Fiscal 2027 Second Quarter Results

Six-month operating cash flow turned positive, although revenue declined and management warned that future losses could require additional capital.

Rhea-AI Summary

Encision (ECIA) reported a narrower second-quarter fiscal 2027 net loss of $41,198 as lower operating expenses partly offset weaker revenue. For the quarter ended September 30, 2026, revenue fell 23% year over year to $1,174,705. Gross profit fell 25% to $526,283, and gross margin slipped to 45% from 46%. Operating expenses decreased 42% to $552,267, while operating loss narrowed to $25,984 from $258,491.

For the first six months, revenue fell 24% to $2,391,357, but operating income reached $4,773 versus a $278,272 operating loss a year earlier. The six-month net loss narrowed to $16,935 from $308,966. Cash was $275,434 at September 30, compared with $245,114 at March 31. Encision issued 2,000,000 common shares for $80,000. Management attributes continuing revenue pressure primarily to surgical robotics replacing procedures using its instruments and the end of engineering services.

14 points · 1 major

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1 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCommon stock issuance raised $80,000. 37% of market cap
• Moderate pointQuarterly net loss narrowed to $41,198 from $267,833 in the prior-year quarter.
• Moderate pointSix-month operating expenses declined 40% to $1,113,073, producing $4,773 operating income versus a $278,272 prior-year operating loss.
• Moderate pointSix-month operating cash flow was positive $29,690, versus $242,149 used in the prior-year period.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Management expects existing cash and the Pathward line of credit to fund operations for at least twelve months.

9 minor points

• Minor pointQuarterly sales and marketing expense declined 53% to $184,110 year over year.
• Minor pointQuarterly general and administrative expense declined 39% to $220,238 year over year.
• Minor pointQuarterly research and development expense declined 27% to $147,919 year over year.
• Minor pointQuarterly operating loss narrowed to $25,984 from $258,491 in the prior-year quarter.
• Minor pointSix-month net loss narrowed to $16,935 from $308,966 in the prior-year period.
• Minor pointCash increased to $275,434 at September 30, 2026, from $245,114 at March 31, 2026.
• Minor pointTotal liabilities fell to $1,957,465 at September 30, 2026, from $2,268,753 at March 31, 2026.
• Minor pointWorking capital increased to $971,094 at September 30, 2026, from $888,320 at March 31, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 plans include improving sales execution and AEM adoption, retaining customers and further reducing costs.

Negative

• Major pointIssuance of 2,000,000 common shares diluted existing shareholders.
• Moderate pointQuarterly revenue fell 23% to $1,174,705 from $1,528,050 in the prior-year quarter.
• Moderate pointQuarterly gross profit fell 25% to $526,283; gross margin decreased to 45% from 46% a year earlier.
• Moderate pointManagement attributes revenue pressure primarily to surgical robotics replacing instrument-using procedures and discontinued engineering services.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Accumulated deficit reached $23,501,260 at September 30, 2026; future losses could require additional capital if liquidity declines.

3 minor points

• Minor pointSix-month revenue fell 24% to $2,391,357 from $3,130,778 in the prior-year period.
• Minor pointSix-month gross profit declined to $1,117,846 from $1,575,792; gross margin fell to 47% from 50%.
• Minor pointTotal assets fell to $3,452,551 at September 30, 2026, from $3,700,775 at March 31, 2026.

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BOULDER, CO / ACCESS Newswire / November 3, 2026 / Encision Inc. (OTC PINK:ECIA) reported a net loss of $41,198 for the quarter ended September 30, 2026, compared with a net loss of $267,833 in the prior-year quarter, as materially lower operating expenses partly offset lower revenue and gross profit. For the first six months of fiscal 2027, the company reported a net loss of $16,935, compared with a net loss of $308,966 in the prior-year period, and generated operating income of $4,773.

Net revenue for the quarter was $1,174,705, down 23% from $1,528,050 in the prior-year quarter. Gross profit declined 25% to $526,283 from $697,333, while gross margin was 45% compared with 46% in the prior-year quarter.

