Company: ECIA
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001079973-25-001326
Chunk: 15

Company: ENCISION INC
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 8
Chunk 15
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 we have been issued 26 unexpired relevant patents that
together form a significant intellectual property position. Our patents relate to the basic shielding and monitoring technologies that
we incorporate into our AEM products.

Our AEM surgical instruments have been engineered
to provide a seamless transition for surgeons who are switching from conventional laparoscopic instruments. AEM technology has been integrated
into instruments that have the same look, feel, and functionality as conventional instruments that surgeons have been using for years.
The AEM product line encompasses the full range of instrument sizes, types, and styles favored by surgeons. Additionally, we continue
to improve quality and add to the product line. These additions include more disposable versions, the introduction of hand-activated instruments,
our enhanced scissors, our eEdge™ scissors, our EM3 AEM Monitor, our AEM EndoShield Burn Protection System, and the recent introduction
of our AEM 2X enTouch® Scissors. Hospitals can make a complete and smooth conversion to our product line, thereby advancing patient
safety in MIS with optimal convenience.

Outlook

Installed Base of AEM Monitoring Equipment:
We believe that sales of our installed base of AEM products will increase as the inherent risks associated with monopolar laparoscopic
electrosurgery become more widely acknowledged and as we focus on increasing our sales efficiency and continue to enhance our product
line. We expect that the replacement sales of electrosurgical instruments and accessories will also increase as additional facilities
adopt AEM technology. We anticipate that the efforts to improve the productivity of sales representatives carrying the AEM product line,
along with the introduction of next-generation products, may provide the basis for increased sales and profitable operations. However,
these measures, or any others that we may adopt, may not result in either increased sales or profitable operations.

We believe that the unique performance of the AEM
technology and our breadth of independent endorsements provide an opportunity for continued market share growth. In our view, market awareness
and awareness of the clinical credibility of the AEM technology, as well as awareness of our endorsements, are improving, and we expect
this awareness to benefit our sales efforts for the remainder of the fiscal year 2026. Our objectives for the remainder of fiscal year
2026 are to optimize sales execution, expand market awareness of the AEM technology, and maximize the number of additional hospital and
surgery center accounts switching to AEM instruments while retaining existing customers. In addition, acceptance of AEM products depends
on surgeons’ preference for