# EDGAR Filing Document

**Accession Number:** 0000930775
**File Stem:** 0001079973-25-001709
**Filing Date:** 2025-11
**Character Count:** 136408
**Document Hash:** b742974a83fb69ca0860512a26862800
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001079973-25-001709.hdr.sgml**: 20251113

**ACCESSION NUMBER**: 0001079973-25-001709

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 49

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251113

**DATE AS OF CHANGE**: 20251113

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ENCISION INC
- **CENTRAL INDEX KEY:** 0000930775
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 841162056
- **STATE OF INCORPORATION:** CO
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-11789
- **FILM NUMBER:** 251478408

**BUSINESS ADDRESS:**
- **STREET 1:** 6797 WINCHESTER CIRCLE
- **CITY:** BOULDER
- **STATE:** CO
- **ZIP:** 80301
- **BUSINESS PHONE:** 303-444-2600

**MAIL ADDRESS:**
- **STREET 1:** 6797 WINCHESTER CIRCLE
- **CITY:** BOULDER
- **STATE:** CO
- **ZIP:** 80301

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ELECTROSCOPE INC
- **DATE OF NAME CHANGE:** 19960502

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 21549**

**Form 10-Q**

&nbsp;&nbsp;&nbsp;&nbsp;**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended September 30, 2025**

**OR** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from __________ to________**

**Commission file number: 001-11789**

**ENCISION INC.**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Colorado** | **84-1162056** |
| **(State or other jurisdiction of**<br> **incorporation or organization)** | **(I.R.S. Employer Identification No.)** |

---

**6797 Winchester Circle**

**Boulder, Colorado 80301**

**(Address of principal executive offices)**

**(303) 444-2600**

**(Registrant's telephone number)**

<u>Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:</u>

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading Symbol(s) | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, no par value | &nbsp;&nbsp;ECIA | &nbsp;&nbsp;OTC Bulletin Board |

---

Securities registered under Section 12(g) of the Act: **None**

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated Filer☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:

Common Stock no par value (Class) 16,879,645 Shares (outstanding at November 10, 2025)

**ENCISION INC.**

**FORM 10-Q**

**For the Three and Six Months ended September 30, 2025**

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | **Page Number** |
| **PART I.** | [FINANCIAL INFORMATION](#a_001) | 1 |
| **ITEM 1 -** | [Condensed Unaudited Interim Financial Statements:](#a_002) | 1 |
|  | [Condensed Unaudited Balance Sheets as of September 30, 2025, and Audited Balance Sheets as of March 31, 2025](#a_003) | 1 |
|  | [Condensed Unaudited Statements of Operations for the Three and Six Months Ended September 30, 2025 and 2024](#a_004) | 2 |
|  | [Condensed Unaudited Statements of Cash Flows for the Six Months Ended September 30, 2025 and 2024](#a_005) | 3 |
|  | [Notes to Condensed Unaudited Interim Financial Statements](#a_006) | 4 |
| **ITEM 2 -** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_007) | 11 |
| **ITEM 3 -** | [Quantitative and Qualitative Disclosures About Market Risk](#a_008) | 17 |
| **ITEM 4 -** | [Controls and Procedures](#a_009) | 18 |
| **PART II.** | [OTHER INFORMATION](#a_010) | 19 |
| **ITEM 1 -** | [Legal Proceedings](#a_011) | 19 |
| **ITEM 1A -** | [Risk Factors](#a_012) | 19 |
| **ITEM 2 -** | [Unregistered Sales of Equity Securities and Use of Proceeds](#a_013) | 19 |
| **ITEM 3 -** | [Defaults Upon Senior Securities](#a_014) | 19 |
| **ITEM 4 -** | [Mine Safety Disclosures](#a_015) | 19 |
| **ITEM 5 -** | [Other Information](#a_016) | 19 |
| **ITEM 6 -** | [Exhibits](#a_017) | 20 |
| **[SIGNATURES](#a_018)** | **[SIGNATURES](#a_018)** | 21 |

---

i

**<u>PART I</u> <u>FINANCIAL INFORMATION</u>**

**ITEM 1** **-Condensed Interim Financial Statements**

**Encision Inc.**

**Condensed Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025 <br> Unaudited** | **March 31, 2025<br> Audited** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash | $71731 | $257433 |
| &nbsp;&nbsp;Accounts receivable | 761947 | 786471 |
| &nbsp;&nbsp;Inventories | 1468863 | 1483182 |
| &nbsp;&nbsp;Prepaid expenses | 144331 | 85679 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 2446872 | 2612765 |
| &nbsp;&nbsp;Equipment: |  |  |
| &nbsp;&nbsp;Furniture, fixtures and equipment, at cost | 2628661 | 2585446 |
| &nbsp;&nbsp;Accumulated depreciation | (2378645) | (2340689) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment, net | 250016 | 244757 |
| &nbsp;&nbsp;Right of use asset | 1116454 | 568395 |
| &nbsp;&nbsp;Patents, net | 161427 | 171890 |
| &nbsp;&nbsp;Other assets | 81990 | 72892 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $4056759 | $3670699 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Accounts payable | $314815 | $346900 |
| &nbsp;&nbsp;Line of credit | 31706 | 395964 |
| &nbsp;&nbsp;Secured notes | 35202 | 44128 |
| &nbsp;&nbsp;Accrued compensation | 199657 | 180850 |
| &nbsp;&nbsp;Deferred Revenue |  | 17401 |
| &nbsp;&nbsp;Other accrued liabilities | 147019 | 160274 |
| &nbsp;&nbsp;Accrued lease liability | 343172 | 430398 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1071571 | 1575915 |
| Long-term liabilities: |  |  |
| &nbsp;&nbsp;Secured notes | 162249 | 177470 |
| &nbsp;&nbsp;Accrued lease liability | 958152 | 266212 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2191972 | 2019597 |
| **Commitments and contingencies (Note 4)** | **—** |  |
| **Shareholders' equity:** |  |  |
| &nbsp;&nbsp;Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding |  |  |
| &nbsp;&nbsp;Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 16,879,645 and 11,879,645 issued and outstanding at September 30, 2025, and March 31, 2025, respectively | 24938998 | 24416347 |
| &nbsp;&nbsp;Accumulated (deficit) | (23074211) | (22765245) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 1864787 | 1651102 |
| &nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $4056759 | $3670699 |

---

The accompanying notes to financial statements are an integral part of these unaudited condensed financial statements.

**Encision Inc.**

**Condensed Statements of Operations**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **September 30, 2025** | **September 30, 2024** | **September 30, 2025** | **September 30, 2024** |
| NET REVENUE: |  |  |  |  |
| &nbsp;&nbsp;Product | $1481802 | $1653820 | $2974634 | $3245779 |
| &nbsp;&nbsp;Service | 46248 | 101568 | 156144 | 140539 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1528050 | 1755388 | 3130778 | 3386318 |
| COST OF REVENUE: |  |  |  |  |
| &nbsp;&nbsp;Product | 805734 | 882886 | 1472545 | 1550520 |
| &nbsp;&nbsp;Service | 24983 | 44020 | 82441 | 64653 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 830717 | 926906 | 1554986 | 1615173 |
| GROSS PROFIT | 697333 | 828482 | 1575792 | 1771145 |
| OPERATING EXPENSES: |  |  |  |  |
| &nbsp;&nbsp;Sales and marketing | 395793 | 458480 | 800394 | 881716 |
| &nbsp;&nbsp;General and administrative | 358639 | 373405 | 686838 | 725310 |
| &nbsp;&nbsp;Research and development | 201392 | 155515 | 366832 | 294695 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 955824 | 987400 | 1854064 | 1901721 |
| OPERATING (LOSS) | (258491) | (158918) | (278272) | (130576) |
| &nbsp;&nbsp;Interest expense, net | (11384) | (10598) | (29393) | (16967) |
| &nbsp;&nbsp;Other (expense) income, net | 2042 | (746) | (1301) | (679) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense and other income (expense), net | (9342) | (11344) | (30694) | (17646) |
| (LOSS) BEFORE PROVISION FOR <br>INCOME TAXES | (267833) | (170262) | (308966) | (148222) |
| Provision for income taxes |  |  |  |  |
| NET (LOSS) | $(267833) | $(170262) | $(308966) | $(148222) |
| Net (loss) per share—basic and diluted | $(0.02) | $(0.01) | $(0.02) | $(0.01) |
| Weighted average shares—basic and diluted | 14187337 | 11875145 | 13033491 | 11875145 |

---

The accompanying notes to financial statements are an integral part of these unaudited condensed financial statements.

**Encision Inc.**

**Condensed Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| **Six Months Ended** | **September 30, 2025** | **September 30, 2024** |
| Cash flows (used in) operating activities: |  |  |
| &nbsp;&nbsp;Net (loss) | $(308966) | $(148222) |
| &nbsp;&nbsp;Adjustments to reconcile net (loss) income to net cash (used in) provided by <br>operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 48570 | 42525 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense related to stock options | 22651 | 25011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for potential inventory obsolescence | 2569 | 83152 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use asset, net | 56656 | (6909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 24524 | 74127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 11750 | 154520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (55968) | 15935 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (49487) | (26678) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and other accrued liabilities | 5552 | (20762) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (242149) | 192699 |
| Cash flows (used in) investing activities: |  |  |
| &nbsp;&nbsp;Acquisition of property and equipment | (43215) | (42559) |
| &nbsp;&nbsp;Patent and Trademark costs | (11933) | (17359) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) investing activities | (55148) | (59918) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;(Repayments) Borrowing from line of credit | (364258) | (77834) |
| &nbsp;&nbsp;(Payments) from options exercised | **—** | (1449) |
| &nbsp;&nbsp;Proceeds from issuance of common stock | 500000 | **—** |
| &nbsp;&nbsp;(Paydown) Draw on Secured notes | (24147) | 134007 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 111595 | 54724 |
| Net (decrease) increase in cash | (185702) | 187505 |
| Cash, beginning of fiscal year | 257433 | 42509 |
| Cash, end of six months | $71731 | $230014 |
| Supplemental disclosures of cash flow information: |  |  |
| &nbsp;&nbsp;Cash paid during the year for interest | $29393 | $16967 |

---

The accompanying notes to financial statements are an integral part of these unaudited condensed financial statements.

