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.
CONTACT: Brandon Shepard, Encision Inc., 303-444-2600, bshepard@encision.com
Encision Inc.
Condensed Balance Sheets
| December 31, 2024 |
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| March 31, 2024 |
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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 |
| $ | 347,919 |
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| $ | 42,509 |
|
Accounts receivable |
|
| 779,900 |
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|
| 891,129 |
|
Inventories |
|
| 1,363,377 |
|
|
| 1,402,338 |
|
Prepaid expenses |
|
| 195,455 |
|
|
| 90,298 |
|
Total current assets |
|
| 2,686,651 |
|
|
| 2,426,274 |
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Equipment: |
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Furniture, fixtures, and equipment, at cost |
|
| 2,675,406 |
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| 2,627,726 |
|
Accumulated depreciation |
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| (2,405,638 | ) |
|
| (2,373,722 | ) |
Equipment, net |
|
| 269,768 |
|
|
| 254,004 |
|
Right of use asset, net |
|
| 653,249 |
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|
| 900,787 |
|
Patents, net |
|
| 175,233 |
|
|
| 164,010 |
|
Other assets |
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| 73,826 |
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|
| 65,641 |
|
TOTAL ASSETS |
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| 3,858,727 |
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|
| 3,810,716 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 495,015 |
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| $ | 346,049 |
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Line of credit |
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| 281,527 |
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|
| 156,685 |
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Secured notes |
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| 47,469 |
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|
| 42,194 |
|
Accrued compensation |
|
| 225,252 |
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|
| 184,913 |
|
Other accrued liabilities |
|
| 140,593 |
|
|
| 119,804 |
|
Accrued lease liability |
|
| 421,467 |
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|
| 370,377 |
|
Total current liabilities |
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| 1,611,323 |
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|
| 1,220,022 |
|
Long-term liability: |
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Secured notes |
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| 182,067 |
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|
| 67,336 |
|
Accrued lease liability |
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| 377,952 |
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|
| 696,610 |
|
Total liabilities |
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| 2,171,342 |
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|
| 1,983,968 |
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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 11,858,627 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 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ | 3,858,727 |
|
| $ | 3,810,716 |
|
Encision Inc.
Condensed Statements of Operations
(Unaudited)
| Three Months Ended |
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| Nine Months Ended |
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| December 31, 2024 |
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| December 31, 2023 |
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| December 31, 2024 |
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| December 31, 2023 |
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NET REVENUE: |
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Product |
| $ | 1,457,402 |
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| $ | 1,561,103 |
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| $ | 4,703,181 |
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| $ | 4,927,069 |
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Service |
|
| 128,179 |
|
|
| 20,461 |
|
|
| 268,718 |
|
|
| 134,269 |
|
Total revenue |
|
| 1,585,581 |
|
|
| 1,581,564 |
|
|
| 4,971,899 |
|
|
| 5,061,338 |
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|
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| |
COST OF REVENUE: |
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|
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|
|
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Product |
|
| 667,004 |
|
|
| 843,216 |
|
|
| 2,217,524 |
|
|
| 2,539,708 |
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Service |
|
| 68,287 |
|
|
| 11,109 |
|
|
| 132,941 |
|
|
| 69,057 |
|
Total cost of revenue |
|
| 735,291 |
|
|
| 854,325 |
|
|
| 2,350,465 |
|
|
| 2,608,765 |
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GROSS PROFIT |
|
| 850,290 |
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|
| 727,239 |
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|
| 2,621,434 |
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|
| 2,452,573 |
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OPERATING EXPENSES: |
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Sales and marketing |
|
| 377,153 |
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|
| 413,992 |
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|
| 1,258,870 |
|
|
| 1,236,770 |
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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 |
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|
| 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 |
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| -- |
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| -- |
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| -- |
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| -- |
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NET (LOSS) |
| $ | (24,668 | ) |
| $ | (207,130 | ) |
| $ | (172,890 | ) |
| $ | (355,112 | ) |
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| |
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: |
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Net (loss) |
|
| (172,890 | ) |
|
| (355,112 | ) |
Adjustments to reconcile net (loss) to net cash (used in) operating activities: |
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Depreciation and amortization |
|
| 57,855 |
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|
| 64,357 |
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Stock-based compensation expense related to stock options |
|
| 34,975 |
|
|
| 53,306 |
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Provision for inventory obsolescence, net change |
|
| 7,281 |
|
|
| 63,000 |
|
Change in operating assets and liabilities: |
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|
|
|
|
|
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|
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: |
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Borrowing from line of credit |
|
| 281,527 |
|
|
| -- |
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(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 | ) |
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| |
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 |
|
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| |
Supplemental disclosures of cash flow information: |
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Cash paid during the year for interest |
| $ | 26,475 |
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| $ | 52,148 |
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SOURCE: Encision, Inc.
View the original press release on ACCESS Newswire
