Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2020 | Feb. 08, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | SCIENTIFIC INDUSTRIES INC | |
Entity Central Index Key | 0000087802 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 0-6658 | |
Entity Common Stock, Shares Outstanding | 2,861,263 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 1,111,300 | $ 7,559,700 |
Investment securities | 5,784,800 | 331,800 |
Trade accounts receivable, less allowance for doubtful accounts of $11,600 at December 31, 2020 and June 30, 2020 | 1,554,500 | 1,064,000 |
Inventories | 2,639,200 | 2,541,000 |
Income tax receivable | 333,600 | 334,800 |
Prepaid expenses and other current assets | 316,000 | 112,400 |
Assets of discontinued operations | 0 | 793,000 |
Total current assets | 11,739,400 | 12,736,700 |
Property and equipment, net | 310,700 | 278,300 |
Intangible assets, net | 128,100 | 128,700 |
Goodwill | 257,300 | 257,300 |
Other assets | 57,900 | 56,000 |
Deferred taxes | 811,100 | 537,100 |
Operating lease right-of-use assets | 765,100 | 803,300 |
Total assets | 14,069,600 | 14,797,400 |
Current Liabilities: | ||
Accounts payable | 584,000 | 334,600 |
Accrued expenses | 378,400 | 679,000 |
Contract liabilities | 0 | 20,000 |
Contingent consideration, current portion | 97,600 | 111,000 |
Bank overdraft | 225,000 | 43,100 |
Liabilities of discontinued operations | 151,500 | 240,900 |
Operating lease liabilities, current portion | 128,000 | 195,800 |
Payroll protection program loan | 563,800 | 563,800 |
Total current liabilities | 2,128,300 | 2,188,200 |
Contingent consideration payable, less current portion | 247,000 | 247,000 |
Operating lease liabilities, less current portion | 711,300 | 640,800 |
Total liabilities | 3,086,600 | 3,076,000 |
Shareholders' equity: | ||
Common stock, $.05 par value; 7,000,000 shares authorized; 2,881,065 shares issued; 2,861,263 shares outstanding at December 31, 2020 and June 30, 2020 | 144,100 | 144,100 |
Additional paid-in capital | 8,745,700 | 8,608,300 |
Retained earnings | 2,145,600 | 3,021,400 |
Total | 11,035,400 | 11,773,800 |
Less common stock held in treasury at cost, 19,802 shares | 52,400 | 52,400 |
Total shareholders' equity | 10,983,000 | 11,721,400 |
Total liabilities and shareholders' equity | $ 14,069,600 | $ 14,797,400 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 11,600 | $ 11,600 |
Shareholders' equity: | ||
Common stock,par value | $ .05 | $ .05 |
Common stock, authorized shares | 7,000,000 | 7,000,000 |
Common stock, issued shares | 2,881,065 | 2,881,065 |
Common stock, outstanding shares | 2,861,263 | 2,861,263 |
Stock held in treasury, shares | 19,802 | 19,802 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,717,400 | $ 2,232,800 | $ 4,736,500 | $ 4,098,300 |
Cost of revenues | 1,311,300 | 1,052,500 | 2,273,700 | 1,942,000 |
Gross profit | 1,406,100 | 1,180,300 | 2,462,800 | 2,156,300 |
Operating Expenses: | ||||
General and administrative | 536,900 | 478,400 | 1,056,100 | 948,400 |
Selling | 778,900 | 280,600 | 1,272,800 | 535,400 |
Research and development | 329,700 | 260,000 | 574,000 | 496,400 |
Total operating expenses | 1,645,500 | 1,019,000 | 2,902,900 | 1,980,200 |
Income (loss) from operations | (239,400) | 161,300 | (440,100) | 176,100 |
Other income (expense): | ||||
Other income, net | 18,200 | 2,900 | 16,200 | 2,200 |
Interest income | 35,300 | 9,200 | 48,900 | 9,700 |
Total other income, net | 53,500 | 12,100 | 65,100 | 11,900 |
Income (loss) before income tax expense (benefit) | (185,900) | 173,400 | (375,000) | 188,000 |
Income tax expense (benefit): | ||||
Current | 0 | 0 | 0 | 0 |
Deferred | (47,600) | 34,100 | (94,100) | 52,000 |
Total income tax expense (benefit) from continuing operations | (47,600) | 34,100 | (94,100) | 52,000 |
Net income (loss) from continuing operations | (138,300) | 139,300 | (280,900) | 136,000 |
Loss from discontinued operations (including loss on disposal of $405,400), in 2020 periods | (639,500) | (170,400) | (774,800) | (260,700) |
Income tax benefit, deferred | (165,300) | (34,700) | (179,900) | (72,100) |
Net loss from discontinued operations | (474,200) | (135,700) | (594,900) | (188,600) |
Net loss | $ (612,500) | $ 3,600 | $ (875,800) | $ (52,600) |
Basic and diluted (loss) per common share | ||||
Continuing operations | $ (0.05) | $ 0.09 | $ (0.10) | $ 0.09 |
Discontinued operations | (0.17) | (0.09) | (0.21) | (0.13) |
Consolidated operations | $ (.22) | $ .00 | $ (0.31) | $ (0.04) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Loss on disposal | $ 405,400 | $ 405,400 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Total |
Balance beginning, shares at Jun. 30, 2019 | 1,513,914 | 19,802 | |||
Balance beginning, amount at Jun. 30, 2019 | $ 75,700 | $ 2,592,700 | $ 3,724,700 | $ 52,400 | $ 6,340,700 |
Net income (loss) | (56,200) | (56,200) | |||
Stock options exercised, shares | 2,000 | ||||
Stock options exercised, amount | $ 100 | 6,900 | 7,000 | ||
Stock-based compensation | 17,700 | 17,700 | |||
Balance ending, shares at Sep. 30, 2019 | 1,515,914 | 19,802 | |||
Balance ending, amount at Sep. 30, 2019 | $ 75,800 | 2,617,300 | 3,668,500 | $ 52,400 | 6,309,200 |
Net income (loss) | 3,600 | 3,600 | |||
Stock options exercised, shares | 6,661 | ||||
Stock options exercised, amount | $ 300 | (300) | 0 | ||
Stock-based compensation | 17,700 | 17,700 | |||
Balance ending, shares at Dec. 31, 2019 | 1,522,575 | 19,802 | |||
Balance ending, amount at Dec. 31, 2019 | $ 76,100 | 2,634,700 | 3,672,100 | $ 52,400 | 6,330,500 |
Balance beginning, shares at Jun. 30, 2020 | 2,881,065 | 19,802 | |||
Balance beginning, amount at Jun. 30, 2020 | $ 144,100 | 8,608,300 | 3,021,400 | $ 52,400 | 11,721,400 |
Net income (loss) | (263,300) | (263,300) | |||
Stock-based compensation | 61,300 | 61,300 | |||
Balance ending, shares at Sep. 30, 2020 | 2,881,065 | 19,802 | |||
Balance ending, amount at Sep. 30, 2020 | $ 144,100 | 8,669,600 | 2,758,100 | $ 52,400 | 11,519,400 |
Net income (loss) | (612,500) | (612,500) | |||
Stock-based compensation | 76,100 | 76,100 | |||
Balance ending, shares at Dec. 31, 2020 | 2,881,065 | 19,802 | |||
Balance ending, amount at Dec. 31, 2020 | $ 144,100 | $ 8,745,700 | $ 2,145,600 | $ 52,400 | $ 10,983,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | ||
Net income (loss) | $ (875,800) | $ (52,600) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Gain (loss) on sale of investments | (33,300) | (3,100) |
Unrealized holding gain (loss) of investments | 25,700 | (1,200) |
Depreciation and amortization | 83,000 | 82,400 |
Deferred income tax | (274,000) | (20,100) |
Loss on disposal of subsidiary | 405,400 | 0 |
Stock-based compensation | 137,400 | 35,400 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (490,500) | 161,700 |
