EX-99.1 2 ex99x1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

August 15, 2024

Encision Reports First Quarter Fiscal Year 2025 Results

Boulder, Colorado, August 15, 2024 -- 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 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, [email protected]

 

 
 

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