Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________to________ Commission file number 0-6658

SCIENTIFIC INDUSTRIES, INC.

(Exact Name of Registrant as specified in Its Charter)

Delaware		04-2217279
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

80 Orville Drive, Suite 102, Bohemia, New York		11716
(Address of principal executive offices)		(Zip Code)

(631) 567-4700

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act) Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock, par value $.05 per share (“Common Stock”) as of August 13, 2024 is 10,503,599 shares.

SCIENTIFIC INDUSTRIES, INC.

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PART I - Financial Information

Item 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	3

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss	4

	Condensed Consolidated Statements of Changes in Shareholders’ Equity	5

	Condensed Consolidated Statements of Cash Flows	6

	Notes to Unaudited Condensed Consolidated Financial Statements	7

Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	16

Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	19

Item 4.	CONTROLS AND PROCEDURES	19

PART II - Other Information

Item 1.	Legal Proceedings	21

Item 1A.	Risk Factors	21

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21

Item 3.	Defaults Upon Senior Securities	21

Item 4.	Mine Safety Disclosures	21

Item 5.	Other Information	21

Item 6.	Exhibits	22

SIGNATURE		23

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2024			December 31, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	560,500		$	796,100
Investment securities		3,295,100			4,928,700
Trade accounts receivable, less allowance for doubtful accounts of $33,600 at June 30, 2024 and December 31, 2023		1,214,900			1,157,100
Inventories		4,797,700			4,883,900
Income tax receivable		73,600			161,400
Prepaid expenses and other current assets		444,600			413,500
Total current assets		10,386,400			12,340,700

Property and equipment, net		999,800			1,082,300
Goodwill		115,300			115,300
Other intangible assets, net		1,006,000			1,249,900
Inventories		598,300			609,000
Operating lease right-of-use assets		1,109,800			1,273,900
Other assets		59,400			59,400
Total assets	$	14,275,000		$	16,730,500

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	712,600		$	711,700
Accrued expenses		685,900			777,900
Contract liabilities		28,700			23,600
Lease liabilities, current portion		346,800			324,100
Total current liabilities		1,774,000			1,837,300

Lease liabilities, less current portion		819,400			1,007,800
Total liabilities		2,593,400			2,845,100

Shareholders’ equity:
Common stock, $0.05 par value; 30,000,000 shares authorized; 10,503,599 and 10,145,211, shares issued and 10,503,599 and 10,145,211, shares outstanding at June 30, 2024 and December 31, 2023		525,200			507,300
Additional paid-in capital		42,002,600			40,844,600
Accumulated other comprehensive gain (loss)		(25,900	)		18,600
Accumulated deficit		(30,820,300	)		(27,485,100	)

Total shareholders’ equity		11,681,600			13,885,400

Total liabilities and shareholders’ equity	$	14,275,000		$	16,730,500

See notes to unaudited condensed consolidated financial statements.

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SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
Revenues	$	2,647,300		$	2,982,500		$	5,130,800		$	5,787,900

Cost of revenues		1,354,900			1,632,500			2,797,600			3,099,900

Gross profit		1,292,400			1,350,000			2,333,200			2,688,000

Operating expenses:
General and administrative		1,062,000			1,299,900			2,583,800			2,869,200
Selling		900,600			1,591,800			1,798,400			3,036,600
Research and development		666,000			684,500			1,376,700			1,476,000

Total operating expenses		2,628,600			3,576,200			5,758,900			7,381,800

Loss from operations		(1,336,200	)		(2,226,200	)		(3,425,700	)		(4,693,800	)

Other income:
Other income (expense), net		(2,000	)		4,100			(6,300	)		90,400
Interest income		54,600			37,000			96,800			46,400
Total other income, net		52,600			41,100			90,500			136,800

Loss from continuing operations before income tax expense benefit		(1,283,600	)		(2,185,100	)		(3,335,200	)		(4,557,000	)

Income tax expense		-			108,800			-			108,800

Loss from continuing operations		(1,283,600	)		(2,293,900	)		(3,335,200	)		(4,665,800	)

Discontinued operations:

Gain from discontinued operations, net of tax		-		$	1,900			-			3,300

Net loss	$	(1,283,600	)		(2,292,000	)	$	(3,335,200	)	$	(4,662,500	)

Comprehensive gain (loss):
Unrealized holding (loss) on investment securities, net of tax		-			(2,100	)		-			1,600
Foreign currency translation (loss) gain		15,800			(30,100	)		(44,500	)		10,100
Comprehensive (loss) gain		15,800		$	(32,200	)		(44,500	)		11,700

Total comprehensive loss	$	(1,267,800	)		(2,324,200	)	$	(3,379,700	)	$	(4,650,800	)

Basic and Diluted loss per common share

Continuing operations	$	(0.12	)	$	(0.33	)	$	(0.32	)	$	(0.67	)
Discontinued operations	$	-			-		$	-		$	-
Consolidated operations	$	(0.12	)		(0.33	)	$	(0.32	)	$	(0.67	)

See notes to unaudited condensed consolidated financial statements.

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SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)

							Accumulated
					Additional		Other												Total
	Common Stock				Paid-in		Comprehensive			Accumulated			Treasury Stock						Stockholders’
	Shares		Amount		Capital		Income (Loss)			Deficit			Shares			Amount			Equity
Balance December 31, 2023		10,145,211	$	507,300	$	40,844,600	$	18,600		$	(27,485,100	)			$			$	13,885,400

Net loss		-		-		-		-			(2,051,600	)		-			-			(2,051,600	)

Issuance of Common Stock and Warrants, net of issuance costs (Note 7)		358,388		17,900		204,000					-			-			-			221,900

Fair value modification of warrants recorded as stock issuance costs		-		-		423,800					-			-			-			423,800

Foreign currency translation adjustment		-		-		-		(60,300	)		-			-			-			(60,300	)

Stock-based compensation		-		-		199,900		-			-			-			-			199,900

Balance March 31, 2024		10,503,599	$	525,200	$	41,672,300		(41,700	)	$	(29,536,700	)		-		$	-		$	12,619,100

Net loss		-		-		-		-			(1,283,600	)		-			-			(1,283,600	)

Foreign currency translation adjustment		-		-		-		15,800			-			-			-			15,800

Stock-based compensation		-		-		330,300		-			-			-			-			330,300

Balance June 30, 2024		10,503,599	$	525,200	$	42,002,600		(25,900	)	$	(30,820,300	)		-		$	-		$	11,681,600

	Common Stock						Paid-in			Comprehensive			Accumulated			Treasury Stock						Stockholders’
	Shares			Amount			Capital			Income (Loss)			Deficit			Shares			Amount			Equity
Balance December 31, 2022		7,023,401		$	351,200		$	32,900,800		$	(8,400	)	$	(18,398,600	)		19,802		$	52,400		$	14,792,600

Net loss		-			-			-			-			(2,370,500	)		-			-			(2,370,500	)

Foreign currency translation adjustment		-			-			-			40,200			-			-			-			40,200

Unrealized holding gain on investment securities, net of tax		-			-			-			3,700			-			-			-			3,700

Stock-based compensation		-			-			602,600			-			-			-			-			602,600

Balance March 31, 2023		7,023,401		$	351,200		$	33,503,400			35,500		$	(20,769,100	)		19,802		$	52,400		$	13,068,600

Net loss		-			-			-			-			(2,292,000	)		-			-			(2,292,000	)

Foreign currency translation adjustment		-			-			-			(30,100	)		-			-			-			(30,100	)

Unrealized holding loss on investment securities, net of tax		-			-			-			(2,100	)		-			-			-			(2,100	)

Retirement of treasury stock		(19,802	)		(1,000	)		(51,400	)		-			-			(19,802	)		(52,400	)		-

Stock-based compensation		-			-			584,700			-			-			-			-			584,700

Balance June 30, 2023		7,003,599		$	350,200		$	34,036,700			3,300		$	(23,061,100	)		-		$	-		$	11,329,100

See notes to unaudited condensed consolidated financial statements

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SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the Six Months Ended June 30,
	2024			2023
Operating activities:
Net loss	$	(3,335,200	)	$	(4,662,500	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		377,300			378,500
Stock-based compensation		530,200			1,187,300
Povision for bad debt		2,000			-
Loss on sale of investment securities		3,500			105,000
Unrealized holding (gain) on investment securities		(12,700	)		(155,100	)
Carrying value of right of use assets		167,400			136,000
Changes in operating assets and liabilities:
Trade accounts receivable		(57,800	)		188,200
Inventories		88,800			(471,600	)
Prepaid and other current assets		(31,200	)		(77,100	)
Income tax receivable		87,800			108,800
Accounts payable		500			(270,100	)
Accrued expenses		(94,200	)		137,900
Contract liabilities		5,100			(126,100	)
Lease liabilities		(168,300	)		(138,900	)

Net cash used in operating activities		(2,436,800	)		(3,659,700	)

Investing activities:
Purchase of investment securities		(479,000	)		(941,500	)
Redemption of investment securities		2,121,900			3,420,300
Capital expenditures		(72,200	)		(106,200	)

Net cash provided by investing activities		1,570,700			2,372,600

Financing activities:
Proceeds from issuance of common stock		716,800			-
Issuance costs of common stock and warrants		(71,100	)		-

Net cash provided by financing activities		645,700			-

Effect of changes in foreign currency exchange rates on cash and cash equivalents		(15,200	)		4,500

Net decrease in cash and cash equivalents		(235,600	)		(1,282,600	)
Cash and cash equivalents, beginning of period		796,100			1,927,100
Cash and cash equivalents, end of period	$	560,500		$	644,500

See notes to unaudited condensed consolidated financial statements

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SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Nature of the Business and Basis of Presentation

Scientific Industries, Inc. and its subsidiaries (the “Company”) design, manufacture, and market a variety of benchtop laboratory equipment and bioprocessing products. The Company is headquartered in Bohemia, New York where it produces benchtop laboratory and pharmacy equipment. Additionally, the Company has a location in Baesweiller, Germany, where it designs and produces a variety of bioprocessing products, and administrative facilities in Orangeburg, New York and Pittsburgh, Pennsylvania related to sales and marketing. The products, which are sold to customers worldwide, include mixers, shakers, stirrers, refrigerated incubators, pharmacy balances and scales, force gauges, bioprocessing sensors and analytical tools.

