ECIAOTCSurgical & Medical Instruments & ApparatusUS GAAP · USD

Encision Inc

Encision Inc. designs and sells Active Electrode Monitoring (AEM) surgical instruments and related products that are intended to reduce the risk of stray electrosurgical energy during minimally invasive surgery. The company also offers disposable and multi-use laparoscopic scissors, monitors, and related accessories, and it supports adoption through direct sales, independent distributors, and hospital education efforts.

Revenue6.6m USD
−0.5 %y/y
Operating profit (EBIT)-0.2m USD
+73.2 %y/y
EBIT margin-2.6%
+7.1 ppy/y
Net income-0.2m USD
+68.2 %y/y
Free cash flow-0.1m USD
−182.6 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-202468m USD2020: 7.7 m USD2020: EBIT -0.16 m USD20202021: 7.5 m USD2021: EBIT -0.06 m USD20212022: 7.7 m USD2022: EBIT -0.59 m USD20222023: 7.3 m USD2023: EBIT -0.30 m USD20232024: 6.6 m USD2024: EBIT -0.64 m USD20242025: 6.6 m USD2025: EBIT -0.17 m USD20256.6-0.17
RevenueOperating profit (EBIT)

Business

Share of revenue
AEM surgical instruments55 %

Monopolar surgical instruments designed to monitor and reduce stray electrosurgical energy risk.

Scissors and cutting instruments30 %

Disposable and multi-use laparoscopic scissors sold for hot and cold dissection.

Monitors and accessories10 %

Monitoring devices and related accessories that support the AEM product ecosystem.

Services and development work5 %

Proof-of-concept and technical services tied to robotic and minimally invasive surgery.

Products

Reported · share of revenue
94.8%FY2025100 %
  • Products94.8 %
  • Services5.2 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Encision sells primarily to hospitals, surgeons, and healthcare systems that perform minimally invasive and laparoscopic procedures. Adoption is driven by patient-safety concerns, clinical education, and hospital purchasing channels such as GPOs, integrated delivery networks, and the U.S. Veterans Affairs system.

Hospitals and surgical centers

Buy AEM instruments, scissors, and monitors to reduce electrosurgical injury risk and improve OR workflow.

Group Purchasing Organizations (GPOs)

Contract for broader hospital access and help standardize adoption across member facilities.

Integrated delivery networks and hospital systems

Purchase through system-wide sourcing agreements to standardize surgical products across facilities.

Veterans Affairs medical centers

Use the company’s patient-safety technology in a large U.S. healthcare network.

International distributors

Market products in Australia, New Zealand, and selected European markets where CE marking enables sales.

Strategy

Encision’s strategy is to broaden adoption of AEM technology by educating hospitals and surgeons about electrosurgical injury risk and by expanding its sales network. It is also trying to deepen access through GPOs, hospital systems, and distributors while using product innovation such as the 2X Scissors to widen use cases and improve value perception.

Broaden U.S. hospital adoptionShort term

The company needs more operating-room penetration to drive recurring product sales.

Increase awareness of AEM patient-safety benefitsShort term

Demand depends on convincing clinicians and hospitals that monitored electrosurgery reduces risk.

Extend product usage with 2X ScissorsMedium term

A lower-cost multi-use device can open new use segments and standardize customers on the portfolio.

Build international distributionMedium term

CE marking and overseas distributors create incremental market opportunities beyond the U.S.

Geography

2025

The company is headquartered in the United States and most of its business is focused on U.S. hospitals and surgical networks. International sales are still small, but it has distributors in Australia and New Zealand and CE marking allows access to Europe as distribution channels develop.

Australia87 %
New Zealand13 %

Share of the revenue the company reports by geography.

Risks

Encision’s business depends on convincing hospitals and surgeons to adopt a niche safety technology, so market acceptance and long sales cycles are central risks. It also faces supply-chain concentration, intense competition from larger electrosurgical manufacturers, regulatory oversight, cybersecurity exposure, and quarterly volatility typical of a small medical-device company.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Limited market acceptance of AEM technology1Supply chain concentration2Regulatory compliance and approval risk3Competitive pressure from larger medical-device companies4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Limited market acceptance of AEM technologyImpact: HighLikelihood: High

    Demand depends on educating hospitals about electrosurgical hazards and proving clinical value.

    Exposure: Hospital operating rooms and laparoscopic surgery channels

  2. Supply chain concentrationImpact: HighLikelihood: Medium

    The company relies on single-source suppliers and subcontractors for key components and assemblies.

    Exposure: Manufacturing lead times and product availability

  3. Regulatory compliance and approval riskImpact: HighLikelihood: Medium

    FDA and other agencies can inspect, restrict, or delay manufacturing and product approvals.

    ExposureManufacturing facilitiesProduct clearancesQuality systems
  4. Competitive pressure from larger medical-device companiesImpact: MediumLikelihood: High

    Rivals have greater financial, technical, and marketing resources and entrenched products.

    Exposure: Electrosurgical instruments and alternative surgical technologies

  5. Cybersecurity and data breach riskImpact: Medium

    IT systems handle sensitive customer and employee information and could be disrupted or compromised.

    ExposureOperationsReputationPotential legal liabilities

Accounting

Judgemental items
Revenue recognition timing

Product sales likely recognize when control transfers, so shipment timing can move revenue between quarters.

Impact: Affects quarterly comparability and reported growth rates

Inventory valuation and obsolescence

A focused product portfolio and long lead times increase the need to assess excess or obsolete stock.

Impact: Can affect gross margin and operating results

Impairment of long-lived assets or intangibles

If adoption remains weak, asset values tied to product development or operations may need review.

Impact: Could create non-cash charges in weak periods

Quarterly volatility and seasonality

Small order sizes and hospital purchasing cycles can cause uneven revenue and expense recognition.

Impact: Makes trend analysis and guidance less predictable

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026

Encision Inc (OTC) – Surgical & Medical Instruments & Apparat | Financial Analysis – Clarifo