Inventories | (53,500) | (411,500) |
Right-of-use assets | 38,200 | (930,700) |
Income tax receivable | 1,200 | 0 |
Prepaid and other current assets | (205,600) | 27,400 |
Lease liabilities | (28,400) | 998,100 |
Accounts payable | 266,900 | (94,300) |
Contract liabilities | (20,000) | 104,000 |
Bank overdraft | 181,900 | 0 |
Accrued expenses and taxes | (376,400) | (409,600) |
Total adjustments | (342,000) | (461,500) |
Net cash (used in) provided by operating activities | (1,217,800) | (514,100) |
Investing activities: | ||
Redemption of investment securities | 544,800 | 51,900 |
Purchase of investment securities | (5,990,200) | (61,800) |
Proceeds from sale of discontinued operations | 342,400 | 0 |
Capital expenditures | (82,900) | (34,100) |
Purchase of other intangible assets | (31,300) | (7,400) |
Net cash used in investing activities | (5,217,200) | (51,400) |
Financing activities: | ||
Payments of contingent consideration | (13,400) | 0 |
Proceeds from stock options exercised | 0 | 7,000 |
Net cash provided by (used in) financing activities | (13,400) | 7,000 |
Net decrease in cash and cash equivalents | (6,448,400) | (558,500) |
Cash and cash equivalents, beginning of year | 7,559,700 | 1,602,500 |
Cash and cash equivalents, end of period | 1,111,300 | 1,044,000 |
Cash paid during the period for: | ||
Income taxes | 2,500 | 37,900 |
Non-cash financing activities | ||
Issuance of 6,661 shares of the Company's Common Stock in cashless stock option exercises during the three and six months ended December 31, 2019. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||||
Issuance of shares in cashless stock options | 0 | 6,661 | 0 | 6,661 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc., Scientific Bioprocessing, Inc. (“SBI”) a Delaware corporation and wholly-owned subsidiary, and Altamira Instruments, Inc. (“Altamira”), a Delaware corporation and wholly-owned subsidiary, and 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. COVID-19 Pandemic The challenges posed by the COVID-19 pandemic on the global economy began to impact the Company’s operations at the end of the third quarter of the year ended June 30, 2020. At that time, the Company took appropriate action and put plans in place to diminish the effects of COVID-19 on its operations, enabling the Company to continue to operate with minor or temporary disruptions to its operations. The Company took immediate action as it pertains to COVID-19 preparedness by implementing the Center for Disease Control’s guidelines for employers in order to protect the Company’s employees’ health and safety, with actions such as implementing work from home, social distancing in the workplace, requiring self -quarantine for any employee showing symptoms, wearing face coverings, and training employees on maintaining a healthy work environment. However, if an employee becomes infected in the future, and the Company is forced to shut down for a period of time, it could have a short-term negative impact on operations. At the beginning of the pandemic, the Catalyst Research Instruments and Bioprocessing Systems Operations were shut down due to state mandates, however, the impact on operations was immaterial, and the Company was able to retain its employees without furloughs or layoffs, in part, due to the Company’s receipt of a $563,800 loan under the Federal Government’s Paycheck Protection Program. The Company did not experience and does not anticipate any material impact on its ability to collect its accounts receivable due to the nature of its customers, which are primarily distributors of laboratory equipment and supplies that have the ability to pay. However, there were some delays in receiving some accounts receivable due for catalyst research instruments due to customer shutdowns, and there was a material negative impact on the revenues of the Catalyst Research Instruments operations. The Company has not experienced and does not anticipate any material impairment to its tangible and intangible assets, system of internal controls, supply chain, or delivery and distribution of its products as a result of COVID-19, however the ultimate impact of COVID-19 on the Company’s business, results of operations, financial condition and cash flows is dependent on future developments, including the duration or worsening of the pandemic and the related length of its impact on the global economy, which are uncertain and cannot be predicted at this time. Adopted Accounting Pronouncements In August 2018, the Financial Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement", which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify, and add certain disclosure requirements related to fair value measurements covered in Topic 820, "Fair Value Measurement." The new standard was effective for fiscal years beginning after December 15, 2019. Early adoption was permitted for either the entire standard or only the requirements that modify or eliminate the disclosure requirements, with certain requirements applied prospectively, and all other requirements applied retrospectively to all periods presented. The adoption of this standard on July 1, 2020 did not have a material impact on the Company’s financial statements. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years; this ASU allows for early adoption in any interim period after issuance of the update. The Company is currently evaluating the impact of adopting this guidance. |
2. Revenue
2. Revenue | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | The Company records revenues in accordance with Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers, as amended” (“ASC Topic 606”). In accordance with ASC Topic 606, the Company accounts for a customer contract when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it is entitled. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer. Nature of Products and Services We generate revenues from the following sources: (1) Benchtop Laboratory Equipment, (2) Royalties, and (3) prior to November 30, 2020 Catalyst Research Instruments. The following table summarizes the Company’s disaggregation of revenues for the three and six months ended December 31, 2020 and 2019. Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended December 31, 2020: Revenues $ 2,507,400 $ 210,000 $ 2,717,400 Foreign Sales 1,150,700 206,100 1,356,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended December 31, 2019: Revenues $ 1,943,400 $ 289,400 $ 2,232,800 Foreign Sales 855,800 289,400 1,145,200 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Six Months Ended December 31, 2020: Revenues $ 4,437,600 $ 298,900 $ 4,736,500 Foreign Sales 1,782,600 292,400 2,075,000 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Six Months Ended December 31, 2019: Revenues $ 3,519,600 $ 578,700 $ 4,098,300 Foreign Sales 1,253,400 578,700 1,832,100 Benchtop Laboratory Equipment sales are comprised primarily of standard benchtop laboratory equipment from its stock to laboratory equipment distributors, or to end users primarily via e-commerce. The sales cycle from time of receipt of order to shipment is very short varying from a day to a few weeks. Customers either pay by credit card (online sales) or net 30-90, depending on the customer. Once the item is shipped under the FOB terms specified in the order, which is primarily “FOB Factory”, other than a standard warranty, there are no other obligations to the customer. The standard warranty is typically comprised of one to two years of parts and labor and is deemed immaterial. Royalty revenues pertain to royalties earned by the Company, which are paid on a calendar year basis, under a licensing agreement from a single licensee and its sublicenses. The Company is then obligated to pay 50% of all royalties received to the entity that licenses the intellectual property to the Company. During the year, the Company’s management uses its best judgement to estimate the royalty revenues earned during the period. During the three months ended December 31, 2020, the Company discontinued its Catalyst Research Instruments Operations through the sale of substantially all of its assets on November 30, 2020. Refer to Note 9 for additional information. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, a performance obligation is satisfied The Company has made the following accounting policy elections and elected to use certain practical expedients, as permitted by the FASB, in applying ASC Topic 606: 1) all revenues are recorded net of returns, allowances, customer discounts, and incentives; 2) although sales and other taxes are immaterial, the Company accounts for amounts collected from customers for sales and other taxes, if any, net of related amounts remitted to tax authorities; 3) the Company expenses costs to obtain a contract as they are incurred if the expected period of benefit, and therefore the amortization period, is one year or less; 4) the Company accounts for shipping and handling activities that occur after control transfers to the customer as a fulfillment cost rather than an additional promised service and these fulfillment costs fall within selling expenses; 5) the Company is always considered the principal and never an agent, because it has full control and responsibility until title is transferred to the customer; 6) the Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer such as is the case with catalyst instruments. |
3. Segment Information and Conc
3. Segment Information and Concentrations | 6 Months Ended |
Dec. 31, 2020 | |
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 and laboratory and pharmacy balances and scales (“Benchtop Laboratory Equipment Operations”), 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 Operations”) and the design and marketing of bioprocessing systems and products and related royalty income (“Bioprocessing Systems Operations”). Segment information is reported as follows: Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended December 31, 2020: Revenues $ 2,507,400 $ 210,000 $ - $ 2,717,400 Foreign Sales 1,150,700 206,100 - 1,356,800 Income (Loss) From Continuing Operations 568,500 (741,800 ) (66,100 ) (239,400 ) Assets 6,140,400 966,400 6,962,800 14,069,600 Long-Lived Asset Expenditures 13,700 13,800 - 27,500 Depreciation and Amortization 26,400 15,800 200 42,400 Approximately $366,900 included in Assets relates to discontinued operations, and $200 in depreciation and amortization relates to discontinued operations. Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended December 31, 2019: Revenues $ 1,943,400 $ 289,400 $ - $ 2,232,800 Foreign Sales 855,800 289,400 - 1,145,200 Income (Loss) From Continuing Operations 179,400 (18,100 ) - 161,300 Assets 5,551,100 1,350,000 1,962,700 8,863,800 Long-Lived Asset Expenditures 14,100 2,900 - 17,000 Depreciation and Amortization 30,800 10,400 200 41,400 Approximately $733,500 included in Assets relates to discontinued operations, and $200 in depreciation and amortization relates to discontinued operations. Approximately 52% and 50% of total benchtop laboratory equipment sales (48% and 43% of total revenues) for the three months ended December 31, 2020 and 2019, respectively, were derived from the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 23% and 24% of total benchtop laboratory equipment sales (21% and 21% of total revenues) were derived from the Torbal Scales Division for the three months ended December 31, 2020 and 2019, respectively. For the three months ended December 31, 2020 and 2019, respectively, three customers accounted for approximately 20% and 27% of net sales of the Benchtop Laboratory Equipment Operations (18% and 24% of the Company’s total revenues). Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Six Months Ended December 31, 2020: Revenues $ 4,437,600 $ 298,900 $ - $ 4,736,500 Foreign Sales 1,782,600 292,400 - 2,075,000 Income (Loss) From Continuing Operations 952,400 (1,274,100 ) (118,300 ) (440,100 ) Assets 6,140,400 966,400 6,962,800 14,069,600 Long-Lived Asset Expenditures 35,500 78,700 - 114,200 Depreciation and Amortization 52,700 29,800 500 83,000 Approximately $366,900 included in Assets relates to discontinued operations, and $500 in depreciation and amortization relates to discontinued operations. Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Six Months Ended December 31, 2019: Revenues $ 3,519,600 $ 578,700 $ - $ 4,098,300 Foreign Sales 1,253,400 578,700 - 1,832,100 Income (Loss) From Continuing Operations 192,300 (16,200 ) - 176,100 Assets 5,551,100 1,350,000 1,962,700 8,863,800 Long-Lived Asset Expenditures 21,900 19,600 - 41,500 Depreciation and Amortization 61,300 20,500 600 82,400 Approximately $733,500 included in Assets relates to discontinued operations, and $600 in depreciation and amortization relates to discontinued operations. Approximately 50% and 43% total benchtop laboratory equipment sales (47% and 37% of total revenues) for the six months ended December 31, 2020 and 2019, respectively, were derived from the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 25% and 28% of total benchtop laboratory equipment sales (23% and 24% of total revenues) were derived from the Torbal Scales Division for the six months ended December 31, 2020 and 2019, respectively. For the six months ended December 31, 2020 and 2019, three customers accounted for approximately 21% and 25% of net sales of the Benchtop Laboratory Equipment Operations (20% and 22% of the Company’s total revenues), respectively. |
