Encision Reports Third Quarter Fiscal Year 2025 Results

Rhea-AI Summary

Encision Inc. (ECIA) reported its fiscal 2025 third quarter results ending December 31, 2024. The company posted total net revenue of $1.59 million, comprising $1.46 million in product revenue and $128,000 in service revenue, with a quarterly net loss of $24,000 or $(0.00) per diluted share.

For the nine-month period, total net revenue was $4.97 million with a net loss of $172,900 or $(0.01) per diluted share. Gross margin on product revenue improved to 54% in Q3 FY2025 from 46% in Q3 FY2024. The company is developing a new product for ENT surgery, expected to launch in the first half of FY2026.

The quarter was described as a rebuilding period, with new sales partners onboarded and internal cost reduction measures implemented, expected to show effects from Q4 onwards.

Positive

• Gross margin improvement from 46% to 54% year-over-year in Q3
• Reduced quarterly net loss from $207,000 to $24,000 year-over-year
• Cost reduction measures implemented with effects expected from Q4
• Cash position increased to $347,919 from $42,509 at fiscal year start

Negative

• Product revenue declined from $1.56M to $1.46M in Q3 year-over-year
• Nine-month total revenue decreased from $5.1M to $4.97M year-over-year
• Line of credit increased from $156,685 to $281,527
• Operating loss of $20,867 in Q3 FY2025

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				March 31, 2024
		Unaudited				Audited
ASSETS
Current assets:
Cash		$	347,919			$	42,509
Accounts receivable			779,900				891,129
Inventories			1,363,377				1,402,338
Prepaid expenses			195,455				90,298
Total current assets			2,686,651				2,426,274
Equipment:
Furniture, fixtures, and equipment, at cost			2,675,406				2,627,726
Accumulated depreciation			(2,405,638	)			(2,373,722	)
Equipment, net			269,768				254,004
Right of use asset, net			653,249				900,787
Patents, net			175,233				164,010
Other assets			73,826				65,641
TOTAL ASSETS			3,858,727				3,810,716
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	495,015			$	346,049
Line of credit			281,527				156,685
Secured notes			47,469				42,194
Accrued compensation			225,252				184,913
Other accrued liabilities			140,593				119,804
Accrued lease liability			421,467				370,377
Total current liabilities			1,611,323				1,220,022
Long-term liability:
Secured notes			182,067				67,336
Accrued lease liability			377,952				696,610
Total liabilities			2,171,342				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 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:
Cash paid during the year for interest		$	26,475			$	52,148

SOURCE: Encision, Inc.

View the original press release on ACCESS Newswire

FAQ

What was Encision's (ECIA) revenue for Q3 FY2025?

Encision reported total net revenue of $1.59 million for Q3 FY2025, consisting of $1.46 million in product revenue and $128,000 in service revenue.

How did ECIA's gross margin change in Q3 FY2025 compared to Q3 FY2024?

Gross margin on product revenue improved to 54% in Q3 FY2025 from 46% in Q3 FY2024.

What is the timeline for ECIA's new ENT surgery product launch?

Encision plans to launch its new ENT surgery product in the first half of FY2026.

How much did ECIA's net loss improve in Q3 FY2025?

ECIA's net loss improved to $24,000 in Q3 FY2025 from $207,000 in Q3 FY2024.

What was ECIA's cash position as of December 31, 2024?

Encision's cash position was $347,919 as of December 31, 2024, up from $42,509 at the start of the fiscal year.