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Description of Business and Basis of Presentation
12 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation

1.       Description of Business and Basis of Presentation

 

Encision Inc. is a medical device company that designs, develops, manufactures and markets patented surgical instruments that provide greater safety to patients undergoing minimally-invasive surgery. We believe that our patented AEM® surgical instrument technology is changing the marketplace for electrosurgical devices and instruments by providing a solution to a well-documented risk in laparoscopic surgery. Our sales to date have been made primarily in the United States.

 

We have an accumulated deficit of $21,463,725 at March 31, 2021. Operating funds have been provided primarily by issuances of our common stock and warrants, the exercise of stock options to purchase our common stock, and by operating profits. Our liquidity has diminished because of prior years’ operating losses, and we may be required to seek additional capital in the future.

 

Our strategic marketing and sales plan is designed to expand the use of our products in surgically active hospitals in the United States.

 

We had net income and a (net loss) available to shareholders of $584,734 and ($198,312) for the fiscal years ended March 31, 2021 and 2020, respectively. At March 31, 2021, we had $1,474,339 in cash available to fund future operations, and outstanding borrowings of $773,778. In February 2021, we entered into an unsecured promissory note under the PPP for a principal amount of $533,118. The PPP was established under the congressionally approved CARES Act. The term of the PPP loan is for two years with an interest rate of 1.0% per year, which will be deferred for the first six months of the term of the loan. After the initial six-month deferral period, the loan requires monthly payments of principal and interest until maturity with respect to any portion of the PPP loan which is not forgiven. Under the terms of the CARES Act, a PPP loan recipient may apply for, and be granted, forgiveness for all or a portion of loans granted under the PPP. Such forgiveness will be determined based upon the use of loan proceeds for payroll costs, rent and utility costs, and the maintenance of employee and compensation levels. We expect to achieve the requirements for forgiveness of the loan.

 

The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern.