Company: ECIA
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001079973-25-001132
Chunk: 3

Company: ENCISION INC
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 3
---
copy now accounts
for a large percentage of all surgical procedures performed in the United States. Approximately 75% of surgeons employ monopolar electrosurgery
for laparoscopy according to Interactive Surveys. There are over 4.4 million laparoscopic procedures performed annually in the United
States, and this number is increasing annually. (Note: except as otherwise stated, market estimates in this section are as reported by
Patient Safety & Quality Healthcare).

3 

A component of the endoscopic surgery products
market includes laparoscopic hand instruments, including scissors, graspers, dissectors, forceps, suction/irrigation devices, clip appliers
and other surgical instruments of various designs, which provide a variety of tissue effects. Among the laparoscopic hand instruments,
approximately $500 million in sales annually are derived from instruments designed for "monopolar" electrosurgical utility.
This market for laparoscopic monopolar electrosurgical instruments is the market we are targeting with our innovative AEM Surgical Instruments.
Our proprietary AEM product line supplants the conventional “non-shielded, non-monitored” electrosurgical instruments commonly
used in laparoscopic surgery.

When a hospital decides to use our AEM technology,
we make recurring sales to such hospitals for replacement instruments. Sales from reusable and disposable AEM products in hospitals represented
over 90% of our sales in the fiscal year ended March 31, 2025, and we expect this sales stream to grow as new hospitals increasingly adopt
AEM technology and existing hospitals increase usage of AEM instrumentation. We also expect to increase the value per procedure delivered
to our customers and, therefore, expect the dollars per procedure to increase. AEM Instruments are competitively priced compared to conventional
laparoscopic instruments.

We aim to further develop the market by continuing
to educate healthcare professionals about the benefits of AEM technology to advance patient safety. We are developing new devices that
integrate AEM technology, which we believe will have high surgeon appeal. We are also working to improve the reach of our sales network
to key decision makers who purchase or recommend the purchase of laparoscopic instruments and electrosurgical devices. We are also pursuing
relationships with selected GPOs, hospital systems, and integrated delivery networks to assist in promoting the benefits of AEM technology.
We are seeking to increase international opportunities for AEM technology sales. We estimate sales outside the U.S. to be at least as
large as those of the U