Company: ECIA
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001079973-25-001326
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Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
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JUNE 30, 2025

(Unaudited)

Note 1.	ORGANIZATION AND NATURE OF BUSINESS

"Encision Inc. ( the “Company”) is
a medical device company that designs, develops, manufactures, and markets patented surgical instruments that provide greater safety to
and save the lives of patients undergoing minimally-invasive surgery. The Company believes that the patent AEM® (Active Electrode
Monitoring) surgical instrument technology is changing the marketplace for electrosurgical devices and instruments by providing a solution
to a patient safety risk in laparoscopic surgery. The company's sales to date have been made principally in the United States.

The Company has an accumulated deficit of $22,806,378
at June 30, 2025. Issuances of common stock and warrants have provided a significant portion of the Company's operating funds, the exercise
of stock options to purchase common stock, loans, and (in some periods) operating profits. Shareholders’ equity decreased by $29,014
since March 31, 2025, because of a net loss of $41,133 and stock-based compensation of $12,119. Should the Company’s liquidity be
diminished in the future because of operating losses, the Company may be required to seek additional capital.

The strategic marketing and sales plan is designed
to expand the use of the company products in surgically active hospitals and surgery centers in the United States.

Note 2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation. The unaudited condensed
interim financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles accepted in the United States (GAAP) have been condensed or omitted pursuant
to such rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented
not misleading. The unaudited condensed interim financial statements and notes thereto should be read in conjunction with the financial
statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed on July 10,
2025.

The accompanying unaudited condensed interim financial
statements have been prepared, in all material respects, in conformity with the standards of accounting measurements and reflect, in the
opinion of