BOULDER, CO / ACCESS Newswire / November 14, 2025 / Encision Inc. (PK: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 2026 second quarter that ended September 30, 2025.
The Company posted quarterly product net revenue of $1.48 million and service net revenue of $46 thousand, or total net revenue of $1.52 million, resulting in a quarterly net loss of $268 thousand, or $(0.02) per diluted share. These results compare to product net revenue of $1.65 million and service net revenue of $102 thousand, or total net revenue of $1.76 million, resulting in a quarterly net loss of $170 thousand, or $(0.01) per diluted share, in the year-ago quarter. Gross margin on product net revenue was 46% in the fiscal 2026 second quarter and 47% in the fiscal 2025 second quarter.
"Encision continues to fight the attrition of laparoscopic surgical procedure migration to robotics and is focusing our time and resources innovating in segments where robotics are not a factor," says Gregory Trudel the President and CEO of Encision. Our development efforts are culminating in the completion of a new device for the Ear Nose and Throat space that will deliver new levels of patient safety, surgical performance and efficiency, and significant cost savings to hospitals and surgery centers. We expect the product launch in our Q4 and are assembling sales channels and other necessary resources."
Encision Inc. designs and markets a portfolio of high-performance surgical instruments that deliver advances in patient safety, 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, 2025, 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, This email address is being protected from spambots. You need JavaScript enabled to view it.
Encision Inc.
Condensed Balance Sheets
September 30, | March 31, | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 71,731 | $ | 257,433 | ||||
Accounts receivable | 761,947 | 786,471 | ||||||
Inventories | 1,468,863 | 1,483,182 | ||||||
Prepaid expenses | 144,331 | 85,679 | ||||||
Total current assets | 2,446,872 | 2,612,765 | ||||||
Equipment: | ||||||||
Furniture, fixtures and equipment, at cost | 2,628,661 | 2,585,446 | ||||||
Accumulated depreciation | (2,378,645 | ) | (2,340,689 | ) | ||||
Equipment, net | 250,016 | 244,757 | ||||||
Right of use asset | 1,116,454 | 568,395 | ||||||
Patents, net | 161,427 | 171,890 | ||||||
Other assets | 81,990 | 72,892 | ||||||
TOTAL ASSETS | $ | 4,056,759 | $ | 3,670,699 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 314,815 | $ | 346,900 | ||||
Line of credit | 31,706 | 395,964 | ||||||
Secured notes | 35,202 | 44,128 | ||||||
Accrued compensation | 199,657 | 180,850 | ||||||
Deferred Revenue | - | 17,401 | ||||||
Other accrued liabilities | 147,019 | 160,274 | ||||||
Accrued lease liability | 343,172 | 430,398 | ||||||
Total current liabilities | 1,071,571 | 1,575,915 | ||||||
Long-term liabilities: | ||||||||
Secured notes | 162,249 | 177,470 | ||||||
Accrued lease liability | 958,152 | 266,212 | ||||||
Total liabilities | 2,191,972 | 2,019,597 | ||||||
Commitments and contingencies (Note 4) | ||||||||
Shareholders' equity: | ||||||||
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; 16,879,645 and 11,879,645 issued and outstanding at September 30, 2025, and March 31, 2025, respectively | 24,938,998 | 24,416,347 | ||||||
Accumulated (deficit) | (23,074,211 | ) | (22,765,245 | ) | ||||
Total shareholders' equity | 1,864,787 | 1,651,102 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 4,056,759 | $ | 3,670,699 | ||||
Encision Inc.