4. Fair Value of Financial Inst
4. Fair Value of Financial Instruments | 6 Months Ended |
Dec. 31, 2020 | |
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 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 are 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 are not observable in the market, therefore, the Company classifies this liability as Level 3 in the following tables. 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 at December 31, 2020 and June 30, 2020 according to the valuation techniques the Company used to determine their fair values: Fair Value Measurements Using Inputs Considered as Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1,111,300 $ 1,111,300 $ - $ - Investment securities 5,784,800 5,784,800 - - Total $ 6,896,100 $ 6,896,100 $ - $ - Liabilities: Contingent consideration $ 344,600 $ - $ - $ 344,600 Fair Value Measurements Using Inputs Considered as Fair Value at June 30, 2020 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 7,559,700 $ 7,559,700 $ - $ - Investment securities 331,800 331,800 - - Total $ 7,891,500 $ 7,891,500 $ - $ - Liabilities: Contingent consideration $ 358,000 $ - $ - $ 358,000 Investments in marketable securities classified as available for sale by security type at December 31, 2020 and June 30, 2020 consisted of the following: Cost Fair Value Unrealized Holding Gain (Loss) At December 31, 2020: Equity securities $ 102,300 $ 134,100 $ 31,800 Mutual and bond funds 5,621,300 5,650,700 29,400 $ 5,723,600 $ 5,784,800 $ 61,200 Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2020: Equity securities $ 77,600 $ 101,900 $ 24,300 Mutual and bond funds 250,300 229,900 (20,400 ) $ 327,900 $ 331,800 $ 3,900 |
5. Inventories
5. Inventories | 6 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories are valued at the lower of cost (determined on a first-in, first-out basis) or net realizable value, and have been reduced by an allowance for excess and obsolete inventories. The estimate is based on managements review of inventories on hand compared to estimated future usage and sales. Cost of work-in-process and finished goods inventories include material, labor, and manufacturing overhead. December 31, 2020 June 30,2020 Raw materials $ 1,791,500 $ 1,726,400 Work-in-process 116,000 35,700 Finished goods 731,700 778,900 $ 2,639,200 $ 2,541,000 |
6. Goodwill and Other Intangibl
6. Goodwill and Other Intangible Assets | 6 Months Ended |
Dec. 31, 2020 | |
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 $257,300 at December 31, 2020 and June 30, 2020, all of which is expected to be deductible for tax purposes. The components of other intangible assets are as follows: Useful Lives Cost Accumulated Amortization Net At December 31, 2020: Technology, trademarks 5/10 yrs. $ 364,700 $ 362,100 $ 2,600 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 120,000 91,100 28,900 Sublicense agreements 10 yrs. 294,000 268,300 25,700 Non-compete agreements 5 yrs. 282,000 282,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 277,900 207,200 70,900 $ 1,798,600 $ 1,670,500 $ 128,100 Useful Lives Cost Accumulated Amortization Net At June 30, 2020: Technology, trademarks 5/10 yrs. $ 364,700 $ 362,000 $ 2,700 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 120,000 84,400 35,600 Sublicense agreements 10 yrs. 294,000 253,600 40,400 Non-compete agreements 5 yrs. 282,000 282,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 246,600 196,600 50,000 $ 1,767,300 $ 1,638,600 $ 128,700 Total amortization expense was $16,200 and $19,800 for the three months ended December 31, 2020 and 2019, respectively, and $32,000 and $39,300 for the six months ended December 31, 2020 and 2019, respectively. As of December 31, 2020, estimated future amortization expense related to intangible assets is $42,400 for the remainder of the fiscal year ending June 30, 2021, $32,900 for fiscal 2022, $21,300 for fiscal 2023, $16,000 for fiscal 2024 and $15,500 thereafter. |
7. Earnings (Loss) Per Common S
7. Earnings (Loss) Per Common Share | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | The Company presents the computation of earnings per share (“EPS”) on a basic and diluted 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 Month Period Ended December 31, 2020 For the Three Month Period Ended December 31, 2019 For the Six Month Period Ended December 31, 2020 For the Six Month Period Ended December 31, 2019 Weighted average number of common shares outstanding 2,861,263 1,499,396 2,861,263 1,496,718 Effect of dilutive securities - 58,330 - - Weighted average number of dilutive common shares outstanding 2,861,263 1,557,726 2,861,263 1,496,718 Basic and diluted earnings (loss) per common share Continuing operations $ (.05 ) $ .09 $ (.10 ) $ (.09 ) Discontinued operations $ (.17 ) $ (.09 ) $ (.21 ) $ (.13 ) Consolidated operations $ (.22 ) $ .00 $ (.31 ) $ (.04 ) Approximately 126,700 shares and 1,349,850 of the Company’s common stock issuable upon the exercise of options and warrants, respectively, were excluded from the calculation for the three and six months ended December 31, 2020, because the effect would be anti-dilutive due to the loss for the periods. Approximately, 51,629 shares of the Company’s common stock issuable upon the exercise of the outstanding options were excluded from the calculation for the six months ended December 31, 2020 because they were anti-dilutive. |
8. Leases
8. Leases | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | The Company recognizes all long-term leases on its balance sheet as a liability for its lease obligation, measured at the present value of lease payments not yet paid, and a corresponding asset representing its right to use the underlying asset over the lease term. The Company leases certain properties consisting principally of a facility in Bohemia, New York (headquarters) through January 2025, a facility in Pittsburgh, Pennsylvania for its Bioprocessing Systems Operations through May 2023, and a sales and administration office in Orangeburg, New York for its Torbal Division of the Benchtop Laboratory Equipment Operations through October 2022. The Company also had a lease for its Catalyst Research Instruments Operations which terminated in November 2020 and the facility was shut down at the end of December 2020 in connection with the sale of that business segment on November 30, 2020. There are no renewal options with any of the leases, no residual values or significant restrictions or covenants other than those customary in such arrangements, and no non-cash activities, Any rent escalations incorporated within the leases are included in the calculation of the future minimum lease payments, as further described below. All of the Company’s leases are deemed operating leases. The Company determines whether an agreement contains a lease at inception based on the Company’s right to obtain substantially all of the economic benefits from the use of the identified asset and its right to direct the use of the identified asset. Lease liabilities represent the present value of future lease payments and the Right-Of-Use (“ROU”) assets represent the Company’s right to use the underlying assets for the respective lease terms. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The ROU asset is further adjusted to account for previously recorded lease expenses such as deferred rent and other lease liabilities. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate of 5.0% as the discount rate to calculate the present value of future lease payments, which was the interest rate that its bank would charge for a similar loan. The Company elected not to recognize a ROU asset and a lease liability for leases with an initial term of twelve months or less. In addition to minimum lease payments, certain leases require payment of a proportionate share of real estate taxes and certain building operating expenses or payments based on an excess of a specified base. These variable lease costs are not included in the measurement of the ROU asset or lease liability due to unpredictability of the payment amount and are recorded as lease expenses in the period incurred. The Company’s lease agreements do not contain residual value guarantees. The Company elected available practical expedients for existing or expired contracts of lessees wherein the Company is not required to reassess whether such contracts contain leases, the lease classification or the initial direct costs. The Company is not utilizing the practical expedient which allows the use of hindsight by lessees and lessors in determining the lease term and in assessing impairment of its ROU assets. The Company utilized the transition method allowing entities to only apply the new lease standard in the year of adoption. As of December 31, 2020, the weighted-average remaining lease term for operating lease liabilities was approximately 3.1 years and the weighted-average discount rate was 5.0%. Total cash payments under these leases were $76,100 and $154,700 for the three and six month periods ended December 31, 2020 of which $78,800 and $157,500 were recorded as leases expense. The Company’s approximate future minimum rental payments under all leases existing at December 31, 2020 through February 2025 are as follows: Fiscal year ending June 30, Amount Remainder of 2021 $ 128,000 2022 260,300 2023 245,300 2024 195,900 2025 91,600 Total future minimum payments 921,100 Less: Imputed interest 81,800 Total Present Value of Operating Lease Liabilities 839,300 |
9. Discontinued Operations
9. Discontinued Operations | 6 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Effective November 30, 2020, the Company, as part of its strategic shift to becoming a life sciences tool provider, sold its Catalyst Research Instruments Operations reporting segment through the sale by Altamira of substantially all of its assets, which comprised of fixed assets, and inventory to Beijing JWGB Sci. & Tech. Co. Ltd., a corporation formed under the laws of the People’s Republic of China (“JWGB”) for $440,000 payable in cash through January 2021, resulting in a $405,400 pre-tax loss. In order to preserve business continuity for the buyer. Altamira agreed to purchase certain components on behalf of JWGB for which JWGB will reimburse Altamira. At December 31, 2020, JWGB owed the Company $97,600 related to the sale, and $39,500 for component purchases made on its behalf, all of which have been subsequently remitted to the Company. The Company retained all its receivables and payables related to sales made prior to November 30, 2020, certain inventory related to two work-in-process orders which will be shipped by the end of the fiscal year ending June 30, 2021, product warranty and other miscellaneous liabilities related to certain employee benefits, and expenses related to the closure of the Altamira facility, which was substantially completed at the end of December 2020. As a result of the disposal described above, the operating results of the former Catalyst Research Instruments Operations segment have been presented as discontinued operations in the balance sheets, the statements of operations, and the statements of cash flows, as detailed below. . Assets: December 31, 2020 June 30,2020 Inventories $ - $ 343,700 Property and equipment, net - 1,400 Goodwill - 447,900 Discontinued operations $ - $ 793,000 Liabilities: December 31, 2020 June 30,2020 Accounts payable $ 37,600 $ 20,100 Accrued expenses and taxes 44,900 120,700 Contract liabilities 69,000 69,000 Operating lease liabilities, current portion - 31,100 $ 151,500 $ 240,900 Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenues $ 142,700 $ 39,500 $ 279,900 $ 178,200 Cost of goods sold 195,500 128,300 379,700 262,600 Gross profit (52,800 ) (88,800 ) (99,800 ) (84,400 ) Selling, general and administrative expenses 181,300 81,600 269,600 176,300 Loss from operations (234,100 ) (170,400 ) (369,400 ) (260,700 ) Loss on disposal (405,400 ) — (405,400 ) — Loss before income tax benefit (639,500 ) (170,400 ) (774,800 ) (260,700 ) Income tax benefit, all deferred 165,300 34,700 179,900 72,100 Net loss attributable to discontinued operations $ (474,200 ) $ (135,700 ) $ (594,900 ) $ (188,600 ) In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash (used) and provided by operating activities from discontinued operations for the six months ended December 31, 2020 and December 31, 2019 was ($335,000) and $182,300, respectively. Cash provided by investing activities from discontinued operations for the six months ended December 31, 2020 was $342,400 and none for December 31, 2019. There was no cash provided or used by the discontinued operations for financing activities for both the current and prior year periods |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc., Scientific Bioprocessing, Inc. (“SBI”) a Delaware corporation and wholly-owned subsidiary, and Altamira Instruments, Inc. (“Altamira”), a Delaware corporation and wholly-owned subsidiary, and 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. |
