Encision Inc. Reports Net Loss of $41,133 and Decline in Revenue for Quarter Ending June 30, 2025

Encision Inc., a medical device company specializing in surgical instruments, reported a net loss of $41,133 for the quarter ending June 30, 2025, a significant decline from a net income of $22,041 during the same period in 2024. Total revenue for the quarter was $1,602,728, down from $1,630,931 year-over-year. The decrease in revenue was primarily attributed to a 6% drop in product sales, which fell to $1,492,832, reflecting reduced demand for disposable products amid a decline in surgical procedures. Service revenue, however, saw a notable increase to $109,896, up from $38,971, largely due to services performed under a Master Services Agreement with Vicarious Surgical Inc.

In terms of operational performance, Encision's gross profit decreased by 7% to $878,459, resulting in a gross margin of 55%, down from 58% in the previous year. The company reported a reduction in sales and marketing expenses, which totaled $404,601, a 4% decrease from $423,237 in the prior year, attributed to lower sales commissions. General and administrative expenses also decreased by 7% to $328,198, while research and development expenses increased by 19% to $165,440, reflecting a strategic focus on product development.

Encision's balance sheet showed total assets of $4,131,555 as of June 30, 2025, an increase from $3,670,699 at the end of the previous fiscal period. Current liabilities decreased to $1,277,873 from $1,575,915, contributing to a working capital increase to $1,172,666. The company’s cash reserves, however, fell sharply to $47,918 from $257,433, primarily due to cash used in operating activities and repayments on its line of credit. The accumulated deficit stood at $22,806,378, raising concerns about liquidity and the potential need for additional capital in the future.

Strategically, Encision is focused on expanding the adoption of its patented Active Electrode Monitoring (AEM) technology, which aims to enhance patient safety in minimally invasive surgeries. The company plans to increase market awareness and improve sales efficiency, with an emphasis on converting hospitals and surgery centers to AEM technology. Encision is also exploring opportunities for international sales growth and potential licensing arrangements to further capitalize on its technology.

Looking ahead, Encision anticipates that increased awareness of the risks associated with monopolar laparoscopic electrosurgery will drive demand for its products. The company aims to optimize sales execution and expand its customer base while continuing to invest in research and development to enhance its product offerings. However, the outlook remains cautious, as the company acknowledges the challenges of achieving sustained profitability and managing operational costs effectively.