**<u>ENCISION INC.</u>**

**<u>NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS</u>**

**SEPTEMBER 30, 2025**

**(Unaudited)**

Note 1. <u>ORGANIZATION AND NATURE OF BUSINESS</u>

Encision Inc. (the "Company") is a medical device company that designs, develops, manufactures and markets patented surgical instruments that provide greater safety to, and saves lives of, patients undergoing minimally-invasive surgery. The Company believes that the patented AEM<sup>®</sup> (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 $23,074,211 at September 30, 2025. A significant portion of the Company's operating funds has been provided by issuances of common stock and warrants, the exercise of stock options to purchase common stock, loans, and (in some periods) by operating profits. Shareholders' equity increased by $213,685 since March 31, 2025, because of the issuance of common stock $500,000, net loss of $308,966, and stock-based compensation of $22,651. 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's products in surgically active hospitals and surgery centers in the United States.

Note 2. <u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u>

<u>Basis of Presentation.</u> 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 the 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 management, all adjustments necessary to summarize fairly the financial position and results of operations for such periods in accordance with GAAP. All adjustments are of a normal recurring nature. The results of operations for the most recent interim period are not necessarily indicative of the results to be expected for the full year.

The Company had a net loss of $267,833 and $308,966 for the three and six months ended September 30, 2025, respectively. At September 30, 2025, the Company had cash of $71,731 current borrowings of $31,706 and borrowing capacity up to $968,294, as restricted by eligible accounts receivable, under the line of credit. Working capital was $1,375,301, an increase of $338,451 from March 31, 2025. The Company realized a decrease in cash of $185,702 in the fiscal six months ended September 30, 2025, primarily because of cash used by operating activities. Management concludes that it is probable that cash resources and line of credit will only provide funding for our operations into the first fiscal quarter of 2027. Accordingly, there is substantial doubt as to whether existing cash resources are sufficient to enable the Company to continue its operations for the next 12 months as a going concern. Our management is evaluating and pursuing different strategies to obtain the required funding for our operations. To address the Company's capital needs, the Company must continue to actively pursue additional equity or debt financing. The Company has been in ongoing discussions with potential investors with respect to such financing. Adequate financing opportunities might not be available to the Company, when and if needed, on acceptable terms or at all. If the Company is unable to obtain additional financing in sufficient amounts or on acceptable terms under such circumstances, the Company's operating results and prospects will be adversely affected. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

<u>Use of Estimates in the Preparation of Financial Statements.</u> The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.

<u>ENCISION INC.</u><br><u>NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS</u><br>SEPTEMBER 30, 2025<br>(Unaudited)<br>

<u>Cash and Cash Equivalents.</u> For purposes of reporting cash flows, the company considers all cash and highly liquid investments with an original maturity of three months or less to be cash equivalents.

<u>Fair Value of Financial Instruments.</u> The financial instruments consist of cash, trade receivables, payables, and Economic Injury Disaster Loan ("EIDL") loan. The carrying values of cash and trade receivables approximate their fair value due to their short maturities. The fair values of the EIDL loan approximates the carrying value based on estimated discounted future cash flows using the current rates at which similar loans would be made.

<u>Concentration of Credit Risk.</u> Financial instruments, which potentially subject us to concentrations of credit risk, consist of cash and accounts receivable. From time to time, the amount of cash on deposit with financial institutions may exceed the $250,000 federally insured limit. We believe that cash on deposit that exceeds $250,000 with financial institutions is financially sound, and the risk of loss is minimal.

The Company has no off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts, or other foreign hedging arrangements. The Company maintains the majority of cash balances with one financial institution in the form of demand deposits.

Accounts receivable are typically unsecured and are derived from transactions with and from entities in the healthcare industry, primarily located in the United States. Accordingly, the Company may be exposed to credit risk generally associated with the healthcare industry. The accounts receivable balance at September 30, 2025, of $761,947 and at March 31, 2025, of $786,471 included no more than 11% from any one customer.

<u>Inventories</u>. Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value ("NRV") in accordance with ASC 330. In addition to the NRV assessment, the Company maintains a stability and obsolescence ("S&O") allowance for potential excess and obsolete inventory. Under the S&O policy, any stock keeping unit ("SKU") that has had no transactional activity (sales, usage, transfers, or adjustments) for 18 consecutive months is fully reserved. The 18-month inactivity threshold is based on management's assessment of historical product turnover and expected lifecycle patterns.

Because this allowance represents a change in estimate rather than an NRV write-down, it is reassessed at each reporting date and may be increased, reduced, or reversed prospectively when new information (e.g., renewed demand or usage) becomes available. When subsequent activity demonstrates that an item is again saleable or usable, the related reserve is reversed.

If, separate from the S&O methodology, management determines that the estimated NRV of any inventory item is below its recorded cost, the item is written down to NRV in accordance with ASC 330. Such NRV write-downs, once recorded, are not reversed in later periods. Changes in the S&O allowance and any NRV write-downs are recorded in cost of goods sold. At September 30, 2025 and March 31, 2025 S&O and NVR inventory reserves consisted of $70,489 and none and $67,920 and none respectively.

At September 30, 2025, and March 31, 2025 inventory consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **March 31, 2025** |
| &nbsp;&nbsp;Raw materials | $1196326 | $1093530 |
| &nbsp;&nbsp;Finished goods | 272537 | 389652 |
| &nbsp;&nbsp;Total inventories | $1468863 | $1483182 |

---

<u>Property and Equipment</u>. Property and equipment are stated at cost, with depreciation computed over the estimated useful lives of the assets, generally five to seven years. Depreciation expense for the three and six months ended September 30, 2025, and 2024 was $20,511 and $37,956, respectively, and $16,295 and $30,438, respectively. The Company uses the straight-line method of depreciation for property and equipment. Leasehold improvements are depreciated over the shorter of the remaining lease term or the estimated useful life of the asset. Maintenance and repairs are expensed as incurred, and major additions, replacements, and improvements are capitalized.

<u>Long-Lived Assets.</u> Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A long-lived asset is considered impaired when estimated future cash flows related to the asset, undiscounted and without interest, are insufficient to recover the carrying amount of the asset. If deemed impaired, the long-lived asset is reduced to its estimated fair value. Long-lived assets to be disposed of are reported at the lower of their carrying amount or estimated fair value less cost to sell.

<u>Patents.</u> The costs of applying for patents are capitalized and amortized on a straight-line basis over the lesser of the patent's economic or legal life (20 years from the date of application in the United States). Capitalized costs are expensed if patents are not issued. The Company reviews the carrying value of patents periodically to determine whether the patents have continuing value, and such reviews could result in the conclusion that the recorded amounts have been impaired.

<u>ENCISION INC.</u><br><u>NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS</u><br>SEPTEMBER 30, 2025<br>(Unaudited)<br>

<u>Income Taxes.</u> The Company accounts for income taxes under the provisions of FASB Accounting Standards Codification ("ASC") Topic 740, "Accounting for Income Taxes" ("ASC 740"). ASC 740 requires recognition of deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities. ASC 740 also requires recognition of deferred tax assets for the expected future tax effects of all deductible temporary differences, loss carryforwards, and tax credit carryforwards. Deferred tax assets are then reduced, if deemed necessary, by a valuation allowance for the amount of any tax benefits, which, more likely than not, based on current circumstances, are not expected to be realized. As a result, no provision for income tax is reflected in the accompanying statements of operations. Should the Company achieve sufficient, sustained income in the future, the Company may conclude that some or all of the valuation allowance should be reversed. The Company is required to make many subjective assumptions and judgments regarding income tax exposures. At September 30, 2025, the Company had no unrecognized tax benefits, which would affect the effective tax rate if recognized and had no accrued interest, or penalties related to uncertain tax positions.

<u>Revenue Recognition.</u> The Company records revenue at a single point in time, when control is transferred to the customer. The Company will continue to apply the current business processes, policies, systems, and controls to support recognition and disclosure. The shipping policy is Free On Board (FOB) Shipping Point. We recognize revenue from sales to stocking distributors when there is no right of return, other than for normal warranty claims. The Company has no ongoing obligations related to product sales, except for normal warranty obligations. As presented on the Statement of Operations, revenue is disaggregated between product revenue and service revenue. As it relates specifically to product revenue, the Company does not believe further disaggregation is necessary as substantially all of the product revenue comes from multiple products within a line of medical devices. The engineering service contracts are billed on a time and materials basis, and revenue is recognized over time as the services are performed.

<u>Research and Development Expenses</u>. The Company expenses research and development costs for products and processes as incurred.

<u>Stock-Based Compensation</u>. Stock-based compensation is presented in accordance with the guidance of ASC Topic 718, "Compensation – Stock Compensation" ("ASC 718"). Under the provisions of ASC 718, the Company is required to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the statements of operations.

Stock-based compensation expense recognized under ASC 718 for the three and six months ended September 30, 2025, and 2024 was $10,532 and $22,651, and $12,637 and $25,011, respectively, which consisted of stock-based compensation expense related to grants of employee stock options.

<u>Segment Reporting.</u> Effective with the fiscal year ended March 31, 2025, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Adoption of the amended guidance did not change the Company's conclusion that it operates two reportable segments, nor did it affect the Company's financial position, results of operations, or cash flows. The standard, however, expands required disclosures related to significant segment expense categories and interim-period information.

Operating segments are defined as components of an enterprise about which discrete financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280, Segment Reporting, the Company has concluded it operates two business segments, product and service. The Product segment designs, develops, manufactures, and markets patented surgical instruments. The Service segment performs engineering activities for external entities.

Additionally, our CDOM (President and Chief Executive Officer) uses net income or loss, as reported in the Statement of Operations, as the profitability measure in making decisions to evaluate our performance, which is the same basis on which he communicates our results and performance to our Board of Directors. The CODM bases all significant decisions regarding the allocation of our resources on the financial information of the Company as a whole. At September 30, 2025, net long-lived assets totaled $411,443 in the United States.