COVID-19 Pandemic | The challenges posed by the COVID-19 pandemic on the global economy began to impact the Company’s operations at the end of the third quarter of the year ended June 30, 2020. At that time, the Company took appropriate action and put plans in place to diminish the effects of COVID-19 on its operations, enabling the Company to continue to operate with minor or temporary disruptions to its operations. The Company took immediate action as it pertains to COVID-19 preparedness by implementing the Center for Disease Control’s guidelines for employers in order to protect the Company’s employees’ health and safety, with actions such as implementing work from home, social distancing in the workplace, requiring self -quarantine for any employee showing symptoms, wearing face coverings, and training employees on maintaining a healthy work environment. However, if an employee becomes infected in the future, and the Company is forced to shut down for a period of time, it could have a short-term negative impact on operations. At the beginning of the pandemic, the Catalyst Research Instruments and Bioprocessing Systems Operations were shut down due to state mandates, however, the impact on operations was immaterial, and the Company was able to retain its employees without furloughs or layoffs, in part, due to the Company’s receipt of a $563,800 loan under the Federal Government’s Paycheck Protection Program. The Company did not experience and does not anticipate any material impact on its ability to collect its accounts receivable due to the nature of its customers, which are primarily distributors of laboratory equipment and supplies that have the ability to pay. However, there were some delays in receiving some accounts receivable due for catalyst research instruments due to customer shutdowns, and there was a material negative impact on the revenues of the Catalyst Research Instruments operations. The Company has not experienced and does not anticipate any material impairment to its tangible and intangible assets, system of internal controls, supply chain, or delivery and distribution of its products as a result of COVID-19, however the ultimate impact of COVID-19 on the Company’s business, results of operations, financial condition and cash flows is dependent on future developments, including the duration or worsening of the pandemic and the related length of its impact on the global economy, which are uncertain and cannot be predicted at this time. |
Accounting Pronouncements | Adopted Accounting Pronouncements In August 2018, the Financial Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement", which is part of the FASB disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in the new guidance remove, modify, and add certain disclosure requirements related to fair value measurements covered in Topic 820, "Fair Value Measurement." The new standard was effective for fiscal years beginning after December 15, 2019. Early adoption was permitted for either the entire standard or only the requirements that modify or eliminate the disclosure requirements, with certain requirements applied prospectively, and all other requirements applied retrospectively to all periods presented. The adoption of this standard on July 1, 2020 did not have a material impact on the Company’s financial statements. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years; this ASU allows for early adoption in any interim period after issuance of the update. The Company is currently evaluating the impact of adopting this guidance. |
2. Revenue (Tables)
2. Revenue (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenues | Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended December 31, 2020: Revenues $ 2,507,400 $ 210,000 $ 2,717,400 Foreign Sales 1,150,700 206,100 1,356,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended December 31, 2019: Revenues $ 1,943,400 $ 289,400 $ 2,232,800 Foreign Sales 855,800 289,400 1,145,200 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Six Months Ended December 31, 2020: Revenues $ 4,437,600 $ 298,900 $ 4,736,500 Foreign Sales 1,782,600 292,400 2,075,000 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Six Months Ended December 31, 2019: Revenues $ 3,519,600 $ 578,700 $ 4,098,300 Foreign Sales 1,253,400 578,700 1,832,100 |
3. Segment Information and Co_2
3. Segment Information and Concentrations (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended December 31, 2020: Revenues $ 2,507,400 $ 210,000 $ - $ 2,717,400 Foreign Sales 1,150,700 206,100 - 1,356,800 Income (Loss) From Continuing Operations 568,500 (741,800 ) (66,100 ) (239,400 ) Assets 6,140,400 966,400 6,962,800 14,069,600 Long-Lived Asset Expenditures 13,700 13,800 - 27,500 Depreciation and Amortization 26,400 15,800 200 42,400 Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended December 31, 2019: Revenues $ 1,943,400 $ 289,400 $ - $ 2,232,800 Foreign Sales 855,800 289,400 - 1,145,200 Income (Loss) From Continuing Operations 179,400 (18,100 ) - 161,300 Assets 5,551,100 1,350,000 1,962,700 8,863,800 Long-Lived Asset Expenditures 14,100 2,900 - 17,000 Depreciation and Amortization 30,800 10,400 200 41,400 Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Six Months Ended December 31, 2020: Revenues $ 4,437,600 $ 298,900 $ - $ 4,736,500 Foreign Sales 1,782,600 292,400 - 2,075,000 Income (Loss) From Continuing Operations 952,400 (1,274,100 ) (118,300 ) (440,100 ) Assets 6,140,400 966,400 6,962,800 14,069,600 Long-Lived Asset Expenditures 35,500 78,700 - 114,200 Depreciation and Amortization 52,700 29,800 500 83,000 Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Six Months Ended December 31, 2019: Revenues $ 3,519,600 $ 578,700 $ - $ 4,098,300 Foreign Sales 1,253,400 578,700 - 1,832,100 Income (Loss) From Continuing Operations 192,300 (16,200 ) - 176,100 Assets 5,551,100 1,350,000 1,962,700 8,863,800 Long-Lived Asset Expenditures 21,900 19,600 - 41,500 Depreciation and Amortization 61,300 20,500 600 82,400 |
4. Fair Value of Financial In_2
4. Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value inputs | Fair Value Measurements Using Inputs Considered as Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1,111,300 $ 1,111,300 $ - $ - Investment securities 5,784,800 5,784,800 - - Total $ 6,896,100 $ 6,896,100 $ - $ - Liabilities: Contingent consideration $ 344,600 $ - $ - $ 344,600 Fair Value Measurements Using Inputs Considered as Fair Value at June 30, 2020 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 7,559,700 $ 7,559,700 $ - $ - Investment securities 331,800 331,800 - - Total $ 7,891,500 $ 7,891,500 $ - $ - Liabilities: Contingent consideration $ 358,000 $ - $ - $ 358,000 |
Investments in marketable securitites | Cost Fair Value Unrealized Holding Gain (Loss) At December 31, 2020: Equity securities $ 102,300 $ 134,100 $ 31,800 Mutual and bond funds 5,621,300 5,650,700 29,400 $ 5,723,600 $ 5,784,800 $ 61,200 Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2020: Equity securities $ 77,600 $ 101,900 $ 24,300 Mutual and bond funds 250,300 229,900 (20,400 ) $ 327,900 $ 331,800 $ 3,900 |
5. Inventories (Tables)
