Document and Entity Information
Document and Entity Information | 9 Months Ended |
Mar. 31, 2021 | |
Document And Entity Information | |
Entity Registrant Name | SCIENTIFIC INDUSTRIES INC |
Entity Central Index Key | 0000087802 |
Document Type | S-1 |
Document period end date | Mar. 31, 2021 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Is Entity Emerging Growth Company? | false |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Elected Not To Use the Extended Transition Period | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Current Assets: | |||
Cash and cash equivalents | $ 627,500 | $ 7,559,700 | $ 1,602,500 |
Investment securities | 5,325,700 | 331,800 | 330,900 |
Trade accounts receivable | 1,822,500 | 1,064,000 | 1,974,200 |
Inventories | 2,885,200 | 2,541,000 | 2,383,600 |
Income tax receivable | 336,300 | 334,800 | 0 |
Prepaid expenses and other current assets | 62,600 | 112,400 | 95,000 |
Assets of discontinued operations | 124,600 | 793,000 | 659,300 |
Total current assets | 11,184,400 | 12,736,700 | 7,045,500 |
Property and equipment, net | 383,700 | 278,300 | 316,100 |
Intangible assets, net | 121,500 | 128,700 | 175,000 |
Goodwill | 257,300 | 257,300 | 257,300 |
Operating lease right-of-use assets | 715,600 | 803,300 | 0 |
Other assets | 48,400 | 56,000 | 51,000 |
Deferred taxes | 1,189,400 | 537,100 | 431,100 |
Total assets | 13,900,300 | 14,797,400 | 8,276,000 |
Current Liabilities: | |||
Accounts payable | 477,200 | 334,600 | 484,500 |
Accrued expenses | 456,400 | 679,000 | 430,800 |
Contract liabilities | 0 | 20,000 | 0 |
Contingent consideration, current portion | 195,800 | 111,000 | 268,000 |
Bank overdraft | 50,600 | 43,100 | 140,000 |
Liabilities of discontinued operations | 64,400 | 240,900 | 262,000 |
Lease liabilities, current portion | 50,300 | 195,800 | 0 |
Payroll Protection Program loan | 563,800 | 563,800 | 0 |
Total current liabilities | 1,858,500 | 2,188,200 | 1,585,300 |
Payroll Protection Program loan, less current portion | 433,800 | 0 | 0 |
Operating lease liabilities, less current portion | 735,300 | 640,800 | 0 |
Contingent consideration payable, less current portion | 30,300 | 247,000 | 350,000 |
Total liabilities | 3,057,900 | 3,076,000 | 1,935,300 |
Stockholders' equity: | |||
Common stock | 144,200 | 144,100 | 75,700 |
Additional paid-in capital | 10,040,600 | 8,608,300 | 2,592,700 |
Retained earnings | 710,000 | 3,021,400 | 3,724,700 |
Total | 10,894,800 | 11,773,800 | 6,393,100 |
Less common stock held in treasury at cost, 19,802 shares | 52,400 | 52,400 | 52,400 |
Total stockholders' equity | 10,842,400 | 11,721,400 | 6,340,700 |
Total liabilities and stockholders' equity | $ 13,900,300 | $ 14,797,400 | $ 8,276,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | |||
Allowance doubtful accounts | $ 11,600 | $ 11,600 | $ 15,000 |
Shareholders' equity: | |||
Common stock,par value | $ 0.05 | $ 0.05 | $ 0.05 |
Common stock, authorized shares | 10,000,000 | 7,000,000 | 7,000,000 |
Common stock, issued shares | 2,882,065 | 2,881,065 | 1,513,914 |
Common stock, outstanding shares | 2,862,263 | 2,861,263 | 1,494,112 |
Stock held in treasury, shares | 19,802 | 19,802 | 19,802 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||||
Revenues | $ 2,508,600 | $ 2,136,200 | $ 7,245,100 | $ 6,234,500 | $ 7,784,400 | $ 8,384,900 |
Cost of revenues | 1,145,700 | 1,037,000 | 3,419,400 | 2,978,900 | 3,847,000 | 4,342,100 |
Gross profit | 1,362,900 | 1,099,200 | 3,825,700 | 3,255,600 | 3,937,400 | 4,042,800 |
Operating expenses: | ||||||
General and administrative | 1,385,600 | 509,700 | 2,441,700 | 1,458,100 | 2,275,400 | 1,713,000 |
Selling | 1,386,100 | 344,900 | 2,658,900 | 880,300 | 1,185,800 | 892,600 |
Research and development | 450,000 | 298,900 | 1,024,000 | 795,300 | 1,139,700 | 530,500 |
Termination costs | 0 | 180,700 | 0 | 180,700 | 0 | 0 |
Total operating expenses | 3,221,700 | 1,334,200 | 6,124,600 | 3,314,400 | 4,600,900 | 3,136,100 |
Income (loss) from operations | (1,858,800) | (235,000) | (2,298,900) | (58,800) | (663,500) | 906,700 |
Other income (expense): | ||||||
Interest income | 22,500 | 300 | 71,400 | 10,000 | 12,600 | 3,400 |
Other income (expense), net | 6,100 | (42,200) | 22,300 | (40,100) | (16,500) | (7,800) |
Interest expense | 0 | 0 | 0 | 0 | 0 | (100) |
Total other income (expense) | 28,600 | (41,900) | 93,700 | (30,100) | (3,900) | (4,500) |
Income (loss) before income tax expense (benefit) | (1,830,200) | (276,900) | (2,205,200) | (88,900) | (667,400) | 902,200 |
Income tax expense (benefit): Current | 0 | 0 | 0 | 0 | 0 | 166,600 |
Income tax expense (benefit): Deferred | (378,200) | (45,500) | (472,300) | (15,000) | (214,000) | (6,000) |
Total income tax expense (benefit) | (378,200) | (45,500) | (472,300) | (15,000) | (214,000) | 160,600 |
Net income (loss) from continuing operations | (1,452,000) | (231,400) | (1,732,900) | (73,900) | (453,400) | 741,600 |
Discontinued operations: | ||||||
Net income (loss) from discontinued operations | 16,400 | (99,600) | (758,400) | (360,300) | (472,500) | (132,000) |
Income tax benefit, deferred | 0 | (16,400) | (179,900) | (67,000) | (222,600) | (36,000) |
Net income (loss) from discontinued operations | 16,400 | (83,200) | (578,500) | (293,300) | (249,900) | (96,000) |
Net income (loss) | $ (1,435,600) | $ (314,600) | $ (2,311,400) | $ (367,200) | $ (703,300) | $ 645,600 |
Continuing operations | $ (0.51) | $ (0.15) | $ (0.61) | $ (0.05) | $ (.30) | $ .49 |
Discontinued operations | 0.01 | (0.06) | (0.20) | (0.20) | (.16) | (.06) |
Consolidated operations | $ (0.50) | $ (0.21) | $ (0.81) | $ (0.25) | $ (.46) | $ .43 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income / Loss | Retained Earnings | Treasury Stock | Total |
Balance beginning, Shares at Jun. 30, 2018 | 1,513,914 | 19,802 | ||||
Balance beginning, Amount at Jun. 30, 2018 | $ 75,700 | $ 2,545,900 | $ 1,200 | $ 3,131,800 | $ 52,400 | $ 5,702,200 |
Cumulative effect of the adoption of ASU 2016-01 - Financial Instruments | (22,000) | 22,000 | 0 | |||
Net income (loss) | 645,600 | 645,600 | ||||
Issuance of common stock and warrants, net of issuance costs, amount | 0 | |||||
Cash dividend declared and paid, $.05 | (74,700) | (74,700) | ||||
Holding gain (loss) on investment securities, net of tax | 20,800 | 20,800 | ||||
Stock-based compensation | 46,800 | 46,800 | ||||
Balance ending, Shares at Jun. 30, 2019 | 1,513,914 | 19,802 | ||||
Balance ending, Amount at Jun. 30, 2019 | $ 75,700 | 2,592,700 | 0 | 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 | |
Balance beginning, Shares at Jun. 30, 2019 | 1,513,914 | 19,802 | ||||
Balance beginning, Amount at Jun. 30, 2019 | $ 75,700 | 2,592,700 | 0 | 3,724,700 | $ 52,400 | 6,340,700 |
Net income (loss) | (367,200) | |||||
Issuance of common stock and warrants, net of issuance costs, amount | 0 | |||||
Balance ending, Shares at Mar. 31, 2020 | 1,522,575 | 19,802 | ||||
Balance ending, Amount at Mar. 31, 2020 | $ 76,100 | 2,649,300 | 3,357,500 | $ 52,400 | 6,030,500 | |
Balance beginning, Shares at Jun. 30, 2019 | 1,513,914 | 19,802 | ||||
Balance beginning, Amount at Jun. 30, 2019 | $ 75,700 | 2,592,700 | 0 | 3,724,700 | $ 52,400 | 6,340,700 |
Net income (loss) | (703,300) | (703,300) | ||||
Issuance of common stock and warrants, net of issuance costs, shares | 1,349,850 | |||||
Issuance of common stock and warrants, net of issuance costs, amount | $ 67,500 | 5,936,900 | 6,004,400 | |||
Stock options exercised, shares | 17,301 | |||||
Stock options exercised, amount | $ 900 | 12,900 | 13,800 | |||
Stock-based compensation | 65,800 | 65,800 | ||||
Balance ending, Shares at Jun. 30, 2020 | 2,881,065 | 19,802 | ||||
Balance ending, Amount at Jun. 30, 2020 | $ 144,100 | 8,608,300 | 0 | 3,021,400 | $ 52,400 | 11,721,400 |
Balance beginning, Shares at Sep. 30, 2019 | 1,515,914 | 19,802 | ||||
Balance beginning, 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) | ||||
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 | |
