Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 58

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 58
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 purchase equipment. The note is secured by the equipment.

The minimum future U.S. Bank payment, by fiscal
year, as of March 31, 2025 is as follows:

    Schedule of principal U.S. Bank payment  

    Fiscal Year  
    Amount 
  
     2026  
     15,333 
  
     Total  
    $15,333 

During June 2022, we 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 March 31, 2025 is as follows:

    Schedule of principal U.S. Bank payment  

    Fiscal Year  
    Amount 
  
     2026  
     23,794 
  
     2027  
     23,794 
  
     2028  
     7,931 
  
     Total  
    $55,519 

We are subject to regulation by the United States
Food and Drug Administration (“FDA”). The FDA provides regulations governing the manufacture and sale of our products and
regularly inspects us and other manufacturers to determine our and their compliance with these regulations. As of March 31, 2024, we believe
we were in substantial compliance with all known regulations. FDA inspections are conducted periodically at the discretion of the FDA.
We were last inspected in October 2019.

Our obligation with respect to employee severance
benefits is minimized by the “at will” nature of the employee relationships. Our total obligation with respect to contingent
severance benefit obligations was none as of March 31, 2024 and 2023.

    36 

5.       Income
Taxes

We account for income taxes under ASC 740, which
requires the use of the liability method. ASC 740 provides that deferred income tax assets and liabilities are recorded based on the differences
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary
differences. Deferred income tax assets and liabilities at the end of each period are determined using the currently enacted tax rates
applied to taxable income in the periods in which the deferred income tax assets and liabilities are expected to be settled or realized.

Income tax provision (