5. Inventories (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | December 31, 2020 June 30,2020 Raw materials $ 1,791,500 $ 1,726,400 Work-in-process 116,000 35,700 Finished goods 731,700 778,900 $ 2,639,200 $ 2,541,000 |
6. Goodwill and Other Intangi_2
6. Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Useful Lives Cost Accumulated Amortization Net At December 31, 2020: Technology, trademarks 5/10 yrs. $ 364,700 $ 362,100 $ 2,600 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 120,000 91,100 28,900 Sublicense agreements 10 yrs. 294,000 268,300 25,700 Non-compete agreements 5 yrs. 282,000 282,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 277,900 207,200 70,900 $ 1,798,600 $ 1,670,500 $ 128,100 Useful Lives Cost Accumulated Amortization Net At June 30, 2020: Technology, trademarks 5/10 yrs. $ 364,700 $ 362,000 $ 2,700 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 120,000 84,400 35,600 Sublicense agreements 10 yrs. 294,000 253,600 40,400 Non-compete agreements 5 yrs. 282,000 282,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 246,600 196,600 50,000 $ 1,767,300 $ 1,638,600 $ 128,700 |
7. Earnings (Loss) Per Common_2
7. Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Loss per common share | For the Three Month Period Ended December 31, 2020 For the Three Month Period Ended December 31, 2019 For the Six Month Period Ended December 31, 2020 For the Six Month Period Ended December 31, 2019 Weighted average number of common shares outstanding 2,861,263 1,499,396 2,861,263 1,496,718 Effect of dilutive securities - 58,330 - - Weighted average number of dilutive common shares outstanding 2,861,263 1,557,726 2,861,263 1,496,718 Basic and diluted earnings (loss) per common share Continuing operations $ (.05 ) $ .09 $ (.10 ) $ (.09 ) Discontinued operations $ (.17 ) $ (.09 ) $ (.21 ) $ (.13 ) Consolidated operations $ (.22 ) $ .00 $ (.31 ) $ (.04 ) |
8. Leases (Tables)
8. Leases (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Future minimum rental payments | Fiscal year ending June 30, Amount Remainder of 2021 $ 128,000 2022 260,300 2023 245,300 2024 195,900 2025 91,600 Total future minimum payments 921,100 Less: Imputed interest 81,800 Total Present Value of Operating Lease Liabilities 839,300 |
9. Discontinued Operations (Tab
9. Discontinued Operations (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | Assets: December 31, 2020 June 30,2020 Inventories $ - $ 343,700 Property and equipment, net - 1,400 Goodwill - 447,900 Discontinued operations $ - $ 793,000 Liabilities: December 31, 2020 June 30,2020 Accounts payable $ 37,600 $ 20,100 Accrued expenses and taxes 44,900 120,700 Contract liabilities 69,000 69,000 Operating lease liabilities, current portion - 31,100 $ 151,500 $ 240,900 Three Months Ended Six Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Revenues $ 142,700 $ 39,500 $ 279,900 $ 178,200 Cost of goods sold 195,500 128,300 379,700 262,600 Gross profit (52,800 ) (88,800 ) (99,800 ) (84,400 ) Selling, general and administrative expenses 181,300 81,600 269,600 176,300 Loss from operations (234,100 ) (170,400 ) (369,400 ) (260,700 ) Loss on disposal (405,400 ) — (405,400 ) — Loss before income tax benefit (639,500 ) (170,400 ) (774,800 ) (260,700 ) Income tax benefit, all deferred 165,300 34,700 179,900 72,100 Net loss attributable to discontinued operations $ (474,200 ) $ (135,700 ) $ (594,900 ) $ (188,600 ) |
2. Revenue (Details)
2. Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 2,717,400 | $ 2,232,800 | $ 4,736,500 | $ 4,098,300 |
Benchtop Laboratory Equipment | ||||
Revenues | 2,507,400 | 1,943,400 | 4,437,600 | 3,519,600 |
Foreign sales | 1,150,700 | 855,800 | 1,782,600 | 1,253,400 |
Bioprocessing Systems | ||||
Revenues | 210,000 | 289,400 | 298,900 | 578,700 |
Foreign sales | 206,100 | 289,400 | 292,400 | 578,700 |
Consolidated | ||||
Revenues | 2,717,400 | 2,232,800 | 4,736,500 | 4,098,300 |
Foreign sales | $ 1,356,800 | $ 1,145,200 | $ 2,075,000 | $ 1,832,100 |
3. Segment Information and Co_3
3. Segment Information and Concentrations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Revenues | $ 2,717,400 | $ 2,232,800 | $ 4,736,500 | $ 4,098,300 | |
Income (loss) from operations | (239,400) | 161,300 | (440,100) | 176,100 | |
Assets | 14,069,600 | 14,069,600 | $ 14,797,400 | ||
Depreciation and amortization | 83,000 | 82,400 | |||
Benchtop Laboratory Equipment | |||||
Revenues | 2,507,400 | 1,943,400 | 4,437,600 | 3,519,600 | |
Foreign sales | 1,150,700 | 855,800 | 1,782,600 | 1,253,400 | |
Income (loss) from operations | 568,500 | 179,400 | 952,400 | 192,300 | |
Assets | 6,140,400 | 5,551,100 | 6,140,400 | 5,551,100 | |
Long-lived asset expenditures | 13,700 | 14,100 | 35,500 | 21,900 | |
Depreciation and amortization | 26,400 | 30,800 | 52,700 | 61,300 | |
Bioprocessing Systems | |||||
Revenues | 210,000 | 289,400 | 298,900 | 578,700 | |
Foreign sales | 206,100 | 289,400 | 292,400 | 578,700 | |
Income (loss) from operations | (741,800) | (18,100) | (1,274,100) | (16,200) | |
Assets | 966,400 | 1,350,000 | 966,400 | 1,350,000 | |
Long-lived asset expenditures | 13,800 | 2,900 | 78,700 | 19,600 | |
Depreciation and amortization | 15,800 | 10,400 | 29,800 | 20,500 | |
Corporate and Other | |||||
Revenues | 0 | 0 | 0 | 0 | |
Foreign sales | 0 | 0 | 0 | 0 | |
Income (loss) from operations | (66,100) | 0 | (118,300) | 0 | |
Assets | 6,962,800 | 1,962,700 | 6,962,800 | 1,962,700 | |
Long-lived asset expenditures | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 200 | 200 | 500 | 600 | |
Consolidated | |||||
Revenues | 2,717,400 | 2,232,800 | 4,736,500 | 4,098,300 | |
Foreign sales | 1,356,800 | 1,145,200 | 2,075,000 | 1,832,100 | |
Income (loss) from operations | (239,400) | 161,300 | (440,100) | 176,100 | |
Assets | 14,069,600 | 8,863,800 | 14,069,600 | 8,863,800 | |
Long-lived asset expenditures | 27,500 | 17,000 | 114,200 | 41,500 | |
Depreciation and amortization | $ 42,400 | $ 41,400 | $ 83,000 | $ 82,400 |
3. Segment Information and Co_4
3. Segment Information and Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets of disposal group | $ 733,500 | $ 366,900 | $ 733,500 | $ 366,900 |
Depreciation and amortization, discontinued operations | $ 200 | $ 200 | $ 500 | $ 600 |
Benchtop Laboratory Equipment | Three Customers | ||||
Net sales | 20.00% | 27.00% | 24.00% | 25.00% |
Total revenues | 18.00% | 24.00% | 20.00% | 22.00% |
Benchtop Laboratory Equipment | Vortex-Genie 2 Mixer | ||||
Net sales | 52.00% | 50.00% | 50.00% | 43.00% |
Total revenues | 48.00% | 43.00% | 47.00% | 37.00% |
Benchtop Laboratory Equipment | Torbal Scales Division | ||||
Net sales | 23.00% | 24.00% | 25.00% | 28.00% |
Total revenues | 21.00% | 21.00% | 23.00% | 24.00% |
4. Fair Value of Financial In_3
4. Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets: | ||||
