Company: ECIA
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001079973-25-001326
Chunk: 7

Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 7
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(Unaudited)

Recently Issued Accounting Pronouncements.

In November 2024, the FASB issued ASU 2024-03, Income
Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement
Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income
statement. The new disclosure requirements are effective for the Company's annual periods for fiscal years beginning after December 15,
2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either
prospectively or retrospectively. We are currently evaluating the ASU to determine its impact on our consolidated financial statements
and disclosures.

ASC Topic 326 (CECL). ASC Topic 326, Financial
Instruments—Credit Losses, replaces the incurred-loss model with a forward-looking current expected credit loss model that requires
recognition of lifetime expected credit losses on financial assets measured at amortized cost and certain off-balance-sheet credit exposures
(including trade accounts receivable and contract assets), using historical experience, current conditions, and reasonable and supportable
forecasts. The Company is evaluating the impact of adopting Topic 326 on its consolidated financial statements and related disclosures.

The Company does not believe that issued, but not
yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

Note 3.	BASIC AND DILUTED INCOME AND LOSS PER COMMON SHARE

The Company reports both basic and diluted net (loss)
income per share. Basic net income or loss per common share is computed by dividing net income or loss for the period by the weighted
average number of common shares outstanding for the period. Diluted net income or loss per common share is computed by dividing the net
income or loss for the period by the weighted average number of common and potential common shares outstanding during the period if the
effect of the potential common shares is dilutive. The shares used in the calculation of dilutive potential common shares exclude options
to purchase shares where the exercise price was greater than the average market price of common shares for the period.

The following table presents the calculation of basic
and diluted net (loss) income per share:

    Schedule of basic and diluted net income (loss) per share 

    Three Months Ended 

    June 30, 2025  
    June 30