<u>ENCISION INC.</u><br><u>NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS</u><br>SEPTEMBER 30, 2025<br>(Unaudited)<br>

Information, by segment, for the three and six months ended September 30, 2025, and 2024, follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Six Months Ended September 30, 2025** | **Six Months Ended September 30, 2025** | **Six Months Ended September 30, 2025** |
|  | <br>**Product** | <br>**Service** | <br>**Total** | <br>**Product** | <br>**Service** | <br>**Total** |
| &nbsp;&nbsp;Net revenue | $1481802 | $46248 | $1528050 | $2974634 | $156144 | $3130778 |
| &nbsp;&nbsp;Cost of revenue | 805734 | 24983 | 830717 | 1472545 | 82441 | 1554986 |
| &nbsp;&nbsp;Gross profit | 676068 | 21265 | 697333 | 1502089 | 73703 | 1575792 |
| &nbsp;&nbsp;Operating income (loss) | (279756) | 21265 | (258491) | (351975) | 73703 | (278272) |
| &nbsp;&nbsp;Depreciation and amortization | 25793 |  | 25793 | 48570 |  | 48570 |
| &nbsp;&nbsp;Patent and capital expenditures | 36680 |  | 36680 | 55148 |  | 55148 |
| &nbsp;&nbsp;Equipment and patents, net | $411443 | $— | $411443 | $411443 | $— | $411443 |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Six Months Ended September 30, 2024** | **Six Months Ended September 30, 2024** | **Six Months Ended September 30, 2024** |
|  | <br>**Product** | <br>**Service** | <br>**Total** | <br>**Product** | <br>**Service** | <br>**Total** |
| &nbsp;&nbsp;Net revenue | $1653820 | $101568 | $1755388 | $3245779 | $140539 | $3386318 |
| &nbsp;&nbsp;Cost of revenue | 882886 | 44020 | 926906 | 1550520 | 64653 | 1615173 |
| &nbsp;&nbsp;Gross profit | 770934 | 57548 | 828482 | 1695259 | 75886 | 1771145 |
| &nbsp;&nbsp;Operating income (loss) | (216466) | 57548 | (158918) | (206462) | 75886 | (130576) |
| &nbsp;&nbsp;Depreciation and amortization | 23203 |  | 23203 | 42525 |  | 42525 |
| &nbsp;&nbsp;Patent and capital expenditures | 40377 |  | 40377 | 59918 |  | 59918 |
| &nbsp;&nbsp;Equipment and patents, net | $435408 | $— | $435408 | $435408 | $— | $435408 |

---

<u>Recently Issued Accounting Pronouncements</u>.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The new disclosure requirements are effective for the Company's annual periods for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is evaluating the ASU to determine its impact on our consolidated financial statements and disclosures.

ASC Topic 326 (CECL). ASC Topic 326, *Financial Instruments—Credit Losses*, replaces the incurred-loss model with a forward-looking current expected credit loss model that requires recognition of lifetime expected credit losses on financial assets measured at amortized cost and certain off-balance-sheet credit exposures (including trade accounts receivable and contract assets), using historical experience, current conditions, and reasonable and supportable forecasts. The Company is evaluating the impact of adopting Topic 326 on its consolidated financial statements and related disclosures.

In January 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-01, *Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Clarifying the Effective Date*. The ASU clarifies the effective date of ASU 2024-03, which requires public business entities to disclose certain natural expense categories in the income statement and to provide additional disaggregated information in the notes. ASU 2025-01 confirms that public business entities are required to adopt the guidance for annual reporting periods beginning after December 15, 2026, and for interim periods within annual reporting periods beginning after December 15, 2027. The Company is evaluating the ASU to determine its impact on our consolidated financial statements and disclosures.

In May 2025, the FASB issued ASU 2025-03, *Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity*. The ASU clarifies how to identify the accounting acquirer in a business combination when the legal acquiree is a variable interest entity ("VIE"). For transactions effected primarily by the exchange of equity interests, entities are now required to evaluate the same factors in ASC 805 used for voting interest entity acquisitions, which may result in certain transactions being accounted for as reverse acquisitions. The Company is evaluating the ASU to determine its impact on our consolidated financial statements and disclosures.

<u>ENCISION INC.</u><br><u>NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS</u><br>SEPTEMBER 30, 2025<br>(Unaudited)<br>

In July 2025, the FASB issued ASU 2025-05, *Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets*. The amendments simplify the application of the current expected credit loss ("CECL") model for current trade receivables and current contract assets arising from revenue transactions under ASC 606. The Company is evaluating the ASU to determine its impact on our consolidated financial statements and disclosures.

The Company does not believe that issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company's financial statements.

Note 3.Basic and Diluted Income and Loss per Common Share

The Company reports both basic and diluted net income (loss) per share. Basic net income or loss per common share is computed by dividing net income or loss for the period by the weighted average number of common shares outstanding for the period. Diluted net income or loss per common share is computed by dividing the net income or loss for the period by the weighted average number of common and potential common shares outstanding during the period if the effect of the potential common shares is dilutive. The shares used in the calculation of dilutive potential common shares exclude options to purchase shares where the exercise price was greater than the average market price of common shares for the period.

The following table presents the calculation of basic and diluted net income (loss) per share:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | <br>**September 30, 2025** | <br>**September 30, 2024** | <br>**September 30, 2025** | <br>**September 30, 2024** |
| &nbsp;&nbsp;Net (loss) | $(267833) | $(170262) | $(308966) | $(148222) |
| &nbsp;&nbsp;Weighted-average basic shares outstanding | 14187337 | 11875145 | 13033491 | 11875145 |
| &nbsp;&nbsp;Effect of dilutive securities |  |  |  |  |
| &nbsp;&nbsp;Weighted-average diluted shares | 14187337 | 11875145 | 13033491 | 11875145 |
| &nbsp;&nbsp;Basic net (loss) per share | $(0.02) | $(0.01) | $(0.02) | $(0.01) |
| &nbsp;&nbsp;Diluted net (loss) per share | $(0.02) | $(0.01) | $(0.02) | $(0.01) |
| &nbsp;&nbsp;Antidilutive employee stock options | 1023916 | 1099000 | 1023916 | 1099000 |

---

Note 4. <u>COMMITMENTS AND CONTINGENCIES</u>

The Company has a noncancelable lease agreement for our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease expires October 31, 2028.

The Company determines if an arrangement contains a lease at inception according to ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). The Company currently does not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company uses the incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities, as the leases do not provide an implicit rate. Lease expense is recognized on a straight-line basis over the lease term.

<u>ENCISION INC.</u><br><u>NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS</u><br>SEPTEMBER 30, 2025<br>(Unaudited)<br>

Effective June 5, 2025, the Company extended our non-cancelable lease agreement through October 31, 2028, for the facilities at 6797 Winchester Circle, Boulder, Colorado. Lease expense was $384,184 for the fiscal year ended March 31, 2025, and $357,503 for the fiscal year ended March 31, 2024. Lease expense for the six months ended September 30, 2025, is $194,830.

The minimum future lease payment by fiscal year as of September 30, 2025, is as follows:

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| | |
|:---|:---|
| ****<br>**Fiscal Year** |<br>**Amount** |
| 2026 | $137536 |
| 2027 | 422441 |
| 2028 | 458393 |
| 2029 | 282954 |
| Total | $1301324 |

---

On August 4, 2020, the Company 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, in the original principal amount of $150,000 with the SBA, the lender. Under the terms of the Note, interest accrues on the outstanding principal at the rate of 3.75% per annum. The term of the Note is thirty years, though it may be payable sooner upon an event of default under the Note.

On November 2, 2022, the Company entered into a loan and security agreement with Pathward, N.A. (formerly Crestmark Bank). The loan is due on demand and has no financial covenants. Under the agreement, the Company was provided with a line of credit that is not to exceed the lesser of $1,000,000 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 0.4%, 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 minimum future EIDL payment, by fiscal year, as of September 30, 2025, is as follows:

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| | |
|:---|:---|
| ****<br>**Fiscal Year** |<br>**Amount** |
| 2026 | $2637 |
| 2027 | 5275 |
| 2028 | 5275 |
| 2029 | 5275 |
| Thereafter | 129234 |
| Total | $147696 |

---

During September 2020, the Company entered into a note agreement with U.S. Bank for $92,000. The note is for five 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 September 30, 2025, is as follows:

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| | |
|:---|:---|
| ****<br>**Fiscal Year** |<br>**Amount** |
| 2026 | 6133 |
| Total | $6133 |

---

During June 2022, the Company entered into a note agreement with U.S. Bank for $115,004. 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 September 30, 2025, is as follows:

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| | |
|:---|:---|
| ****<br>**Fiscal Year** |<br>**Amount** |
| 2026 | 11897 |
| 2027 | 23794 |
| 2028 | 7931 |
| Total | $43622 |

---

Aside from the line of credit, operating lease, EIDL loan, and U.S. Bank loans, the Company does not have any material contractual commitments requiring settlement in the future.

<u>ENCISION INC.</u><br><u>NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS</u><br>SEPTEMBER 30, 2025<br>(Unaudited)<br>

The Company is subject to regulation by the United States Food and Drug Administration ("FDA"). The FDA provides regulations governing the manufacture and sale of products and regularly inspects the Company and other manufacturers to determine compliance with these regulations. The Company believes that it was in substantial compliance with all known regulations as of September 30, 2024. FDA inspections are conducted periodically at the discretion of the FDA. The latest inspection by the FDA occurred in October 2019.

Note 5. <u>SHARE-BASED COMPENSATION</u>

The provisions of ASC 718-10-55 requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including employee stock options and RSUs, based on estimated fair values. The following table summarizes stock-based compensation expense related to employee stock options for the three and six months ended September 30, 2025, and 2024, which was allocated as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **September 30, 2025** | **September 30, 2024** | **September 30, 2025** | **September 30, 2024** |
| &nbsp;&nbsp;Cost of sales | $115 | $201 | $258 | $402 |
| &nbsp;&nbsp;Sales and marketing | 1284 | 1750 | 2645 | 3369 |
| &nbsp;&nbsp;General and administrative | 8884 | 10606 | 19210 | 21080 |
| &nbsp;&nbsp;Research and development | 249 | 80 | 538 | 160 |
| &nbsp;&nbsp;Stock-based compensation expense | $10532 | $12637 | $22651 | $25011 |

---

Share-based compensation cost for stock options is measured at the grant date, based on the fair value as calculated by the Black-Scholes-Merton ("BSM") option-pricing model. The BSM option-pricing model requires the use of actual employee exercise behavior data and the application of a number of assumptions, including expected volatility, risk-free interest rate, and expected dividends. There were 90,000 stock options granted, 104,332 stock options forfeited, and no stock options exercised during the three and six months ending September 30, 2025, respectively. As of September 30, 2025, approximately $144,020 of total unrecognized compensation costs related to nonvested stock options is expected to be recognized over a period of five years.

Note 6. <u>RELATED PARTY TRANSACTION</u>

In September 2025, the Company entered into a services agreement with Rader Industries LLC ("Rader Industries"), a company owned by Jessica Rader, an immediate family member of the Company's Chief Executive Officer, Gregory Trudel. Under the terms of the agreement, Rader Industries provides telemarketing and promotional sales campaign services for a two-month period. The contract provides for compensation at an hourly fee of $25 per hour, plus 10% of invoiced promotional sales generated by Rader Industries during the contract term.

As of September 30, 2025, the Company had paid $1,094 to Rader Industries under this agreement. The Company believes the terms of this arrangement are comparable to those that could have been obtained in an arm's-length transaction.