The accompanying (a) unaudited condensed balance sheet as of December 31, 2023, which have been derived from audited financial statements, and (b) unaudited interim condensed consolidated financial statements are prepared pursuant to the Securities and Exchange Commission’s rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States for complete financial statements are not included herein. The Company believes all adjustments necessary for a fair presentation of these interim statements have been included and that they are of a normal and recurring nature. These interim statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto, included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The results for the three and six months ended June 30, 2024 are not necessarily an indication of the results for the full fiscal year ending December 31, 2024.

2. Significant Accounting Policies

Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the accounts of Scientific Industries, Inc., Scientific Bioprocessing Holdings, Inc. (“SBHI”), a Delaware corporation and wholly-owned subsidiary, which holds 100% of the outstanding stock of Scientific Bioprocessing, Inc. (“SBI”), a Delaware corporation, and aquila biolabs GmbH (“Aquila”), a German corporation, since its acquisition on April 29, 2021, Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation.

Liquidity and Going Concern Considerations

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which contemplate continuation of the Company as a going concern. For the six months ended June 30, 2024, the Company generated negative cash flows from operations of $2,436,800 and has an accumulated deficit of $30,820,300 as of June 30, 2024. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Company management does not believe that cash on hand and cash flows expected to be generated internally by the Company will be adequate to fund its operations and other cash flow requirements over the next twelve months. These reasons raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are to be filed.

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In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management is making plans to secure such resources for the Company which may include capital from management and significant shareholders sufficient to meet its operating expenses and third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Reclassifications

Certain balances from fiscal 2023 have been reclassified to conform to the current year presentation.

3. Fair Value of Financial Instruments

The Company follows ASC - Accounting Standards Codification (“ASC 820”), Fair Value Measurement, which has defined the fair value of financial instruments as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs.

The accounting guidance also expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are described below:

Level 1 Inputs that are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3 Prices or valuation that require inputs that are both significant to the fair value measurement and unobservable.

In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculated the fair value of its Level 1 and 2 instruments based on the exchange traded price of similar or identical instruments where available or based on other observable instruments. These calculations take into consideration the credit risk of both the Company and its counterparties. The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the period.

The fair value of the contingent consideration obligations was based on a probability weighted approach derived from the estimates of earn-out criteria and the probability assessment with respect to the likelihood of achieving those criteria. The measurement is based on significant inputs that were not observable in the market, therefore, the Company classifies this liability as Level 3 in the following table.

The following tables set forth by level within the fair value hierarchy the Company’s financial assets that were accounted for at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 according to the valuation techniques the Company used to determine their fair values:

	Fair Value Measurements as of June 30, 2024
	Level 1		Level 2		Level 3		Total
Investment securities - Mutual funds	$	3,295,100	$	-	$	-	$	3,295,100
Total	$	3,295,100	$	-	$	-	$	3,295,100

	Fair Value Measurements as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Investment securities - Mutual funds	$	4,928,700	$	-	$	-	$	4,928,700
Total	$	4,928,700	$	-	$	-	$	4,928,700

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Investments in marketable securities by security type as of June 30, 2024 and December 31, 2023 consisted of the following:

As of June 30, 2024:	Cost		Fair Value		Unrealized Holding Gain

Mutual funds	$	3,284,700	$	3,295,100	$	10,400
Total	$	3,284,700		3,295,100	$	10,400

As of December 31, 2023:	Cost		Fair Value		Unrealized Holding (Loss)

Mutual funds	$	4,929,300	$	4,928,700	$	(600	)
Total	$	4,929,300	$	4,928,700	$	(600	)

4. Inventories

	As of June 30,		As of December 31,
	2024		2023
Raw materials	$	3,446,000	$	3,436,300
Work-in-process		24,500		23,200
Finished goods		1,925,500		2,033,400
Total Inventories	$	5,396,000	$	5,492,900

Inventories - Current Asset	$	4,797,700	$	4,883,900
Inventories - Noncurrent Asset		598,300		609,000

5. Goodwill and Finite Lived Intangible Assets

Goodwill amounted to $115,300 as of June 30, 2024 and December 31, 2023.

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Finite lived intangible assets consist of the following:

As of June 30, 2024:	Useful Lives	Cost		Accumulated Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	945,500	$	271,300
Trade names	3-6 yrs.		592,300		379,400		212,900
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		207,400		164,800
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		895,400		165,100
Patents	5-7 yrs.		605,600		413,700		191,900
		$	4,351,400	$	3,345,400	$	1,006,000

As of December 31, 2023	Useful Lives	Cost		Accumulated Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	870,900	$	345,900
Trade names	3-6 yrs.		592,300		341,600		250,700
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		193,600		178,600
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		797,600		262,900
Patents	5-7 yrs.		595,800		384,000		211,800
		$	4,341,600	$	3,091,700	$	1,249,900

Total amortization expense was $126,700 and $127,800 for the three months ended June 30, 2024 and 2023, respectively.

Total amortization expense was $253,700 and $257,800 for the six months ended June 30, 2024 and 2023, respectively.

Estimated future fiscal year amortization expense of intangible assets as of June 30, 2024 is as follows:

As of June 30, 2024	Amount
Remainder of fiscal year ending 2024	$	257,100
2025		373,500
2026		195,900
2027		94,500
2028		43,700
Thereafter		41,300
Total	$	1,006,000

6. Commitment and Contingencies

Legal Matters

During the normal course of business, the Company may be named from time to time as a party to claims and litigations arising in the ordinary course of business. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450, Contingencies. Litigation and contingency accruals are based on our assessment, including advice of legal counsel, regarding the expected outcome of litigation or other dispute resolution proceedings. If the Company determines that an unfavorable outcome is probable and can be reasonably assessed, it establishes the necessary accruals. As of June 30, 2024 and December 31, 2023, the Company is not aware of any contingent legal liabilities that should be reflected in the consolidated financial statements.

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Leases

The Company’s approximate future minimum rental payments under all operating leases as of June 30, 2024 were as follows:

As of June 30, 2024:	Amount
Remainder of fiscal year ending 2024	$	190,600
2025		357,500
2026		266,600
2027		274,600
2028		201,000
Total future minimum payments	$	1,290,300
Less: Imputed interest		(124,100	)
Total Present Value of Operating Lease Liabilities	$	1,166,200

7. Stockholders’ Equity

Issuance of Common Stock and Warrants

On January 17, 2024, the Company completed the last closing of its sale of securities pursuant to the Securities Purchase Agreement (the “Purchase Agreement”) entered on December 13, 2023, as filed in the Company’s Form 8-K on December 15, 2023. At this closing, the Company sold an aggregate of 358,388 Units, comprising 358,388 shares of the Company’s common stock, par value $.05 per share (“Common Stock”) and warrants (“Warrants”) to purchase 358,388 shares of Common Stock for a total consideration of $716,776. The Company recognized $98,700 of issuance cost, which includes $71,100 attributable to legal and placement agent fees and $27,600 attributable to the fair value of warrants, issued to the placement agent, to purchase up to 17,919 shares of Common Stock at an exercise price of $2.00 per share on substantially the same terms as the Warrants issued to the purchasers of Units (“Investors”).

As an incentive to certain Investors of the Company who participated in previous private placements (“Existing Investors”) and received as part of those financings, warrants (“Outstanding Warrants”) to purchase shares of Common Stock, the Company agreed that, if any Existing Investor were to purchase Units at a certain level in the offering thereof under the Purchase Agreement (the “Offering”), the Company would reduce the exercise price of the Outstanding Warrants held by such Existing Investor to $2.50 per share and extend the period in which such Outstanding Warrants could be exercised to the fifth anniversary of the date on which the Existing Investor purchased Units under the Purchase Agreement. Each Existing Investor purchasing Units at the requisite level will receive a new warrant (the “Replacement Warrants”) to replace such Existing Investor’s Outstanding Warrants. On January 17, 2024, as a result of their purchase of Units, Existing Investors became entitled to receive Replacement Warrants to replace 333,884 Outstanding Warrants, and therefore reducing the exercise price of such Outstanding Warrants to $2.50 per share and extending the period in which such Outstanding Warrants could be exercised to the fifth anniversary of the relevant closing under the Purchase Agreement.

Salary for Equity Incentive Options

On April 1, 2024 and May 17, 2024, as part of the Company’s strategic initiatives to reduce operating costs and conserve cash for operations, the Company entered into a voluntary Salary/Compensation Waiver Program pursuant to which each director, officer and employee of the Company and its subsidiaries could elect to waive a portion of his or her salary/compensation for twelve months and receive instead options to purchase shares of the Common Stock of the Company (the “stock options”). As a result, the Company issued 628,960 stock options, having a exercise price of $2.50 per share, which vest monthly over twelve months, valued at $948,200 on the grant date using the Black-Scholes-Merton option pricing model.

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Equity Cancel and Replacement Options

On April 1, 2024, as part of the Company’s strategic initiatives to incentivize current employees, the Company entered into a cancellation and replacement agreement of certain out-of-the money outstanding employee stock options (the “replacement stock options”), whereby employees surrendered outstanding stock options (“cancelled option awards") and the Company granted and replaced with the same number of replacement stock options, having an exercise price of $2.50 per share, which vest monthly over three years. The Company accounted for the replacements options as a modification of the terms of the cancelled option awards and in accordance with ASC 718-20-35-2A the Company will recognize $613,400 stock compensation expense over the three year vesting period, which was determined by the grant-date fair value of the original award for which the service is expected to be rendered at the cancellation date, plus incremental costs measured as the excess of the fair value of the replacement options on the grant date using the Black-Scholes-Merton option pricing model over the fair value of the cancelled option award at the cancellation date in accordance with ASC 718-20-35-3.

