BOULDER, CO / ACCESS Newswire / February 14, 2025 / Encision Inc. (OTC PINK:ECIA), a medical device company that owns the patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous radiant energy burns in minimally invasive surgery, today announced financial results for its fiscal 2025 third quarter that ended December 31, 2024.
The Company posted quarterly product net revenue of $1.46 million and service net revenue of $128 thousand, or total net revenue of $1.59 million for a quarterly net loss of $24 thousand, or $(0.00) per diluted share. These results compare to product net revenue of $1.56 million and service net revenue of $20 thousand, or total net revenue of $1.58 million for a quarterly net loss of $207 thousand, or $(0.02) per diluted share, in the year-ago quarter. Gross margin on product net revenue was 54% in the fiscal 2025 third quarter and 46% in the fiscal 2024 third quarter.
The Company posted nine months of product net revenue of $4.7 million and service net revenue of $268 thousand, or total net revenue of $4.97 million for a nine-month net loss of $172.9 thousand, or $(0.01) per diluted share. These results compare to product net revenue of $4.93 million and service net revenue of $134.3 thousand, or total net revenue of $5.1 million for a nine-month net loss of $355 thousand, or $(0.03) per diluted share, in the year-ago nine months. Gross margin on product net revenue was 52.7% in the fiscal 2025 nine months and 48.5.7% in the fiscal 2024 nine months.
"The third quarter was a rebuilding period for Encision," said Gregory Trudel, President & CEO of Encision. "While we were able to bring additional sales partners online, the timing was insufficient for them to make substantial contributions to the top line. During this period, we implemented enhancements to reduce internal costs. The effects of those efforts will be evident beginning in Q4. We continue to make significant progress in the development of our new product for ENT surgery and are on track to share that with the market in the first half of FY2026."
Encision Inc. designs and markets a portfolio of high-performance surgical instrumentation that delivers advances in patient safety with AEM technology, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, Colorado, the company pioneered the development and deployment of Active Electrode Monitoring, AEM technology, to eliminate dangerous stray energy burns during minimally invasive procedures. For additional information about all our products, please visit www.encision.com.
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the Company's actual results to differ materially include, among others, its ability to develop new or enhanced products and have such products accepted in the market, its ability to increase net sales through the Company's distribution channels, its ability to compete successfully against other manufacturers of surgical instruments, insufficient quantity of new account conversions, insufficient cash to fund operations, delays in developing new products and receiving FDA approval for such new products and other factors discussed in the Company's filings with the Securities and Exchange Commission. Readers are encouraged to review the risk factors and other disclosures appearing in the Company's Annual Report on Form 10-K for the year ended March 31, 2024, and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise.
Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding
--
--
Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 11,879,645 and 11,858,627 issued and outstanding at December 31, 2024, and March 31, 2024, respectively
24,405,321
24,371,795
Accumulated (deficit)
(22,717,936
)
(22,545,047
)
Total shareholders' equity
1,687,385
1,826,748
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
3,858,727
$
3,810,716
Encision Inc. Condensed Statements of Operations (Unaudited)
Three Months Ended
Nine Months Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
NET REVENUE:
Product
$
1,457,402
$
1,561,103
$
4,703,181
$
4,927,069
Service
128,179
20,461
268,718
134,269
Total revenue
1,585,581
1,581,564
4,971,899
5,061,338
COST OF REVENUE:
Product
667,004
843,216
2,217,524
2,539,708
Service
68,287
11,109
132,941
69,057
Total cost of revenue
735,291
854,325
2,350,465
2,608,765
GROSS PROFIT
850,290
727,239
2,621,434
2,452,573
OPERATING EXPENSES:
Sales and marketing
377,153
413,992
1,258,870
1,236,770
General and administrative
355,200
351,569
1,080,507
1,106,703
Research and development
138,804
151,077
433,500
420,351
Total operating expenses
871,157
916,638
2,772,877
2,763,824
OPERATING INCOME (LOSS)
(20,867
)
(189,399
)
(151,443
)
(311,251
)
Interest expense, net
(9,508
)
(21,065
)
(26,475
)
(52,148
)
Other income (expense), net
5,707
3,334
5,028
8,287
Interest expense and other income (expense), net
(3,801
)
(17,731
)
(21,447
)
(43,861
)
(LOSS) BEFORE PROVISION
FOR INCOME TAXES
(24,668
)
(207,130
)
(172,890
)
(355,112
)
Provision for income taxes
--
--
--
--
NET (LOSS)
$
(24,668
)
$
(207,130
)
$
(172,890
)
$
(355,112
)
Net (loss) per share-basic and diluted
$
(0.00
)
$
(0.02
)
$
(0.01
)
$
(0.03
)
Weighted average shares-basic and diluted
11,877,469
11,769,543
11,875,917
11,769,543
Encision Inc. Condensed Statements of Cash Flows (Unaudited)
Nine Months Ended
December 31, 2024
December 31, 2023
Cash flows (used in) operating activities:
Net (loss)
(172,890
)
(355,112
)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation and amortization
57,855
64,357
Stock-based compensation expense related to stock options
34,975
53,306
Provision for inventory obsolescence, net change
7,281
63,000
Change in operating assets and liabilities:
Right of use asset, net
(20,030
)
(29,664
)
Accounts receivable
111,230
(2,391
)
Inventories
31,680
282,017
Prepaid expenses and other assets
(113,343
)
(30,055
)
Accounts payable
148,967
48,876
Accrued compensation and other accrued liabilities
61,129
61,018
Net cash provided by (used in) operating activities
146,854
155,352
Cash flows (used in) investing activities:
Acquisition of property and equipment
(61,334
)
(12,051
)
Patent costs
(23,509
)
(20,177
)
Net cash (used in) investing activities
(84,843
)
(32,228
)
Cash flows from financing activities:
Borrowing from line of credit
281,527
--
(Payments) from options exercised
(1,449
)
--
(Paydown) Secured notes
(36,679
)
(212,851
)
Net cash provided by (used in) financing activities
243,399
(212,851
)
Net increase in cash
305,410
(89,727
)
Cash, beginning of fiscal year
42,509
188,966
Cash, end of fiscal quarter
347,919
99,239
Supplemental disclosures of cash flow information:
