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, [email protected]

 

Encision Inc.
Condensed Balance Sheets

September 30,
2025
Unaudited

March 31,
2025
Audited

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)

Six Months Ended

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

SOURCE: Encision, Inc.



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