Board of Director Stock Options

On April 12, 2024, the Board of Directors of the Company (the “Board”) appointed Michael Blechman (“Mr. Blechman”) (i) as a Class B Director of the Company, (ii) a member of the Board’s audit committee, (iii) a member of the Board’s compensation committee, and (iv) the Chair and member of the Company’s Nominating Committee. On May 17, 2024, in connection with Mr. Blechman’s appointment, the Company granted and issued 25,000 stock options with an exercise price of $1.75 which vest monthly over three years, valued at $34,500 on the grant date using the Black-Scholes-Merton option pricing model.

8. Loss Per Common Share

The Company presents the computation of earnings per share (“EPS”) on a basic basis. Basic EPS is computed by dividing net income or loss by the weighted average number of shares outstanding during the reported period. Diluted EPS is computed similarly to basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Common shares are excluded from the calculation if they are determined to be anti-dilutive. The following table sets forth the weighted average number of common shares outstanding for each period presented.

	For the three months ended						For the six months ended
	June 30,						June 30,
	2024			2023			2024			2023

Weighted average number of common shares outstanding		10,503,599			7,003,599			10,436,647			7,003,599
Effect of dilutive securities:		-			-			-			-
Weighted average number of dilutive common shares outstanding		10,503,599			7,003,599			10,436,647			7,003,599

Basic and diluted loss per common share:
Continuing operations	$	(0.12	)	$	(0.33	)	$	(0.32	)	$	(0.67	)
Discontinued operations		-			-			-			-
Consolidated operations	$	(0.12	)	$	(0.33	)	$	(0.32	)	$	(0.67	)

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Approximately 1,766,547 and 8,232,510 shares of the Company’s common stock issuable upon the exercise of stock options and warrants, respectively, were excluded from the calculation because the effect would be anti-dilutive due to the loss for both the three and six months ended June 30, 2024.

Approximately 18,077 and 0 shares of the Company’s common stock issuable upon the exercise of stock options and warrants, respectively, were excluded from the calculation because the effect would be anti-dilutive due to the loss for the three months ended June 30, 2023.

Approximately 20,336 and 0 shares of the Company’s common stock issuable upon the exercise of stock options and warrants, respectively, were excluded from the calculation because the effect would be anti-dilutive due to the loss for the six months ended June 30, 2023.

9. Related Parties

Consulting Agreements

During the three and six months ended June 30, 2024 and 2023, respectively, the Company paid $31,300 and $47,300, respectively, and $0 and $0, respectively, to Mr. John Nicols, a Director of the Company, who provided consulting services to the Bioprocessing Systems segment.

10. Segment Information and Concentration

The Company views its operations as two operating segments: the manufacture and marketing of standard benchtop laboratory equipment for research in university, hospital and industrial laboratories sold primarily through laboratory equipment distributors and laboratory and pharmacy balances and scales (“Benchtop Laboratory Equipment Operations”), and the manufacture, design, and marketing of bioprocessing systems and products (“Bioprocessing Systems”). The Company also has included a non-operating Corporate segment. All inter-segment revenues are eliminated.

Segment information is reported as follows.

Three Months Ended June 30, 2024:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	2,281,900	$	365,400		$	-		$	2,647,300

Foreign Sales		629,800		205,700						835,500

Income (Loss) From Operations		214,500		(1,292,900	)		(257,800	)		(1,336,200	)

Assets		6,224,600		4,754,300			3,295,100			14,274,000

Long-Lived Asset Expenditures		24,100		600			-			24,700

Depreciation and Amortization		21,400		167,800			-			189,200

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Three Months Ended June 30, 2023:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	2,614,300	$	368,200		$	-		$	2,982,500

Foreign Sales		723,200		139,900						863,100

Income (Loss) From Operations		215,400		(1,794,600	)		(647,000	)		(2,226,200	)

Assets		7,023,400		5,332,400			1,844,100			14,199,900

Long-Lived Asset Expenditures		17,000		43,400			-			60,400

Depreciation and Amortization		20,400		170,200			-			190,600

For the three months ended June 30, 2024 no customers accounted for approximately 10% or more of the Company’s total revenue. For the three months ended June 30, 2023 one customer accounted for approximately 10% or more of the Company’s total revenue.

Six Months Ended June 30, 2024:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	4,449,300	$	681,500		$	-		$	5,130,800

Foreign Sales		1,284,900		406,200						1,691,100

Income (Loss) From Operations		287,300		(2,894,700	)		(818,300	)		(3,425,700	)

Assets		6,224,600		4,754,300			3,295,100			14,274,000

Long-Lived Asset Expenditures		69,900		2,300			-			72,200

Depreciation and Amortization		42,800		334,500			-			377,300

Six Months Ended June 30, 2023:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	5,196,500	$	591,400		$	-		$	5,787,900

Foreign Sales		1,579,800		235,800						1,815,600

Income (Loss) From Operations		481,600		(3,867,100	)		(1,308,300	)		(4,693,800	)

Assets		7,023,400		5,332,400			1,844,100			14,199,900

Long-Lived Asset Expenditures		25,200		81,000			-			106,200

Depreciation and Amortization		43,700		334,800			-			378,500

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For the six months ended June 30, 2024 no customers accounted for approximately 10% or more of the Company’s total revenue. For the six months ended June 30, 2023 no customers accounted for approximately 10% or more of the Company’s total revenue.

A reconciliation of the Company’s consolidated segment income (loss) from operations to consolidated loss from operations before income taxes and net loss for the three and six months ended June 30, 2024 and 2023, respectively are as follows:

For the three months ended June 30, 2024	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	214,500		$	(1,292,900	)	$	(257,800	)	$	(1,336,200	)

Other income(expense), net		(3,700	)		5,600			(3,900	)		(2,000	)
Interest income		-						54,600			54,600
Total other income(expense), net		(3,700	)		5,600			50,700			52,600

Income (Loss) from operations before discontinued operations and income taxes	$	210,800		$	(1,287,300	)	$	(207,100	)	$	(1,283,600	)

For the three months ended June 30, 2023	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	215,400		$	(1,794,600	)	$	(647,000	)	$	(2,226,200	)

Other income (expense), net		4,200			100			(200	)		4,100
Interest income		-			-			37,000			37,000
Total other income, net		4,200			100			36,800			41,100

Income (Loss) from operations before discontinued operations and income taxes	$	219,600		$	(1,794,500	)	$	(610,200	)	$	(2,185,100	)

For the six months ended June 30, 2024	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	287,300		$	(2,894,700	)	$	(818,300	)	$	(3,425,700	)

Other income(expense), net		(7,200	)		11,100			(10,200	)		(6,300	)
Interest income		-			-			96,800			96,800
Total other income(expense), net		(7,200	)		11,100			86,600			90,500

Income (Loss) from operations before discontinued operations and income taxes	$	280,100		$	(2,883,600	)	$	(731,700	)	$	(3,335,200	)

For the six months ended June 30, 2023	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	481,600		$	(3,867,100	)	$	(1,308,300	)	$	(4,693,800	)

Other income (expense), net		2,400			11,100			76,900			90,400
Interest income		-			-			46,400			46,400
Total other income, net		2,400			11,100			123,300			136,800

Income (Loss) from operations before discontinued operations and income taxes	$	484,000		$	(3,856,000	)	$	(1,185,000	)	$	(4,557,000	)

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking statements. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023. Certain statements contained in this report are not based on historical facts, but are forward-looking statements that are based upon various assumptions about future conditions. Actual events in the future could differ materially from those described in the forward-looking statements. Numerous unknown factors and future events could cause such differences, including but not limited to, product demand, market acceptance, success of marketing strategy, success of expansion efforts, impact of competition, adverse economic conditions, and other factors affecting the Company’s business that are beyond the Company’s control, which are discussed elsewhere in this report. Consequently, no forward-looking statement can be guaranteed. The Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. Throughout this Quarterly Report on Form 10-Q, the terms the “Company,” “Scientific,” “we,” “our” or “us,” refer to Scientific Industries, Inc. and its subsidiaries on a consolidated basis, unless stated or the context implies otherwise.

Overview.

Scientific Industries, Inc., a Delaware corporation (“SI” and along with its subsidiaries, the “Company”, “we”, “our”), is engaged in the design, manufacture, and marketing of standard benchtop laboratory equipment (“Benchtop Laboratory Equipment”), and through its wholly-owned subsidiary, Scientific Bioprocessing Holdings, Inc., a Delaware corporation (“SBHI”), the design, manufacture, and marketing of bioprocessing systems and products (“Bioprocessing Systems”). SBHI has two wholly-owned subsidiaries – Scientific Bioprocessing, Inc., a Delaware corporation (“SBI”), and aquila biolabs GmbH, a German corporation (“Aquila”). The Company’s products are used primarily for research purposes by universities, pharmaceutical companies, pharmacies, national laboratories, medical device manufacturers, and other industries performing laboratory-scale research. The Company’s results reflect those of the Benchtop Laboratory Equipment Operations and the Bioprocessing Systems Operations and its corporate operation.

Results of Operations.

Three months ended June 30, 2024 and 2023

The Company was able to reduce the loss from continuing operations to $1,283,600 for the three months ended June 30, 2024 as compared to $2,185,100 loss from continuing operations for the three months ended June 30, 2023, primarily due to decreased expenses resulting from operating cost reductions mostly in the Bioprocessing Systems Operations segment and decreased Corporate expenses compared to the prior year periods.

