BOULDER, CO / ACCESS Newswire / August 15, 2025 / Encision Inc. (OTC PINK:ECIA), a medical device company owning patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous radiant energy burns in minimally invasive surgery, today announced financial results for its fiscal 2025 first quarter that ended June 30, 2025.
The Company posted quarterly product net revenue of $1.49 million and service net revenue of $110 thousand, or total net revenue of $1.6 million for a quarterly net loss of $41 thousand, or $0.00 per diluted share. These results compare to product net revenue of $1.59 million and service net revenue of $38 thousand, or total net revenue of $1.63 million for a quarterly net income of $22 thousand, or $(0.00) per diluted share, in the year-ago quarter. Gross margin on product net revenue was 55% in the fiscal 2026 first quarter and 58% in the fiscal 2025 first quarter.
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, delay 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.
CONTACT: Brandon Shepard , Encision Inc., 303-444-2600, bshepard@encision.com
Encision Inc.
Condensed Balance Sheets
| June 30, 2025 |
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| March 31, 2025 |
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| Unaudited |
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| Audited |
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ASSETS |
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Current assets: |
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Cash |
| $ | 47,918 |
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| $ | 257,433 |
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Accounts receivable |
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| 749,426 |
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| 786,471 |
|
Inventories |
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| 1,534,887 |
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|
| 1,483,182 |
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Prepaid expenses |
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| 118,308 |
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| 85,679 |
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Total current assets |
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| 2,450,539 |
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| 2,612,765 |
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Equipment: |
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Furniture, fixtures, and equipment, at cost |
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| 2,591,981 |
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| 2,585,446 |
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Accumulated depreciation |
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| (2,358,134 | ) |
|
| (2,340,689 | ) |
Equipment, net |
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| 233,847 |
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| 244,757 |
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Right of use asset, net |
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| 1,199,806 |
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| 568,395 |
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Patents, net |
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| 166,708 |
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| 171,890 |
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Other assets |
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| 80,655 |
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| 72,892 |
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TOTAL ASSETS |
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| 4,131,555 |
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| 3,670,699 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 328,123 |
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| $ | 346,900 |
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Line of credit |
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| 320,440 |
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| 395,964 |
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Secured notes |
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| 39,802 |
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| 44,128 |
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Accrued compensation |
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| 208,850 |
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| 180,850 |
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Deferred Revenue |
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| 2,574 |
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| 17,401 |
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Other accrued liabilities |
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| 129,615 |
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|
| 160,274 |
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Accrued lease liability |
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| 248,469 |
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| 430,398 |
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Total current liabilities |
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| 1,277,873 |
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| 1,575,915 |
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Long-term liability: |
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Secured notes |
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| 169,997 |
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| 177,470 |
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Accrued lease liability |
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| 1,061,597 |
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| 266,212 |
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Total liabilities |
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| 2,509,467 |
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|
| 2,019,597 |
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Commitments and contingencies (Note 4) |
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Shareholders' equity: |
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Preferred stock, no par value: 10,000,000 shares authorized; none issued and outstanding |
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| - |
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| - |
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Common stock and additional paid-in capital, no par value: 100,000,000 shares authorized; 11,879,645 and 11,879,645 issued and outstanding at June 30, 2025, and March 31, 2025, respectively |
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| 24,428,466 |
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| 24,416,347 |
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Accumulated (deficit) |
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| (22,806,378 | ) |
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| (22,765,245 | ) |
Total shareholders' equity |
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| 1,622,088 |
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|
| 1,651,102 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ | 4,131,555 |
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| $ | 3,670,699 |
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Encision Inc.
