Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 40

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 40
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   Description
of Business and Basis of Presentation 

Encision Inc. is a medical device company that
designs, develops, manufactures and markets patented surgical instruments that provide greater safety to patients undergoing minimally-invasive
surgery. We believe that our patented AEM® surgical instrument technology is changing the marketplace for electrosurgical
devices and instruments by providing a solution to a well-documented risk in laparoscopic surgery. Our sales to date have been made primarily
in the United States. Sales included $424,732 from Australia and $62,140 from New Zealand. 

We have an accumulated deficit of $22,765,245
at March 31, 2025. Operating funds have been provided primarily by issuances of our common stock and warrants, the exercise of stock options
to purchase our common stock, loans, and by operating profits. Our liquidity has diminished because of prior years’ operating losses,
and we may be required to seek additional capital in the future.

Our strategic marketing and sales plan is designed
to expand the use of our products in surgically active hospitals in the United States.

In February 2024, we signed a Proof-of-Concept Services
Agreement with Vicarious Surgical Inc. (“Vicarious”). The Vicarious robot design intends to maximize visualization, precision,
and control of instruments in robotic-assisted minimally invasive surgery.

We had net loss available to shareholders of $220,198
and $691,783
for the fiscal years ended March 31, 2025 and 2024, respectively. At March 31, 2025, we had $257,433
in cash available to fund future operations. We increased our pricing on products to mitigate our higher material costs. We have a line
of credit for up to $1 million, restricted by eligible
receivables. Management concludes that it is probable that our cash resources and line of credit will be sufficient to meet our cash
requirements for twelve months from the issuance of the financial statements.

The accompanying consolidated financial statements
have been prepared assuming that we will continue as a going concern.

Certain
prior year balances have been reclassified to conform with the current year presentation. In presenting the Company’s consolidated
balance sheet at March 31, 2024, the Company presented $156,685 EIDL note payable as a line of credit. In presenting the Company’s
consolidated balance sheet at March 31, 2025, the Company has reclassified the balance of