Encision Reports First Quarter Fiscal Year 2025 Results

Rhea-AI Summary

Encision Inc. (OTC PINK:ECIA), a medical device company specializing in Active Electrode Monitoring (AEM) Technology, reported financial results for its fiscal 2025 first quarter ended June 30, 2024. The company achieved:

- Total net revenue of $1.63 million
- Quarterly net income of $22,000 ($0.00 per diluted share)
- Product net revenue of $1.59 million
- Service net revenue of $39,000
- Gross margin on product net revenue increased to 58% from 52% in the previous year

The improved performance is attributed to higher operating efficiencies and increased selling prices. CEO Gregory Trudel highlighted the company's progress in sales channel investment and technology development, as well as efforts to create new service revenue streams.

Positive

• Achieved net income of $22,000 compared to a net loss of $140,000 in the year-ago quarter
• Gross margin on product net revenue increased to 58% from 52% in the previous year
• Higher operating efficiencies and increased selling prices contributed to improved performance

Negative

• Total net revenue decreased slightly to $1.63 million from $1.65 million in the year-ago quarter
• Product net revenue declined to $1.59 million from $1.61 million in the previous year

BOULDER, CO / ACCESSWIRE / August 15, 2024 / Encision Inc. (OTC PINK: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 2025 first quarter that ended June 30, 2024.

The Company posted quarterly product net revenue of $1.59 million and service net revenue of $39 thousand, or total net revenue of $1.63 million for a quarterly net income of $22 thousand, or $0.00 per diluted share. These results compare to 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, in the year-ago quarter. Gross margin on product net revenue was 58% in the fiscal 2025 first quarter and 52% in the fiscal 2024 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.

"It is very encouraging to be able to share positive results for Encision's efforts" said Gregory Trudel, President and CEO of Encision Inc. "The fiscal 2025 first quarter presented significant challenges for Encision but we are beginning to reap the benefit from our investment in our sales channel and technology. We continue working to create service revenue streams 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, 2024 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, mray@encision.com

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

	Three Months Ended
	June 30, 2024				June 30, 2023
Product revenue	$	1,592			$	1,613
Service revenue		39				40
Total revenue		1,631				1,653
Product cost of revenue		668				770
Service cost of revenue		20				20
Total cost of revenue		688				790
Gross profit		943				863
Operating expenses:
Sales and marketing		424				433
General and administrative		352				389
Research and development		139				169
Total operating expenses		915				991
Operating income (loss)		28				(128	)
Interest expense and other income, net		(6	)			(12	)
Income (loss) before provision for income taxes		22				(140	)
Provision for income taxes		--				--
Net income (loss)	$	22			$	(140	)
Net income (loss) per share-basic and diluted	$	0.00			$	(0.01	)
Weighted average number of basic shares		11,875				11,770
Weighted average number of diluted shares		11,907				11,770

Encision Inc.
Unaudited Condensed Balance Sheets
(in thousands)

		March 31, 2024		March 31, 2024
ASSETS
Cash		$270		$43
Accounts receivable		817		891
Inventories		1,318		1,402
Prepaid expenses and other assets		108		90
Total current assets		2,513		2,426
Equipment, net		252		254
Right of use asset		819		901
Patents, net		167		164
Other assets		69		66
Total assets		$ 3,820		$ 3,811
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable		$ 270		$ 346
Secured notes		41		42
Line of credit		299		157
Accrued compensation		210		185
Other accrued liabilities		100		120
Accrued lease liability		424		370
Total current liabilities		1,344		1,220
Secured notes		58		67
Accrued lease liability		558		697
Unsecured promissory note		--		--
Total liabilities		1,960		1,984
Common stock and additional paid-in capital		24,383		24,372
Accumulated (deficit)		(22,523)		(22,545)
Total shareholders' equity		1,860		1,827
Total liabilities and shareholders' equity		$ 3,820		$ 3,811

Encision Inc.

Unaudited Condensed Statements of Cash Flows

(in thousands)

		Three Months Ended
		June 30, 2023		June 30, 2023
Operating activities:
Net income (loss)		$ 22		$ (140)
Adjustments to reconcile net income (loss) to cash generated by (used in) operating activities:
Depreciation and amortization		19		22
Share-based compensation expense		12		13
Provision for inventory obsolescence, net		1		9
Changes in operating assets and liabilities:
Right of use asset, net		(3)		(12)
Accounts receivable		75		8
Inventories		83		23
Prepaid expenses and other assets		(22)		24
Accounts payable		(76)		24
Accrued compensation and other accrued liabilities		7		(17)
Net cash (used in) provided by operating activities		118		(46)
Investing activities:
Acquisition of property and equipment		(14)		--
Patent costs		(6)		(1)
Net cash (used in) investing activities		(20)		(1)
Financing activities:
Proceeds from (paydown of) secured notes		131		(11)
(Payments) from exercise of stock options		(1)		--
Net cash provided by (used in) financing activities		130		(11)
Net increase (decrease) in cash		228		(58)
Cash, beginning of period		42		189
Cash, end of period		$270		$131

View the original press release on accesswire.com

FAQ

What was Encision's (ECIA) total net revenue for Q1 fiscal 2025?

Encision (ECIA) reported total net revenue of $1.63 million for the first quarter of fiscal 2025, which ended on June 30, 2024.

How did Encision's (ECIA) Q1 fiscal 2025 net income compare to the previous year?

Encision (ECIA) reported a net income of $22,000 for Q1 fiscal 2025, compared to a net loss of $140,000 in the same quarter of the previous year.

What was Encision's (ECIA) gross margin on product net revenue in Q1 fiscal 2025?

Encision's (ECIA) gross margin on product net revenue was 58% in Q1 fiscal 2025, an increase from 52% in the same quarter of the previous fiscal year.

What factors contributed to Encision's (ECIA) improved gross margin in Q1 fiscal 2025?

Encision's (ECIA) improved gross margin in Q1 fiscal 2025 was primarily due to higher operating efficiencies and increased selling prices.