Company: ECIA
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001079973-25-001326
Chunk: 18

Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 18
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 product net revenue as a percentage of sales (gross margin) was 55% and 58% for the quarters ended June 30, 2025 and 2024
respectively.

Sales and marketing expenses: Sales
and marketing expenses of $404,601 for the quarter ended June 30, 2025 represented a decrease of 4% from sales and marketing expenses
of $423,237 for the quarter ended June 30, 2024. The decrease was because reduced sales commission payable during the period.

General and administrative expenses General
and administrative expenses of $328,198 for the quarter ended June 30, 2025 represented a decrease increase of 7% from general and administrative
expenses of $351,903 for the quarter ended June 30, 2024. This decrease was because of reductions in the use of contract services and
regulatory expenses.

Research and development expenses. Research
and development expenses of $165,440 for the quarter ended June 30, 2025 represented an increase of 19% compared to $139,180 for the quarter
ended June 30, 2024. The increase was because of an increase of allocated resources for product development.

13 

Net loss. Net loss was $41,133 for the
quarter ended June 30, 2025 compared to net income of $22,041 for the quarter ended June 30, 2024. The decrease to net income was
primarily because of the reduced product sales during the period.

The results of operations for the three months ending
June 30, 2025, are not necessarily indicative of the results of operations for all or any part of the balance of the fiscal year.

Liquidity and Capital Resources

To date, a significant portion of our operating
funds have been provided by issuances of our common stock and warrants, the exercise of stock options to purchase our common stock, loans,
and (in some periods) by operating profits. Common stock and additional paid-in capital totaled $24,428,466 from inception through June
30, 2025.

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,