Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 57

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 57
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6 years 
  
    Weighted-average discount rate 
     5.0%

On November 2, 2022, we entered into a loan
and security agreement with Pathward, N.A. The loan is due on demand and has no financial covenants. Under the agreement, we were provided
with a line of credit that is not to exceed the lesser of $1,000,000 or 85% of eligible accounts receivable. The interest rate is prime
rate plus 0.5%, with a floor of 6.75%, plus a monthly maintenance fee of 0.4%, based on the average monthly loan balance. Interest is
charged on a minimum loan balance of $300,000, a loan fee of 0.5% at closing and annually, and an exit fee of 3%, 2%, and 1% during years
one, two, and three, respectively.

On August 4, 2020, we received $150,000 in loan
funding from the U.S. Small Business Administration (“SBA”) under the Economic Injury Disaster Loan (“EIDL”) program
administered by the SBA, which program was expanded pursuant to the CARES Act. The EIDL is evidenced by a promissory note, dated August
1, 2021 in the original principal amount of $150,000 with the SBA, the lender. Under the terms of the Note, interest accrues on the outstanding
principal at the rate of 3.75% per annum. The term of the Note is thirty years, though it may be payable sooner upon an event of default
under the Note.

    35 

The minimum future EIDL payment, by fiscal year,
as of March 31, 2025 is as follows:

    Schedule of principal U.S. Bank payment  

    Fiscal Year  
    Amount 
  
     2026  
    $5,275 
  
     2027  
     5,275 
  
     2028  
     5,275 
  
     2029  
     5,275 
  
     Thereafter  
     129,646 
  
     Total  
    $150,746 

During September 2020, we entered into a note agreement with U.S. Bank for $92,000. The note is for five years at a 5% interest rate and
the proceeds were used to