Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 44

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 44
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 the term until October 31, 2026. The balances as of March 31, 2025 and 2024, for the Right of Use
Asset were $568,395 and $900,787, respectively. The balances as of March 2025 and 2024 for Lease Liabilities were $696,610 and $1,066,987,
respectively.

Property and Equipment. Property and equipment
are stated at cost, with depreciation computed over the estimated useful lives of the assets, generally three to seven years. We use the
straight-line method of depreciation for property and equipment. Leasehold improvements are depreciated over the shorter of the remaining
lease term or the estimated useful life of the asset. Maintenance and repairs are expensed as incurred and major additions, replacements
and improvements are capitalized. Depreciation expense for the years ended March 31, 2025 and 2024 was $63,663 and $61,322, respectively.
Property and equipment additions for the years ended March 31, 2025 and 2024 were $54,415 and $12,050, respectively. Property and equipment
is comprised principally of equipment and is depreciated over seven years.

Long-Lived Assets. Long-lived assets are
reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
A long-lived asset is considered impaired when estimated future cash flows related to the asset, undiscounted and without interest, are
insufficient to recover the carrying amount of the asset. If deemed impaired, the long-lived asset is reduced to its estimated fair value.
Long-lived assets to be disposed of are reported at the lower of their carrying amount or estimated fair value less cost to sell.

Patents. The costs of applying for patents
are capitalized and amortized on a straight-line basis over the lesser of the patent’s economic or legal life (20 years from the
date of application in the United States). Capitalized costs are expensed if patents are not issued. We review the carrying value of our
patents periodically to determine whether the patents have continuing value and such reviews could result in the conclusion that the recorded
amounts have been impaired. A summary of our patents at March 31, 2025 and 2024 is as follows:

    Summary of patents 

    March 31,
    2025  
    March 31,
    2024 
  
    Patents issued 
     483,