Revenue

Net revenues for the three months ended June 30, 2024 decreased $335,200 (11.2%) to $2,647,300 from $2,982,500 for the three months ended June 30, 2023, driven primarily by lower revenues of Benchtop Laboratory Equipment Operations. Sales of Genie brand products reflected a decrease due to post-COVID destocking and overall market softness for laboratory equipment, particularly in Asia. Sales of Torbal and VIVD brand products amounted to $789,100 for the current year period compared to $943,000 in the prior year, due to reduced VIVID pill counter sales resulting primarily from the new regulations related to pharmacy direct and indirect renumeration fees “DIR fees” charged by pharmacy benefit managers, which caused financial hardships and cash flow challenges for the independent pharmacy market in the beginning of 2024.

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Gross profit

The gross profit percentage for the three months ended June 30, 2024 and 2023, was 48.8% and 45.3%, respectively. The increase is due primarily to higher gross margin percentage in the Bioprocessing Systems Operations.

General and administrative

General and administrative expenses for the three months ended June 30, 2024 decreased $237,900 (18.3%) to $1,062,000 from $1,299,900 for the three months ended June 30, 2023, primarily due to decreased Corporate expenses related to external professional services and non-cash stock-based compensation expense compared to prior year period, partially offset by employee related costs associated with a reduction in force in the Bioprocessing Systems Operations.

Selling

Selling expenses for the three months ended June 30, 2024 decreased $691,200 (43.4%) to $900,600 from $1,591,800 for the three months ended June 30, 2023 due primarily to the reduction of sales and marketing employees in conjunction to the strategic operational and product development plan for the Bioprocessing Systems Operations.

Research and development

Research and development expenses for the three months ended June 30, 2024 and 2023, were $666,000 and $684,500, respectively. The decrease of $18,500 (2.7%) is due primarily to the reduction of research and development expenditures related to the VIVID automated pill counter in the Benchtop Laboratory Equipment Operations due to the completion of a new product development in the current year as compared to prior year period.

Other income, net

Other income, net, for the three months ended June 30, 2024 and 2023, were $52,600 and $41,100, respectively. The increase is due primarily to the increase in interest income on investment securities, and a decrease in realized loss on investment securities attributable to more investment securities held in mutual funds as compared to investment securities held in equity securities during the current year period as compared to prior year period.

Income tax

Income tax for the three months ended June 30, 2024 and 2023, was $0 and $108,800, respectively. The Company maintains a full valuation allowance of $10,542,700 against the consolidated net deferred tax asset as the Company determined the net deferred tax assets which includes net operating loss carry-forwards and other tax credits, are not more likely than not to be realized in the future.

Six months ended June 30, 2024 and 2023

The Company realized a loss from continuing operations of $3,335,200 for the six months ended June 30, 2024 compared to a $4,557,000 loss from continuing operations for the six months ended June 30, 2023, primarily due to decreased expenses resulting from operating cost reductions mostly in the Bioprocessing Systems Operations segment and decreased Corporate expenses compared to the prior year periods

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Revenue

Net revenues for the six months ended June 30, 2024 decreased $657,100 (12.8%) to $5,130,800 from $5,787,900 for the six months ended June 30, 2023, driven primarily by lower revenues of Benchtop Laboratory Equipment Operations of $747,200, resulting primarily from decreased Genie brand sales due to post-COVID destocking and overall market softness for laboratory equipment, particularly in Asia. Sales of Torbal and VIVD brand products amounted to $1,541,100 in the current year period, compared to $1,808,500 in the prior year period, due to reduced VIVID pill counter sales resulting primarily from the new regulations related to pharmacy direct and indirect renumeration fees “DIR fees” charged by pharmacy benefit managers, which caused financial hardships and cash flow challenges for the independent pharmacy market in the beginning of 2024. Bioprocessing Systems Operations revenues increased $90,100 to $681,500 for the current year period compared to $591,400 in the prior year period, despite a record one-time order in the prior year period reflecting a trend in growth of steady orders for bioprocessing products.

Gross profit

The gross profit percentage for the six months ended June 30, 2024 and 2023, was 45.5% and 46.4%, respectively. The 0.9% decrease is due primarily to lower gross margin percentage in the Benchtop Laboratory Equipment Operations, resulting from increases in material, labor and overhead costs.

General and administrative

General and administrative expenses for the six months ended June 30, 2024 decreased $285,400 (11.0%) to $2,583,800 compared to$2,869,200 for the six months ended June 30, 2023 due primarily to decreased Corporate expenses related to external professional services costs compared to prior year period, partially offset by employee related costs associated with a reduction in force in the Bioprocessing Systems Operations.

Selling

Selling expenses for the six months ended June 30, 2024 and 2023 decreased by $1,238,200 (68.9%) to $1,798,400, compared to $3,036,600 for the six months ended June 30, 2023 due primarily to the decreased non-cash stock-based compensation expenses and reduction of sales and marketing employees in conjunction to the strategic operational and product development plan for the Bioprocessing Systems Operations.

Research and development

Research and development expenses for the six months ended June 30, 2024 and 2023, were $1,376,700 and $1,476,000, respectively. The decrease of $99,300 (7.2%) is due primarily to the reduction of research and development expenditures related to the VIVID automated pill counter in the Benchtop Laboratory Equipment Operations as compared to prior year period.

Other income, net

Other income, net, for the six months ended June 30, 2024 and 2023, were $90,500 and $136,800, respectively. The decrease is due primarily to the decrease in unrealized gain and on investment securities offset with a decrease in realized loss on investment securities attributable to more investment securities held in mutual funds as compared to investment securities held in equity securities during the current year period as compared to prior year period.

Income tax

Income tax for the six months ended June 30, 2024, and 2023, was $0 and $108,800, respectively. The Company maintains a full valuation allowance of $10,542,700 against the consolidated net deferred tax asset as the Company determined the net deferred tax assets which includes net operating loss carry-forwards and other tax credits, are not more likely than not to be realized in the future.

Liquidity and Capital Resources.

Our primary sources of liquidity are existing cash and investment securities, and cash generated from operating activities of the Benchtop Laboratory Equipment Operations. We assess our liquidity in terms of our ability to generate cash to fund our short and long-term cash requirements. For the six months ended June 30, 2024, the Company reflected negative cash flows from operations of $2,436,800 and has an accumulated deficit of $30,820,300 as of June 30, 2024. We believe that our operating cash flows derived primarily from the Benchtop Laboratory Equipment Operations, our cash and investment securities on hand, and the availability of our line of credit, are not sufficient to fund our cash requirements for the next 12 months. The accompanying unaudited condensed financial statements do not include any adjustments related to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management is making plans to obtain such resources for the Company which may include capital from management and significant shareholders sufficient to meet its operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The following table discloses our cash flows for the periods presented:

	For the six months ended June 30,
	2024			2023
Net cash used in operating activities	$	(2,436,800	)	$	(3,659,700	)
Net cash provided by investing activities		1,570,700			2,372,600
Net cash provided by financing activities		645,700			-
Effect of changes in foreign currency exchange rates		(15,200	)		4,500
Decrease in cash and cash equivalents	$	(235,600	)	$	(1,282,600	)

Net cash used in operating activities was $2,436,800 for the six months ended June 30, 2024 compared to $3,659,700 for the six months ended June 30, 2023. The net decrease of $1,222,900 is primarily due to the decreased operating expenses associated with a reduction in force in the Bioprocessing Systems operations and decreased corporate expenses in the current period compared to prior year period.

Net cash provided by investing activities was $1,570,700 for the six months ended June 30, 2024 compared to $2,372,600 provided in the six months ended June 30, 2023. The net decrease of $801,900 is primarily due to the net decrease in net redemption of investment securities, in the current year period compared to prior year period.

Net cash provided by financing activities was $645,700 for the six months ended June 30, 2024 compared to $0 for the six months ended June 30, 2023. The net increase of $645,700, is primarily due to issuance of the Units pursuant to the Purchase Agreement in the current year period.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires us to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. “Note 2-Summary of significant accounting policies” to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”) describes the significant accounting policies and methods used in the preparation of the consolidated financial statements. Our critical accounting estimates are identified in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our 2023 Form 10-K. Such accounting policies and estimates require significant judgments and assumptions to be used in the preparation of the consolidated financial statements, and actual results could differ from our assumptions and estimates, and such differences could be material.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

ITEM 4. Controls and Procedures

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Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, our management, with the participation and supervision of our Chief Executive Officer and Chief Financial Officer, have evaluated the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and that we are required to apply our judgment in evaluating the cost-benefit relationship of possible controls and procedures. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected. Based on the evaluation of our disclosure controls and procedures and internal controls over financial reporting as of June 30, 2024, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective. Our management has concluded that the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q present fairly, in all material respects, the Company’s financial position, results of operations and cash flows for the periods disclosed in accordance with U.S. GAAP.

Changes in Internal Controls Over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the six months ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1. Legal Proceedings

None

ITEM 1A. Risk Factors

Not required for smaller reporting companies.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

Refer to Current Report on Form 8-K filed with the SEC on January 22, 2024 as incorporated by reference for recent sales of unregistered securities.

