Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 15, 2024

 

ENCISION, INC.

(Exact name of registrant as specified in its charter)

Colorado	001-11789	84-1162056
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

6797 Winchester Circle, Boulder, Colorado	80301
(Address of principal executive offices)	(Zip Code)

 

[phone]

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, no par value		ECIA		OTC Bulletin Board

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 2.02    Results of Operations and Financial Condition.

On August 15, 2024, Encision, Inc. issued a press release announcing its first quarter financial results for the quarter ended June 30, 2024. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

Item 9.01   Financial Statements and Exhibits.

 

(d) Exhibits.

        

Exhibit Number		Description
99.1		Press Release issued by Encision Inc. dated August 15, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

  

 

 

  

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	ENCISION, INC.
	(Registrant)
Date:  August 15, 2024
	/s/ Mala M Ray
	Mala M Ray
	Controller
	Principal Accounting Officer

 

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, [e-mail]

 

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

 

 

Cover	Aug. 15, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 15, 2024
Entity File Number	001-11789
Entity Registrant Name	ENCISION, INC.
Entity Central Index Key	0000930775
Entity Tax Identification Number	84-1162056
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	6797 Winchester Circle
Entity Address, City or Town	Boulder
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80301
City Area Code	303
Local Phone Number	444-2600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	ECIA
Entity Emerging Growth Company	false

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