Encision Inc. Reports Slight Revenue Increase and Improved Net Loss for Q3 2024

Encision Inc. reported its financial results for the three and nine months ending December 31, 2024, revealing a total revenue of $1.59 million for the quarter, a slight increase from $1.58 million in the same period last year. For the nine-month period, total revenue decreased to $4.97 million from $5.06 million year-over-year. The company experienced a net loss of $24,668 for the quarter, significantly improved from a loss of $207,130 in the prior year, while the nine-month net loss narrowed to $172,890 from $355,112. The gross profit for the quarter increased by 17% to $850,290, driven by improved operating efficiencies and a price increase on products.

In terms of operational metrics, Encision's product revenue for the quarter was $1.46 million, down 7% from the previous year, attributed to a decline in disposable product sales, which suggests a decrease in surgical procedures performed. Conversely, service revenue surged to $128,179 from $20,461, primarily due to services rendered under a Master Services Agreement with Vicarious Surgical Inc. The company’s gross margin improved to 54% for the quarter, up from 46% a year earlier, reflecting better cost management and pricing strategies.

Encision's balance sheet showed total assets of $3.86 million as of December 31, 2024, a slight increase from $3.81 million at the end of the previous fiscal year. Current liabilities rose to $1.61 million, up from $1.22 million, while shareholders' equity decreased to $1.69 million from $1.83 million, primarily due to the net loss and stock-based compensation expenses. The company reported cash and cash equivalents of $347,919, a significant increase from $42,509 at the end of March 2024, largely due to cash generated from operations and borrowings.

Strategically, Encision is focused on expanding its market presence through its patented Active Electrode Monitoring (AEM) technology, which aims to enhance patient safety in minimally invasive surgeries. The company plans to increase its sales efficiency and expand its product line, including the introduction of more disposable AEM products. Management is optimistic about the potential for growth in the installed base of AEM products as awareness of the risks associated with traditional electrosurgical devices increases.

Looking ahead, Encision aims to optimize its sales execution and expand market awareness of its AEM technology. The company anticipates that its efforts to improve the productivity of its sales representatives and the introduction of next-generation products will contribute to increased sales and profitability. However, the company acknowledges the risks associated with operating losses and the need for additional capital if liquidity diminishes in the future.