ITEM 3. Defaults Upon Senior Securities

None

ITEM 4. Mine Safety Disclosures

Not applicable

ITEM 5. Other Information

None

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ITEM 6. Exhibits

Exhibit Number		Description of document
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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SIGNATURES

Pursuant to the requirements of Section13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SCIENTIFIC INDUSTRIES, INC. (Registrant)

Date: August 14, 2024	By:	/s/ Helena R. Santos
		Helena R. Santos
		President, Chief Executive Officer, and Treasurer

	SCIENTIFIC INDUSTRIES, INC. (Registrant)

Date: August 14, 2024	By:	/s/ Reginald Averilla
		Reginald Averilla
		Chief Financial Officer

nullnullnullnull

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 13, 2024
Cover [Abstract]
Entity Registrant Name	SCIENTIFIC INDUSTRIES, INC.
Entity Central Index Key	0000087802
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		10,503,599
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-6658
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	04-2217279
Entity Address Address Line 1	80 Orville Drive
Entity Address Address Line 2	Suite 102
Entity Address City Or Town	Bohemia
Entity Address State Or Province	NY
Entity Address Postal Zip Code	11716
City Area Code	631
Local Phone Number	567-4700
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 560,500	$ 796,100
Investment securities	3,295,100	4,928,700
Trade accounts receivable, less allowance for doubtful accounts of $33,600 at June 30, 2024 and December 31, 2023	1,214,900	1,157,100
Inventories	4,797,700	4,883,900
Income tax receivable	73,600	161,400
Prepaid expenses and other current assets	444,600	413,500
Total current assets	10,386,400	12,340,700
Property and equipment, net	999,800	1,082,300
Goodwill	115,300	115,300
Other intangible assets, net	1,006,000	1,249,900
Inventories	598,300	609,000
Operating lease right-of-use assets	1,109,800	1,273,900
Other assets	59,400	59,400
Total assets	14,275,000	16,730,500
Current liabilities:
Accounts payable	712,600	711,700
Accrued expenses	685,900	777,900
Contract liabilities	28,700	23,600
Lease liabilities, current portion	346,800	324,100
Total current liabilities	1,774,000	1,837,300
Lease liabilities, less current portion	819,400	1,007,800
Total liabilities	2,593,400	2,845,100
Shareholders' equity:
Common stock, $0.05 par value; 30,000,000 shares authorized; 10,503,599 and 10,145,211, shares issued and 10,503,599 and 10,145,211, shares outstanding at June 30, 2024 and December 31, 2023	525,200	507,300
Additional paid-in capital	42,002,600	40,844,600
Accumulated other comprehensive gain (loss)	(25,900)	18,600
Accumulated deficit	(30,820,300)	(27,485,100)
Total shareholders' equity	11,681,600	13,885,400
Total liabilities and shareholders' equity	$ 14,275,000	$ 16,730,500

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance doubtful accounts	$ 33,600	$ 33,600
Shareholders' equity:
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	10,503,599	10,145,211
Common stock, shares outstanding	10,503,599	10,145,211

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
Revenues	$ 2,647,300	$ 2,982,500	$ 5,130,800	$ 5,787,900
Cost of revenues	1,354,900	1,632,500	2,797,600	3,099,900
Gross profit	1,292,400	1,350,000	2,333,200	2,688,000
Operating expenses:
General and administrative	1,062,000	1,299,900	2,583,800	2,869,200
Selling	900,600	1,591,800	1,798,400	3,036,600
Research and development	666,000	684,500	1,376,700	1,476,000
Total operating expenses	2,628,600	3,576,200	5,758,900	7,381,800
Loss from operations	(1,336,200)	(2,226,200)	(3,425,700)	(4,693,800)
Other income:
Other income (expense), net	(2,000)	4,100	(6,300)	90,400
Interest income	54,600	37,000	96,800	46,400
Total other income, net	52,600	41,100	90,500	136,800
Loss from continuing operations before income tax expense benefit	(1,283,600)	(2,185,100)	(3,335,200)	(4,557,000)
Income tax expense	0	108,800	0	108,800
Loss from continuing operations	(1,283,600)	(2,293,900)	(3,335,200)	(4,665,800)
Discontinued operations:
Gain from discontinued operations, net of tax	0	1,900	0	3,300
Net loss	(1,283,600)	(2,292,000)	(3,335,200)	(4,662,500)
Comprehensive gain (loss):
Unrealized holding (loss) on investment securities, net of tax	0	(2,100)	0	1,600
Foreign currency translation (loss) gain	15,800	(30,100)	(44,500)	10,100
Comprehensive (loss) gain	15,800	(32,200)	(44,500)	11,700
Total comprehensive loss	$ (1,267,800)	$ (2,324,200)	$ (3,379,700)	$ (4,650,800)
Basic and Diluted loss per common share
Continuing operations	$ (0.12)	$ (0.33)	$ (0.32)	$ (0.67)
Discontinued operations	0	0	0	0
Consolidated operations	$ (0.12)	$ (0.33)	$ (0.32)	$ (0.67)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (UNAUDITED) - USD ($)	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance, shares at Dec. 31, 2022		7,023,401	19,802
Balance, amount at Dec. 31, 2022	$ 14,792,600	$ 351,200	$ 52,400	$ 32,900,800	$ (8,400)	$ (18,398,600)
Net loss	(2,370,500)	0	0	0	0	(2,370,500)
Foreign currency translation adjustment	40,200	0	0	0	40,200	0
Unrealized holding gain on investment securities, net of tax	3,700	0	0	0	3,700	0
Stock-based compensation	602,600	$ 0	$ 0	602,600	0	0
Balance, shares at Mar. 31, 2023		7,023,401	19,802
Balance, amount at Mar. 31, 2023	13,068,600	$ 351,200	$ 52,400	33,503,400	35,500	(20,769,100)
Balance, shares at Dec. 31, 2022		7,023,401	19,802
Balance, amount at Dec. 31, 2022	14,792,600	$ 351,200	$ 52,400	32,900,800	(8,400)	(18,398,600)
Net loss	(4,662,500)
Stock-based compensation	1,187,300
Balance, shares at Jun. 30, 2023		7,003,599
Balance, amount at Jun. 30, 2023	11,329,100	$ 350,200	$ 0	34,036,700	3,300	(23,061,100)
Balance, shares at Mar. 31, 2023		7,023,401	19,802
Balance, amount at Mar. 31, 2023	13,068,600	$ 351,200	$ 52,400	33,503,400	35,500	(20,769,100)
Net loss	(2,292,000)	0	0	0	0	(2,292,000)
Foreign currency translation adjustment	(30,100)	0	0	0	(30,100)	0
Unrealized holding gain on investment securities, net of tax	(2,100)	0	0	0	(2,100)	0
Stock-based compensation	584,700	$ 0	$ 0	584,700	0	0
Retirement of treasury stock, shares		(19,802)	(19,802)
Retirement of treasury stock, amount	0	$ (1,000)	$ (52,400)	(51,400)	0	0
Balance, shares at Jun. 30, 2023		7,003,599
Balance, amount at Jun. 30, 2023	11,329,100	$ 350,200	0	34,036,700	3,300	(23,061,100)
Balance, shares at Dec. 31, 2023		10,145,211
Balance, amount at Dec. 31, 2023	13,885,400	$ 507,300		40,844,600	18,600	(27,485,100)
Net loss	(2,051,600)	0	0	0	0	(2,051,600)
Foreign currency translation adjustment	(60,300)	0	0	0	(60,300)	0
Stock-based compensation	199,900	$ 0	0	199,900	0	0
Issuance of Common Stock and Warrants, net of issuance costs (Note 7), shares		358,388
Issuance of Common Stock and Warrants, net of issuance costs (Note 7), amount	221,900	$ 17,900	0	204,000		0
Fair value modification of warrants recorded as stock issuance costs	423,800	$ 0	0	423,800		0
Balance, shares at Mar. 31, 2024		10,503,599
Balance, amount at Mar. 31, 2024	12,619,100	$ 525,200	0	41,672,300	(41,700)	(29,536,700)
Balance, shares at Dec. 31, 2023		10,145,211
Balance, amount at Dec. 31, 2023	13,885,400	$ 507,300		40,844,600	18,600	(27,485,100)
Net loss	(3,335,200)
Stock-based compensation	530,200
Balance, shares at Jun. 30, 2024		10,503,599
Balance, amount at Jun. 30, 2024	11,681,600	$ 525,200	0	42,002,600	(25,900)	(30,820,300)
Balance, shares at Mar. 31, 2024		10,503,599
Balance, amount at Mar. 31, 2024	12,619,100	$ 525,200	0	41,672,300	(41,700)	(29,536,700)
Net loss	(1,283,600)	0	0	0	0	(1,283,600)
Foreign currency translation adjustment	15,800	0	0	0	15,800	0
Stock-based compensation	330,300	$ 0	0	330,300	0	0
Balance, shares at Jun. 30, 2024		10,503,599
Balance, amount at Jun. 30, 2024	$ 11,681,600	$ 525,200	$ 0	$ 42,002,600	$ (25,900)	$ (30,820,300)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities:
Net loss	$ (3,335,200)	$ (4,662,500)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	377,300	378,500
Stock-based compensation	530,200	1,187,300
Povision for bad debt	2,000	0
Loss on sale of investment securities	3,500	105,000
Unrealized holding (gain) on investment securities	(12,700)	(155,100)
Carrying value of right of use assets	167,400	136,000
Changes in operating assets and liabilities:
Trade accounts receivable	(57,800)	188,200
Inventories	88,800	(471,600)
Prepaid and other current assets	(31,200)	(77,100)
Income tax receivable	87,800	108,800
Accounts payable	500	(270,100)
Accrued expenses	(94,200)	137,900
Contract liabilities	5,100	(126,100)
Lease liabilities	(168,300)	(138,900)
Net cash used in operating activities	(2,436,800)	(3,659,700)
Investing activities:
Purchase of investment securities	(479,000)	(941,500)
Redemption of investment securities	2,121,900	3,420,300
Capital expenditures	(72,200)	(106,200)
Net cash provided by investing activities	1,570,700	2,372,600
Financing activities:
Proceeds from issuance of common stock	716,800	0
Issuance costs of common stock and warrants	(71,100)	0
Net cash provided by financing activities	645,700	0
Effect of changes in foreign currency exchange rates on cash and cash equivalents	(15,200)	4,500
Net decrease in cash and cash equivalents	(235,600)	(1,282,600)
Cash and cash equivalents, beginning of period	796,100	1,927,100
Cash and cash equivalents, end of period	$ 560,500	$ 644,500

Nature of the Business and Basis of Presentation

6 Months Ended

Jun. 30, 2024

Nature of the Business and Basis of Presentation

Nature of the Business and Basis of Presentation

1. Nature of the Business and Basis of Presentation

Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Significant Accounting Policies

Summary of Significant Accounting Policies

2. Significant Accounting Policies

Principles of Consolidation

Liquidity and Going Concern Considerations

Reclassifications

Certain balances from fiscal 2023 have been reclassified to conform to the current year presentation.

