Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 01, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | SCIENTIFIC INDUSTRIES INC | |
Entity Central Index Key | 87,802 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,489,112 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 1,081,000 | $ 482,000 |
Restricted cash | 300,000 | 300,000 |
Investment securities | 282,300 | 281,800 |
Trade accounts receivable, net | 717,100 | 1,081,700 |
Inventories | 3,674,900 | 2,213,700 |
Prepaid expenses and other current assets | 54,800 | 68,600 |
Deferred taxes | 104,400 | 114,200 |
Total current assets | 6,214,500 | 4,542,000 |
Property and equipment, net | 222,300 | 235,200 |
Intangible assets, net | 1,195,400 | 1,451,900 |
Goodwill | 705,300 | 705,300 |
Other assets | 52,500 | 52,500 |
Deferred taxes | 208,300 | 154,500 |
Total assets | 8,598,300 | 7,141,400 |
Current Liabilities: | ||
Accounts payable | 422,300 | 227,600 |
Customer advances | 267,800 | 76,400 |
Bank line of credit | 970,000 | 0 |
Notes payable | 200,000 | 200,000 |
Accrued expenses and taxes | 714,900 | 519,900 |
Contingent consideration, less current portion | 128,900 | 106,800 |
Total current liabilities | 2,703,900 | 1,130,700 |
Contingent consideration payable, less current portion | 137,300 | 260,300 |
Total liabilities | 2,841,200 | 1,391,000 |
Shareholders' equity: | ||
Common stock, $.05 par value; authorized 7,000,000 shares; 1,508,914 issued and outstanding at March 31, 2016 and June 30, 2015 | 75,400 | 75,400 |
Additional paid-in capital | 2,497,900 | 2,486,700 |
Accumulated other comprehensive loss | (5,200) | (3,300) |
Retained earnings | 3,241,400 | 3,244,000 |
Total | 5,809,500 | 5,802,800 |
Less common stock held in treasury, at cost, 19,802 shares | 52,400 | 52,400 |
Total shareholders' equity | 5,757,100 | 5,750,400 |
Total liabilities and shareholders' equity | $ 8,598,300 | $ 7,141,400 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2016 | Jun. 30, 2015 |
Shareholders' equity: | ||
Common stock,par value | $ 0.05 | $ 0.05 |
Common stock, authorized shares | 7,000,000 | 7,000,000 |
Common stock, issued shares | 1,508,914 | 1,508,914 |
Common stock, outstanding shares | 1,508,914 | 1,508,914 |
Stock held in treasury, shares | 19,802 | 19,802 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,674,300 | $ 1,729,200 | $ 5,146,900 | $ 5,082,400 |
Cost of sales | 993,100 | 961,900 | 3,032,900 | 3,125,800 |
Gross profit | 681,200 | 767,300 | 2,114,000 | 1,956,600 |
Operating expenses: | ||||
General & administrative | 426,700 | 433,900 | 1,230,500 | 1,286,500 |
Selling | 196,200 | 202,200 | 590,400 | 726,900 |
Research & development | 93,400 | 94,500 | 263,000 | 317,700 |
Total operating expenses | 716,300 | 730,600 | 2,083,900 | 2,331,100 |
Income (loss) from operations | (35,100) | 36,700 | 30,100 | (374,500) |
Other income (expense): | ||||
Investment income | 300 | 1,100 | 5,700 | 10,700 |
Other | 200 | (4,600) | (3,000) | (5,700) |
Interest expense | (13,700) | (1,600) | (35,900) | (4,300) |
Total other income, (expense) net | (13,200) | (5,100) | (33,200) | 700 |
Income (loss) before income taxes (benefit) | (48,300) | 31,600 | (3,100) | (373,800) |
Income tax expense (benefit): | ||||
Current | 2,200 | 34,800 | 43,100 | (56,200) |
Deferred | (13,600) | (22,200) | (43,600) | (37,300) |
Total income (loss) tax expense (benefit) | (11,400) | 12,600 | (500) | (93,500) |
Net income (loss) | $ (36,900) | $ 19,000 | $ (2,600) | $ (280,300) |
Basic earnings (loss) per common share | $ (0.02) | $ 0.01 | $ 0 | $ (0.19) |
Diluted earnings (loss) per common share | (0.02) | 0.01 | 0 | (0.19) |
Cash dividends declared per common share | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements Of Comprehensive Income Lossunaudited | ||||
Net income (loss) | $ (36,900) | $ 19,000 | $ (2,600) | $ (280,300) |
Other comprehensive income (loss): | ||||
Unrealized holding gain (loss) arising during period, net of tax | 3,000 | 2,900 | (1,900) | (1,600) |
Comprehensive income (loss) | $ (33,900) | $ 21,900 | $ (4,500) | $ (281,900) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net loss | $ (2,600) | $ (280,300) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on sale of investments | 0 | 4,400 |
Loss on asset disposal | 2,700 | 0 |
Depreciation and amortization | 319,100 | 327,200 |
Deferred income tax benefit | (43,600) | (37,300) |
Stock-based compensation | 11,200 | 10,200 |
Income tax benefit of stock options exercised | 0 | 4,900 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 364,600 | (72,900) |
Inventories | (1,461,200) | (312,100) |
Prepaid expenses and other current assets | 13,800 | 11,900 |
Accounts payable | 194,700 | (48,600) |
Customer advances | 191,400 | 235,400 |
Accrued expenses and taxes | 195,000 | (13,500) |
Other assets | 0 | (24,200) |