Note 7. <u>SUBSEQUENT EVENTS</u>

Management evaluated all of the activity as of the date the unaudited condensed interim financial statements were issued and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosed in the notes to the unaudited condensed interim financial statements.

**ITEM 2** **- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

Certain statements contained in this section on Management's Discussion and Analysis are not historical facts, including statements about strategies and expectations with respect to new and existing products, market demand, acceptance of new and existing products, marketing efforts, technologies and opportunities, market and industry segment growth, and return on investments in products and markets. These statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve substantial risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements in this section on Management's Discussion and Analysis are based on information available to us on the date of this document, and we assume no obligation to update such forward-looking statements. Readers of this Form 10-Q are strongly encouraged to review the section entitled *"Risk Factors"* in the Form 10-K for the fiscal year ended March 31, 2025.

**General**

Encision Inc., a medical device company based in Boulder, Colorado, has developed and markets innovative technology that provides unprecedented outcomes and patient safety in minimally invasive surgery. Approximately one in every three surgeons may have a patient injury each year from preventable stray energy burns. We believe that the patented Active Electrode Monitoring ("AEM®") AEM EndoShield™ Burn Protection System is changing the marketplace for electrosurgical devices and laparoscopic instruments by providing a solution to a well-documented hazard unique to laparoscopic surgery. The Center for Medicare and Medicaid Services has published its Hospital-Acquired Condition Reduction Program. The program has begun to levy as much as a 1% penalty on Medicare reimbursements to hospitals in the lower quadrant of performance for selected quality indicators, including accidental puncture and laceration ("APL"). Examples of APL include the use of a cautery device (electrosurgery) or scissors to dissect a tissue plane that errantly causes an injury to underlying bowels.

The patented AEM technology provides surgeons with the desired tissue effects while capturing stray electrosurgical energy that can cause unintended and unseen tissue injury that may result in death. AEM Surgical Instruments are equivalent to conventional instruments in size, shape, ergonomics, functionality, and competitive pricing, but they incorporate "Active Electrode Monitoring" technology to dynamically and continuously monitor the flow of electrosurgical current, thereby preventing patient injury from stray energy burns. With the "shielded and monitored" instruments, surgeons can perform electrosurgical procedures more safely, effectively, and economically than is possible using conventional instruments or alternative energy sources.

The AEM system consists of shielded 5mm AEM Instruments and an AEM monitor. The AEM Instruments are designed to function identically to the conventional 5mm instruments that surgeons are familiar with, but with the added benefit of enhanced patient safety. The entire line of laparoscopic instruments has the integrated AEM design and includes the full range of instruments that are common in laparoscopic surgery today. The AEM monitor is compatible with most electrosurgical generators and can also be adapted for use in robotic systems. AEM Surgical Instruments provide enhanced patient safety, require no change in surgeon technique, and are cost-competitive. Thus, conversion to AEM Surgical Instruments is easy and economical.

AEM technology has been recommended and endorsed by many groups involved in MIS. Surgeons, nurses, biomedical engineers, the medicolegal community, malpractice insurance carriers, and electrosurgical device manufacturers advocate the use of AEM technology. We have focused our marketing strategies to date on expanding the market awareness of the AEM technology and our broad independent endorsements, and have continued efforts to improve and expand the AEM technology penetration.

When a hospital or surgery center changes to AEM technology, we receive recurring revenue from sales of replacement instruments. We believe that there is no directly competing technology to supplant AEM products. The replacement market of reusable and disposable AEM products in hospitals and surgery centers that use our AEM technology represented over 90% of our product revenue during the three and six months ended September 30, 2024. This revenue stream is expected to grow as the base of accounts using AEM technology expands. In addition, we intend to further develop disposable versions of more of our AEM products in order to meet market demands and expand our sales opportunities.

We have an accumulated deficit of $23,074,211 at September 30, 2025. A significant portion of our operating funds have been provided by issuances of our common stock and warrants and the exercise of stock options to purchase our common stock, loans, and (in some periods) by operating profits. Should our liquidity be diminished in the future because of operating losses, we may be required to implement cost reductions, seek additional capital, or make such other operational changes as may be required.

During the six months ended September 30, 2025, we used $242,149 of cash in our operating activities and used $55,148 for investments in property and equipment. At September 30, 2025, we had $71,731 in cash and at March 31, 2025 we had $257,433 in cash available to fund future operations, a decrease of $185,702 from March 31, 2025. The decrease in cash was principally the result of cash used by operating activities. Our working capital was $1,375,301 at September 30, 2025, compared to $1,036,850 at March 31, 2025. The increase in working capital was principally the result of gross proceeds of the private placement of our common stock issued during the period.

**Historical Perspective**

We were organized in 1991 and spent several years developing the AEM monitoring system and protective sheaths to adapt to conventional electrosurgical instruments. We have invested heavily in an effort to protect our valuable technology, and, as a result of this effort, we have been issued 26 unexpired relevant patents that together form a significant intellectual property position. Our patents relate to the basic shielding and monitoring technologies that we incorporate into our AEM products.

Our AEM Surgical Instruments have been engineered to provide a seamless transition for surgeons switching from conventional laparoscopic instruments. AEM technology has been integrated into instruments that have the same look, feel, and functionality as conventional instruments that surgeons have been using for years. The AEM product line encompasses the full range of instrument sizes, types, and styles favored by surgeons. Additionally, we continue to improve quality and add to the product line. These additions include more disposable versions, the introduction of hand-activated instruments, our enhanced scissors, our eEdge™ scissors, our EM3 AEM Monitor, our AEM EndoShield Burn Protection System, and the recent introduction of our AEM 2X enTouch® Scissors. Hospitals can make a complete and smooth conversion to our product line, thereby advancing patient safety in MIS with optimal convenience.

**Outlook**

*Installed Base of AEM Monitoring Equipment*: We believe that sales of our installed base of AEM products will increase as the inherent risks associated with monopolar and robotic laparoscopic electrosurgery become more widely acknowledged and as we focus on increasing our sales efficiency and continue to enhance our product line. We expect that the replacement sales of electrosurgical instruments and accessories will also increase as additional facilities adopt AEM technology. We anticipate that the efforts to improve the productivity of sales representatives carrying the AEM product line, along with the introduction of next-generation products, may provide the basis for increased sales and profitable operations. However, these measures, or any others that we may adopt, may not result in either increased sales or profitable operations.

We believe that the unique performance of the AEM technology and our breadth of independent endorsements provide an opportunity for continued market share growth. In our view, market awareness and awareness of the clinical credibility of the AEM technology, as well as awareness of our endorsements, are improving, and we expect this awareness to benefit our sales efforts for the remainder of fiscal year 2026. Our objectives for the remainder of fiscal year 2026 are to optimize sales execution, expand market awareness of the AEM technology, and maximize the number of additional hospital and surgery center accounts switching to AEM instruments while retaining existing customers. In addition, acceptance of AEM products depends on surgeons' preference for our instruments, which depends on factors such as ergonomics, quality, and ease of use, in addition to the technological and safety advantages of AEM products. If surgeons prefer other instruments to our instruments, our business results will suffer.

*Possibility of Operating Losses*: We have an accumulated deficit of $23,074,211 at September 30, 2025. A significant portion of our operating funds have been provided by issuances of our common stock and warrants and the exercise of stock options to purchase our common stock, loans, and (in some periods) by operating profits. Should our liquidity be diminished in the future because of operating losses, we may be required to seek additional capital. We have made strides toward improving our operating results but due to the ongoing need to develop, optimize and train our direct sales managers and the independent sales representative network, the need to support the development of refinements to our product line, and the need to increase sustained sales to a level adequate to cover fixed and variable operating costs, we may operate at a net loss. Sustained losses, or our inability to generate sufficient cash flow from operations to fund our obligations, may result in a need to implement cost reductions, raise additional capital, or make such other operational changes as may be required.

*Revenue Growth*: We expect to generate increased product revenue in the U.S. from sales to new customers and from expanded sales to existing customers as the medical device industry stabilizes and our network of direct and independent sales representatives becomes more efficient. We believe that the visibility and credibility of the independent clinical endorsements for AEM technology will contribute to new accounts and increased product revenue in fiscal year 2026. We also expect to increase market share through promotional programs of placing our AEM monitors at no charge into hospitals that commit to standardize with AEM instruments. However, all of these efforts to increase market share and grow product revenue will depend in part on our ability to expand the efficiency and effective coverage range of our direct and independent sales representatives, as well as maintain and, in some cases, improve the quality of our product offerings. The omission or delay of elective surgeries would negatively impact the extent and timing of revenue growth. Service revenue represents design, development, and product supply revenue from our agreements with strategic partners.

We also have longer-term initiatives in place to improve our prospects. We expect that the development of next-generation versions of our AEM products will better position our products in the marketplace and improve our retention rate at hospitals and surgery centers that have changed to AEM technology, enabling us to grow our sales. We are exploring overseas markets to assess opportunities for sales growth internationally. Finally, we intend to explore opportunities to capitalize on our proven AEM technology via licensing arrangements and strategic alliances. These efforts to generate additional sales and further the market penetration of our products are longer-term in nature and may not materialize. Even if we are able to successfully develop next-generation products or identify potential international markets or strategic partners, we may not be able to capitalize on these opportunities.

*Gross Profit and Gross Margins*: Gross profit and gross margins can be expected to fluctuate from quarter to quarter as a result of product sales mix, sales volume, and service revenue. Gross margins on products manufactured or assembled by us are expected to improve at higher levels of production and sales.

*Sales and Marketing Expenses*: We continue to refine our domestic and international distribution capability, and we believe that sales and marketing expenses will decrease as a percentage of net sales with increasing sales volume.

*Research and Development Expenses*: Research and development expenses are expected to increase to support quality improvement efforts and development of refinements to our AEM product line and new products, which will further expand options for surgeons and hospitals.

**Results of Operations**

*For the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024.*

*Net Product revenue.* Net product revenue for the quarter ended September 30, 2025, was $1,481,802 compared to $1,653,820 for the quarter ended September 30, 2024, a decrease of 10%. The decrease in net product revenue is primarily due to a reduction in the sales of disposable products, which suggests a decrease in the number of procedures performed during this period. This reduction in procedural volume has, in turn, lowered the overall demand for our products.

*Net Service revenue.* Net service revenue for the quarter ended September 30, 2025, was $46,248 compared to $101,568 for the quarter ended September 30, 2024. This decrease was because of a short delay in services performed under a Master Services Agreement with Vicarious Surgical Inc. This decrease resulted from a brief delay in services under the Master Services Agreement with Vicarious Surgical Inc., following a temporary project suspension by the customer.

