Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 21

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 21
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 in the
form of finished goods or sub-assemblies that we then assemble and test. While these sub-contractors reduce our total cost of manufacturing,
they may not be as responsive to increased demand as we would be if we had our manufacturing capacity entirely in-house, which may limit
our growth strategy and sales.

12 

The potential fluctuation in future quarterly
results may cause our stock price to fluctuate. We expect that our operating results could fluctuate significantly from quarter to
quarter in the future and will depend upon a number of factors, many of which are outside our control. These factors include the extent
to which our AEM technology and related accessories gain market acceptance; our investments in marketing, sales, research and development
and administrative personnel necessary to support growth; our ability to expand our market share; actions of competitors; and, general
economic conditions. The market value of our common stock has dramatically fluctuated in the past and is likely to fluctuate in the future.
Any of these factors, or factors not listed, could have an immediate and significant negative impact on the market price of our stock.

Our common stock is thinly traded, the prices
at which it trades are volatile and the buying or selling actions of a few shareholders may adversely affect our stock price. As of
May 31, 2025, we had a public float, which is defined as shares outstanding minus shares held by our officers, directors, or beneficial
holders, of greater than 10% of our outstanding common stock, of 7,644,988 shares, or 64% of our outstanding common stock. The average
number of shares traded in any given day over the past year has been relatively small compared to the public float. Thus, the actions
of a few shareholders either buying or selling shares of our common stock may adversely affect the price of the shares. Historically,
thinly traded securities such as our common stock have experienced extreme price and volume fluctuations that do not necessarily relate
to operating performance.

Product liability claims may exceed our current
insurance coverage. We face an inherent business risk of exposure to product liability claims in the event that the use of our products
is alleged to have resulted in adverse effects to a patient. We maintain a general liability insurance policy up to the amount of $10,000,000
that includes coverage for product liability claims. Liability claims may be excluded from the policy, may exceed the coverage limits
of the policy, or the insurance may not continue to be available on commercially reasonable