00) 
    $0.00 

    Antidilutive employee stock options 
     1,003,916  
     1,044,227 

    7 
    ENCISION INC. NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS JUNE 30, 2025(Unaudited)

Note 4.	COMMITMENTS AND CONTINGENCIES

The Company has a noncancelable lease agreement for
our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease expires October 31, 2028.

In February 2016, the FASB issued ASU No. 2016-02,
Leases (Topic 842) ("ASU 2016-02"), which modified lease accounting for both lessees and lessors to increase transparency and
comparability by recognizing lease assets and lease liabilities by lessees for those leases classified as either finance or operating
leases under previous accounting standards and disclosing key information about leasing arrangements. The Company adopted Topic 842 on
April 1, 2019, using the alternative modified transition method, which requires a cumulative effect adjustment, if any, to the opening
balance of retained earnings to be recognized on the date of adoption with prior periods not restated. There was no cumulative effect
adjustment recorded on April 1, 2019. The primary impact was the balance sheet recognition of right-of-use (“ROU”) assets
and lease liabilities for operating leases as a lessee.

The Company determines if an arrangement contains
a lease at inception. The Company currently does not have any finance leases. Operating lease ROU assets and operating lease liabilities
are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. ROU