Encision Reports Fourth Quarter Fiscal Year 2025 Results
Rhea-AI Summary
Encision Inc. (OTC PINK:ECIA), a medical device company specializing in Active Electrode Monitoring (AEM®) Technology, reported its fiscal year 2025 results. The company posted Q4 net revenue of $1.52 million with a quarterly net loss of $47,000 ($(0.00) per share), compared to a net loss of $337,000 ($(0.03) per share) in Q4 2024.
For fiscal year 2025, Encision reported total net revenue of $6.56 million, comprising $6.22 million in product revenue and $0.34 million in service revenue. The company's net loss improved to $0.22 million ($(0.02) per share) from $0.69 million ($(0.06) per share) in FY2024. Notably, gross margin on product revenue increased to 53.8% in FY2025 from 47.6% in FY2024, driven by lower material costs and improved operational efficiency.
Positive
- None.
Negative
- Total revenue slightly declined to $6.56M from $6.59M year-over-year
- Product revenue decreased to $6.22M from $6.43M
- Operating loss of $171,980 for FY2025
- Line of credit increased to $395,964 from $0 in previous year
- Quarterly revenue declined to $1.52M from $1.53M year-over-year
BOULDER, CO / ACCESS Newswire / July 11, 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 year ended March 31, 2025.
The Company posted quarterly net revenue of
The Company posted annual product net revenue of
"We made progress in improving our gross margins and managing expenses in fiscal 2025," said Gregory Trudel, President & CEO of Encision. "While top-line revenue was relatively flat, we saw improvements in service revenue and operational efficiency. We remain committed to advancing our technology and bringing innovative surgical safety solutions to market."
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, 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
Encision Inc.
Balance Sheets
March 31, 2025 | March 31, 2024 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 257,433 | $ | 42,509 | ||||
Accounts receivable | 786,471 | 891,129 | ||||||
Inventories | 1,483,182 | 1,402,338 | ||||||
Prepaid expenses | 85,679 | 90,298 | ||||||
Total current assets | 2,612,765 | 2,426,274 | ||||||
Equipment: | ||||||||
Furniture, fixtures and equipment, at cost | 2,585,446 | 2,627,726 | ||||||
Accumulated depreciation | (2,340,689 | ) | (2,373,722 | ) | ||||
Equipment, net | 244,757 | 254,004 | ||||||
Right of use asset, net | 568,395 | 900,787 | ||||||
Patents, net | 171,890 | 164,010 | ||||||
Other assets | 72,892 | 65,641 | ||||||
TOTAL ASSETS | $ | 3,670,699 | $ | 3,810,716 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 346,900 | $ | 346,049 | ||||
Line of credit | 395,964 | -- | ||||||
Secured notes | 44,128 | 47,194 | ||||||
Accrued compensation | 180,850 | 184,913 | ||||||
Deferred Revenue | 17,401 | -- | ||||||
Other accrued liabilities | 160,274 | 119,804 | ||||||
Accrued lease liability | 430,398 | 370,377 | ||||||
Total current liabilities | 1,575,915 | 1,068,337 | ||||||
Long-term liability: | ||||||||
Secured notes | 177,470 | 219,021 | ||||||
Accrued lease liability | 266,212 | 696,610 | ||||||
Total liabilities | 2,019,597 | 1,983,968 | ||||||
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; 11,879,645 issued and outstanding at March 31, 2025 and 11,858,627 at March 31, 2024 | 24,416,347 | 24,371,795 | ||||||
Accumulated (deficit) | (22,765,245 | ) | (22,545,047 | ) | ||||
Total shareholders' equity | 1,651,102 | 1,826,748 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,670,699 | $ | 3,810,716 | ||||
Encision Inc.