Condensed Statements of Operations
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |||||||||||||
NET REVENUE: | ||||||||||||||||
Product | $ | 1,481,802 | $ | 1,653,820 | $ | 2,974,634 | $ | 3,245,779 | ||||||||
Service | 46,248 | 101,568 | 156,144 | 140,539 | ||||||||||||
Total revenue | 1,528,050 | 1,755,388 | 3,130,778 | 3,386,318 | ||||||||||||
COST OF REVENUE: | ||||||||||||||||
Product | 805,734 | 882,886 | 1,472,545 | 1,550,520 | ||||||||||||
Service | 24,983 | 44,020 | 82,441 | 64,653 | ||||||||||||
Total cost of revenue | 830,717 | 926,906 | 1,554,986 | 1,615,173 | ||||||||||||
GROSS PROFIT | 697,333 | 828,482 | 1,575,792 | 1,771,145 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Sales and marketing | 395,793 | 458,480 | 800,394 | 881,716 | ||||||||||||
General and administrative | 358,639 | 373,405 | 686,838 | 725,310 | ||||||||||||
Research and development | 201,392 | 155,515 | 366,832 | 294,695 | ||||||||||||
Total operating expenses | 955,824 | 987,400 | 1,854,064 | 1,901,721 | ||||||||||||
OPERATING (LOSS) | (258,491 | ) | (158,918 | ) | (278,272 | ) | (130,576 | ) | ||||||||
Interest expense, net | (11,384 | ) | (10,598 | ) | (29,393 | ) | (16,967 | ) | ||||||||
Other (expense) income, net | 2,042 | (746 | ) | (1,301 | ) | (679 | ) | |||||||||
Interest expense and other income (expense), net | (9,342 | ) | (11,344 | ) | (30,694 | ) | (17,646 | ) | ||||||||
(LOSS) BEFORE PROVISION FOR INCOME TAXES | (267,833 | ) | (170,262 | ) | (308,966 | ) | (148,222 | ) | ||||||||
Provision for income taxes | - | - | - | - | ||||||||||||
NET (LOSS) | $ | (267,833 | ) | $ | (170,262 | ) | $ | (308,966 | ) | $ | (148,222 | ) | ||||
Net (loss) per share-basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
Weighted average shares-basic and diluted | 14,187,337 | 11,875,145 | 13,033,491 | 11,875,145 | ||||||||||||
Encision Inc.
Condensed Statements of Cash Flows
(Unaudited)
September 30, 2025 | September 30, 2024 | |||||||
Cash flows (used in) operating activities: | ||||||||
Net (loss) | $ | (308,966 | ) | $ | (148,222 | ) | ||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 48,570 | 42,525 | ||||||
Stock-based compensation expense related to stock options | 22,651 | 25,011 | ||||||
Provision for potential inventory obsolescence | 2,569 | 83,152 | ||||||
Change in operating assets and liabilities: | ||||||||
Right of use asset, net | 56,656 | (6,909 | ) | |||||
Accounts receivable | 24,524 | 74,127 | ||||||
Inventories | 11,750 | 154,520 | ||||||
Prepaid expenses and other assets | (55,968 | ) | 15,935 | |||||
Accounts payable | (49,487 | ) | (26,678 | ) | ||||
Accrued compensation and other accrued liabilities | 5,552 | (20,762 | ) | |||||
Net cash (used in) provided by operating activities | (242,149 | ) | 192,699 | |||||
Cash flows (used in) investing activities: | ||||||||
Acquisition of property and equipment | (43,215 | ) | (42,559 | ) | ||||
Patent and Trademark costs | (11,933 | ) | (17,359 | ) | ||||
Net cash (used in) investing activities | (55,148 | ) | (59,918 | ) | ||||
Cash flows from financing activities: | ||||||||
(Repayments) Borrowing from line of credit | (364,258 | ) | (77,834 | ) | ||||
(Payments) from options exercised | - | (1,449 | ) | |||||
Proceeds from issuance of common stock | 500,000 | - | ||||||
(Paydown) Draw on Secured notes | (24,147 | ) | 134,007 | |||||
Net cash provided by financing activities | 111,595 | 54,724 | ||||||
Net (decrease) increase in cash | (185,702 | ) | 187,505 | |||||
Cash, beginning of fiscal year | 257,433 | 42,509 | ||||||
Cash, end of six months | $ | 71,731 | $ | 230,014 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the year for interest | $ | 29,393 | $ | 16,967 | ||||
| Last Trade: | US$0.15 |
| Daily Change: | -0.01 -6.25 |
| Daily Volume: | 35,355 |
| Market Cap: | US$2.530M |
August 15, 2025 July 11, 2025 February 14, 2025 November 15, 2024 August 21, 2024 | |
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