Total adjustments | (212,300) | 85,400 |
Net cash used in operating activities | (214,900) | (194,900) |
Investing activities: | ||
Redemption of investment securities, available-for-sale | 0 | 127,000 |
Purchase of investment securities, available-for-sale | (2,700) | (3,800) |
Capital expenditures | (45,100) | (56,500) |
Purchase of intangible assets | (7,400) | (4,400) |
Net cash provided by (used in) investing activities | (55,200) | 62,300 |
Financing activities: | ||
Line of credit proceeds | 970,000 | 250,000 |
Line of credit repayments | 0 | (150,000) |
Payments of contingent consideration | (100,900) | (98,900) |
Proceeds from exercise of stock options | 0 | 18,800 |
Principal payments on note payable | 0 | (26,700) |
Net cash provided by (used in) financing activities | 869,100 | (6,800) |
Net increase (decrease) in cash and cash equivalents | 599,000 | (139,400) |
Cash and cash equivalents, beginning of year | 482,000 | 493,700 |
Cash and cash equivalents, end of period | 1,081,000 | 354,300 |
Cash paid during the period for: | ||
Income Taxes | 35,500 | 3,500 |
Interest | $ 27,200 | $ 4,300 |
1. Summary of significant accou
1. Summary of significant accounting policies | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Principles of consolidation: The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc. (Scientific, a Delaware corporation), Altamira Instruments, Inc.(Altamira, a wholly-owned subsidiary and Delaware corporation), Scientific Packaging Industries, Inc. (an inactive wholly-owned subsidiary and New York corporation) and Scientific Bioprocessing, Inc. (SBI, a wholly-owned subsidiary and Delaware corporation). All are collectively referred to as the Company. All material intercompany balances and transactions have been eliminated. |
2. Recent Accounting Pronouncem
2. Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers amending revenue recognition requirements for multiple-deliverable revenue arrangements. This update provides guidance on how revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. This determination is made in five steps: (i) identify the contract with the customer: (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2018, or the Company's fiscal year ending June 30, 2020, and early adoption of the standard is permitted, but not before the original effective date of December 15, 2017. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures. In June 2014, the FASB issued ASU 2014-12, Compensation Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved After the Requisite Service Period. This update affects reporting entities that grant their employees targets that affects vesting could be achieved after the requisite service period. The new standard requires that a performance target that affects vesting and that could be achieved after the requisite services period be treated as a performance condition. The new standard will be effective for the Company beginning July 1, 2016, and early adoption is permitted. The Company expects the adoption will not have a material impact on its financial condition, results of operations or cash flows. In July 2015, the FASB issued ASU No. 2015-11, "Inventory: Simplifying the Measurement of Inventory", that requires inventory not measured using either the last in, first out (LIFO) or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and will be applied prospectively. Early adoption is permitted. The Company is evaluating the impact that this standard will have on its consolidated financial statements. In November 2015, the FASB issued new guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the new guidance. The guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted as of the beginning of an interim or annual reporting period. The new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is evaluating the impact that the new guidance will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight- line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Companys fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early application permitted. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. |
3. Acquisition