Net income (loss) | (314,600) | (314,600) | ||||
Stock-based compensation | 14,600 | 14,600 | ||||
Balance ending, Shares at Mar. 31, 2020 | 1,522,575 | 19,802 | ||||
Balance ending, Amount at Mar. 31, 2020 | $ 76,100 | 2,649,300 | 3,357,500 | $ 52,400 | 6,030,500 | |
Balance beginning, Shares at Jun. 30, 2020 | 2,881,065 | 19,802 | ||||
Balance beginning, Amount at Jun. 30, 2020 | $ 144,100 | 8,608,300 | 0 | 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 | |
Balance beginning, Shares at Jun. 30, 2020 | 2,881,065 | 19,802 | ||||
Balance beginning, Amount at Jun. 30, 2020 | $ 144,100 | 8,608,300 | $ 0 | 3,021,400 | $ 52,400 | 11,721,400 |
Net income (loss) | (2,311,400) | |||||
Issuance of common stock and warrants, net of issuance costs, amount | 0 | |||||
Balance ending, Shares at Mar. 31, 2021 | 2,882,065 | 19,802 | ||||
Balance ending, Amount at Mar. 31, 2021 | $ 144,200 | 10,040,600 | 710,000 | $ 52,400 | 10,842,400 | |
Balance beginning, Shares at Sep. 30, 2020 | 2,881,065 | 19,802 | ||||
Balance beginning, 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 | |
Net income (loss) | (1,435,600) | (1,435,600) | ||||
Stock options exercised, shares | 1,000 | |||||
Stock options exercised, amount | $ 100 | 2,900 | 3,000 | |||
Stock-based compensation | 1,292,000 | 1,292,000 | ||||
Balance ending, Shares at Mar. 31, 2021 | 2,882,065 | 19,802 | ||||
Balance ending, Amount at Mar. 31, 2021 | $ 144,200 | $ 10,040,600 | $ 710,000 | $ 52,400 | $ 10,842,400 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities: | ||||
Net income (loss) | $ (2,311,400) | $ (367,200) | $ (703,300) | $ 645,600 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
(Gain) loss on sale of investment securities | (34,600) | (4,000) | (4,400) | 13,200 |
Depreciation and amortization | 126,700 | 123,300 | 160,900 | 257,300 |
Deferred income tax (benefit) expense | (652,300) | (82,100) | (106,000) | (38,500) |
Unrealized holding (gain) loss on investment securities | 18,900 | 42,700 | 12,400 | (3,000) |
Loss on disposal of subsidiary | 405,400 | 0 | 0 | 0 |
Bad debt recovery | 0 | 0 | 3,400 | 0 |
Gain on sale of fixed assets | 0 | (300) | (300) | 0 |
Stock-based compensation | 1,429,400 | 50,000 | 65,800 | 46,800 |
Change in fair value of contingent consideration | (118,500) | 60,000 | 112,600 | 521,200 |
Changes in operating assets and liabilities: | ||||
Trade accounts receivable | (758,500) | (210,000) | 906,800 | (6,500) |
Inventories | (697,700) | (452,500) | (292,400) | (324,400) |
Income tax receivable | (1,500) | 0 | (334,800) | 0 |
Prepaid expenses and other assets | 57,400 | 9,500 | (22,400) | (60,100) |
Right-of-use assets | 87,700 | (867,400) | (803,300) | 0 |
Accounts payable | 142,600 | (117,100) | (214,400) | 141,000 |
Lease liabilities | (51,000) | 933,300 | 867,700 | 0 |
Accrued expenses and taxes | (222,600) | (38,100) | 191,500 | (109,300) |
Contract liabilities | (20,000) | 116,100 | 89,000 | (63,800) |
Bank overdraft | 7,500 | 0 | (96,900) | 140,000 |
Total adjustments | (281,100) | (436,600) | 535,200 | 513,900 |
Net cash (used in) provided by operating activities | (2,592,500) | (803,800) | (168,100) | 1,159,500 |
Investing activities: | ||||
Purchase of investment securities | (6,609,200) | (62,800) | (63,400) | (157,900) |
Redemption of investment securities | 1,631,000 | 53,600 | 55,000 | 151,900 |
Proceeds from sale of discontinued operations | 440,000 | 0 | 0 | 0 |
Proceeds from sale of fixed assets | 0 | 1,000 | 1,000 | 0 |
Capital expenditures | (183,700) | (38,100) | (50,900) | (187,800) |
Purchase of other intangible assets | (41,200) | (20,000) | (25,800) | (24,600) |
Net cash used in investing activities | (4,763,100) | (66,300) | (84,100) | (218,400) |
Financing activities: | ||||
Principal payments on note payable | 0 | 0 | 0 | (5,800) |
Cash dividend declared and paid | 0 | 0 | 0 | (74,700) |
Proceeds from Payroll Protection Program loan | 433,800 | 0 | 563,800 | 0 |
Line of credit proceeds | 0 | 0 | 0 | 50,000 |
Issuance of common stock and warrants, net of issuance costs | 0 | 0 | 6,004,400 | 0 |
Line of credit repayments | 0 | 0 | 0 | (50,000) |
Proceeds from exercise of stock options | 3,000 | 7,000 | 13,800 | 0 |
Payments for contingent consideration | (13,400) | 0 | (372,600) | (311,200) |
Net cash provided by (used in) financing activities | 423,400 | 7,000 | 6,209,400 | (391,700) |
Net increase in cash and cash equivalents | (6,932,200) | (863,100) | 5,957,200 | 549,400 |
Cash and cash equivalents, beginning of year | 7,559,700 | 1,602,500 | 1,602,500 | 1,053,100 |
Cash and cash equivalents, end of year | 627,500 | 739,400 | 7,559,700 | 1,602,500 |
Cash paid during the period for: | ||||
Income Taxes | 2,500 | 40,900 | 40,900 | 56,700 |
Interest | $ 0 | $ 0 | $ 0 | $ 1,500 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 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 (discontinued as of November 2020), 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 (“discontinued operation”) 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 certain loan amounts 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 the discontinued operation due to customer shutdowns, and there was a material negative impact on the revenues of the discontinued operation. 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. | Scientific Industries, Inc. and its subsidiaries (the “Company”) design, manufacture, and market a variety of benchtop laboratory equipment, bioprocessing products and catalyst research instruments. The Company is headquartered in Bohemia, New York where it produces benchtop laboratory equipment. Additionally, the Company has two other locations in Pittsburgh, Pennsylvania, where it produces a variety of custom-made catalyst research instruments and designs bioprocessing products, and an administrative facility in Orangeburg, New York related to sales and marketing. The products, which are sold to customers worldwide, include mixers, shakers, stirrers, refrigerated incubators, pharmacy balances and scales, force gauges, catalyst characterization instruments, reactor systems and high throughput systems. The Company also sublicenses certain patents and technology under a license with the University of Maryland, Baltimore County, and receives royalty fees from the sublicenses. COVID-19 Pandemic The challenges posed by the COVID-19 pandemic on the global economy began to take effect and 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 has been able to retain its employees without furloughs or layoffs, in part, due to the Company’ receipt of $563,800 loan under the Federal Government’s Paycheck Protection Program. The Company has not experienced 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. 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. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc., Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary, Altamira Instruments, Inc. (“Altamira”), a Delaware corporation and wholly-owned subsidiary which was discontinued as of November 30, 2020, and Scientific Bioprocessing, Inc. (“SBI”), a Delaware corporation and wholly-owned subsidiary, (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated. Revenue Recognition On July 1, 2018 the Company adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers, as amended” (“ASC Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of the adoption date. The adoption of the standard did not have a material impact on how the Company recognizes its revenues. In accordance with 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) Catalyst Research Instruments, and (3) Royalties. Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ - $ 7,784,400 Foreign Sales 2,589,800 1,000,400 586,500 4,176,700 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2019: Revenues $ 7,078,800 $ 1,306,100 $ - 8,384,900 Foreign Sales 2,680,300 1,301,200 1,102,300 5,083,800 Benchtop laboratory equipment sales comprise 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. Warranty usually comprises of one to two year parts and labor and is deemed immaterial. Catalyst research instrument sales related primarily to large instruments which begin with a standard model and then are customized to a customer’s specifications. The sales cycle can be quite long, typically ranging from one to three months, from the time an order is received to the time the instrument is shipped to the customer. Payment terms vary from customer to customer and can include advance payments which are recorded as contract liabilities. Some contracts call for training and installation, which is considered ancillary and not a material part of the contract. Due to the size and nature of the instruments, the Company subjects the instruments to an extensive factory acceptance testing process prior to shipment to ensure that they are fully operational once they reach the customer’s site. Normally, the Company warrantees its instruments for a period of twelve months for parts and labor which normally consists of replacement of small components or software support. Catalyst research instruments are never returned for repairs. Royalty revenues pertain to royalties earned by the Company, which are paid to the Company on a calendar year basis, under a licensing agreement from a single licensee and its sublicensees. The license pertained to royalties received under a United States patent and a European Union patent. As of January 2020, the European Union patent which was due to expire in August 2021, was terminated and the Company will only receive royalties under the United States patent, which will have a material reduction in total royalties expected to be received. 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. 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 Financial Accounting Standards Board (“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. Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with original maturities of 90 days or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. As of June 30, 2020, and 2019, $6,729,300 and $1,328,600, respectively of cash balances were in excess of such limit. Accounts Receivable In order to record the Company’s accounts receivable at their net realizable value, the Company must assess their collectability. A considerable amount of judgment is required in order to make this assessment, including an analysis of historical bad debts and other adjustments, a review of the aging of the Company’s receivables, and the current creditworthiness of the Company’s customers. The Company has recorded allowances for receivables which it considered uncollectible, including amounts for the resolution of potential credit and other collection issues such as disputed invoices, customer satisfaction claims and pricing discrepancies. However, depending on how such potential issues are resolved, or if the financial condition of any of the Company’s customers was to deteriorate and its ability to make required payments became impaired, increases in these allowances may be required. The Company actively manages its accounts receivable to minimize credit risk. The Company does not obtain collateral for its accounts receivable. Based on its assessment, the Company concluded that there are no collection issues related to the COVID-19 Pandemic. Contract Liabilities Contract liabilities consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Amounts that have been invoiced are initially recorded in accounts receivable and contract liabilities. The Company invoices its customers in accordance with the terms of the underlying contract. Accordingly, the contract liabilities balance does not represent the total contract value of outstanding arrangements. Contract liabilities that are expected to be recognized during the subsequent 12-month period are recorded as current and the remaining portion as noncurrent. Investment Securities Investment securities consist of equity securities and mutual funds with realized gains and losses recorded using the specific identification method. Changes in fair value are recorded as unrealized holding gains or losses in other income (loss), net on the statement of operations. We determine the cost of the investment sold based on an average cost basis at the individual security level, and record the interest income and realized gains or losses on the sale of these investments in other income (loss), net. 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 management’s 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. Property and Equipment Property and equipment are stated at cost. Depreciation of property and equipment is provided for primarily by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized by the straight-line method over the remaining term of the related lease or the estimated useful lives of the assets, whichever is shorter. Intangible Assets Intangible assets consist primarily of acquired technology, customer relationships, non-compete agreements, patents, licenses, websites, intellectual property and research and development (“IPR&D”), trademarks and trade names. All intangible assets are amortized on a straight-line basis over the estimated useful lives of the respective assets, generally 3 to 10 years. The Company continually evaluates the remaining estimated useful lives of intangible assets that are being amortized to determine whether events or circumstances warrant a revision to the remaining period of amortization. Goodwill and Long-Lived Assets Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill and long-lived intangible assets are tested for impairment at least annually in accordance with the provisions of ASC No. 350, “Intangibles-Goodwill and Other” (“ASC No. 350”). ASC No. 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company tests goodwill and long-lived assets annually as of June 30, the last day of its fiscal year, unless an event occurs that would cause the Company to believe the value is impaired at an interim date. The Company concluded as of June 30, 2020 and 2019, there was no impairment of goodwill. Impairment of Long-Lived Assets The Company follows the provisions of ASC No. 360-10, “Property, Plant and Equipment - Impairment or Disposal of Long-Lived Assets (“ASC No. 360-10”). ASC No. 360-10 which requires evaluation of the need for an impairment charge relating to long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an evaluation for impairment is required, the estimated future undiscounted cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write down to a new depreciable basis is required. If required, an impairment charge is recorded based on an estimate of future discounted cash flows. The Company concluded as of June 30, 2020 and 2019, there was no impairment of long-lived assets. Income Taxes The Company and its subsidiaries file a consolidated U.S. federal income tax return. Income taxes are accounted for under the asset and liability method. The Company provides for federal, and state income taxes currently payable, as well as for those deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributed to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Advertising Advertising costs are expensed as incurred. Advertising expense amounted to $218,700 and $207,500 for the years ended June 30, 2020 and 2019, respectively. Research and Development Research and development costs consisting of expenses for activities that are useful in developing and testing new products, as well as expenses that may significantly improve existing products, are expensed as incurred. Stock Compensation Plan The Company has a ten-year stock option plan (the “2012 Plan”) which provides for the grant of options to purchase up to 250,000 shares of the Company’s Common Stock, par value $.05 per share (“Common Stock”), plus up to 57,000 shares under options previously granted under the 2002 Stock Option