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value of Financial Instruments

Fair Value of Financial Instruments

3. Fair Value of Financial Instruments

Level 1 Inputs that are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3 Prices or valuation that require inputs that are both significant to the fair value measurement and unobservable.

	Fair Value Measurements as of June 30, 2024
	Level 1		Level 2		Level 3		Total
Investment securities - Mutual funds	$	3,295,100	$	-	$	-	$	3,295,100
Total	$	3,295,100	$	-	$	-	$	3,295,100

	Fair Value Measurements as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Investment securities - Mutual funds	$	4,928,700	$	-	$	-	$	4,928,700
Total	$	4,928,700	$	-	$	-	$	4,928,700

Investments in marketable securities by security type as of June 30, 2024 and December 31, 2023 consisted of the following:

As of June 30, 2024:	Cost		Fair Value		Unrealized Holding Gain

Mutual funds	$	3,284,700	$	3,295,100	$	10,400
Total	$	3,284,700		3,295,100	$	10,400

As of December 31, 2023:	Cost		Fair Value		Unrealized Holding (Loss)

Mutual funds	$	4,929,300	$	4,928,700	$	(600	)
Total	$	4,929,300	$	4,928,700	$	(600	)

Inventories

6 Months Ended

Jun. 30, 2024

Inventories

Inventories

4. Inventories

	As of June 30,		As of December 31,
	2024		2023
Raw materials	$	3,446,000	$	3,436,300
Work-in-process		24,500		23,200
Finished goods		1,925,500		2,033,400
Total Inventories	$	5,396,000	$	5,492,900

Inventories - Current Asset	$	4,797,700	$	4,883,900
Inventories - Noncurrent Asset		598,300		609,000

Goodwill and Finite Lived Intangible Asset

6 Months Ended

Jun. 30, 2024

Goodwill and Finite Lived Intangible Asset

Goodwill and Finite Lived Intangible Asset

5. Goodwill and Finite Lived Intangible Assets

Goodwill amounted to $115,300 as of June 30, 2024 and December 31, 2023.

Finite lived intangible assets consist of the following:

As of June 30, 2024:	Useful Lives	Cost		Accumulated Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	945,500	$	271,300
Trade names	3-6 yrs.		592,300		379,400		212,900
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		207,400		164,800
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		895,400		165,100
Patents	5-7 yrs.		605,600		413,700		191,900
		$	4,351,400	$	3,345,400	$	1,006,000

As of December 31, 2023	Useful Lives	Cost		Accumulated Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	870,900	$	345,900
Trade names	3-6 yrs.		592,300		341,600		250,700
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		193,600		178,600
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		797,600		262,900
Patents	5-7 yrs.		595,800		384,000		211,800
		$	4,341,600	$	3,091,700	$	1,249,900

Total amortization expense was $126,700 and $127,800 for the three months ended June 30, 2024 and 2023, respectively.

Total amortization expense was $253,700 and $257,800 for the six months ended June 30, 2024 and 2023, respectively.

Estimated future fiscal year amortization expense of intangible assets as of June 30, 2024 is as follows:

As of June 30, 2024	Amount
Remainder of fiscal year ending 2024	$	257,100
2025		373,500
2026		195,900
2027		94,500
2028		43,700
Thereafter		41,300
Total	$	1,006,000

Commitment and Contingencies

6 Months Ended

Jun. 30, 2024

Commitment and Contingencies

Commitments and Contingencies

6. Commitment and Contingencies

Legal Matters

Leases

The Company’s approximate future minimum rental payments under all operating leases as of June 30, 2024 were as follows:

As of June 30, 2024:	Amount
Remainder of fiscal year ending 2024	$	190,600
2025		357,500
2026		266,600
2027		274,600
2028		201,000
Total future minimum payments	$	1,290,300
Less: Imputed interest		(124,100	)
Total Present Value of Operating Lease Liabilities	$	1,166,200

Stockholders Equity

6 Months Ended

Jun. 30, 2024

Stockholders Equity

Stockholders' Equity

7. Stockholders’ Equity

Issuance of Common Stock and Warrants

Salary for Equity Incentive Options

Equity Cancel and Replacement Options

Board of Director Stock Options

Loss Per Common Share

6 Months Ended

Jun. 30, 2024

Loss Per Common Share

Loss Per Common Share

8. Loss Per Common Share

	For the three months ended						For the six months ended
	June 30,						June 30,
	2024			2023			2024			2023

Weighted average number of common shares outstanding		10,503,599			7,003,599			10,436,647			7,003,599
Effect of dilutive securities:		-			-			-			-
Weighted average number of dilutive common shares outstanding		10,503,599			7,003,599			10,436,647			7,003,599

Basic and diluted loss per common share:
Continuing operations	$	(0.12	)	$	(0.33	)	$	(0.32	)	$	(0.67	)
Discontinued operations		-			-			-			-
Consolidated operations	$	(0.12	)	$	(0.33	)	$	(0.32	)	$	(0.67	)

Related Parties

6 Months Ended

Jun. 30, 2024

Related Parties

Related Parties

9. Related Parties

Consulting Agreements

Segment Information and Concentration

6 Months Ended

Jun. 30, 2024

Segment Information and Concentration

Segment Information and Concentration

10. Segment Information and Concentration

Segment information is reported as follows.

Three Months Ended June 30, 2024:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	2,281,900	$	365,400		$	-		$	2,647,300

Foreign Sales		629,800		205,700						835,500

Income (Loss) From Operations		214,500		(1,292,900	)		(257,800	)		(1,336,200	)

Assets		6,224,600		4,754,300			3,295,100			14,274,000

Long-Lived Asset Expenditures		24,100		600			-			24,700

Depreciation and Amortization		21,400		167,800			-			189,200

Three Months Ended June 30, 2023:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	2,614,300	$	368,200		$	-		$	2,982,500

Foreign Sales		723,200		139,900						863,100

Income (Loss) From Operations		215,400		(1,794,600	)		(647,000	)		(2,226,200	)

Assets		7,023,400		5,332,400			1,844,100			14,199,900

Long-Lived Asset Expenditures		17,000		43,400			-			60,400

Depreciation and Amortization		20,400		170,200			-			190,600

Six Months Ended June 30, 2024:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	4,449,300	$	681,500		$	-		$	5,130,800

Foreign Sales		1,284,900		406,200						1,691,100

Income (Loss) From Operations		287,300		(2,894,700	)		(818,300	)		(3,425,700	)

Assets		6,224,600		4,754,300			3,295,100			14,274,000

Long-Lived Asset Expenditures		69,900		2,300			-			72,200

Depreciation and Amortization		42,800		334,500			-			377,300

Six Months Ended June 30, 2023:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	5,196,500	$	591,400		$	-		$	5,787,900

Foreign Sales		1,579,800		235,800						1,815,600

Income (Loss) From Operations		481,600		(3,867,100	)		(1,308,300	)		(4,693,800	)

Assets		7,023,400		5,332,400			1,844,100			14,199,900

Long-Lived Asset Expenditures		25,200		81,000			-			106,200

Depreciation and Amortization		43,700		334,800			-			378,500

For the three months ended June 30, 2024	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	214,500		$	(1,292,900	)	$	(257,800	)	$	(1,336,200	)

Other income(expense), net		(3,700	)		5,600			(3,900	)		(2,000	)
Interest income		-						54,600			54,600
Total other income(expense), net		(3,700	)		5,600			50,700			52,600

Income (Loss) from operations before discontinued operations and income taxes	$	210,800		$	(1,287,300	)	$	(207,100	)	$	(1,283,600	)

For the three months ended June 30, 2023	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	215,400		$	(1,794,600	)	$	(647,000	)	$	(2,226,200	)

Other income (expense), net		4,200			100			(200	)		4,100
Interest income		-			-			37,000			37,000
Total other income, net		4,200			100			36,800			41,100

Income (Loss) from operations before discontinued operations and income taxes	$	219,600		$	(1,794,500	)	$	(610,200	)	$	(2,185,100	)

For the six months ended June 30, 2024	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	287,300		$	(2,894,700	)	$	(818,300	)	$	(3,425,700	)

Other income(expense), net		(7,200	)		11,100			(10,200	)		(6,300	)
Interest income		-			-			96,800			96,800
Total other income(expense), net		(7,200	)		11,100			86,600			90,500

Income (Loss) from operations before discontinued operations and income taxes	$	280,100		$	(2,883,600	)	$	(731,700	)	$	(3,335,200	)

For the six months ended June 30, 2023	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	481,600		$	(3,867,100	)	$	(1,308,300	)	$	(4,693,800	)

Other income (expense), net		2,400			11,100			76,900			90,400
Interest income		-			-			46,400			46,400
Total other income, net		2,400			11,100			123,300			136,800

Income (Loss) from operations before discontinued operations and income taxes	$	484,000		$	(3,856,000	)	$	(1,185,000	)	$	(4,557,000	)

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2024
Significant Accounting Policies
Principles of consolidation	The accompanying unaudited interim condensed consolidated financial statements include the accounts of Scientific Industries, Inc., Scientific Bioprocessing Holdings, Inc. (“SBHI”), a Delaware corporation and wholly-owned subsidiary, which holds 100% of the outstanding stock of Scientific Bioprocessing, Inc. (“SBI”), a Delaware corporation, and aquila biolabs GmbH (“Aquila”), a German corporation, since its acquisition on April 29, 2021, Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation.
Liquidity and Going concern considerations	The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) which contemplate continuation of the Company as a going concern. For the six months ended June 30, 2024, the Company generated negative cash flows from operations of $2,436,800 and has an accumulated deficit of $30,820,300 as of June 30, 2024. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Company management does not believe that cash on hand and cash flows expected to be generated internally by the Company will be adequate to fund its operations and other cash flow requirements over the next twelve months. These reasons raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are to be filed. In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management is making plans to secure such resources for the Company which may include capital from management and significant shareholders sufficient to meet its operating expenses and third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Reclassifications	Certain balances from fiscal 2023 have been reclassified to conform to the current year presentation.