3. Acquisition | 9 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | On February 26, 2014, the Company acquired substantially all the assets of a privately owned company consisting principally of inventory, fixed assets, and intangible assets related to the production and sale of a variety of laboratory and pharmacy balances and scales. The acquisition was pursuant to an asset purchase agreement whereby the Company paid the sellers $700,000 in cash, 126,449 shares of Common Stock valued at $427,500 and agreed to make additional cash payment based on a percentage of net sales of the business acquired equal to 8% for the period ended June 30, 2014 annualized, 9% for the year ended June 30, 2015, 10% for the year ending June 30, 2016 and 11% for the year ending June 30, 2017, estimated at a present value of $460,000 on the date of acquisition. Payments related to this contingent consideration for each period are due in September following the fiscal year. Contingent consideration payments amounted to $100,900 and $98,900 during the nine month periods ended March 31, 2016 and 2015, respectively. The products, which are similar to the Companys other Benchtop Laboratory Equipment, and in many cases used by the same customers, are marketed under the Torbal® brand. The principal customers are pharmacies, pharmacy schools, universities, government laboratories, and industries utilizing precision scales. The products are sold primarily on a direct basis, including the Companys e-commerce site. The Company allocated the purchase price based on its valuation of the assets acquired, as follows: Current assets $ 144,000 Property and equipment 118,100 Goodwill* 115,400 Other intangible assets 1,210,000 Total Purchase Price $ 1,587,500 *See Note 8, Goodwill and Other Intangible Assets. Of the $1,210,000 of the acquired other intangible assets, $570,000 was assigned to technology and websites with a useful life of 5 years, $120,000 was assigned to customer relationships with an estimated useful life of 9 years, $140,000 was assigned to the trade name with an estimated useful life of 6 years, $110,000 was assigned to the IPR&D with an estimated useful life of 3 years, and $270,000 was assigned to non-compete agreements with an estimated useful life of 5 years. In connection with the acquisition, the Company entered into a three-year employment agreement with the previous Chief Operating Officer of the acquired business as President of the Companys new Torbal Division and Director of Marketing for the Company. The agreement may be extended by mutual consent for an additional two years. |
4. Segment Information and Conc
4. Segment Information and Concentrations | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information and Concentrations | The Company views its operations as three segments: the manufacture and marketing of standard benchtop laboratory equipment for research in university, hospital and industrial laboratories sold primarily through laboratory equipment distributors (Benchtop Laboratory Equipment), the manufacture and marketing of custom-made catalyst research instruments for universities, government laboratories, and chemical and petrochemical companies sold on a direct basis (Catalyst Research Instruments) and the marketing and production of bioprocessing systems for laboratory research in the biotechnology industry sold directly to customers and through distributors (Bioprocessing Systems). Segment information is reported as follows (foreign sales are principally to customers in Europe and Asia): Benchtop Catalyst Bioprocessing Corporate Consolidated Three months ended March 31, 2016: Revenues $ 1,279,300 $ 364,900 $ 30,100 $ - $ 1,674,300 Foreign Sales 597,300 25,900 - - 623,200 Income (Loss) from Operations 2,800 5,500 (29,600) (13,800) (35,100) Assets 4,358,700 2,898,400 746,200 595,000 8,598,300 Long-Lived Asset Expenditures 31,500 3,200 3,700 - 38,400 Depreciation and Amortization 74,800 9,000 24,500 - 108,300 Benchtop Catalyst Bioprocessing Corporate Consolidated Three months ended March 31, 2015: Revenues $ 1,558,000 $ 144,600 $ 26,600 $ - $ 1,729,200 Foreign Sales 813,900 81,100 - - 895,000 Income (Loss) from Operations 120,600 (50,400) (33,500) - 36,700 Assets 4,165,700 1,506,700 783,400 555,800 7,011,600 Long-Lived Asset Expenditures 900 - 3,700 - 4,600 Depreciation and Amortization 74,700 7,900 24,500 - 107,100 Approximately 50% and 53% of net sales of benchtop laboratory equipment for the three month periods ended March 31, 2016 and 2015, respectively, were derived from the Companys main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 22% and 21% of total benchtop laboratory equipment sales were derived from the Torbal Scales Division for the three months ended March 31, 2016 and 2015, respectively. Two benchtop laboratory equipment customers accounted for approximately 19% and 18% of the segments net sales for the three month periods ended March 31, 2016 and 2015 (15% and 17% of total revenues, respectively, for the periods). Sales of catalyst research instruments are generally pursuant to large orders averaging more than $100,000 per order to a limited numbers of customers. Sales to two customers in the three months ended March 31, 2016 and two different customers in the three months ended March 31, 2015, accounted respectively for 86% and 64% of the segments net sales for each of the periods (19% and 5% of total revenues for the respective periods). Benchtop Catalyst Bioprocessing Corporate Consolidated Nine months ended