G*ross profit*. Gross profit for the quarter ended September 30, 2025, of $697,333 represented a decrease of 16% from the gross profit of $828,482 for the quarter ended September 30, 2024. Gross profit declined for the quarter ended September 30, 2025, due to reduced sales and an unfavorable change in product mix, with a lower proportion of higher-margin products in sales. Gross profit on total net revenue as a percentage of sales (gross margin) was 46% for the quarter ended September 30, 2025, and 47% for the quarter ended September 30, 2024.

*Sales and marketing expenses*. Sales and marketing expenses of $395,793 for the quarter ended September 30, 2025, represented a decrease of 14% from $458,480 for the quarter ended September 30, 2024. The decrease was due to reduced trade shows and commission expenses.

*General and administrative expenses*. General and administrative expenses of $358,639 for the quarter ended September 30, 2025, represented a decrease of 4% from general and administrative expenses of $373,405 for the quarter ended September 30, 2024. The decrease was because of decreased outside accountants' costs and reduced insurance expenses.

 

*Research and development expenses*. Research and development expenses of $201,392 for the quarter ended September 30, 2025, represented an increase of 30% compared to $155,515 for the quarter ended September 30, 2024. The increase was due to an increase in allocated resources for product development.

*Net loss.* Net loss was $267,833 for the quarter ended September 30, 2025, compared to a net loss of $170,262 for the quarter ended September 30, 2024. The increase in net loss for the quarter ended September 30, 2025, was primarily because of reduced sales volume and an unfavorable change in product mix.

*For the six months ended September 30, 2025, compared to the six months ended September 30, 2024.*

*Net Product revenue.* Net product revenue for the six months ended September 30, 2025, was $2,974,634 compared to $3,245,779 for the six months ended September 30, 2024, a decrease of 8%. The decrease in net product revenue is attributable to decreased demand for our products.

*Net Service revenue.* Net service revenue for the six months ended September 30, 2025, was $156,144 compared to $140,539 for the six months ended September 30, 2024, an increase of 11%. Net service revenue for the six months ended September 30, 2025, was for engineering services performed under a Master Services Agreement with Vicarious Surgical Inc.

G*ross profit*. Gross profit for the six months ended September 30, 2025, of $1,575,792 represented a decrease of 11% from gross profit of $1,771,145 for the six months ended September 30, 2024. Gross profit on total net revenue as a percentage of sales (gross margin) was 50% for the six months ended September 30, 2025, and 52% for the six months ended September 30, 2024. Gross profit declined for the six months ended September 30, 2025, due to reduced sales and an unfavorable change in product mix, with a lower proportion of higher-margin products in sales.

*Sales and marketing expenses*. Sales and marketing expenses of $800,394 for the six months ended September 30, 2024, represented a decrease of 9% from sales and marketing expenses of $881,716 for the six months ended September 30, 2024. The decrease was the result of lower commission expenses.

*General and administrative expenses*. General and administrative expenses of $686,838 for the six months ended September 30, 2025, represented a decrease of 5% from general and administrative expenses of $725,310 for the six months ended September 30, 2024. The decrease was because of decreased outside accountants' costs and reduced insurance expenses.

 

*Research and development expenses*. Research and development expenses of $366,832 for the six months ended September 30, 2025, represented an increase of 24% compared to $294,695 for the six months ended September 30, 2024. The increase was the result of an increase in allocations to product development.

*Net loss.* Net loss was $308,966 for the six months ended September 30, 2025, compared to a net loss of $148,222 for the six months ended September 30, 2024. The increase in net loss for the quarter ended September 30, 2025, was primarily because of reduced sales volume, an unfavorable change in product mix, and increased allocation of resources to the development of new products.

The results of operations for the three and six months ended September 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 $24,938,998 from inception through September 30, 2025.

We expect net losses to continue in connection with our ongoing activities, particularly as we continue to invest in commercialization and new product development. Based on our current planned operations, we do not believe that our current cash and cash equivalents balance of $71,731 as of September 30, 2025, will be sufficient to support our operations beyond the next 12 months from the date of issuance of these financial statements. We currently expect that our cash, cash equivalents, and line of credit will be sufficient to support our operations into the first quarter of fiscal year 2027. As such, there is substantial doubt about the Company's ability to continue as a going concern. We may seek to utilize additional capital to expand our business, to pursue strategic investments, to take advantage of financing opportunities, or implement other strategies or initiatives.

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, in the original principal amount of $150,000 with the SBA, the lender. Under the terms of the Note, interest accrues on the outstanding principal at the rate of 3.75% per annum. The term of the Note is thirty years, though it may be payable sooner upon an event of default under the Note.

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

During July 2022, we entered into a note agreement with U.S. Bank for $115,004. 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.

On November 2, 2022, we entered into a loan and security agreement with Pathward, N.A. (formerly Crestmark Bank). The loan is due on demand and has no financial covenants. Under the agreement, we were provided with a line of credit that is not to exceed the lesser of $1,000,000 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 0.4%, 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.

Our operations used $242,149 of cash during the six months ended September 30, 2025, on net revenue of $3,130,778. The amounts of cash used by operations for the six months ended September 30, 2025, are not necessarily indicative of the expected amounts of cash to be generated from or used in operations in fiscal year 2026. As of September 30, 2025, we had $71,731 in cash available to fund future operations and a line of credit for up to $968,294, restricted by eligible accounts receivable. Our working capital was $1,375,301 at September 30, 2025, compared to $1,036,850 at March 31, 2025. Current liabilities were $1,071,571 at September 30, 2025, compared to $1,575,915 at March 31, 2025. We have a noncancelable lease agreement for our facilities at 6797 Winchester Circle, Boulder, Colorado. The lease expires October 31, 2028.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities, as our leases do not provide an implicit rate. Lease expense is recognized on a straight-line basis over the lease term.

On August 19, 2025, we completed a private placement of our common stock, issuing 5,000,000 shares at $0.10 per share for gross proceeds of $500,000. We intend to use the proceeds for working capital and general corporate purposes.

As of September 30, 2025, the following table shows our contractual obligations for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
| <br>**Contractual obligations** | **Totals** | **Less than**<br> **1 year** | **1-3 years** | **3-5 years** | **More than**<br> **5 years** |
| &nbsp;&nbsp;Line of credit | $31706 | $31706 | $— | $— | $— |
| &nbsp;&nbsp;Operating lease obligations | 1301324 | 343172 | 440198 | 517954 |  |
| &nbsp;&nbsp;EIDL loan | 147696 | 5275 | 10550 | 10550 | 121321 |
| &nbsp;&nbsp;U.S. Bank loan | 6133 | 6133 |  |  |  |
| &nbsp;&nbsp;U.S. Bank loan | 43622 | 23794 | 19828 |  |  |
| &nbsp;&nbsp;Total | $1530481 | $410080 | $470576 | $528504 | $121321 |

---

Our fiscal year 2026 operating plan is focused on increasing new accounts, retaining existing customers, growing revenue, increasing gross profits, and conserving cash. We are investing in research and development efforts to develop next-generation versions of the AEM product line. We have invested in manufacturing equipment to manufacture disposable scissors inserts internally and to reduce our cost of product revenue. We cannot predict with certainty the expected revenue, gross profit, net income or loss, and usage of cash for fiscal year 2026. If the current downward sales trend continues, it will have a material adverse effect on our business viability, financial position, results of operations, and cash flows.

**Income Taxes**

As of March 31, 2025, net operating loss carryforwards totaling approximately $8.2 million are available to reduce taxable income in the future. The net operating loss carryforwards expire, if not previously utilized, at various dates beginning in the fiscal year ending March 31, 2026. We have not paid income taxes since our inception. The Tax Reform Act of 1986 and other income tax regulations contain provisions that may limit the net operating loss carryforwards available to be used in any given year if certain events occur, including changes in ownership interests. We have established a valuation allowance for the entire amount of our deferred tax asset since inception due to our history of losses. Should we achieve sufficient, sustained income in the future, we may conclude that some or all of the valuation allowance should be reversed. If some or all of the valuation allowance were reversed, then, to the extent of the reversal, a tax benefit would be recognized, which would result in an increase to net income.

**Critical Accounting Policies and Estimates**

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, sales, and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to bad debts, inventories, sales returns, contingencies, and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect the more significant judgments and estimates used in the preparation of our financial statements.

We record revenue at a single point in time, when control is transferred to the customer, which is consistent with past practice. We will continue to apply our current business processes, policies, systems, and controls to support recognition and disclosure. Our shipping policy is FOB Shipping Point. We recognize revenue from sales to stocking distributors when there is no right of return, other than for normal warranty claims. We have no ongoing obligations related to product sales, except for normal warranty obligations. We evaluated the requirement to disaggregate revenue and concluded that substantially all of our revenue comes from multiple products within a line of medical devices. Our engineering service contracts are billed on a time and materials basis, and revenue is recognized over time as the services are performed. We record deferred revenue when funds are received prior to the recognition of the associated revenue. We record a contract liability to deferred revenue, which includes customer prepayments and is included in other accrued liabilities.

We provide for the estimated cost of product warranties at the time sales are recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers, we have experienced some costs related to warranties. The warranty accrual is based on historical experience and is adjusted based on current experience. Should actual warranty experience differ from our estimates, revisions to the estimated warranty liability would be required.

We reduce inventory for estimated obsolete or unmarketable inventory equal to the difference between the cost of inventory and the estimated realizable value based on assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. Any write-downs of inventory would reduce our reported net income during the period in which such write-downs were applied. To the extent that our estimates prove to be too high, and we ultimately utilize or sell inventory previously determined to be impaired, we may record a reversal of the provision in the period of such determination.

We recognize deferred income tax assets and liabilities for the expected future income tax consequences, based on enacted tax laws, of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred tax assets are then reduced, if deemed necessary, by a valuation allowance for the amount of any tax benefits, which, more likely than not, based on current circumstances, are not expected to be realized. Should we maintain sufficient, sustained income in the future, we may conclude that all or some of the valuation allowance should be reversed.

Property and equipment are stated at cost, with depreciation computed over the estimated useful lives of the assets, generally five to seven years. We use the straight-line method of depreciation for property and equipment. Leasehold improvements are depreciated over the shorter of the remaining lease term or the estimated useful life of the asset. Maintenance and repairs are expensed as incurred, and major additions, replacements, and improvements are capitalized.

We amortize our patent costs over their estimated useful lives, which is typically the remaining statutory life. From time to time, we may be required to adjust these useful lives of our patents based on advances in technology, competitor actions, and the like. We review the recorded amounts of patents at each period end to determine if their carrying amount is still recoverable based on our expectations regarding sales of related products. Such an assessment, in the future, may result in a conclusion that the assets are impaired, with a corresponding charge against earnings.

