Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 20

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 20
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 success will continue to depend in part on our ability to maintain patent protection for our
products and processes, to preserve our trade secrets and to operate without infringing the proprietary rights of third parties. We have
16 issued U.S. patents on several technologies embodied in our AEM Monitoring system, AEM instruments and related accessories and we have
applied for additional U.S. patents. In addition, we have four issued foreign patents. The validity and breadth of claims coverage in
medical technology patents involve complex legal and factual questions and may be highly uncertain. Also, patents may not protect our
proprietary information and know-how or provide adequate remedies for us in the event of unauthorized use or disclosure of such information,
and others may be able to develop competing technology, independent of such information. There has been substantial litigation regarding
patent and other intellectual property rights in the medical device industry. Litigation may be necessary to enforce patents issued to
us, to protect trade secrets or know-how owned by us, to defend us against claimed infringement of the rights of others or to determine
the ownership, scope or validity of our proprietary rights or those of others. Any such claims may require us to incur substantial litigation
expenses and to divert substantial time and effort of management personnel and could substantially decrease the amount of capital available
for our operations. An adverse determination in litigation involving the proprietary rights of others could subject us to significant
liabilities to third parties, could require us to seek licenses from third parties, and could prevent us from manufacturing, selling or
using our products. The occurrence of any such actual or threatened litigation or the effect on our business of such litigation may materially
adversely affect our financial position, results of operations and cash flows. Additionally, our assessment that a patent is no longer
of value could result in a significant charge against our earnings.

We depend on single source suppliers for certain
of the key components of our products and sub-contractors to provide much of the materials used in the manufacturing of our products.
The loss of a supplier or limitation in supply from existing suppliers could have a material adverse effect on our ability to manufacture
our products until a new source of supply is located. Although we believe that there are alternative suppliers, any interruption in
the supply of key components could have a material adverse effect on us. A sudden increase in customer demand may create a backorder situation
as lead times for some of our critical materials are in excess of 16 weeks. We rely on subcontractors to provide products, either