March 31, 2016: Revenues $ 4,125,900 $ 932,300 $ 88,700 $ - $ 5,146,900 Foreign Sales 1,960,700 139,200 - - 2,099,900 Income (Loss) from Operations 245,200 (86,700) (92,500) (35,900) 30,100 Assets 4,358,700 2,898,400 746,200 595,000 8,598,300 Long-Lived Asset Expenditures 39,900 3,200 9,400 - 52,500 Depreciation and Amortization 222,800 22,900 73,400 - 319,100 Benchtop Catalyst Bioprocessing Corporate Consolidated Nine months ended March 31, 2015: Revenues $ 3,891,400 $ 1,115,300 $ 75,700 $ - $5,082,400 Foreign Sales 1,947,400 840,300 - - 2,787,700 Loss from Operations (64,700) (191,200) (118,600) - (374,500) Assets 4,165,700 1,506,700 783,400 555,800 7,011,600 Long-Lived Asset Expenditures 52,400 900 7,600 - 60,900 Depreciation and Amortization 227,000 26,900 73,300 - 327,200 Approximately 50% of net sales of benchtop laboratory equipment for both the nine month periods ended March 31, 2016 and 2015, were derived from sales of the Companys main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 21% and 20% of total benchtop laboratory equipment sales for the nine months ended March 31, 2016 and 2015, respectively, were derived from sales of the Torbal Scales Division. Two benchtop laboratory equipment customers, accounted for approximately 15% and 17% of the segments net sales (12% and 13% of total revenues) for the nine month periods ended March 31, 2016 and 2015, respectively. Sales of catalyst research instruments to four customers in the nine months ended March 31, 2016 and to seven other customers in the nine months ended March 31, 2015 accounted for approximately 87% and 97% of that segments net sales (16% and 19% of total revenues) for the respective nine month periods. The Companys foreign sales are principally made to customers in Europe and Asia. The Company also has an arrangement with a supplier for annual minimum purchase commitments through February 2020 which the Company has already met for the current year. |
5. Fair Value of Financial Inst
5. Fair Value of Financial Instruments | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The FASB defines 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 concerning fair value and establishes a fair value hierarchy of 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 valuations that require inputs that are both significant to the fair value measurement and unobservable. The following tables set forth by level within the fair value hierarchy the Companys financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2016 and June 30, 2015 according to the valuation techniques the Company used to determine their fair values: Fair Value Measurements Using Inputs Considered as Assets: Fair Value at Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,081,000 $1,081,000 $ - $ - Restricted Cash 300,000 $ 300,000 - - Available for sale securities 282,300 282,300 - - Total $ 1,663,300 $1,663,300 $ - $ - Liabilities: Contingent consideration $ 266,200 $ - $ - $266,200 Fair Value Measurements Using Inputs Considered as Assets: Fair Value at Level 1 Level 2 Level 3 Cash and cash equivalents $ 482,000 $ 482,000 $ - $ - Restricted Cash $ 300,000 $ 300,000 - - Available for sale securities 281,800 281,800 - - Total $ 1,063,800 $1,063,800 $ - $ - Liabilities: Contingent consideration $ 367,100 $ - $ - $367,100 Investments in marketable securities classified as available-for-sale by security type at March 31, 2016 and June 30, 2015 consisted of the following: Cost Fair Unrealized At March 31, 2016: Available for sale: Equity securities $ 29,300 $ 39,700 $ 10,400 Mutual funds 258,200 242,600 (15,600) $ 287,500 $ 282,300 $ (5,200) Cost Fair Unrealized At June 30, 2015: Available for sale: Equity securities $ 29,300 $ 35,800 $ 6,500 Mutual funds 255,800 246,000 (9,800) $ 285,100 $ 281,800 $ (3,300) |
6. Inventories
6. Inventories | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | At interim reporting periods, inventories for financial statement purposes are based on perpetual inventory records. Components of inventory are as follows: March 31, June 30, Raw Materials $ 1,465,500 $ 1,420,800 Work in process 1,805,700 442,900 Finished Goods 403,700 350,000 $ 3,674,900 $ 2,213,700 |
7. Earnings (Loss) per common s
7. Earnings (Loss) per common share | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per common share | Basic earnings (loss) per common share are computed by dividing net income (loss) by the weighted-average number of shares outstanding. Diluted earnings (loss) per common share include the dilutive effect of stock options, if any. Earnings (Loss) per common share was computed as follows: For the Three Month For the Nine Month Periods Ended Periods Ended March 31, March 31, 2016 2015 2016 2015 Net income (loss) $ (36,900) $ 19,000 $ (2,600) $(280,300) Weighted average common shares outstanding 1,489,112 1,479,112 1,489,112 1,477,375 Effect of dilutive securities - - - - Weighted average dilutive common shares outstanding 1,489,112 1,479,112 1,489,112 1,477,375 Basic earnings (loss) per common share $ (0.02) $ 0.01 $ 0.00 $ (0.19) Diluted earnings (loss) per common share $ (0.02) $ 0.01 $ 0.00 $ (0.19) Approximately 38,500 and 51,000 shares of the Company's Common Stock issuable upon the exercise of outstanding stock options were excluded from the calculation of diluted earnings per common share for the three and nine month periods ended March 31, 2016 and 2015, because the effect would be anti-dilutive. |