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value of Financial Instruments

Schedule of fair value on a recurring basis

	Fair Value Measurements as of June 30, 2024
	Level 1		Level 2		Level 3		Total
Investment securities - Mutual funds	$	3,295,100	$	-	$	-	$	3,295,100
Total	$	3,295,100	$	-	$	-	$	3,295,100

	Fair Value Measurements as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Investment securities - Mutual funds	$	4,928,700	$	-	$	-	$	4,928,700
Total	$	4,928,700	$	-	$	-	$	4,928,700

Investments in marketable securitites

As of June 30, 2024:	Cost		Fair Value		Unrealized Holding Gain

Mutual funds	$	3,284,700	$	3,295,100	$	10,400
Total	$	3,284,700		3,295,100	$	10,400

As of December 31, 2023:	Cost		Fair Value		Unrealized Holding (Loss)

Mutual funds	$	4,929,300	$	4,928,700	$	(600	)
Total	$	4,929,300	$	4,928,700	$	(600	)

Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventories

Schedule of Inventories

	As of June 30,		As of December 31,
	2024		2023
Raw materials	$	3,446,000	$	3,436,300
Work-in-process		24,500		23,200
Finished goods		1,925,500		2,033,400
Total Inventories	$	5,396,000	$	5,492,900

Inventories - Current Asset	$	4,797,700	$	4,883,900
Inventories - Noncurrent Asset		598,300		609,000

Goodwill and Finite Lived Intangible Asset (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Finite Lived Intangible Asset

Schedule of intangible assets

As of June 30, 2024:	Useful Lives	Cost		Accumulated Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	945,500	$	271,300
Trade names	3-6 yrs.		592,300		379,400		212,900
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		207,400		164,800
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		895,400		165,100
Patents	5-7 yrs.		605,600		413,700		191,900
		$	4,351,400	$	3,345,400	$	1,006,000

As of December 31, 2023	Useful Lives	Cost		Accumulated Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	870,900	$	345,900
Trade names	3-6 yrs.		592,300		341,600		250,700
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		193,600		178,600
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		797,600		262,900
Patents	5-7 yrs.		595,800		384,000		211,800
		$	4,341,600	$	3,091,700	$	1,249,900

Estimated future amortization expense of intangible assets

As of June 30, 2024	Amount
Remainder of fiscal year ending 2024	$	257,100
2025		373,500
2026		195,900
2027		94,500
2028		43,700
Thereafter		41,300
Total	$	1,006,000

Commitment and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitment and Contingencies

Future minimum rental payments

As of June 30, 2024:	Amount
Remainder of fiscal year ending 2024	$	190,600
2025		357,500
2026		266,600
2027		274,600
2028		201,000
Total future minimum payments	$	1,290,300
Less: Imputed interest		(124,100	)
Total Present Value of Operating Lease Liabilities	$	1,166,200

Loss Per Common Share (Tables)

6 Months Ended

Jun. 30, 2024

Loss Per Common Share

Loss per common share

	For the three months ended						For the six months ended
	June 30,						June 30,
	2024			2023			2024			2023

Weighted average number of common shares outstanding		10,503,599			7,003,599			10,436,647			7,003,599
Effect of dilutive securities:		-			-			-			-
Weighted average number of dilutive common shares outstanding		10,503,599			7,003,599			10,436,647			7,003,599

Basic and diluted loss per common share:
Continuing operations	$	(0.12	)	$	(0.33	)	$	(0.32	)	$	(0.67	)
Discontinued operations		-			-			-			-
Consolidated operations	$	(0.12	)	$	(0.33	)	$	(0.32	)	$	(0.67	)

Segment Information and Concentration (Tables)

6 Months Ended

Jun. 30, 2024

Segment Information and Concentration

Schedule Of Segment Information

Three Months Ended June 30, 2024:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	2,281,900	$	365,400		$	-		$	2,647,300

Foreign Sales		629,800		205,700						835,500

Income (Loss) From Operations		214,500		(1,292,900	)		(257,800	)		(1,336,200	)

Assets		6,224,600		4,754,300			3,295,100			14,274,000

Long-Lived Asset Expenditures		24,100		600			-			24,700

Depreciation and Amortization		21,400		167,800			-			189,200

Three Months Ended June 30, 2023:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	2,614,300	$	368,200		$	-		$	2,982,500

Foreign Sales		723,200		139,900						863,100

Income (Loss) From Operations		215,400		(1,794,600	)		(647,000	)		(2,226,200	)

Assets		7,023,400		5,332,400			1,844,100			14,199,900

Long-Lived Asset Expenditures		17,000		43,400			-			60,400

Depreciation and Amortization		20,400		170,200			-			190,600

Six Months Ended June 30, 2024:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	4,449,300	$	681,500		$	-		$	5,130,800

Foreign Sales		1,284,900		406,200						1,691,100

Income (Loss) From Operations		287,300		(2,894,700	)		(818,300	)		(3,425,700	)

Assets		6,224,600		4,754,300			3,295,100			14,274,000

Long-Lived Asset Expenditures		69,900		2,300			-			72,200

Depreciation and Amortization		42,800		334,500			-			377,300

Six Months Ended June 30, 2023:	Benchtop Laboratory Equipment		Bioprocessing Systems			Corporate And Other			Consolidated
Revenues	$	5,196,500	$	591,400		$	-		$	5,787,900

Foreign Sales		1,579,800		235,800						1,815,600

Income (Loss) From Operations		481,600		(3,867,100	)		(1,308,300	)		(4,693,800	)

Assets		7,023,400		5,332,400			1,844,100			14,199,900

Long-Lived Asset Expenditures		25,200		81,000			-			106,200

Depreciation and Amortization		43,700		334,800			-			378,500

Schedule Of Reconciliation Of The Company's consolidated Segment Incomed Loss

For the three months ended June 30, 2024	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	214,500		$	(1,292,900	)	$	(257,800	)	$	(1,336,200	)

Other income(expense), net		(3,700	)		5,600			(3,900	)		(2,000	)
Interest income		-						54,600			54,600
Total other income(expense), net		(3,700	)		5,600			50,700			52,600

Income (Loss) from operations before discontinued operations and income taxes	$	210,800		$	(1,287,300	)	$	(207,100	)	$	(1,283,600	)

For the three months ended June 30, 2023	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	215,400		$	(1,794,600	)	$	(647,000	)	$	(2,226,200	)

Other income (expense), net		4,200			100			(200	)		4,100
Interest income		-			-			37,000			37,000
Total other income, net		4,200			100			36,800			41,100

Income (Loss) from operations before discontinued operations and income taxes	$	219,600		$	(1,794,500	)	$	(610,200	)	$	(2,185,100	)

For the six months ended June 30, 2024	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	287,300		$	(2,894,700	)	$	(818,300	)	$	(3,425,700	)

Other income(expense), net		(7,200	)		11,100			(10,200	)		(6,300	)
Interest income		-			-			96,800			96,800
Total other income(expense), net		(7,200	)		11,100			86,600			90,500

Income (Loss) from operations before discontinued operations and income taxes	$	280,100		$	(2,883,600	)	$	(731,700	)	$	(3,335,200	)

For the six months ended June 30, 2023	Benchtop Laboratory Equipment			Bioprocessing Systems			Corporate			Consolidated
Income (Loss) from Operations	$	481,600		$	(3,867,100	)	$	(1,308,300	)	$	(4,693,800	)

Other income (expense), net		2,400			11,100			76,900			90,400
Interest income		-			-			46,400			46,400
Total other income, net		2,400			11,100			123,300			136,800

Income (Loss) from operations before discontinued operations and income taxes	$	484,000		$	(3,856,000	)	$	(1,185,000	)	$	(4,557,000	)

Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Significant Accounting Policies
Obligation percentage	100.00%
Cash flows from operations	$ (2,436,800)
Accumulated deficit	$ (30,820,300)	$ (27,485,100)

Fair Value of Financial Instruments (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Investment securities - Mutual funds	$ 3,295,100	$ 4,928,700
Total	3,295,100	4,928,700
Level 1
ASSETS
Investment securities - Mutual funds	3,295,100	4,928,700
Total	3,295,100	4,928,700
Level 2
ASSETS
Investment securities - Mutual funds	0	0
Total	0	0
Level 3
ASSETS
Investment securities - Mutual funds	0	0
Total	$ 0	$ 0

Fair Value of Financial Instruments (Details 1) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Fair value	$ 3,295,100	$ 4,928,700
Cost	3,284,700	4,929,300
Unrealized holding gain (loss)	10,400	(600)
Mutual Funds
Fair value	3,295,100	4,928,700
Cost	3,284,700	4,929,300
Unrealized holding gain (loss)	$ 10,400	$ (600)