Plan of the Company (the “Prior Plan”). The 2012 Plan provides for the granting of incentive or non-incentive stock options as defined in the 2012 Plan and options under the 2012 Plan may be granted until 2022. Incentive stock options may be granted to employees at an exercise price equal to 100% (or 110% if the optionee owns directly or indirectly more than 10% of the outstanding voting stock) of the fair market value of the shares of Common Stock on the date of the grant. Non-incentive stock options shall be granted at the fair market value of the shares of Common Stock on the date of grant. At June 30, 2020 and 2019, 147,414 and 20,795 shares respectively, of Common Stock were available for grant of options under the 2012 Plan. Stock-based compensation is accounted for in accordance with ASC No. 718 “Compensation-Stock Compensation” (“ASC No. 718”) which requires compensation costs related to stock-based payment transactions to be recognized. With limited exceptions, the amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued. In addition, liability awards are measured at each reporting period. Compensation costs are recognized over the period that an employee provides service in exchange for the award. During the years ended June 30, 2020 and 2019, the Company granted 25,881 and 6,705 options, respectively, to employees that had a fair value of $144,500 and $12,000, respectively. The fair value of the options granted during the years ended June 30, 2020 and 2019, were determined using the Black-Scholes-Merton option-pricing model. The weighted average assumptions used for the years ended June 30, 2020 and 2019, was an expected life of 10 years; risk free interest rate of .89% and 2.44%; volatility of 74% and 35%, and dividend yield of .08% and 1.29%, respectively. The Company declared a dividend of $0.05 per share during the year ended June 30, 2019 and none in 2020. The weighted-average value per share of the options granted during the years ended June 30, 2020 and 2019, was $5.58 and $1.79, respectively, and total stock-based compensation costs were $65,800 and $46,800 for the years ended June 30, 2020 and 2019, respectively. Stock-based compensation costs related to nonvested awards expected to be recognized in the future are $113,400 and $38,600 as of June 30, 2020 and 2019, respectively. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. Estimates are used for, but not limited to, the allowance for doubtful accounts, slow-moving inventory reserves, depreciation and amortization, assumptions made in valuing equity instruments issued for services, and the fair values of intangibles and goodwill. The actual results experienced by the Company may differ materially from management’s estimates. Earnings (Loss) Per Common Share Basic earnings or loss per common share is computed by dividing net income (loss) by the weighted-average number of shares outstanding. Diluted earnings per common share includes the dilutive effect of stock options, if any. Recent Accounting Pronouncements In August 2018, the 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 is effective for fiscal years beginning after December 15, 2019. Early adoption is 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 Company is currently evaluating the impact of adopting this guidance. 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. Adopted Accounting Pronouncement In February 2016, the FASB issued ASU No. 2016-02, Leases, which replaces previous lease guidance in its entirety with ASC 842 and requires lessees to recognize lease assets and lease liabilities for those arrangements classified as operating leases under previous guidance, with the exception of leases with a term of twelve months or less. The Company adopted ASU No. 2016-02 on July 1, 2019 using the additional transition method, which allows prior periods to be presented under previous lease accounting guidance. Refer to Note 11, "Leases", for related disclosures. |
Revenue
Revenue | 9 Months Ended |
Mar. 31, 2021 | |
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, and (2) Bioprocessing Systems. The following table summarizes the Company’s disaggregation of revenues for the three and nine months ended March 31, 2021 and 2020. Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2021: Revenues $ 2,365,700 $ 142,900 $ 2,508,600 Foreign Sales 942,200 102,600 1,044,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2020: Revenues $ 1,800,700 $ 335,500 $ 2,136,200 Foreign Sales 743,000 335,000 1,078,000 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Nine Months Ended March 31, 2021: Revenues $ 6,803,300 $ 441,800 $ 7,245,100 Foreign Sales 2,724,800 395,000 3,119,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Nine Months Ended March 31, 2020: Revenues $ 5,320,300 $ 914,200 $ 6,234,500 Foreign Sales 1,996,400 913,700 2,910,100 Benchtop Laboratory Equipment sales are comprised primarily of standard benchtop laboratory equipment from its stock sold to laboratory equipment distributors, or to end users primarily via e-commerce. The sales cycle from time of receipt of order to shipment varies from one day to up to a few weeks. Customers pay either by credit card (online sales) or net 30-90, depending on the customer. Once the item is shipped under the terms specified in the order, which is typically “FOB Factory”, other than a standard warranty, there are no obligations to the customer. The Company’s standard warranty is typically comprised of one to two years of parts and labor and is deemed immaterial. Bioprocessing Systems’ revenues are primarily comprised of royalties earned by the Company, which are paid on a calendar year basis, under a licensing agreement from a single licensee and its sublicensees. The Company is obligated to pay 50% of all royalties it receives 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 each fiscal period. 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. |
Segment Information and Concent
Segment Information and Concentrations | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||
Segment Information and Concentrations | The Company views its operations as two segments: the manufacture and marketing of standard benchtop laboratory equipment for research in university, hospital and industrial laboratories sold primarily through laboratory equipment distributors and laboratory and pharmacy balances and scales (“Benchtop Laboratory Equipment Operations”), and the 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 March 31, 2021: Revenues $ 2,365,700 $ 142,900 $ - $ 2,508,600 Foreign Sales 942,200 102,600 1,044,800 Income (Loss) From Operations 774,600 (1,722,200 ) (911,200 ) (1,858,800 ) Assets 5,979,400 1,281,200 6,639,700 13,900,300 Long-Lived Asset Expenditures 18,600 92,100 - 110,700 Depreciation and Amortization 30,000 16,700 - 43,700 Approximately $124,600 included in Assets relates to discontinued operations. Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended March 31, 2020: Revenues $ 1,800,700 $ 335,500 $ - $ 2,136,200 Foreign Sales 743,000 335,000 - 1,078,000 Income (Loss) From Operations 138,800 (193,100 ) (180,700 ) (235,000 ) Assets 5,229,700 1,647,800 2,042,400 8,919,900 Long-Lived Asset Expenditures 4,900 11,700 - 16,600 Depreciation and Amortization 29,600 11,000 300 40,900 Approximately $1,227,900 included in Assets relates to discontinued operations, and $300 in depreciation and amortization relates to discontinued operations. Approximately 55% and 49% of total benchtop laboratory equipment sales (52% and 37% of total revenues) for the three months ended March 31, 2021 and 2020, respectively, were derived from the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 20% and 24% of total benchtop laboratory equipment sales (19% and 18% of total revenues) were derived from the Torbal Scales Division for the three months ended March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021 and 2020, respectively, three customers accounted for approximately 26% and 16% of net sales of the Benchtop Laboratory Equipment Operations (25% and 12% of the Company’s total revenues). Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Nine Months Ended March 31, 2021: Revenues $ 6,803,300 $ 441,800 $ - $ 7,245,100 Foreign Sales 2,724,800 395,000 - 3,119,800 Income (Loss) From Operations 1,727,000 (2,996,300 ) (1,029,600 ) (2,298,900 ) Assets 5,979,400 1,281,200 6,639,700 13,900,300 Long-Lived Asset Expenditures 54,100 170,800 - 224,900 Depreciation and Amortization 79,700 46,500 500 126,700 Approximately $124,600 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 Nine Months Ended March 31, 2020: Revenues $ 5,320,300 $ 914,200 $ - $ 6,234,500 Foreign Sales 1,996,400 913,700 - 2,910,100 Income (Loss) From Operations 331,300 (209,400 ) (180,700 ) (58,800 ) Assets 5,229,700 1,647,800 2,042,400 8,919,900 Long-Lived Asset Expenditures 26,800 31,300 - 58,100 Depreciation and Amortization 90,900 31,500 900 123,300 Approximately $1,227,900 included in Assets relates to discontinued operations, and $900 in depreciation and amortization relates to discontinued operations. Approximately 51% and 45% of total benchtop laboratory equipment sales (47% and 36% of total revenues) for the nine months ended March 31, 2021 and 2020, respectively, were derived from the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 23% and 27% of total benchtop laboratory equipment sales (21% and 21% of total revenues) were derived from the Torbal Scales Division for the nine months ended March 31, 2021 and 2020, respectively. For the nine months ended March 31, 2021 and 2020, three customers accounted for approximately 23% and 17% of net sales of the Benchtop Laboratory Equipment Operations (21% and 13% of the Company’s total revenues), respectively. | The Company views its operations as two segments: the manufacture and marketing of standard benchtop laboratory equipment for research in university, hospital and industrial laboratories sold primarily through laboratory equipment distributors and laboratory and pharmacy balances and scales (“Benchtop Laboratory Equipment Operations”), and the design and marketing of bioprocessing systems and products and related royalty income (“Bioprocessing Systems”). Segment information is reported as follows: Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ - $ 7,784,400 Foreign Sales 2,589,800 1,000,400 586,500 4,176,700 Income (Loss) From Operations 449,700 (727,500 ) (385,700 ) (663,500 ) Assets 12,232,600 546,100 2,018,700 14,797,400 Long-Lived Asset Expenditures 36,000 40,700 - 76,700 Depreciation and Amortization 116,900 42,700 1,300 160,900 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2019: Revenues $ 7,078,800 $ 1,306,100 $ - $ 8,384,900 Foreign Sales 2,680,300 $ 1,301,200 1,102,300 5,083,800 Income (Loss) From Operations 449,800 365,000 91,900 906,700 Assets 5,280,700 790,100 2,205,200 8,276,000 Long-Lived Asset Expenditures 194,500 15,700 2,200 212,400 Depreciation and Amortization 217,800 38,500 1,000 257,300 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 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 values 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 March 31, 2021 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 March 31, 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 627,500 $ 627,500 $ - $ - Investment securities 5,325,700 5,325,700 - - Total $ 5,953,200 $ 5,953,200 - $ - Liabilities: Contingent consideration $ 226,100 $ - $ - $ 226,100 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 at March 31, 2021 and June 30, 2020 consisted of the following: Cost Fair Value Unrealized Holding Gain (Loss) At March 31, 2021: Equity securities $ 102,200 $ 148,100 $ 45,900 Mutual and bond funds 5,169,700 5,177,600 7,900 $ 5,271,900 $ 5,325,700 $ 53,800 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 | 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 is 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 table. The following tables set forth by level within the fair value hierarchy the Company’s financial assets that were accounted for at fair value on a recurring basis at June 30, 2020 and 2019 according to the valuation techniques the Company used to determine their fair values: 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 Fair Value Measurements Using Inputs Considered as Fair Value at June 30, 2019 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1,602,500 $ 1,602,500 $ - $ - Investment securities 330,900 330,900 - - Total $ 1,933,400 $ 1,933,400 $ - $ - Liabilities: Contingent consideration $ 618,000 $ - $ - $ 618,000 The following table sets forth an analysis of changes during the years ended June 30, 2020 and 2019, respectively, in Level 3 financial liabilities of the Company: 2020 2019 Beginning balance $ 618,000 $ 408,000 Increase in contingent consideration liability 112,600 521,200 Payments and accruals (372,600 ) (311,200 ) Ending balance $ 358,000 $ 618,000 The Company’s contingent obligations require cash payments to the sellers of certain acquired operations based on royalty payments received or operating results achieved. These contingent considerations are classified as liabilities and the liabilities are remeasured to an estimated fair value at each reporting date. During the years ended June 30, 2020 and 2019, the Company recorded an increase in the estimated fair value of contingent liabilities of approximately $112,600 and $521,200, respectively related to its Bioprocessing Systems Operations segment. Investments in marketable securities classified as available-for-sale by security type at June 30, 2020 and 2019 consisted of the following: Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2020: Equity securities $ 77,600 $ 101,900 $ 24,300 Mutual funds 250,300 229,900 (20,400 ) $ 327,900 $ 331,800 $ 3,900 Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2019: Equity securities $ 47,100 $ 72,000 $ 24,900 Mutual funds 292,300 258,900 (33,400 ) $ 339,400 $ 330,900 $ (8,500 ) |
Inventories
Inventories | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 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. March 31, 2021 June 30, 2020 Raw materials $ 2,191,200 $ 1,726,400 Work-in-process 74,100 35,700 Finished goods 619,900 778,900 $ 2,885,200 $ 2,541,000 | 2020 2019 Raw materials $ 1,726,400 $ 1,597,100 Work-in-process 35,700 77,700 Finished goods 778,900 708,800 $ 2,541,000 $ 2,383,600 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Useful Lives (Years) 2020 2019 Automobiles 5 $ 22,000 $ 22,000 Computer equipment 3-5 215,300 200,300 Machinery and equipment 3-7 847,500 823,400 Furniture and fixtures 4-10 142,300 138,500 Leasehold improvements 3-10 50,300 42,300 1,277,400 1,226,500 Less accumulated depreciation and amortization 999,100 910,400 $ 278,300 $ 316,100 Depreciation expense was $88,700 and $67,300 for the years ended June 30, 2020 and 2019, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 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 March 31, 2021 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 March 31, 2021: Technology, trademarks 5/10 yrs. $ 364,700 $ 362,200 $ 2,500 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 120,000 94,400 25,600 Sublicense agreements 10 yrs. 294,000 275,600 18,400 Non-compete agreements 5 yrs. 282,000 282,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 287,800 212,800 75,000 $ 1,808,500 $ 1,687,000 $ 121,500 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 $16,000 and $18,300 for the three months ended March 31, 2021 and 2020, respectively, and $48,500 and $57,600 for the nine months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, estimated future amortization expense related to intangible assets is $42,800 for the remainder of the fiscal year ending June 30, 2021, $32,100 for fiscal 2022, $20,400 for fiscal 2023, $18,000 for fiscal 2024 and $8,200 thereafter. | 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 June 30, 2020 and 2019, 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 June 30, 2020: Technology, trademarks 5/10 yrs. $ 664,700 $ 662,000 $ 2,700 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 357,000 321,400 35,600 Sublicense agreements 10 yrs. 294,000 253,600 40,400 Non-compete agreements 5 yrs. 384,000 384,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 246,600 196,600 50,000 $ 2,406,300 $ 2,277,600 $ 128,700 Useful Lives Cost Accumulated Amortization Net At June 30, 2019: Technology, trademarks 5/10 yrs. $ 663,800 $ 661,700 $ 1,100 Trade names 6 yrs. 140,000 124,400 16,600 Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 357,000 308,100 48,900 Sublicense agreements 10 yrs. 294,000 224,100 69,900 Non-compete agreements 5 yrs. 384,000 384,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 221,700 183,200 38,500 $ 2,380,500 $ 2,205,500 $ 175,000 Total amortization expense was $72,000 and $190,000 in 2020 and 2019, respectively. Estimated future amortization expense of intangible assets as of June 30, 2020 is as follows: Year Ended June 30, 2021 $ 59,800 2022 36,800 2023 20,200 2024 8,400 2025 3,500 Total $ 128,700 |