Operating expenses for the quarter decreased 42% to $552,267 from $955,824 in the prior-year quarter. Sales and marketing expense declined 53% to $184,110, general and administrative expense declined 39% to $220,238, and research and development expense declined 27% to $147,919. Operating loss improved to $25,984 from $258,491 in the prior-year quarter.

For the six months ended September 30, 2026, net revenue was $2,391,357, down 24% from $3,130,778 in the prior-year period. Gross profit was $1,117,846, compared with $1,575,792 in the prior-year period, and gross margin was 47% compared with 50%. Total operating expenses declined 40% to $1,113,073 from $1,854,064, resulting in operating income of $4,773 compared with an operating loss of $278,272 in the prior-year period.

"Our second quarter results reflect meaningful progress in reducing operating expenses and narrowing losses despite continued top-line pressure," said Robert Fries, Interim President, Chief Executive Officer and Chief Financial Officer of Encision. "We remain focused on optimizing sales execution, supporting adoption of AEM technology, retaining existing accounts, and further reducing costs while the market continues to shift toward robotic platforms."

Balance Sheet and Liquidity

As of September 30, 2026, cash was $275,434, compared with $245,114 at March 31, 2026. Accounts receivable declined to $517,700 from $649,609, while inventories increased to $1,402,943 from $1,320,869. Total assets were $3,452,551 at September 30, 2026, compared with $3,700,775 at March 31, 2026.

Total liabilities were $1,957,465 at September 30, 2026, down from $2,268,753 at March 31, 2026. Shareholders' equity increased to $1,495,086 from $1,432,022, reflecting the issuance of 2,000,000 shares of common stock for $80,000, partly offset by the six-month net loss.

For the first six months of fiscal 2027, cash provided by operating activities was $29,690, compared with cash used in operating activities of $242,149 in the prior-year period. Cash increased by $30,320 during the six-month period and working capital increased to $971,094 from $888,320 at March 31, 2026. Management stated that existing cash resources and the Pathward line of credit are expected to be sufficient to fund operations for at least the next twelve months.

Business Outlook

Management stated that revenue remains under pressure primarily because procedures performed on surgical robotic platforms continue to replace procedures that historically used Encision instrumentation, and because the company no longer performs engineering services. For the remainder of fiscal 2027, Encision plans to optimize sales execution, expand market awareness and adoption of AEM technology, retain existing customers, and further reduce costs, while research and development shifts more toward sustaining engineering.

The company also noted that it had an accumulated deficit of $23,501,260 as of September 30, 2026, and that future operating losses could require additional capital if liquidity declines.

About Encision:

Encision Inc. is a medical device company based in Boulder, Colorado, that designs, develops, manufactures and markets patented surgical instruments intended to improve patient safety in minimally invasive surgery. Its AEM® technology is designed to monitor electrosurgical current and help prevent stray energy burns during laparoscopic procedures.

Forward-Looking Statements

This release contains forward-looking statements, including statements regarding sales trends, market adoption, operating performance, liquidity, and future capital needs. Actual results may differ materially because of risks and uncertainties, including continued revenue pressure from the migration of procedures to robotic platforms, customer adoption trends, operating performance, and liquidity requirements.

CONTACT: Mala Ray, Encision Inc. 303-444-2600, mray@encision.com

SOURCE: Encision, Inc.

View the original press release on ACCESS Newswire

FAQ

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What were Encision's fiscal 2027 second-quarter revenue and net loss?

Encision reported revenue of $1,174,705 and a net loss of $41,198 for the quarter ended September 30, 2026. Revenue declined 23% from $1,528,050 in the prior-year quarter, while the net loss narrowed from $267,833.

How much liquidity does Encision have to fund operations?

Management expects existing cash resources and the Pathward line of credit to fund operations for at least the next twelve months. Cash totaled $275,434 at September 30, 2026, and working capital was $971,094. Future operating losses could require additional capital if liquidity declines.

How is Encision changing research and development for the rest of fiscal 2027?

Encision plans to shift research and development more toward sustaining engineering for the remainder of fiscal 2027.