Arizona Tribune - Fiscal 2027 Second Quarter Results

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, [email protected]

SOURCE: Encision, Inc.

View the original press release on ACCESS Newswire

W.Morales--AT