Lines of Credit
Lines of Credit | 12 Months Ended |
Jun. 30, 2020 | |
Line of Credit Facility [Abstract] | |
Lines of credit | The Company has a Demand Line of Credit through December 2020 with First National Bank of Pennsylvania which provides for borrowings of up to $300,000 for regular working capital needs, bearing interest at prime, currently 3.25%. The agreement does not contain a financial covenants and borrowings are also secured by a pledge of the Company’s assets including inventory, accounts receivable, chattel paper, equipment and general intangibles of the Company. As of June 30, 2020 and 2019, there were no borrowings outstanding under the line. |
Payroll Protection Program Loan
Payroll Protection Program Loan | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Loans Payable [Abstract] | ||
Payroll Protection Program Loan | The Company has two Payroll Protection Program (“PPP”) loans outstanding which are comprised of $563,800 received in April 2020 and $433,800 received in March 2021 through its bank. The loans each bear interest at 1% per annum and mature in April 2022 and March 2026, respectively, and contain no collateral or guarantee requirements. The Company expects to apply and receive forgiveness for both loans. | The Company had a $563,800 Payroll Protection Program loan for proceeds received in April 2020 pursuant to the Paycheck Protection Program loan (“PPP”) administered by the U.S. Small Business Administration through its bank. The Company applied for forgiveness in June 2021 and $531,100 was forgiven. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | The Company has a 401(k) profit sharing plan covering all its employees, which provides for voluntary employee salary contributions not to exceed the statutory limitations provided by the Internal Revenue Code. The plan provides for Company matching contribution equal to 100% of employee’s deferral up to 3% of pay, plus 50% of employee’s deferral over 3% of pay up to 5%. Total matching contributions amounted to $84,100 and $69,600 for the years ended June 30, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company has a three-year employment contract with its President, effective July 1, 2017, which was extended by mutual agreement for a one year period ending June 30, 2021. The agreement provided for an annual base salary of $175,000 for the year ended June 30, 2018, with subsequent annual increases of 3% or percentage increase in Consumer Price Index (“CPI”), whichever is higher, plus $25,000 cash bonus for the year ended June 30, 2018, and a discretionary bonus for subsequent years. A bonus of $50,000 was awarded for the year ended June 30, 2020 and none in 2019. The agreement also provided for a grant of options to purchase 25,000 shares of the Company’s stock, which were granted during the year ended June 30, 2018. No shares were granted during the year ended June 30, 2019, and 215,366 shares were authorized to be granted by the Board of Directors during the year ended June 30, 2020 which are subject to amendment to the Company’s 2012 Stock Option Plan. The Company has a three-year employment contract with its President of the Genie Products Division of the Benchtop Laboratory Equipment Operations and Corporate Secretary effective July 1, 2017, which was extended by mutual agreement for a one year period ending June 30, 2021. The agreement provides for an annual base salary of $153,000 for the year ended June 30, 2018, with subsequent annual increases of 3% or percentage increase in the CPI, whichever is higher, plus $10,000 cash bonus for the year ended June 30, 2018, and a discretionary bonus for subsequent years. A bonus of $5,000 was awarded for the year ended June 30, 2020 and none in 2019. The agreement also provides for a grant of options to purchase 7,500 shares of the Company’s stock, which were granted during the year ended June 30, 2018. No options were granted during the year ended June 30, 2020 or 2019. The Company has a three-year employment contract with its President of Torbal Products Division of the Benchtop Laboratory Equipment Operations and Director of Marketing effective July 1, 2017, which was extended by mutual agreement for a one year period ending June 30, 2021. The agreement provides for an annual base salary of $157,000 for the year ended June 30, 2018, with subsequent annual increases of 4% or percentage increase in the CPI, whichever is higher, plus $10,000 cash bonus for the year ended June 30, 2018 and subsequent years, subject to a minimum increase of 5% in the divisions’ EBITDA for the related year. The agreement also provides for a grant of options to purchase 7,500 shares of the Company’s stock, which were granted during the year ended June 30, 2018. No options were granted during the year ended June 30, 2020 or 2019. A performance-based bonus of $10,000 was awarded for each of the years ended June 30, 2018, 2019, and 2020. The Company has a three-year employment contract with its President of Scientific Bioprocessing, Inc., effective July 1, 2020. The agreement provides for an annual base salary of $175,000 for the year ended June 30, 2021, with subsequent annual increases of 3% or percentage increase in Consumer Price Index (“CPI”), whichever is higher, plus discretionary bonuses. The agreement also provides for a grant of options to purchase 215,366 shares which were authorized to be granted by the Board of Directors during the year ended June 30, 2020, and are subject to amendment to the Company’s 2012 Stock Option Plan. Prior to July 1, 2020, the officer had a consulting agreement through June 30, 2020. Consulting fees paid under this agreement amounted to $145,000 and $40,000 for the years ended June 30, 2020 and 2019, respectively. In addition stock options valued at $36,000 and $12,000 were granted as part of the total compensation under the consulting agreement, for the years ended June 30, 2020 and 2019, respectively. The Company had a two-year agreement with its President of Altamira Instruments, Inc. effective July 1, 2017, which was extended by mutual agreement through June 30, 2020, and has not yet been renewed. The agreement provided for an annual base salary of $130,000 and $120,000 for the years ended June 30, 2020 and 2019, respectively, plus incentive pay based on achievement of certain revenue and income levels, which were not achieved in both fiscal years and therefore there was no incentive pay. The agreement also provided for a grant of options for an aggregate of 10,000 shares of the Company’s common stock, which were granted during the year ended June 30, 2018. No shares were granted during the year ended June 30, 2020 or 2019. The Company had a three-year employment contract with its Vice President of Corporate Development and