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

Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 10
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,000 or 85% of eligible accounts
receivable. The interest rate is the prime rate plus 0.5%, with a floor of 6.75%, plus a monthly maintenance fee. Of .04%, 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. The balance under the line of credit is fully collateralized
by invoices included in our accounts receivable.

The minimum future EIDL payment by fiscal year as
of June 30, 2025, is as follows:

    Schedule of principal U.S. Bank payment

    Fiscal Year

    Amount

    2026

    3,956

    2027

    5,275

    2028

    5,275

    2029

    5,275

    Thereafter

    129,714

    Total

    $
    149,495

    8 
    ENCISION INC. NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS JUNE 30, 2025(Unaudited)

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

The minimum future U.S. Bank payment by fiscal year
as of June 30, 2025, is as follows:

    Schedule of principal U.S. Bank payment

    Fiscal Year

    Amount

    2026

    10,733

    Total

    $
    10,733

During June 2022, the Company entered into a note
agreement with U.S. Bank for $118,970. The note is for five years at a 6% interest rate and the proceeds were used to purchase equipment.
The note is secured by the equipment.

The minimum future principal U.S. Bank payment by
fiscal year as of June 30, 2025, is as follows:

    Schedule of principal U.S. Bank payment

    Fiscal Year

    Amount

    2026

    17,846