8. Goodwill and Other Intangibl
8. Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with the Company's acquisitions. Goodwill amounted to $705,300 as of March 31, 2016 and June 30, 2015, respectively, all of which is deductible for tax purposes. The components of other intangible assets are as follows: Useful Cost Accumulated Net At March 31, 2016: Technology, trademarks 5/10 yrs. $1,215,800 $ 715,900 $ 499,900 Trade names 6 yrs. 140,000 46,700 93,300 Websites 5 yrs. 210,000 87,500 122,500 Customer relationships 9/10 yrs. 357,000 254,100 102,900 Sublicense agreements 10 yrs. 294,000 128,600 165,400 Non-compete agreements 5 yrs. 384,000 225,000 159,000 Intellectual property, research and development (IPR&D) 3 yrs. 110,000 76,300 33,700 Other intangible assets 5 yrs. 171,400 152,700 18,700 $2,882,200 $1,686,800 $1,195,400 Useful Cost Accumulated Net At June 30, 2015: Technology, trademarks 5/10 yrs. $1,226,800 $ 624,200 $ 602,600 Trade names 6 yrs. 140,000 31,100 108,900 Websites 5 yrs. 210,000 56,000 154,000 Customer relationships 9/ 10 yrs. 357,000 236,200 120,800 Sublicense agreements 10 yrs. 294,000 106,600 187,400 Non-compete agreements 5 yrs. 384,000 182,700 201,300 Intellectual property, research and development (IPR&D) 3 yrs. 110,000 48,900 61,100 Other intangible assets 5 yrs. 164,000 148,200 15,800 $2,885,800 $1,433,900 $1,451,900 Total amortization expense was $89,400 and $86,900 for the three months ended March 31, 2016 and 2015, respectively and $263,200 for both the nine months ended March 31, 2016 and 2015. As of March 31, 2016, estimated future amortization expense related to intangible assets is $71,200 for the remainder of the fiscal year ending June 30, 2016, $337,000 for fiscal 2017, $324,000 for fiscal 2018, $246,600 for fiscal 2019, $80,400 for fiscal 2020, and $136,200 thereafter. |
1. Summary of significant acc15
1. Summary of significant accounting policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc. (Scientific, a Delaware corporation), Altamira Instruments, Inc.(Altamira, a wholly-owned subsidiary and Delaware corporation), Scientific Packaging Industries, Inc. (an inactive wholly-owned subsidiary and New York corporation) and Scientific Bioprocessing, Inc. (SBI, a wholly-owned subsidiary and Delaware corporation). All are collectively referred to as the Company. All material intercompany balances and transactions have been eliminated. |
Recent Accounting Pronouncements | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers amending revenue recognition requirements for multiple-deliverable revenue arrangements. This update provides guidance on how revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. This determination is made in five steps: (i) identify the contract with the customer: (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2018, or the Company's fiscal year ending June 30, 2020, and early adoption of the standard is permitted, but not before the original effective date of December 15, 2017. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures. In June 2014, the FASB issued ASU 2014-12, Compensation Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved After the Requisite Service Period. This update affects reporting entities that grant their employees targets that affects vesting could be achieved after the requisite service period. The new standard requires that a performance target that affects vesting and that could be achieved after the requisite services period be treated as a performance condition. The new standard will be effective for the Company beginning July 1, 2016, and early adoption is permitted. The Company expects the adoption will not have a material impact on its financial condition, results of operations or cash flows. In July 2015, the FASB issued ASU No. 2015-11, "Inventory: Simplifying the Measurement of Inventory", that requires inventory not measured using either the last in, first out (LIFO) or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and will be applied prospectively. Early adoption is permitted. The Company is evaluating the impact that this standard will have on its consolidated financial statements. In November 2015, the FASB issued new guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the new guidance. The guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted as of the beginning of an interim or annual reporting period. The new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is evaluating the impact that the new guidance will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight- line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Companys fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early application permitted. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. |