Strategy and Vice president of Sales and Marketing of Altamira Instruments, Inc. effective July 1, 2017. This agreement was terminated by the Company in February 2020 with termination costs of $180,700, of which $110,900 remains unpaid as of June 30, 2020 and is expected to be paid by February 2021. The Company has a consulting agreement, which expires on December 31, 2020, with a Director of the Company and his affiliate for product development consulting services. The agreement provides that the consultant be paid a monthly retainer fee of $9,000, plus a grant of 20,000 options during the year ended June 30, 2020. Consulting expense related to this agreement amounted to $76,200 and $43,200 for the years ended June 30, 2020 and 2019, respectively. On July 20, 2020, the Company entered into a two-year consulting agreement with a new member of the Board of Directors and his affiliate for consulting on strategic matters of the Company’s wholly-owned SBI’s operations. The agreement provides that the consultant be paid a monthly retainer of 5,000 euros, an annual bonus of up to 2% of net sales of the subsidiary’s net sales over mutually agreed upon sales targets, plus the issuance of 125,000 stock options of the Company. The Company is required to make payments of 30% of the net royalties received from the license and sublicense acquired in the SBI acquisition in fiscal 2014. Total contingent consideration payments made for this acquisition amounted to $372,600 and $311,200 for the years ended June 30, 2020 and 2019, respectively. The fair value of contingent consideration estimated to be paid as of June 30, 2020 is as follows: Year ended June 30, Amount 2021 $ 111,000 2022 95,000 2023 82,000 2024 70,000 $ 358,000 |
Leases
Leases | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 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 the Torbal Division of its Benchtop Laboratory Equipment Operations through October 2022. The Company 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 following 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 whereby 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 March 31, 2021, the weighted-average remaining lease term for operating lease liabilities was approximately 2.7 years and the weighted-average discount rate was 5.0%. Total cash payments under these leases were $64,000 and $218,700 for the three- and nine- month periods ended March 31, 2021 of which $59,900 and $211,100, respectively, were recorded as lease expense. The Company’s approximate future minimum rental payments under all leases existing at March 31, 2021 through February 2025 are as follows: Fiscal year ending June 30, Amount Remainder of 2021 $ 64,000 2022 260,300 2023 245,300 2024 195,900 2025 91,600 Total future minimum payments $ 857,100 Less: Imputed interest 71,500 Total Present Value of Operating Lease Liabilities $ 785,600 | On July 1, 2019, the Company adopted the new accounting pronouncement as it relates to its leases which requires a lessee to recognize 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 and expands disclosure of key information about leasing arrangements. 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 Catalyst Research Instrument Operations through November 2020 and on a month to month thereafter, and another facility in Pittsburgh, Pennsylvania for its Bioprocessing Systems Operations through May 2021. In addition, the Company had a lease for its Torbal Division of the Benchtop Laboratory Equipment Operations which was mutually terminated early effective as of October 31, 2019 and a new lease for a similar sales and administration office in Orangeburg, New York was entered into as of November 1, 2019 through October 2022. 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, and 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 June 30, 2020, the weighted-average remaining lease term for operating lease liabilities was approximately 3.85 years and the weighted-average discount rate was 5.0%. Total cash payments under these leases were $295,700 for the year ended June 30, 2020, of which $293,500 was recorded as leases expense. The Company’s approximate future minimum rental payments under all leases existing at June 30, 2020, through January 2025 are as follows: Year ended June 30, Amount 2021 $ 234,300 2022 210,600 2023 198,900 2024 195,900 2025 91,600 Total future minimum payments $ 931,300 Less: Imputed interest 94,700 Total Present Value of Operating Lease Liabilities $ 836,600 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The reconciliation of the provision for income taxes at the federal statutory rate of 21% to the actual tax expense or benefit for the applicable fiscal year was as follows: 2020 2019 Computed “expected” income tax (benefit) $ (239,400 ) $ 161,700 Research and development credits (89,400 ) (24,300 ) Rate changes and NOL carrybacks (122,600 ) - Other, net 14,800 (12,800 ) Income tax expense (benefit) $ (436,600 ) $ 124,600 Deferred tax assets and liabilities consist of the following: 2020 2019 Deferred tax assets: Amortization of intangible assets $ 329,700 $ 303,900 Research and development credits 89,400 - Various accruals 150,700 173,600 Other 19,400 13,300 589,200 490,800 Deferred tax liability: Depreciation of property and amortization of goodwill (52,100 ) (59,700 ) Net deferred tax assets $ 537,100 $ 431,100 ASC No. 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC No. 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of June 30, 2020 and 2019, the Company did not have any unrecognized tax benefits related to various federal and state income tax matters. The Company’s policy is to recognize interest and penalties on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits. The Company is subject to U.S. federal income tax, as well as various state jurisdictions. The Company is currently open to audit under the statute of limitations by the federal and state jurisdictions for the years ended June 30, 2017 and after. The Company does not anticipate any material amount of unrecognized tax benefits within the next 12 months. |
Stock Options
Stock Options | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options | Option activity is summarized as follows: June 30, 2020 June 30, 2019 Weighted- Weighted- Average Average Exercise Exercise Shares Price Shares Price Shares under option: Outstanding, beginning of year 97,205 $ 3.24 92,000 $ 3.15 Granted 25,881 7.47 6,705 4.54 Exercised (24,000 ) 3.35 - - Forfeited (2,500 ) 3.08 1,500 3.27 Outstanding, end of year 96,586 $ 4.35 97,205 $ 3.24 Options exercisable at year-end 49,236 $ 3.29 50,167 $ 3.29 Weighted average fair value per share of options granted during the fiscal year $ 5.58 $ 1.79 As of June 30, 2020 Options Outstanding As of June 30, 2020 Exercisable Weighted- Average Weighted- Weighted- Range Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price $ 5.35 - 11.30 25,881 9.87 $ 7.47 - $ 0.00 $ 2.91 - 4.65 70,705 6.46 $ 3.33 49,236 $ 3.29 96,586 49,236 As of June 30, 2019 Options Outstanding As of June 30, 2019 Exercisable Weighted- Average Weighted- Weighted- Range Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price $ 2.91 - 3.08 70,500 7.81 $ 3.07 30,167 $ 2.80 $ 3.65 - 4.65 26,705 5.57 $ 4.02 20,000 $ 3.84 97,205 50,167 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Earnings (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 March 31, 2021 For the Three Month Period Ended March 31, 2020 For the Nine Month Period Ended March 31, 2021 For the Nine Month Period Ended March 31, 2020 Weighted average number of common shares outstanding 2,861,607 1,502,773 2,861,376 1,497,567 Effect of dilutive securities - - - - Weighted average number of dilutive common shares outstanding 2,861,607 1,502,773 2,861,376 1,497,567 Basic and diluted earnings (loss) per common share Continuing operations $ (.51 ) $ (.15 ) $ (.61 ) $ (.05 ) Discontinued operations $ .01 $ (.06 ) $ (.20 ) $ (.20 ) Consolidated