Encision Reports First Quarter Fiscal Year 2024 Results

BOULDER, CO / ACCESSWIRE / August 3, 2023 / Encision Inc. (PK:ECIA), a medical device company owning patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous radiant energy burns in minimally invasive surgery, today announced financial results for its fiscal 2024 first quarter that ended June 30, 2023.

Foto: Accesswire

The Company posted quarterly product net revenue of $1.61 million and service net revenue of $40 thousand, or total net revenue of $1.65 million for a quarterly net loss of $140 thousand, or $(0.01) per diluted share. These results compare to product net revenue of $1.70 million and service net revenue of $458 thousand, or total net revenue of $2.15 million for a quarterly net income of $265 thousand, or $0.02 per diluted share, in the year-ago quarter. Gross margin on product net revenue was 52% in the fiscal 2024 first quarter and 49% in the fiscal 2023 first quarter. Gross margin increased in the current year's first quarter compared to last year's first quarter due principally to higher operating efficiencies and increased selling prices.

"The fiscal 2024 first quarter presented significant challenges for Encision and for the medical device market in general," said Gregory Trudel, President and CEO of Encision Inc. "The demand for surgical procedures was diminished during the pandemic period and its rebound has been a slow process. The market has seen a number of positive indicators for an increase in demand and Encision continues to drive toward them. The service revenue that we were able to drive in the previous year was very helpful and we are working to recreate that revenue stream with new partners and opportunities to collaborate on our foundational technologies."

Encision Inc. designs and markets a portfolio of high-performance surgical instrumentation that delivers advances in patient safety with AEM technology, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, Colorado, the company pioneered the development and deployment of Active Electrode Monitoring, AEM technology, to eliminate dangerous stray energy burns during minimally invasive procedures. For additional information about all our products, please visit www.encision.com .

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the Company's actual results to differ materially include, among others, its ability to develop new or enhanced products and have such products accepted in the market, its ability to increase net sales through the Company's distribution channels, its ability to compete successfully against other manufacturers of surgical instruments, insufficient quantity of new account conversions, insufficient cash to fund operations, delay in developing new products and receiving FDA approval for such new products and other factors discussed in the Company's filings with the Securities and Exchange Commission. Readers are encouraged to review the risk factors and other disclosures appearing in the Company's Annual Report on Form 10-K for the year ended March 31, 2023 and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise.

CONTACT: Mala Ray, Encision Inc., 303-444-2600, [e-mail]

Encision Inc.
Unaudited Condensed Statements of Operations
(in thousands, except per share information)

		Three Months Ended
		June 30, 2023				June 30, 2022
Product revenue		$	1,613			$	1,696
Service revenue			40				458
Total revenue			1,653				2,154
							--
Product cost of revenue			770				870
Service cost of revenue			20
Total cost of revenue			790				870
Gross profit			863				1,284
Operating expenses:
Sales and marketing			433				503
General and administrative			389				344
Research and development			169				170
Total operating expenses			991				1,017
Operating (loss) income			(128	)			267
Interest expense, extinguishment of debt income and other income, net			(12	)			(2	)
(Loss) income before provision for income taxes			(140	)			265
Provision for income taxes			--				--
Net (loss) income		$	(140	)		$	265
Net (loss) income per share-basic and diluted		$	(0.01	)		$	0.02
Weighted average number of basic shares			11,770				11,720
Weighted average number of diluted shares			11,770				12,021

Encision Inc.
Unaudited Condensed Balance Sheets
(in thousands)

		June 30, 2023				March 31, 2023
ASSETS
Cash		$	131			$	189
Accounts receivable, net			912				921
Inventories, net			1,867				1,899
Prepaid expenses			86				116
Total current assets			2,996				3,125
Equipment, net			287				303
Right of use asset			421				496
Patents, net			157				163
Other assets			54				47
Total assets		$	3,915			$	4,134
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable		$	277			$	253
Secured notes			45				44
Line of credit			179				177
Accrued compensation			219				218
Other accrued liabilities			66				85
Accrued lease liability			332				354
Total current liabilities			1,118				1,131
Secured notes			256				268
Accrued lease liability			174				240
Total liabilities			1,548				1,639
Common stock and additional paid-in capital			24,361				24,348
Accumulated (deficit)			(21,994	)			(21,853	)
Total shareholders' equity			2,367				2,495
Total liabilities and shareholders' equity		$	3,915			$	4,134

Encision Inc.
Unaudited Condensed Statements of Cash Flows
(in thousands)

		Three Months Ended
		June 30, 2023				June 30, 2022
Operating activities:
Net (loss) income		$	(140	)		$	265
Adjustments to reconcile net (loss) income to cash (used in) operating activities:
Depreciation and amortization			22				20
Share-based compensation expense			13				12
Provision for (recovery from) inventory obsolescence, net			9				(1	)
Changes in operating assets and liabilities:
Right of use asset, net			(12	)			(8	)
Accounts receivable			8				27
Inventories			23				(214	)
Prepaid expenses and other assets			24				11
Accounts payable			24				(188	)
Accrued compensation and other accrued liabilities			(17	)			20
Net cash (used in) provided by operating activities			(46	)			(56	)
Investing activities:
Acquisition of property and equipment			--				(58	)
Patent costs			(1	)			(5	)
Net cash (used in) investing activities			(1	)			(63	)
Financing activities:
(Paydown of) secured notes			(11	)			(3	)
Net cash provided by (used in) financing activities			(11	)			(3	)
Net (decrease) in cash			(58	)		$	(122	)
Cash, beginning of period			189			$	950
Cash, end of period		$	131			$	828

SOURCE: Encision, Inc.

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The Encision Stock at the time of publication of the news with a raise of +4,31 % to 0,460USD on Nasdaq OTC stock exchange (26. Juli 2023, 02:10 Uhr).