We currently estimate forfeitures for stock-based compensation expense related to employee stock options at 40% and evaluate the forfeiture rate quarterly. Other assumptions that are used in calculating stock-based compensation expense include risk-free interest rate, expected life, expected volatility, and expected dividend.

---

| | |
|:---|:---|
| **ITEM 3.** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** |

---

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

---

| | |
|:---|:---|
| **ITEM 4.** | **Controls and procedures** |

---

Our management, comprised of our Chief Executive Officer (CEO) and Principal Financial and Accounting Officer (PFAO), evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2025. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Based on that evaluation, and taking the matters described below into account, the Company's CEO and PFAO have concluded that our disclosure controls and procedures over financial reporting were not effective during the reporting period ending September 30, 2025.

**Remediation Activities Regarding Material Weakness**

As disclosed in our Annual Report on Form 10-K for the March 31, 2025, fiscal year, management determined that our internal control over financial reporting was not effective as of March 31, 2025 for the following reasons (i) there is an inadequate segregation of duties consistent with control objectives as management is comprised of only two person, one of which is our principal executive offers as and the other is the principle financial officer.

Management has been actively engaged in remediating the material weaknesses described above. The following remedial actions have been taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have evaluated additional review and approval processes for key financial reporting activities to mitigate segregation of duties issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have expanded documentation of internal controls and policies to ensure consistency and accountability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Evaluated opportunities to restructure financial reporting responsibilities as resources allow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Began evaluating options to hire external consultants to assist with the design and implementation of improved internal control procedures.

While progress has been made to enhance our internal control over financial reporting, we are still in the process of implementing these processes, procedures, and controls. Additional time is required to complete implementation and to assess and ensure the sustainability of these procedures. We believe the above actions will be effective in remediating the material weaknesses described above, and we will continue to devote significant time and attention to these remedial efforts. However, the material weaknesses cannot be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded that these controls are operating effectively.

**Changes In Internal Control Over Financial Reporting**

Other than the applicable remediation efforts described above, there were no significant changes in our internal control over financial reporting during the quarter ended September 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**<u>PART II.</u>**

---

| | |
|:---|:---|
| **<u>Item 1.</u>** | **<u>Legal Proceedings</u>** |

---

From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not currently aware of any such proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition, or results of operations.

---

| | |
|:---|:---|
| **<u>Item 1A.</u>** | **<u>Risk Factors</u>** |

---

In addition to the information set forth in this Form 10-Q, you should carefully consider the risk factors disclosed under the heading "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended March 31, 2025. There have been no material changes to our risk factors from those included in our Annual Report on Form 10-K for the year ended March 31, 2025.

---

| | |
|:---|:---|
| **<u>Item 2.</u>** | **<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>** |

---

There were no unregistered sales of equity securities of the Company during the period covered by this quarterly report, which were not previously reported in a (i) Current Report on Form 8-K or (ii) Quarterly Report on Form 10-Q.

**<u>Issuer Purchases of Equity Securities</u>**

We did not repurchase any of our equity securities during the six months ended September 30, 2025.

---

| | |
|:---|:---|
| **<u>Item 3.</u>** | **<u>Defaults Upon Senior Securities</u>** |

---

None.

---

| | |
|:---|:---|
| **<u>Item 4.</u>** | **<u>Mine Safety Disclosures</u>** |

---

None.

---

| | |
|:---|:---|
| **<u>Item 5.</u>** | **<u>Other Information</u>** |

---

During the period ending September 30, 2025, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

**<u>Item 6</u>**. **<u>Exhibits</u>**

The following exhibits are filed with this report on Form 10-Q or are incorporated by reference:

---

| | |
|:---|:---|
| 3.1 | Articles of Incorporation of the Company, as amended. (Incorporated by reference from Registration Statement #333-4118-D dated June 25, 1996). |
| 3.2 | [Bylaws of the Company](http://www.sec.gov/Archives/edgar/data/930775/000114420407057068/v091793_8k.htm). (Incorporated by reference from Current Report on Form 8-K filed on October 30, 2007). |
| 3.3 | [First Amended and Restated Bylaws](http://www.sec.gov/Archives/edgar/data/930775/000107997317000314/ex3x1.htm) (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on May 31, 2017). |
| 4.1 | Form of certificate for shares of Common Stock. (Incorporated by reference from Registration Statement #333-4118-D dated June 25, 1996). |
| 4.2 | [Description of Capital Stock.](http://www.sec.gov/Archives/edgar/data/930775/000107997319000356/ex4x2.htm) (Incorporated by reference from Annual Report on Form 10-K filed on June 14, 2019). |
| 10.1 | [Lease Agreement dated June 3, 2004, between Encision Inc. and DaPuzzo Investment Group, LLC](http://www.sec.gov/Archives/edgar/data/930775/000110465904033846/a04-12857_110qsb.htm) (Incorporated by reference from Quarterly Report on Form 10-QSB filed on November 14, 2004). |
| 10.2 | [Encision Inc. 2007 Stock Option Plan](http://www.sec.gov/Archives/edgar/data/930775/000110465907051057/a07-17266_2def14a.htm) (Incorporated by reference from Proxy Statement dated June 30, 2007). † |
| 10.3 | [Encision Inc. First Amended and Restated 2014 Stock Option Plan](http://www.sec.gov/Archives/edgar/data/930775/000110465914051122/a14-16488_1def14a.htm) (Incorporated by reference from Proxy Statement dated July 6, 2020. † |
| 10.4 | [Employment Agreement, dated November 14, 2016, between Encision Inc. and Gregory J. Trudel](http://www.sec.gov/Archives/edgar/data/930775/000107997316001310/ex10x1.htm) (Incorporated by reference to Exhibit 10-1 to our Current Report on Form 8-K filed on November 18, 2016). † |
| 10.5 | [Fifth Amendment to Office Building Lease dated November 9, 2017](http://www.sec.gov/Archives/edgar/data/930775/000107997318000103/ex10x1.htm) (Incorporated by reference to Exhibit 10.1 to Quarterly Report on Form 10-Q filed February 12, 2018). |
| 10.6 | [PPP Promissory Note dated as of April 17, 2020](http://www.sec.gov/Archives/edgar/data/930775/000107997320000307/ex10x1.htm) (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on April 23, 2020). |
| 10.8 | [Economic Injury Disaster Loan dated as of August 1, 2022](http://www.sec.gov/Archives/edgar/data/930775/000107997320000684/ex10x1.htm) (incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q filed on August 14, 2020). |
| 10.9 | [US Bank Note dated September 28, 2020](http://www.sec.gov/Archives/edgar/data/930775/000107997322000963/ex10x9.htm) (Incorporated by reference to Exhibit 10.9 to Quarterly Report on Form 10-Q filed August 12, 2022) |
| 10.10 | [PPP Promissory Note dated as of February 8, 2021](http://www.sec.gov/Archives/edgar/data/930775/000107997321000096/ex10x1.htm) (incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q filed on February 12, 2021. |
| 10.11 | [Supply Agreement dated August 23, 2021 between Auris Health, Inc. and Encision Inc.](http://www.sec.gov/Archives/edgar/data/930775/000107997321001143/ex10x1.htm) (incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q filed on November 15, 2021).+ |
| 10.12 | [New Line of Credit and Security Agreement with Pathward, N.A. dated November 15, 2022](http://www.sec.gov/Archives/edgar/data/930775/000107997322001457/ex10x1.htm) (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on November 17, 2022). |
| 10.13 | [Eighth Amendment to Office Building Lease dated June 15, 2025](ex10x13.htm) (filed herewith). |
| 10.14 | [Securities Purchase Agreement dated August 19, 2025](ex10x14.htm) (filed herewith). |
| 31.1 | [Certification of President and CEO under Rule 13a-14(a) of the Exchange Act](ex31x1.htm) (filed herewith). |
| 31.2 | [Certification of Principal Financial and Accounting Officer under Rule 13a-14(a) of the Exchange Act](ex31x2.htm) (filed herewith). |
| 32.1 | [Certifications of President and CEO and Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32x1.htm) (filed herewith). |
| 101 | The following materials from Encision Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in XBRL (Extensible Business Reporting Language): (i) the unaudited Condensed Balance Sheets, (ii) the unaudited Condensed Statements of Income, (iii) the unaudited Condensed Statements of Cash Flows, and (iv) Notes to Condensed Financial Statements, tagged at Level I. |
| + | Certain portions of the exhibit have been omitted pursuant to Rule 601(b)(10) of Regulation S-K. The omitted information is (i) not material and (ii) would likely cause competitive harm to the Company if publicly disclosed. |

---

 **SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
|  | Encision Inc. |
| November 13, 2025 | /s/ Brandon Shepard |
| Date | Brandon Shepard |
|  | Controller, Principal Accounting Officer & |
|  | Principal Financial Officer |

---

## Ex-10

Exhibit 10.13

**EIGHTH AMENDMENT TO LEASE**

This Eighth Amendment to Lease **("Amendment")** is made this 5th day of June, 2025, between GIP BOULDER FLEX PROPERTY OWNER, LLC, a Delaware limited liability company **("Landlord"),** and ENCISION INC, a Colorado corporation **("Tenant").**

WHEREAS, Landlord's predecessor-in-interest(s) and Tenant entered into a Lease Agreement dated June 3, 2004, as amended on November 20, 2006, March 26, 2009, May 18,

2011, November 7, 2013, November 9, 2017, April **1,** 2020, and August 28, 2023 (collectively, the **"Lease,"** to which reference should be made for all capitalized terms not otherwise herein defined), pertaining to the Premises commonly known as 6797 Winchester Circle, Boulder, Colorado 80301, the present square footage of which is 29,000 rentable square feet, commonly referred to as Suites A, B, C, and D.

WHEREAS, Landlord and Tenant desire to enter into this Amendment to provide for an extension of the Term, as more fully set forth herein.

