Item 1.01 Entry into a Material Definitive Agreement.

On August 23, 2021, Encision Inc. ("Encision" or the "Company") entered into a Supply Agreement ("Supply Agreement") with Auris Health, Inc. ("Auris Health"), which is based in Redwood City, CA and a part of Johnson & Johnson Medical Devices Companies.

The Supply Agreement has an initial term of three years, subject to certain customary termination rights for convenience or for cause.

Under the Supply Agreement, Auris has agreed to buy certain AEM® Technology enabled products exclusively from Encision. Encision will receive an upfront payment and, upon achieving certain milestones, a milestone payment. Encision will also receive revenues from proprietary product sales to Auris pursuant to the terms of the Supply Agreement.

Encision retains the right to sell AEM Technology products to other customers.

Previously in April 2020, Encision and Auris Health had entered into a Master Services Agreement ("MSA"). Under the MSA, the parties have been collaborating on the development of equipment designed to enable the compatibility of Encision's AEM technology with monopolar instruments produced by Auris Health.

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