Inventories (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventories
Raw materials	$ 3,446,000	$ 3,436,300
Work-in-process	24,500	23,200
Finished goods	1,925,500	2,033,400
Inventory	5,396,000	5,492,900
Inventories-Current Assets	4,797,700	4,883,900
Inventories- Noncurrent Assets	$ 598,300	$ 609,000

Goodwill and Finite Lived Intangible Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Cost	$ 4,351,400	$ 4,341,600
Accumulated amortization	3,345,400	3,091,700
Net	1,006,000	1,249,900
Technology, trademarks
Cost	1,216,800	1,216,800
Accumulated amortization	945,500	870,900
Net	$ 271,300	$ 345,900
Technology, trademarks \| Minimum [Member]
USeful Lives	3 years	3 years
Technology, trademarks \| Maximum [Member]
USeful Lives	10 years	10 years
Trade names
Cost	$ 592,300	$ 592,300
Accumulated amortization	379,400	341,600
Net	212,900	250,700
Websites
Cost	210,000	210,000
Accumulated amortization	210,000	210,000
Net	$ 0	$ 0
Websites \| Minimum [Member]
USeful Lives	3 years	3 years
Websites \| Maximum [Member]
USeful Lives	7 years	7 years
Customer relationships
Cost	$ 372,200	$ 372,200
Accumulated amortization	207,400	193,600
Net	$ 164,800	$ 178,600
Customer relationships \| Minimum [Member]
USeful Lives	4 years	4 years
Customer relationships \| Maximum [Member]
USeful Lives	10 years	10 years
Sublicense agreements
Cost	$ 294,000	$ 294,000
USeful Lives	10 years	10 years
Accumulated amortization	$ 294,000	$ 294,000
Net	0	0
Non-compete agreements
Cost	1,060,500	1,060,500
Accumulated amortization	895,400	797,600
Net	165,100	262,900
Patents
Cost	605,600	595,800
Accumulated amortization	413,700	384,000
Net	$ 191,900	$ 211,800
Patents \| Minimum [Member]
USeful Lives	5 years	5 years
Patents \| Maximum [Member]
USeful Lives	7 years	7 years
Trade names \| Minimum [Member]
USeful Lives	3 years	3 years
Trade names \| Maximum [Member]
USeful Lives	6 years	6 years
Non-compete agreements \| Minimum [Member]
USeful Lives	4 years	4 years
Non-compete agreements \| Maximum [Member]
USeful Lives	5 years	5 years

Goodwill and Finite Lived Intangible Assets (Details 1) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Finite Lived Intangible Asset
Remainder of fiscal year ending 2024	$ 257,100
2025	373,500
2026	195,900
2027	94,500
2028	43,700
Thereafter	41,300
Total	$ 1,006,000	$ 1,249,900

Goodwill and Finite Lived Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill and Finite Lived Intangible Asset
Goodwill	$ 115,300		$ 115,300		$ 115,300
Total amortization expense	$ 126,700	$ 127,800	$ 253,700	$ 257,800

Commitment and Contingencies (Details)	Jun. 30, 2024 USD ($)
Commitment and Contingencies
Remainder of fiscal year ending 2024	$ 190,600
2025	357,500
2026	266,600
2027	274,600
2028	201,000
Total future minimum payments	1,290,300
Less: imputed interest	(124,100)
Total present value of operating lease liabilities	$ 1,166,200

Stockholders Equity (Details Narrative) - USD ($)		1 Months Ended		6 Months Ended
Stockholders Equity (Details Narrative) - USD ($)	Apr. 12, 2024	May 17, 2024	Jan. 17, 2024	Jun. 30, 2024
Warrants exercise price			$ 2.50
Replacement Warrants, outstanding			333,884
Salary for Equity Incentive Options [Member]
Issued stock options, value		$ 948,200
Exercise price		$ 2.50
Options vesting period		over twelve months
Issued stock options, shares		628,960
Equity Cancel and Replacement Options [Member] \| April 1, 2024 [Member]
Exercise price				$ 2.50
Options vesting period				over the three year
Recognize stock compensation expense				$ 613,400
Securities Purchase Agreement
Securities Purchase Agreement, Description			the Company sold an aggregate of 358,388 Units, comprising 358,388 shares of the Company’s common stock, par value $.05 per share (“Common Stock”) and warrants (“Warrants”) to purchase 358,388 shares of Common Stock for a total consideration of $716,776. The Company recognized $98,700 of issuance cost, which includes $71,100 attributable to legal and placement agent fees and $27,600 attributable to the fair value of warrants, issued to the placement agent, to purchase up to 17,919 shares of Common Stock at an exercise price of $2.00 per share on substantially the same terms as the Warrants issued to the purchasers of Units (“Investors”).
Board of Director Stock Options [Member]
Issued stock options, value	$ 34,500
Exercise price	$ 1.75
Options vesting period	over three years
Issued stock options, shares	25,000

Loss Per Common Share (Details) - $ / shares	3 Months Ended		6 Months Ended
Loss Per Common Share (Details) - $ / shares	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Loss Per Common Share
Weighted average common shares outstanding	10,503,599	7,003,599	10,436,647	7,003,599
Weighted average number of dilutive common shares outstanding	10,503,599	7,003,599	10,436,647	7,003,599
Basic and diluted loss per common share:
Continuing operations	$ (0.12)	$ (0.33)	$ (0.32)	$ (0.67)
Discontinued operations	0	0	0	0
Consolidated operations	$ (0.12)	$ (0.33)	$ (0.32)	$ (0.67)

Loss Per Common Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
Loss Per Common Share (Details Narrative) - shares	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Stock Options
Dilutive shares excluded	1,766,547	18,077	8,232,510	20,336
Warrants
Dilutive shares excluded		0		0

Related Parties (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Related Parties (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Mr. John Nicols [Member]
Consulting expenses	$ 31,300	$ 0	$ 47,300	$ 0

Segment Information and Concentration (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues	$ 2,647,300	$ 2,982,500	$ 5,130,800	$ 5,787,900
Income (Loss) from Operations			3,335,200	4,662,500
Bioprocessing Systems
Revenues	365,400	368,200	681,500	591,400
Foreign Sales	205,700	139,900	406,200	235,800
Income (Loss) from Operations	(1,292,900)	(1,794,600)	(2,894,700)	(3,867,100)
Assets	4,754,300	5,332,400	4,754,300	5,332,400
Long-lived Asset Expenditures	600	43,400	2,300	81,000
Depreciation and Amortization	167,800	170,200	334,500	334,800
Benchtop Laboratory Equipment
Revenues	2,281,900	2,614,300	4,449,300	5,196,500
Foreign Sales	629,800	723,200	1,284,900	1,579,800
Income (Loss) from Operations	214,500	215,400	287,300	481,600
Assets	6,224,600	7,023,400	6,224,600	7,023,400
Long-lived Asset Expenditures	24,100	17,000	69,900	25,200
Depreciation and Amortization	21,400	20,400	42,800	43,700
Corporate
Revenues	0	0	0	0
Foreign Sales		0	0
Income (Loss) from Operations	(257,800)	(647,000)	(818,300)	(1,308,300)
Assets	3,295,100	1,844,100	3,295,100	1,844,100
Long-lived Asset Expenditures	0	0	0	0
Depreciation and Amortization	0	0	0	0
Consolidated
Revenues	2,647,300	2,982,500	5,130,800	5,787,900
Foreign Sales	835,500	863,100	1,691,100	1,815,600
Income (Loss) from Operations	(1,336,200)	(2,226,200)	(3,425,700)	(4,693,800)
Assets	14,274,000	14,199,900	14,274,000	14,199,900
Long-lived Asset Expenditures	24,700	60,400	72,200	106,200
Depreciation and Amortization	$ 189,200	$ 190,600	$ 377,300	$ 378,500

Segment Information and Concentration (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income (Loss) from Operations	$ (1,336,200)	$ (2,226,200)	$ (3,425,700)	$ (4,693,800)
Other (expense) income, net	(2,000)	4,100	(6,300)	90,400
Interest income	54,600	37,000	96,800	46,400
Total other income, net	52,600	41,100	90,500	136,800
Benchtop Laboratory Equipment
Income (Loss) from Operations	214,500	215,400	287,300	481,600
Other (expense) income, net	(3,700)	4,200	(7,200)	2,400
Interest income	0	0	0	0
Total other income, net	(3,700)	4,200	(7,200)	2,400
Income (Loss) from operations before discontinued operations and income taxes	210,800	219,600	280,100	484,000
Corporate
Income (Loss) from Operations	(257,800)	(647,000)	(818,300)	(1,308,300)
Other (expense) income, net	(3,900)	(200)	(10,200)	76,900
Interest income	54,600	37,000	96,800	46,400
Total other income, net	50,700	36,800	86,600	123,300
Income (Loss) from operations before discontinued operations and income taxes	(207,100)	(610,200)	(731,700)	(1,185,000)
Consolidated
Income (Loss) from Operations	(1,336,200)	(2,226,200)	(3,425,700)	(4,693,800)
Other (expense) income, net	(2,000)	4,100	(6,300)	90,400
Interest income	54,600	37,000	96,800	46,400
Total other income, net	52,600	41,100	90,500	136,800
Income (Loss) from operations before discontinued operations and income taxes	(1,283,600)	(2,185,100)	(3,335,200)	(4,557,000)
Bioprocessing Systems Two [Member]
Income (Loss) from Operations	(1,292,900)	(1,794,600)	(2,894,700)	(3,867,100)
Other (expense) income, net	5,600	100	11,100	11,100
Interest income		0	0	0
Total other income, net	5,600	100	11,100	11,100
Income (Loss) from operations before discontinued operations and income taxes	$ (1,287,300)	$ (1,794,500)	$ (2,883,600)	$ (3,856,000)

Segment Information and Concentration (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue, percentage	10.00%		10.00%
Customer One [Member]
Revenue, percentage		10.00%		10.00%

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