3. Acquisition (Tables)
3. Acquisition (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | The Company allocated the purchase price based on its valuation of the assets acquired, as follows: Current assets $ 144,000 Property and equipment 118,100 Goodwill* 115,400 Other intangible assets 1,210,000 Total Purchase Price $ 1,587,500 *See Note 8, Goodwill and Other Intangible Assets. |
4. Segment Information and Co17
4. Segment Information and Concentrations (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Benchtop Catalyst Bioprocessing Corporate Consolidated Three months ended March 31, 2016: Revenues $ 1,279,300 $ 364,900 $ 30,100 $ - $ 1,674,300 Foreign Sales 597,300 25,900 - - 623,200 Income (Loss) from Operations 2,800 5,500 (29,600) (13,800) (35,100) Assets 4,358,700 2,898,400 746,200 595,000 8,598,300 Long-Lived Asset Expenditures 31,500 3,200 3,700 - 38,400 Depreciation and Amortization 74,800 9,000 24,500 - 108,300 Benchtop Catalyst Bioprocessing Corporate Consolidated Three months ended March 31, 2015: Revenues $ 1,558,000 $ 144,600 $ 26,600 $ - $ 1,729,200 Foreign Sales 813,900 81,100 - - 895,000 Income (Loss) from Operations 120,600 (50,400) (33,500) - 36,700 Assets 4,165,700 1,506,700 783,400 555,800 7,011,600 Long-Lived Asset Expenditures 900 - 3,700 - 4,600 Depreciation and Amortization 74,700 7,900 24,500 - 107,100 Benchtop Catalyst Bioprocessing Corporate Consolidated Nine months ended March 31, 2016: Revenues $ 4,125,900 $ 932,300 $ 88,700 $ - $ 5,146,900 Foreign Sales 1,960,700 139,200 - - 2,099,900 Income (Loss) from Operations 245,200 (86,700) (92,500) (35,900) 30,100 Assets 4,358,700 2,898,400 746,200 595,000 8,598,300 Long-Lived Asset Expenditures 39,900 3,200 9,400 - 52,500 Depreciation and Amortization 222,800 22,900 73,400 - 319,100 Benchtop Catalyst Bioprocessing Corporate Consolidated Nine months ended March 31, 2015: Revenues $ 3,891,400 $ 1,115,300 $ 75,700 $ - $5,082,400 Foreign Sales 1,947,400 840,300 - - 2,787,700 Loss from Operations (64,700) (191,200) (118,600) - (374,500) Assets 4,165,700 1,506,700 783,400 555,800 7,011,600 Long-Lived Asset Expenditures 52,400 900 7,600 - 60,900 Depreciation and Amortization 227,000 26,900 73,300 - 327,200 |
5. Fair Value of Financial In18
5. Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Inputs | Fair Value Measurements Using Inputs Considered as Assets: Fair Value at Level 1 Level 2 Level 3 Cash and cash equivalents $ 1,081,000 $1,081,000 $ - $ - Restricted Cash 300,000 $ 300,000 - - Available for sale securities 282,300 282,300 - - Total $ 1,663,300 $1,663,300 $ - $ - Liabilities: Contingent consideration $ 266,200 $ - $ - $266,200 Fair Value Measurements Using Inputs Considered as Assets: Fair Value at Level 1 Level 2 Level 3 Cash and cash equivalents $ 482,000 $ 482,000 $ - $ - Restricted Cash $ 300,000 $ 300,000 - - Available for sale securities 281,800 281,800 - - Total $ 1,063,800 $1,063,800 $ - $ - Liabilities: Contingent consideration $ 367,100 $ - $ - $367,100 |
Investments in Marketable Securitites | Cost Fair Unrealized At March 31, 2016: Available for sale: Equity securities $ 29,300 $ 39,700 $ 10,400 Mutual funds 258,200 242,600 (15,600) $ 287,500 $ 282,300 $ (5,200) Cost Fair Unrealized At June 30, 2015: Available for sale: Equity securities $ 29,300 $ 35,800 $ 6,500 Mutual funds 255,800 246,000 (9,800) $ 285,100 $ 281,800 $ (3,300) |
6. Inventories (Tables)
6. Inventories (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | March 31, June 30, Raw Materials $ 1,465,500 $ 1,420,800 Work in process 1,805,700 442,900 Finished Goods 403,700 350,000 $ 3,674,900 $ 2,213,700 |
7. Earnings (Loss) per common20
7. Earnings (Loss) per common share (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per common share | Earnings (Loss) per common share was computed as follows: For the Three Month For the Nine Month Periods Ended Periods Ended March 31, March 31, 2016 2015 2016 2015 Net income (loss) $ (36,900) $ 19,000 $ (2,600) $(280,300) Weighted average common shares outstanding 1,489,112 1,479,112 1,489,112 1,477,375 Effect of dilutive securities - - - - Weighted average dilutive common shares outstanding 1,489,112 1,479,112 1,489,112 1,477,375 Basic earnings (loss) per common share $ (0.02) $ 0.01 $ 0.00 $ (0.19) Diluted earnings (loss) per common share $ (0.02) $ 0.01 $ 0.00 $ (0.19) |