NOW THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

1**.** <u>Term.</u> The Term is hereby extended for an additional period of twelve (24) months, commencing on November 1, 2026, and ending on October 31, 2028 **("Extended Term"),** unless earlier terminated in accordance with the Lease. Tenant accepts the Premises in its "as is" condition for the Extended Term and Landlord shall have no obligation to make or pay for any improvements to the Premises. All terms and conditions of the Lease shall continue to apply during the Extended Term, as herein modified. Landlord and Tenant acknowledge and agree that Tenant has no further rights or options to extend or renew the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Monthl</u><u>y</u> <u>Base Rent.</u> Commencing November 1, 2026, and continuing through the Extended Term, Tenant shall pay monthly Base Rent in the following amounts during the following time periods:

---

| | | |
|:---|:---|:---|
| **Period** | **Annual SF Rate** | **Monthly Base Rent (not including NNN and utilities** |
| 11/01/2026-10/31/2027 | $16.50/SF | $39,875.00/Mo |
| 11/01/2027-10/31/2028 | $17.00/SF | $41,083.33/Mo |

---

During the Extended Term, Tenant shall continue to pay Operating Expenses and all other amounts due and owing by Tenant under the Lease, in addition to the monthly Base Rent as provided above.

Landlord shall have the right to require Tenant to make payments by electronic wire transfer or ACH payment upon notice thereof to Tenant. In such event, Landlord shall provide notice to Tenant with instructions and requirements for payments by Tenant to Landlord and Tenant shall

make all payments thereafter in accordance with such instructions. Tenant shall also provide to Landlord such information and execute and deliver such authorizations and other documents as are reasonably necessary from time to time to initiate and perform such payments by wire transfer or debit entries from Tenant's designated deposit account to Landlord's designated deposit account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Tenant Improvement Allowance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following the commencement date of the Extended Term, Landlord shall pay up to One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00) **("Tenant Improvement Allowance")** towards the cost of tenant improvements to the Premises **("Tenant Improvements")** made by Tenant. In addition, if Tenant installs new building standard carpet (reasonably approved by Landlord) in the Premises as part of the Tenant Improvements, then Landlord shall reimburse Tenant for the reasonable out-of-pocket cost for such new carpet **("New Carpet Allowance").** Tenant's construction of Tenant Improvements shall be subject to the terms and conditions of the Lease (including, without limitation, Section **11** thereof). Tenant shall pay all other costs and expenses of the Tenant Improvements. Landlord shall disburse the Tenant Improvement Allowance and/or the New Carpet Allowance, if applicable, to Tenant during the Extended Term at such time as Landlord determines that Tenant has satisfied the following requirements: (i) Tenant shall provide written notice to Landlord at least thirty (30) days prior to the requested date of such disbursement; (ii) the Tenant Improvements have been fully completed by Tenant (including, without limitation, obtaining a Certificate of Completion (AIA Form G704) certified by the general contractor and Tenant, and, if applicable, issuance of a final certificate of occupancy from the applicable governmental authority); (iii) there shall be no default by Tenant under the Lease and there shall have been no mechanic·s lien recorded or asserted against Tenant or the Premises with respect to the Tenant Improvements; (iv) Tenant shall have furnished to Landlord mechanic's lien waivers from the contractors, subcontractors and suppliers as to the payment, work and supplies related to the Tenant Improvements, in form and substance reasonably satisfactory to Landlord; and (v) if applicable, Tenant has delivered to Landlord a set of field record drawings and specifications reflecting as-built conditions. Tenant's request for disbursement of the Tenant Improvement Allowance and the New Carpet Allowance, if applicable, must be provided to Landlord with all work complete and all other conditions for such disbursement satisfied prior to October 31, 2027, and any undisbursed portion, less any pending requests, shall be forfeited without payment, refund or credit, unless Tenant has timely made an Allowance Rent Credit Election prior to such date as provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In lieu of applying the Tenant Improvement Allowance to the cost of Tenant Improvements during the Extended Term, at any time after the execution of this Amendment, Tenant shall have the right to elect to use the Tenant Improvement Allowance as a credit against monthly Base Rent by providing written notice thereof to Landlord **("Allowance Rent Credit Election").** If Tenant makes the Allowance Rent Credit Election, and provided there is no default by Tenant under the Lease, Landlord shall apply the Tenant Improvement Allowance as a credit against monthly Base Rent commencing with the first full calendar month after Landlord receives the Allowance Rent Credit Election.

4 .<u>Landlords Maintenance.</u> Effective as of November 1, 2026, and continuing through the Extended Term, Landlord's maintenance and repair obligations under the Lease shall be amended to include the maintenance, repair and replacement (if required) of the underground sewer pipes and lines located within the Premises; provided, however, Landlord shall not be obligated to repair or replace any damage caused by the negligence or willful misconduct of Tenant or its agents, employees, contractors or invitees, which repair and/or replacement shall be performed by Tenant at the sole cost and expense of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Future Relocation.</u> If Landlord or any of its affiliates acquires other office, industrial or flex buildings in or around the Boulder metropolitan area (each an **"Alternative Building"),** and Tenant desires to relocate to an Alternative Building, Tenant may provide written notice thereof to Landlord. Thereafter, Landlord (or its affiliate that owns such Alternative Building) and Tenant shall cooperate and work together in good faith to determine what leasable space that Tenant requires, the available space within such Alternative Building, and the other terms and conditions of such relocation. If Landlord (or its affiliate that owns such Alternative Building) and Tenant are not able to agree upon the terms and conditions of such relocation, in their respective sole and absolute discretion, neither party shall have any liability to the other party in connection therewith, Tenant shall have no right to terminate the Lease and the Lease (as herein modified) shall remain in full force and effect. If the parties reach an agreement on the terms and conditions of such relocation as provided above, Landlord and Tenant shall enter into an amendment to the Lease memorializing the terms and conditions thereof, and Landlord (or its affiliate that owns such Alternative Building) and Tenant shall enter into a new lease with respect to the selected leasable space in such Alternative Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Confidentiality</u>. The terms and conditions of the Lease (as herein amended) constitute proprietary information of Landlord that Tenant covenants and agrees to keep strictly confidential. Tenant acknowledges that the disclosure of such information would adversely affect Landlord's ability to negotiate other leases and impair Landlord's relationship with other tenants. Tenant covenants and agrees that neither Tenant nor its employees or agents will directly or indirectly disclose the base rental, or other terms and conditions of the Lease (including this Amendment) to any other tenant or prospective tenant of Landlord or any landlord related to Landlord, or to any other person or entity, other than Tenant's employees and agents who have a legitimate need to know such information (and who Tenant will also require to keep the same in confidence). This provision will survive the expiration or earlier termination of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Force and Effect.</u> As herein modified, the Lease shall remain in full force and effect in accordance with the terms and conditions thereof. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Counterparts/Electronic Signatures.</u> This Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute the binding and enforceable agreement of the parties hereto. This Amendment may be executed and delivered by a party by facsimile or email transmission, which transmission copy shall be considered an original and shall be binding and enforceable against such party. Landlord and Tenant acknowledge and agree that electronic signatures used for the execution of this Amendment shall be valid, binding and enforceable against such party.

## Ex-10

Exhibit 10.14

**ENCISION INC. SECURITIES PURCHASE AGREEMENT**

THIS SECURITIES PURCHASE AGREEMENT (the "Agreement") is entered into as of the 19<sup>th</sup> day of August, 2025 (the "Effective Date") by and among ENCISION INC., a Colorado corporation (the "Company"), and the persons and entities named on the executed counterpart signature pages attached hereto (individually, a "Purchaser" and collectively, the "Purchasers") and who are listed on EXHIBIT A hereto.

RECITALS

WHEREAS, the Company has authorized the sale and issuance ofup to an aggregate of 5,000,000 shares of its Common Stock (the "Shares"); and

WHEREAS, the Company desires to issue and sell the Shares to Purchasers on the terms and conditions set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth below, the Company and each Purchaser, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** AGREEMENT TO SELL AND PURCHASE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** <u>Authorization of Shares.</u> The Company has authorized the sale and issuance to Purchasers of the Shares. The Shares have the rights, preferences, privileges and restrictions set forth in the Company's Articles of Incorporation, as amended to date (the "Charter").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** <u>Sale and Purchase.</u> Subject to the terms and conditions hereof, at the Closing (as defined below), the Company hereby agrees to issue and sell to each Purchaser, severally and not jointly, and each Purchaser agrees to purchase from the Company, severally and not jointly, the number of Shares set forth opposite such Purchaser's name on the executed counterpart signature pages attached hereto, at a purchase price of $0.10 per share (the "Purchase Price").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** THE CLOSING

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** <u>Closing Date.</u> The closing of the sale and purchase of the Shares (the "Closing") shall be held on the Effective Date (the "Closing Date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** <u>Delivery.</u> At the Closing, subject to the terms and conditions hereof, the Company will deliver to each Purchaser a stock certificate representing the number of Shares to be purchased at such Closing by such Purchaser, against payment of the purchase price therefor by check or wire transfer made in accordance with the Company's instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY

The Company hereby represents and warrants to, and covenants with, each Purchaser as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** <u>Organization, Good Standing and Qualification</u>. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Colorado. The Company has all requisite corporate power and authority to own and operate its properties and assets, to execute and deliver this Agreement, to issue and sell the Shares, to carry out the provisions of this Agreement, and to carry on its business as presently conducted and as presently proposed to be conducted. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2** <u>Authorization.</u> All corporate action on the part of the Company, its directors and its stockholders necessary for the authorization, execution, delivery and performance of this Agreement by the Company and the performance of the Company's obligations hereunder, including the issuance and delivery of the Shares, has been taken or will be taken prior to the issuance of the Shares. This Agreement, when

executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3** Capitalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock and I 0,000,000 shares of Preferred Stock. As of August 19, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** 11,879,645 shares of Common Stock were issued and outstanding, all of which were validly issued, fully paid, nonassessable and free of preemptive rights, and no shares of Common Stock were held in the treasury of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** 434,961 shares of Common Stock were issuable upon exercise of outstanding employee stock options granted pursuant to the Company's 2007 Stock Option Plan and 2014 Equity Incentive Plan, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** no shares of Preferred Stock have been designated and no shares are issued and outstanding.