Condensed Statements of Operations
(Unaudited)
| Three Months Ended |
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| June 30, 2025 |
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| June 30, 2024 |
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NET REVENUE: |
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Product |
| $ | 1,492,832 |
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| $ | 1,591,960 |
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Service |
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| 109,896 |
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| 38,971 |
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Total revenue |
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| 1,602,728 |
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| 1,630,931 |
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COST OF REVENUE: |
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Product |
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| 666,811 |
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| 667,635 |
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Service |
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| 57,458 |
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| 20,633 |
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Total cost of revenue |
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| 724,269 |
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|
| 688,268 |
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GROSS PROFIT |
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| 878,459 |
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|
| 942,663 |
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OPERATING EXPENSES: |
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Sales and marketing |
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| 404,601 |
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| 423,237 |
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General and administrative |
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| 328,198 |
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| 351,903 |
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Research and development |
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| 165,440 |
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| 139,180 |
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Total operating expenses |
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| 898,239 |
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|
| 914,320 |
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OPERATING (LOSS) INCOME |
|
| (19,780 | ) |
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| 28,343 |
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Interest expense, net |
|
| (18,009 | ) |
|
| (6,369 | ) |
Other (expense) income, net |
|
| (3,344 | ) |
|
| 67 |
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Interest expense and other (expense), income, net |
|
| (21,353 | ) |
|
| (6,302 | ) |
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES |
|
| (41,133 | ) |
|
| 22,041 |
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Provision for income taxes |
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| - |
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| - |
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NET (LOSS) INCOME |
| $ | (41,133 | ) |
| $ | 22,041 |
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Net (loss) income per share-basic and diluted |
| $ | (0.00 | ) |
| $ | (0.00 | ) |
Weighted average shares-basic |
|
| 11,879,645 |
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| 11,879,145 |
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Weighted average shares-diluted |
|
| 11,879,645 |
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|
| 11,906,918 |
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Encision Inc.
Condensed Statements of Cash Flows
(Unaudited)
Three Months Ended |
| June 30, 2025 |
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| June 30, 2024 |
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Cash flows (used in) operating activities: |
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Net (loss) income |
| $ | (41,133 | ) |
| $ | 22,041 |
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Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
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Depreciation and amortization |
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| 22,777 |
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| 19,322 |
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Stock-based compensation expense |
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| 12,119 |
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|
| 12,374 |
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Provision for inventory obsolescence, net change |
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| 3,982 |
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|
| 1,090 |
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Change in operating assets and liabilities: |
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Right of use asset, net |
|
| (17,955 | ) |
|
| (3,456 | ) |
Accounts receivable |
|
| 37,046 |
|
|
| 74,980 |
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Inventories |
|
| (55,687 | ) |
|
| 83,125 |
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Prepaid expenses and other assets |
|
| (40,393 | ) |
|
| (21,587 | ) |
Accounts payable |
|
| (33,605 | ) |
|
| (76,123 | ) |
Accrued compensation and other accrued liabilities |
|
| (2,659 | ) |
|
| 5,762 |
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Net cash provided by (used in) provided by operating activities |
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| (115,508 | ) |
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| 117,528 |
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Cash flows (used in) investing activities: |
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Acquisition of property and equipment |
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| (6,535 | ) |
|
| (14,144 | ) |
Patent costs |
|
| (150 | ) |
|
| (5,397 | ) |
Net cash (used in) investing activities |
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| (6,685 | ) |
|
| (19,541 | ) |
Cash flows from financing activities: |
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(Payments) to borrowing from line of credit |
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| (75,524 | ) |
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| 142,736 |
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(Payments) from options exercised |
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| - |
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|
| (1,449 | ) |
(Paydown) Secured notes |
|
| (11,798 | ) |
|
| (11,339 | ) |
Net cash (used in) provided by financing activities |
|
| (87,322 | ) |
|
| 129,948 |
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Net (decrease) increase in cash |
|
| (209,515 | ) |
|
| 227,935 |
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Cash, beginning of fiscal year |
|
| 257,433 |
|
|
| 42,509 |
|
Cash, end of fiscal quarter |
|
| 47,918 |
|
|
| 270,444 |
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Supplemental disclosures of cash flow information: |
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Cash paid during the period for interest |
| $ | 18,009 |
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| $ | 6,369 |
|
SOURCE: Encision, Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/healthcare-and-pharmaceutical/encision-reports-first-quarter-fiscal-year-2026-results-1061375