8. Goodwill and Other Intangi21
8. Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | The components of other intangible assets are as follows: Useful Cost Accumulated Net At March 31, 2016: Technology, trademarks 5/10 yrs. $1,215,800 $ 715,900 $ 499,900 Trade names 6 yrs. 140,000 46,700 93,300 Websites 5 yrs. 210,000 87,500 122,500 Customer relationships 9/10 yrs. 357,000 254,100 102,900 Sublicense agreements 10 yrs. 294,000 128,600 165,400 Non-compete agreements 5 yrs. 384,000 225,000 159,000 Intellectual property, research and development (IPR&D) 3 yrs. 110,000 76,300 33,700 Other intangible assets 5 yrs. 171,400 152,700 18,700 $2,882,200 $1,686,800 $1,195,400 Useful Cost Accumulated Net At June 30, 2015: Technology, trademarks 5/10 yrs. $1,226,800 $ 624,200 $ 602,600 Trade names 6 yrs. 140,000 31,100 108,900 Websites 5 yrs. 210,000 56,000 154,000 Customer relationships 9/ 10 yrs. 357,000 236,200 120,800 Sublicense agreements 10 yrs. 294,000 106,600 187,400 Non-compete agreements 5 yrs. 384,000 182,700 201,300 Intellectual property, research and development (IPR&D) 3 yrs. 110,000 48,900 61,100 Other intangible assets 5 yrs. 164,000 148,200 15,800 $2,885,800 $1,433,900 $1,451,900 |
3. Acquisition (Details)
3. Acquisition (Details) | Mar. 31, 2016USD ($) |
Business Combinations [Abstract] | |
Current assets | $ 144,000 |
Property and equipment | 118,100 |
Goodwill | 115,400 |
Other intangible assets | 1,210,000 |
Total Purchase Price | $ 1,587,500 |
3. Acquisition (Details Narrati
3. Acquisition (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Combinations [Abstract] | ||
Contingent consideration payments amounted | $ 100,900 | $ 98,900 |
4. Segment Information and Co24
4. Segment Information and Concentrations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Depreciation and Amortization | $ 319,100 | $ 327,200 | ||
Benchtop Laboratory Equipment [Member] | ||||
Revenues | $ 1,279,300 | $ 1,558,000 | 4,125,900 | 3,891,400 |
Foreign Sales | 597,300 | 813,900 | 1,960,700 | 1,947,400 |
Income (Loss) from Operations | 2,800 | 120,600 | 245,200 | (64,700) |
Assets | 4,358,700 | 4,165,700 | 4,358,700 | 4,165,700 |
Long-lived Asset Expenditures | 31,500 | 900 | 39,900 | 52,400 |
Depreciation and Amortization | 74,800 | 74,700 | 222,800 | 227,000 |
Catalyst Research Instruments [Member] | ||||
Revenues | 364,900 | 144,600 | 932,300 | 1,115,300 |
Foreign Sales | 25,900 | 81,100 | 139,200 | 840,300 |
Income (Loss) from Operations | 5,500 | (50,400) | (86,700) | (191,200) |
Assets | 2,898,400 | 1,506,700 | 2,898,400 | 1,506,700 |
Long-lived Asset Expenditures | 3,200 | 0 | 3,200 | 900 |
Depreciation and Amortization | 9,000 | 7,900 | 22,900 | 26,900 |
Bioprocessing Systems [Member] | ||||
Revenues | 30,100 | 26,600 | 88,700 | 75,700 |
Foreign Sales | 0 | 0 | 0 | 0 |
Income (Loss) from Operations | (29,600) | (33,500) | (92,500) | (118,600) |
Assets | 746,200 | 783,400 | 746,200 | 783,400 |
Long-lived Asset Expenditures | 3,700 | 3,700 | 9,400 | 7,600 |
Depreciation and Amortization | 24,500 | 24,500 | 73,400 | 73,300 |
Corporate and Other [Member] | ||||
Revenues | 0 | 0 | 0 | 0 |
Foreign Sales | 0 | 0 | 0 | 0 |
Income (Loss) from Operations | (13,800) | 0 | (35,900) | 0 |
Assets | 595,000 | 555,800 | 595,000 | 555,800 |
Long-lived Asset Expenditures | 0 | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Consolidated [Member] | ||||
Revenues | 1,674,300 | 1,729,200 | 5,146,900 | 5,082,400 |
Foreign Sales | 623,200 | 895,000 | 2,099,900 | 2,787,700 |
Income (Loss) from Operations | (35,100) | 36,700 | 30,100 | (374,500) |
Assets | 8,598,300 | 7,011,600 | 8,598,300 | 7,011,600 |
Long-lived Asset Expenditures | 38,400 | 4,600 | 52,500 | 60,900 |
Depreciation and Amortization | $ 108,300 | $ 107,100 | $ 319,100 | $ 327,200 |
4. Segment Information and Co25
4. Segment Information and Concentrations (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Benchtop Laboratory Equipment [Member] | ||||
Net sales | 50.00% | 53.00% | 50.00% | 50.00% |
Consolidated sales | 22.00% | 21.00% | 21.00% | 20.00% |
Two Customers [Member] | Catalyst Research Instruments [Member] | ||||
Net sales | 86.00% | 64.00% | ||
Consolidated sales | 19.00% | 5.00% | ||
Two Customers [Member] | Benchtop Laboratory Equipment [Member] | ||||
Net sales | 19.00% | 18.00% | 15.00% | 17.00% |
Consolidated sales | 15.00% | 17.00% | 12.00% | 13.00% |
Four Customer [Member] | Catalyst Research Instruments [Member] | ||||
Net sales | 87.00% | |||
Consolidated sales | 16.00% | |||
Seven Other Customer [Member] | Catalyst Research Instruments [Member] | ||||
Net sales | 97.00% | |||
Consolidated sales | 19.00% |
5. Fair Value of Financial In26
5. Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 |
Assets | ||||
Cash and cash equivalents | $ 1,081,000 | $ 482,000 | $ 354,300 | $ 493,700 |