Except as set forth in this Section 3.3 or the SEC Reports (as defined below), there are no options, warrants or other rights, agreements, arrangements or commitments of any character to which the Company is a party or by which the Company is bound relating to the issued or unissued capital stock or other equity interests of the Company, or securities convertible into or exchangeable for such capital stock or other equity interests, or obligating the Company to issue or sell any shares of its capital stock or other equity interests, or securities convertible into or exchangeable for such capital stock of, or other equity interests in, the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** The Shares, when issued, paid for and delivered in accordance with the terms of this Agreement, will be duly authorized, validly issued, fully paid and nonassessable and not subject to preemptive rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4** <u>Governmental Consents.</u> Assuming the accuracy of the representations made by the Purchasers in Section 4 of this Agreement, all consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any governmental authority, required on the part of the Company in connection with the valid execution and delivery of this Agreement, the offer, sale or issuance of the Shares or the consummation of any other transaction contemplated hereby shall have been obtained and will be effective at the Closing, filings pursuant to Regulation D of the Securities Act of 1933, as amended (the "Act"), and applicable state securities laws, which have been made or will be made in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5** <u>Compliance with Laws.</u> To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership of its properties, which violation of which would materially and adversely affect the business, assets, liabilities, financial condition, operations or prospects of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6** <u>Compliance with Other Instruments.</u> The Company is not in violation or default of any term of the Charter or its bylaws, or of any provision of any mortgage, indenture or contract to which it is a party and by which it is bound or of any judgment, decree, order or writ, other than such violation(s) that would not have a material adverse effect on the Company. The execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated hereby will not result in any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice, either a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.7** <u>Offering.</u> Assuming the accuracy of the representations and warranties of the Purchasers contained in Section 4 hereof, the offer, issue, and sale of the Shares are and will be exempt from the registration and prospectus delivery requirements of the Act, and have been registered or qualified (or are exempt from registration and qualification) under the registration, permit, or qualification requirements of all applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.8** <u>No "Bad Actor" Disqualification.</u> The Company has exercised reasonable care to determine whether any Company Covered Person (as defined below) is subject to any of the "bad actor" disqualifications described in Rule 506(d)(l)(i) through (viii), as modified by Rules 506(d)(2) and (d)(3), under the Securities Act ("Disqualification Events"). To the Company's knowledge, no Company Covered Person is subject to a Disqualification Event. The Company has complied, to the extent required, with any disclosure obligations under Rule 506(e) under the Securities Act. For purposes of this Agreement, "Company Covered Persons" are those persons specified in Rule 506(d)(I) under the Securities Act; provided, however, that Company Covered Persons do not include (a) any Purchaser, or (b) any person or entity that is deemed to be an affiliated issuer of the Company solely as a result of the relationship between the Company and any Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.9** SEC Filings; Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** The Company has timely filed all forms, reports and documents (including all exhibits) required to be filed by it with the SEC since January I, 2024 (the "SEC Reports"). The SEC Reports (i) were prepared in accordance with the requirements of the Act and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and regulations promulgated thereunder and (ii) did not at the time they were filed contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Each of the financial statements (including, in each case, any notes thereto) contained in the SEC Reports was prepared in accordance with United States generally accepted accounting principles ("GAAP") applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto) and the Company's books and records, and each fairly presented the financial position, results of operations and cash flows of the Company as at the respective dates thereof and for the respective periods indicated therein except as otherwise noted therein (subject, in the case of unaudited statements, to normal year-end adjustments which individually or in the aggregate did not have, and would not reasonably be expected to have, a material adverse effect on the business, operations, assets, liabilities, financial condition or results of operations of the Company). The books and records of the Company have been, and are being, maintained in accordance with applicable legal and accounting requirements in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Except as and to the extent set forth on the balance sheet of the Company as of March 3 I, 2025 included in the Company Form 10-K for the annual period ended March 31, 2025, including the notes thereto, the Company has no liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise), except for liabilities or obligations incurred since March 31, 2025 that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, operations, assets, liabilities, financial condition or results of operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Except as expressly contemplated by this Agreement or as set forth in the SEC Reports, since March 31, 2025 through the date hereof, the Company has conducted its business in the ordinary course consistent with past practice and, since such date through the date hereof, there has not occurred any event or development that would, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, operations, assets, liabilities, financial condition or results of operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

Each Purchaser hereby represents and warrants to the Company, severally and not jointly, as follows (provided that such representations and warranties do not lessen or obviate the representations and warranties of the Company set forth in this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** <u>Purchase for Own Account.</u> Purchaser represents that it is acquiring the Shares solely for its own account and beneficial interest for investment and not for sale or with a view to distribution of the Shares or any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** <u>Information and Sophistication</u>. Purchaser hereby: (i) acknowledges that it has received all the information it has requested from the Company and it considers necessary or appropriate for deciding whether to acquire the Shares, (ii) represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Shares and to obtain any additional information necessary to verify the accuracy of the information given the Purchaser and (iii) further represents that it has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of this investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** <u>Ability to Bear Economic Risk.</u> Purchaser acknowledges that investment in the Shares involves a high degree of risk, and represents that it is able, without materially impairing its financial condition, to hold the Shares for an indefinite period of time and to suffer a complete loss of its investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** <u>Rule 144</u>. Purchaser acknowledges and agrees that the Shares are "restricted securities" as defined in Rule 144 promulgated under the Act as in effect from time to time and must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. Purchaser has been advised or is aware of the provisions of Rule 144, which permits limited resale of securities purchased in a private placement subject to the satisfaction of certain conditions. Purchaser acknowledges that the Company has no obligation to register or qualify the Shares for resale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5** <u>Legends.</u> Purchaser acknowledges and agrees that the Shares may bear one or all of the following legends:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF I 933, AS AMENDED AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF I933 AS AMENDED."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Any legend required by the Blue Sky laws of any state to the extent such laws are applicable to the shares represented by the certificate so legended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** <u>Accredited Investor Status.</u> Purchaser is an "accredited investor" as such term is defined in Rule 501 under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7** <u>Residence.</u> If Purchaser is an individual, then Purchaser resides in the state or province identified in the address of Purchaser set forth on the executed counterpart signature page attached hereto. If Purchaser is a partnership, corporation, limited partnership, limited liability company or other entity, then the office or offices of Purchaser in which its investment decision was made is located at the address or addresses of Purchaser set forth on the executed counterpart signature page attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8** <u>No "Bad Actor" Disqualification</u>. Such Purchaser represents and warrants that neither (A) the Purchaser nor (B) any entity that controls the Purchaser or is under the control of, or under common control with, the Holder, is subject to any Disqualification Event, except for Disqualification Events covered by Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act and disclosed in writing in reasonable detail to the Company. The Purchaser represents that the Purchaser has exercised reasonable care to determine the accuracy of the representation made by the Purchaser in this paragraph, and agrees to notify the Company if the Purchaser becomes aware of any fact that makes the representation given by the Purchaser hereunder inaccurate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9** <u>Further Assurances.</u> Each Purchaser agrees and covenants that at any time and from time to time it will promptly execute and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out the full intent and purpose of this Agreement and to comply with state or federal securities laws or other regulatory approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** CONDITIONS TO CLOSING

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** <u>Conditions to Purchasers' Obligations at the Closing.</u> Purchasers' obligations to purchase the Shares at the Closing are subject to the satisfaction, at or prior to the Closing Date, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** <u>Representations and Warranties True: Performance of Obligations.</u> The representations and warranties made by the Company in Section 3 hereof shall be true and correct in all material respects as of the Closing with the same force and effect as if they had been made as of the Closing, and the Company shall have performed all obligations and conditions herein required to be performed or observed by it on or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** <u>Consents, Permits, and Waivers.</u> The Company shall have obtained any and all consents, permits and waivers necessary or appropriate for consummation of the transactions contemplated by the Agreement, except for such as may be properly obtained subsequent to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Proceedings and Documents.</u> All corporate and other proceedings in connection with the transactions contemplated at the Closing hereby and all documents and instruments incident to such transactions shall be reasonably satisfactory in substance and form to Purchasers, and Purchasers shall have received all such counterpart originals or certified or other copies of such documents as they may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2** <u>Conditions to Obligations of the Company.</u> The Company's obligation to issue and sell the Shares at the Closing is subject to the satisfaction, on or prior to the Closing Date, of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** <u>Representations and Warranties True.</u> The representations and warranties in Section 4 made by those Purchasers acquiring Shares hereof shall be true and correct in all material respects at the date of the Closing, with the same force and effect as if they had been made on and as of said date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** <u>Consents, Permits, and Waivers.</u> The Company shall have obtained any and all consents, permits and waivers necessary or appropriate for consummation of the transactions contemplated by this Agreement, except for such as may be properly obtained subsequent to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1** <u>Binding Agreement.</u> The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** <u>Governing Law.</u> This Agreement shall be governed by and construed under the laws of the State of Colorado as applied to agreements among Colorado residents, made and to be performed entirely within the State of Colorado, without giving effect to conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** <u>Counterparts.</u> This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4** <u>Titles and Subtitles.</u> The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5** <u>Notices.</u> All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex, electronic mail or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (I) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at 6797 Winchester Circle, Boulder, CO 80301, and to the Purchasers at the address(es) set forth on the executed counterpart signature pages attached hereto or at such other address(es) as the Company or a Purchaser may designate by ten (I 0) days advance written notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6** <u>Modification; Waiver.</u> No modification or waiver of any provision of this Agreement or consent to departure therefrom shall be effective unless in writing and approved by the Company and the holders of at least a majority of the then outstanding Shares issued pursuant to this Agreement. Any such amendment or modification shall be binding on all parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7** <u>Expenses.</u> The Company and each Purchaser shall each bear its respective expenses and legal fees incurred with respect to this Agreement and the transactions contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.8** <u>Delays or Omissions.</u> It is agreed that no delay or omission to exercise any right, power or remedy accruing to each Purchaser, upon any breach or default of the Company under this Agreement shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character by Purchaser of any breach or default under this Agreement, or any waiver by any Purchaser of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing and that all remedies, either under this Agreement, or by law or otherwise afforded to the Purchaser, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.9** <u>Entire Agreement.</u> This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subjects hereof and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.

[Remainder of page intentionally left blank.]

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, Gregory Trudel, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Encision Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and,

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Dated: <u>November 13, 2025</u> | <u>/s/ Gregory Trudel</u> |
|  | Gregory Trudel |
|  | President and CEO |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Brandon Shepard, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Encision Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and,

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | |
|:---|:---|
| Dated: <u>November 13, 2025</u> | <u>/s/ Brandon Shepard</u> |
|  | Brandon Shepard |
|  | Controller, Principal Accounting Officer & |
|  | Principal Financial Officer |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS OF PERIODIC REPORT**

I, Gregory Trudel, President and CEO of Encision Inc. (the "Company"), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Quarterly Report on Form 10-Q of the Company for the three and six months ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the Report.

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| | |
|:---|:---|
| Dated: November 13, 2025 | <u>/s/ Gregory Trudel</u> |
|  | Gregory Trudel |
|  | President and CEO |

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I, Brandon Shepard, Controller and Principal Accounting Officer of Encision Inc. (the "Company"), hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Quarterly Report on Form 10-Q of the Company for the three and six months ended September 30, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the period covered by the Report.

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| | |
|:---|:---|
| Dated: <u>November 13, 2025</u> | <u>/s/ Brandon Shepard</u> |
|  | Brandon Shepard |
|  | Controller, Principal Accounting Officer & |
|  | Principal Financial Officer |

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