Cash and cash equivalents | $ 1,111,300 | $ 7,559,700 | $ 1,044,000 | $ 1,602,500 |
Investment securities | 5,784,800 | 331,800 | ||
Total | 6,896,100 | 7,891,500 | ||
Liabilities: | ||||
Contingent consideration | 344,600 | 358,000 | ||
Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 1,111,300 | 7,559,700 | ||
Investment securities | 5,784,800 | 331,800 | ||
Total | 6,896,100 | 7,891,500 | ||
Liabilities: | ||||
Contingent consideration | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Investment securities | 0 | 0 | ||
Total | 0 | 0 | ||
Liabilities: | ||||
Contingent consideration | 0 | 0 | ||
Level 3 | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Investment securities | 0 | 0 | ||
Total | 0 | 0 | ||
Liabilities: | ||||
Contingent consideration | $ 344,600 | $ 358,000 |
4. Fair Value of Financial In_4
4. Fair Value of Financial Instruments (Details 1) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Cost | $ 31,800 | $ 327,900 |
Fair value | 29,400 | 331,800 |
Unrealized holding gain (loss) | 61,200 | 3,900 |
Equity Securities | ||
Cost | 102,300 | 77,600 |
Fair value | 5,621,300 | 101,900 |
Unrealized holding gain (loss) | 5,723,600 | 24,300 |
Mutual Funds | ||
Cost | 134,100 | 250,300 |
Fair value | 5,650,700 | 229,900 |
Unrealized holding gain (loss) | $ 5,784,800 | $ (20,400) |
5. Inventories (Details)
5. Inventories (Details) - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,791,500 | $ 1,726,400 |
Work-in-process | 116,000 | 35,700 |
Finished goods | 731,700 | 778,900 |
Inventory | $ 2,639,200 | $ 2,541,000 |
6. Goodwill and Other Intangi_3
6. Goodwill and Other Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Cost | $ 1,798,600 | $ 1,767,300 |
Accumulated amortization | 1,670,500 | 1,638,600 |
Net | $ 128,100 | $ 128,700 |
Technology, Trademarks | ||
Useful lives minimum | 5 years | 5 years |
Useful lives maximum | 10 years | 10 years |
Cost | $ 364,700 | $ 364,700 |
Accumulated amortization | 362,100 | 362,000 |
Net | $ 2,600 | $ 2,700 |
Trade Names | ||
Useful lives | 6 years | 6 years |
Cost | $ 140,000 | $ 140,000 |
Accumulated amortization | 140,000 | 140,000 |
Net | $ 0 | $ 0 |
Websites | ||
Useful lives | 5 years | 5 years |
Cost | $ 210,000 | $ 210,000 |
Accumulated amortization | 210,000 | 210,000 |
Net | $ 0 | $ 0 |
Customer Relationships | ||
Useful lives minimum | 9 years | 9 years |
Useful lives maximum | 10 years | 10 years |
Cost | $ 120,000 | $ 120,000 |
Accumulated amortization | 91,100 | 84,400 |
Net | $ 28,900 | $ 35,600 |
Sublicense Agreements | ||
Useful lives | 10 years | 10 years |
Cost | $ 294,000 | $ 294,000 |
Accumulated amortization | 268,300 | 253,600 |
Net | $ 25,700 | $ 40,400 |
Non-compete Agreements | ||
Useful lives | 5 years | 5 years |
Cost | $ 282,000 | $ 282,000 |
Accumulated amortization | 282,000 | 282,000 |
Net | $ 0 | $ 0 |
IPR&D | ||
Useful lives | 3 years | 3 years |
Cost | $ 110,000 | $ 110,000 |
Accumulated amortization | 110,000 | 110,000 |
Net | $ 0 | $ 0 |
Other Intangible Assets | ||
Useful lives | 5 years | 5 years |
Cost | $ 277,900 | $ 246,600 |
Accumulated amortization | 207,200 | 196,600 |
Net | $ 70,900 | $ 50,000 |
6. Goodwill and Other Intangi_4
6. Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 257,300 | $ 257,300 | $ 257,300 | ||
Total amortization expense | 16,200 | $ 19,800 | 32,000 | $ 39,300 | |
Estimated future amortization expense 2021 | 42,400 | 42,400 | |||
Estimated future amortization expense 2022 | 32,900 | 32,900 | |||
Estimated future amortization expense 2023 | 21,300 | 21,300 | |||
Estimated future amortization expense 2024 | 16,000 | 16,000 | |||
Estimated future amortization expense 2025 | $ 15,500 | $ 15,500 |
7. Earnings (Loss) Per Common_3
7. Earnings (Loss) Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding | 2,861,263 | 1,499,396 | 2,861,263 | 1,496,718 |
Effect of dilutive securities | $ 0 | $ 58,330 | $ 0 | $ 0 |
Weighted average number of dilutive common shares outstanding | 2,861,263 | 1,557,726 | 2,861,263 | 1,496,718 |
Basic and diluted (loss) per common share | ||||
Continuing operations | $ (0.05) | $ 0.09 | $ (0.10) | $ 0.09 |
Discontinued operations | (0.17) | (0.09) | (0.21) | (0.13) |
Consolidated operations | $ (.22) | $ .00 | $ (0.31) | $ (0.04) |
7. Earnings (Loss) Per Common_4
7. Earnings (Loss) Per Common Share (Details Narrative) - shares | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Common shares | ||
Antidilutive securities excluded | 126,700 | 126,700 |
Issuable upon exercise | ||
Antidilutive securities excluded | 1,349,850 | 1,349,850 |
8. Leases (Details)
8. Leases (Details) | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 128,000 |
2022 | 260,300 |
2023 | 245,300 |
2024 | 195,900 |
2025 | 91,600 |
Total future minimum payments | 921,100 |
Less: imputed interest | 81,800 |
Total present value of operating lease liabilities | $ 839,300 |
8. Leases (Details Narrative)
8. Leases (Details Narrative) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Leases [Abstract] | ||
Weighted-average remaining lease term | 3 years 1 month 6 days | 3 years 1 month 6 days |
Weighted-average discount rate | 5.00% | 5.00% |
Total cash payments under leases | $ 76,100 | $ 154,700 |
Lease expense | $ 78,800 | $ 157,500 |
9. Discontinued Operations (Det
9. Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Assets: | |||||
Inventories | $ 0 | $ 0 | $ 343,700 | ||
Property and equipment, net | 0 | 0 | 1,400 | ||
Goodwill | 0 | 0 | 447,900 | ||
Discontinued operations | 0 | 0 | 793,000 | ||
Liabilities: | |||||
Accounts payable | 37,600 | 37,600 | 20,100 | ||
Accrued expenses and taxes | 44,900 | 44,900 | 120,700 | ||
Contract liabilities | 69,000 | 69,000 | 69,000 | ||
Operating lease liabilities, current portion | 0 | 0 | 31,100 | ||
Liabilities of discontinued operations | 151,500 | 151,500 | $ 240,900 | ||
Revenues | 142,700 | $ 39,500 | 279,900 | $ 178,200 | |
Cost of goods sold | 195,500 | 128,300 | 379,700 | 262,600 | |
Gross profit | (52,800) | (88,800) | (99,800) | (84,400) | |
Selling, general and administrative expenses | 181,300 | 81,600 | 269,600 | 176,300 | |
Loss from operations | (234,100) | (170,400) | (369,400) | (260,700) | |
Loss on disposal | (405,400) | 0 | (405,400) | 0 | |
Loss before income tax benefit | (639,500) | (170,400) | (774,800) | (260,700) | |
Income tax benefit, all deferred | 165,300 | 34,700 | 179,900 | 72,100 | |
Net loss attributable to discontinued operations | $ (474,200) | $ (135,700) | $ (594,900) | $ (188,600) |
9. Discontinued Operations (D_2
9. Discontinued Operations (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Cash (used) and provided by operating activities | $ (335,000) | $ 182,300 |
Cash provided by investing activities | $ 342,400 | $ 0 |