Restricted cash | 300,000 | 300,000 | ||
Available for sale securities | 282,300 | 281,800 | ||
Total | 1,663,300 | 1,063,800 | ||
Liabilities: | ||||
Contingent consideration | 266,200 | 367,100 | ||
Level 1 | ||||
Assets | ||||
Cash and cash equivalents | 1,081,000 | 482,000 | ||
Restricted cash | 300,000 | 300,000 | ||
Available for sale securities | 282,300 | 281,800 | ||
Total | 1,663,300 | 1,063,800 | ||
Liabilities: | ||||
Contingent consideration | 0 | 0 | ||
Level 2 | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Available for sale securities | 0 | 0 | ||
Total | 0 | 0 | ||
Liabilities: | ||||
Contingent consideration | 0 | 0 | ||
Level 3 | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Available for sale securities | 0 | 0 | ||
Total | 0 | 0 | ||
Liabilities: | ||||
Contingent consideration | $ 266,200 | $ 367,100 |
5. Fair Value of Financial In27
5. Fair Value of Financial Instruments (Details 1) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Cost | $ 287,500 | $ 285,100 |
Fair Value | 282,300 | 281,800 |
Unrealized Holding Gain (Loss) | (5,200) | (3,300) |
Equity Securities | ||
Cost | 29,300 | 29,300 |
Fair Value | 39,700 | 35,800 |
Unrealized Holding Gain (Loss) | 10,400 | 6,500 |
Mutual Funds | ||
Cost | 258,200 | 255,800 |
Fair Value | 242,600 | 246,000 |
Unrealized Holding Gain (Loss) | $ (15,600) | $ (9,800) |
6. Inventories (Details)
6. Inventories (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 1,465,500 | $ 1,420,800 |
Work in process | 1,805,700 | 442,900 |
Finished Goods | 403,700 | 350,000 |
Inventory | $ 3,674,900 | $ 2,213,700 |
7. Earnings (Loss) per common29
7. Earnings (Loss) per common share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (36,900) | $ 19,000 | $ (2,600) | $ (280,300) |
Weighted average common shares outstanding | 1,489,112 | 1,479,112 | 1,489,112 | 1,477,375 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Weighted average dilutive common shares outstanding | 1,489,112 | 1,479,112 | 1,489,112 | 1,477,375 |
Basic earnings (loss) per common share | $ (0.02) | $ 0.01 | $ 0 | $ (0.19) |
Diluted earnings (loss) per common share | $ (0.02) | $ 0.01 | $ 0 | $ (0.19) |
7. Earnings (Loss) per common30
7. Earnings (Loss) per common share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Common stock issuable upon the exercise of outstanding stock options | 38,500 | 38,500 | 51,000 | 51,000 |
8. Goodwill and Other Intangi31
8. Goodwill and Other Intangible Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jun. 30, 2015 | |
Cost | $ 2,882,200 | $ 2,885,800 |
Accumulated Amortization | 1,686,800 | 1,433,900 |
Net | $ 1,195,400 | $ 1,451,900 |
Technology, trademarks [Member] | ||
Useful Lives Minimum | 5 years | 5 years |
Useful Lives Maximum | 10 years | 10 years |
Cost | $ 1,215,800 | $ 1,226,800 |
Accumulated Amortization | 715,900 | 624,200 |
Net | $ 499,900 | $ 602,600 |
Trade names [Member] | ||
Useful Lives | 6 years | 6 years |
Cost | $ 140,000 | $ 140,000 |
Accumulated Amortization | 46,700 | 31,100 |
Net | $ 93,300 | $ 108,900 |
Websites [Member] | ||
Useful Lives | 5 years | 5 years |
Cost | $ 210,000 | $ 210,000 |
Accumulated Amortization | 87,500 | 56,000 |
Net | $ 122,500 | $ 154,000 |
Customer relationships [Member] | ||
Useful Lives | 10 years | |
Useful Lives Minimum | 9 years | |
Useful Lives Maximum | 10 years | |
Cost | $ 357,000 | $ 357,000 |
Accumulated Amortization | 254,100 | 236,200 |
Net | $ 102,900 | $ 120,800 |
Sublicense agreements [Member] | ||
Useful Lives | 10 years | 10 years |
Cost | $ 294,000 | $ 294,000 |
Accumulated Amortization | 128,600 | 106,600 |
Net | $ 165,400 | $ 187,400 |
Non-compete agreements [Member] | ||
Useful Lives | 5 years | 5 years |
Cost | $ 384,000 | $ 384,000 |
Accumulated Amortization | 225,000 | 182,700 |
Net | $ 159,000 | $ 201,300 |
Intellectual property, research & development (IPR&D) [Member] | ||
Useful Lives | 3 years | 3 years |
Cost | $ 110,000 | $ 110,000 |
Accumulated Amortization | 76,300 | 48,900 |
Net | $ 33,700 | $ 61,100 |
Other intangible assets [Member] | ||
Useful Lives | 5 years | 5 years |
Cost | $ 171,400 | $ 164,000 |
Accumulated Amortization | 152,700 | 148,200 |
Net | $ 18,700 | $ 15,800 |
8. Goodwill and Other Intangi32
8. Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Estimated future amortization expense 2016 | $ 71,200 | $ 71,200 | |||
Estimated future amortization expense 2017 | 337,000 | 337,000 | |||
Estimated future amortization expense 2018 | 324,000 | 324,000 | |||
Estimated future amortization expense 2019 | 246,600 | 246,600 | |||
Estimated future amortization expense 2020 | 80,400 | 80,400 | |||
Estimated future amortization expense thereafter | 136,200 | 136,200 | |||
Total amortization expense | 89,400 | $ 86,900 | 263,200 | $ 263,200 | |
Goodwill | $ 705,300 | $ 705,300 | $ 705,300 |