Statements of Operations
Years Ended | March 31, 2025 | March 31, 2024 | ||||||
NET REVENUE: | ||||||||
Product | $ | 6,217,687 | $ | 6,431,969 | ||||
Service | 337,628 | 153,913 | ||||||
Total revenue | 6,555,315 | 6,585,882 | ||||||
COST OF REVENUE: | ||||||||
Product | 2,873,588 | 3,370,855 | ||||||
Service | 170,441 | 79,065 | ||||||
Total cost of revenue | 3,044,029 | 3,449,920 | ||||||
GROSS PROFIT | 3,511,286 | 3,135,962 | ||||||
OPERATING EXPENSES: | ||||||||
Sales and marketing | 1,689,503 | 1,634,124 | ||||||
General and administrative | 1,400,611 | 1,520,727 | ||||||
Research and development | 593,152 | 621,894 | ||||||
Total operating expenses | 3,683,266 | 3,776,745 | ||||||
OPERATING (LOSS) | (171,980 | ) | (640,783 | ) | ||||
OTHER (EXPENSE): | ||||||||
Interest expense, net | (43,723 | ) | (62,373 | ) | ||||
Other income, (expense) net | (4,495 | ) | 11,373 | |||||
Interest expense and other income, expense, net | (48,218 | ) | (51,000 | ) | ||||
(LOSS) BEFORE PROVISION FOR INCOME TAXES | (220,198 | ) | (691,783 | ) | ||||
Provision for income taxes | -- | -- | ||||||
NET (LOSS) | $ | (220,198 | ) | $ | (691,783 | ) | ||
Net (loss) per share-basic and diluted | $ | (0.02 | ) | $ | (0.06 | ) | ||
Weighted average shares-basic and diluted | 11,879,645 | 11,770,391 | ||||||
Encision Inc.
Statements of Cash Flows
Years Ended | March 31, 2025 | March 31, 2024 | ||||||
Cash flows provided by (used in) operating activities: | ||||||||
Net (loss) | (220,198 | ) | $ | (691,783 | ) | |||
Adjustments to reconcile net (loss) income to net cash (used in) operating activities: | ||||||||
Depreciation and amortization | 81,393 | 85,218 | ||||||
Stock-based compensation expense related to stock options | 46,001 | 53,552 | ||||||
Provision for inventory obsolescence | 4,920 | 12,000 | ||||||
Change in operating assets and liabilities: | ||||||||
Right of use asset, net | (37,985 | ) | 68,710 | |||||
Accounts receivable | 104,658 | 29,592 | ||||||
Inventories | (85,764 | ) | 484,866 | |||||
Prepaid expenses and other assets | (2,632 | ) | 6,728 | |||||
Accounts payable | 18,252 | 93,092 | ||||||
Accrued compensation and other accrued liabilities | 36,407 | 2,414 | ||||||
Net cash provided by (used in) operating activities | (54,948 | ) | 144,389 | |||||
Cash flows (used in) investing activities: | ||||||||
Acquisition of property and equipment | (54,415 | ) | (12,050 | ) | ||||
Patent costs | (25,610 | ) | (24,773 | ) | ||||
Net cash (used in) investing activities | (80,025 | ) | (36,823 | ) | ||||
Cash flows provided by (used in) financing activities: | ||||||||
Borrowings from (paydown of) credit facility, net change | 395,964 | (177,402 | ) | |||||
Borrowings from (paydown of) secured notes | (44,618 | ) | (46,788) | |||||
Net proceeds (payments) from exercise of stock options | (1,449 | ) | (29,833 | ) | ||||
Net cash provided by (used in) financing activities | 349,897 | (254,023 | ) | |||||
Net (decrease) in cash | 214,924 | (146,457 | ) | |||||
Cash, beginning of fiscal year | 42,509 | 188,966 | ||||||
Cash, end of fiscal year | $ | 257,433 | $ | 42,509 | ||||
Supplemental disclosure of non-cash investing activity information: | ||||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the year for interest | $ | 43,723 | $ | 62,373 | ||||
SOURCE: Encision, Inc.
View the original press release on ACCESS Newswire
FAQ
What were Encision's (ECIA) key financial results for fiscal year 2025?
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