Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 26

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 26
---
 was $3,511,286, which represented an increase of $375,324, or 12%, from gross profit in FY24 of $3,135,962.
Gross profit margin was 54% of net product revenue for FY25 and 48% of net product revenue for FY24. Gross profit increased in FY25 from
FY24 due principally to a reduction in material cost on high volume product. In FY25, we had an increase in high-margin service revenue.

Sales
and marketing expenses. Sales and marketing expenses were $1,689,503 in FY25, an increase of $55,379, or 3%, from $1,634,124 in FY24.
The increase was because of increased commissions and travel expenses.

General
and administrative expenses. General and administrative expenses were $1,400,611 in FY25, a decrease of $120,116 or 8%, from
$1,520,727 in FY24. The decrease was because of decreased regulatory fees, compensation, and outside service expenses in
FY25.

Research
and development expenses. Research and development expenses were $593,152 in FY25, a decrease
of $28,742 or 5%, from $621,894 in FY24. The decrease was the result of decreased compensation and outside services. 

Other (expense), net. Other (expense), net
of $48,218 for FY25, a decrease of 2,782 or 6%, from 51,000 in FY25. This decrease was
primarily due to reduced interest expenses.

Net loss. Net loss in FY25 of $220,198 represented
a decrease of $471,585 compared to FY24 net loss of $691,783. The net loss decrease was principally because of higher service revenue,
increased product margins, and decreased operating expenses.

Liquidity and Capital Resources

To date, 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, in some years, by
operating profits. To date, common stock and additional paid in capital totaled $24,416,347 from our inception through March 31, 2025.
Our operations used $54,948 and provided $144,389 of cash in FY25 and FY24, respectively, on net revenue of $6,555,315 and $6,585,882
in FY25 and FY24, respectively.