operations $ (.50 ) $ (.21 ) $ (.81 ) $ (.25 ) Approximately 259,357 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 nine months ended March 31, 2021, 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 three and nine months ended March 31, 2020 because they were anti-dilutive. | Earnings (loss) per common share data was computed as follows: 2020 2019 Weighted average common shares outstanding 1,515,103 1,494,112 Effect of dilutive securities - 18,066 Weighted average dilutive common shares outstanding 1,515,103 1,512,178 Basic and diluted earnings (loss) per common share: Continuing operations $ (.30 ) $ .49 Discontinued operations $ (.16 ) $ (.06 ) Consolidated operations $ (.46 ) $ .43 Approximately 54,513 and 1,349,850 shares of the Company's common stock issuable upon the exercise of stock options and warrants, respectively, were excluded from the calculation because the effect would be anti-dilutive due to the loss for the year ended June 30, 2020. Approximately 1,600 shares of the Company's common stock issuable upon the exercise of outstanding options were excluded from the calculation of diluted earnings per share for the year ended June 30, 2019, because they were anti-dilutive. |
Equity
Equity | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Stockholders' equity: | ||
Equity | At the 2020 Annual Meeting of Stockholders, the stockholders of the Company approved an amendment to the Certificate of Incorporation of the Company to increase the number of authorized shares of the Company’s Common stock by 3,000,000 shares from 7,000,000 to 10,000,000 shares, which is reflected as of March 31, 2021. In addition, the stockholders also approved an amendment to the Company’s 2012 Stock Option Plan (“Plan”) to increase the number of shares under the Plan by 943,000 shares, from 307,000 to 1,250,000 shares, which, together with 150,000 shares that were added to the Plan in 2020, the Company registered on a Form S-8 Registration Statement with the Securities and Exchange Commission on March 15, 2021. The Company’s Board of Directors ock Options in June 2020 and July 2020 to three key officers, subject to availability of option shares. In February 2021, upon availability, the Company issued these stock options to the Company’s Chairman of the Board, its Chief Executive Officer and President, and the Chief Commercial Officer of the Company’s Bioprocessing Systems Operations, which resulted in total stock-based compensation of $1,292,000 and $1,429,400 for the three and nine months ended March 31, 2021, which also included expense for other optionees. | On June 18, 2020 the Company entered into a securities purchases agreement with several accredited investors for the sale and issuance of 1,349,850 shares of the Company’s Common Stock at an offering of $4.50 per share and warrants to purchase up to 1,349,850 shares of the Company’s Common Stock at $9.00 per share for total proceeds of $6,074,400. The Company incurred approximately $70,000 in issuance related costs. The proceeds are earmarked for the operations of the Company’s SBI operations. The warrants are immediately exercisable and expire five years from the date of issuance. If at any time commencing twelve months from the date of the agreement, but before the expiration of the warrant, the volume weighted average price of the Company’s Common Stock exceeds $18 per share for each of thirty consecutive days, the Company may at any time in its sole discretion, call for the exercise of the Warrants, in their entirety. |
Discontinued Operations
Discontinued Operations | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 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 agreed to reimburse Altamira. At March 31, 2021, JWGB paid the full $440,000 purchase price and $28,500 for component purchases made on its behalf. 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: March 31, 2021 June 30, 2020 Cash $ 12,100 $ - Accounts receivable 109,300 - Inventories 3,200 343,700 Property and equipment, net - 1,400 Goodwill - 447,900 Discontinued operations $ 124,600 $ 793,000 Liabilities: March 31, 2021 June 30, 2020 Accounts payable $ 2,900 $ 20,100 Accrued expenses and taxes 45,000 120,700 Contract liabilities 16,500 69,000 Operating lease liabilities, current portion - 31,100 $ 64,400 $ 240,900 Three Months Ended Nine Months Ended March 31,2021 March 31,2020 March 31,2021 March 31,2020 Revenues $ 107,800 $ 241,800 $ 387,700 $ 420,000 Cost of goods sold 78,800 237,700 458,500 500,300 Gross profit 29,900 4,100 (70,800 ) (80,300 ) Selling, general and administrative expenses 12,600 103,700 282,200 280,000 Income (loss from operations) 16,400 (99,600 ) (353,000 ) (360,300 ) Loss on disposal (405,400 ) Income (loss) before income tax benefit 16,400 (99,600 ) (758,400 ) (360,300 ) Income tax benefit, all deferred (16,400 ) (179,900 ) (67,000 ) Net income (loss) attributable to discontinued operations $ 16,400 $ (83,200 ) $ (578,500 ) $ (293,300 ) 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 nine months ended March 31, 2021 and March 31, 2020 was ($502,900) and $17,900, respectively. Cash provided by investing activities from discontinued operations for the nine months ended March 31, 2021 was $440,000 and none for the nine months ended March 31, 2020. There was no cash provided or used by the discontinued operations for financing activities for both the current and prior year periods. | 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. 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. 2020 2019 Assets: Inventories $ 343,700 $ 208,700 Property and equipment, net 1,400 2,700 Goodwill 447,900 447,900 Discontinued operations $ 793,000 $ 659,300 June 30, 2020 June 30, 2019 Accounts payable $ 20,100 $ 84,500 Accrued expenses and taxes 120,700 177,500 Contract liabilities 69,000 Operating lease liabilities, current portion 31,100 $ 240,900 $ 262,000 Revenues $ 785,900 $ 1,814,900 Cost of goods sold 869,900 1,490,600 Gross profit (84,000 ) 324,300 Selling, general and administrative expenses 388,500 456,300 Loss from operations before income tax benefit (472,500 ) (132,000 ) (222,600 ) (36,000 ) Net loss attributable to discontinued operations $ (249,900 ) $ (96,000 ) In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash provided by and (used in) operating activities from discontinued operations for fiscal 2020 and fiscal 2019 was $66,100 and ($131,600), respectively. Cash used by investing activities from discontinued operations for fiscal 2020 was $2,200 and none for fiscal 2019. There was no cash provided or used by the discontinued operations for financing activities for both the current and prior year periods. |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Subsequent Events [Abstract] | ||
Subsequent Events | On April 29 2021, the Company received proceeds of approximately $7,580,500 from the sale of its securities to private investors upon the issuance of 1,595,880 shares of the Company’s Common Stock at an offering price of $4.75 per share which included warrants to purchase up to 797,940 shares of the Company’s Common Stock at $9.50 per share. These warrants are exercisable immediately and expire five years from date of issuance. Using the proceeds received, the Company, through its newly organized wholly owned subsidiary Scientific Bioprocessing Holdings, Inc., purchased 100% of the capital stock in aquila biolabs, GmbH (“Aquila”), a German bioprocessing company, for approximately $7,880,000. This acquisition was completed so both Aquila and SBI can create synergies in product development and sales opportunities for all products in the United States, Europe and other parts of the world. Concurrent with the acquisition, the Company entered into employment agreements with the four managing directors of Aquila. The Company has not completed any other items required to be disclosed as more time is needed in order to complete all of the necessary calculations. In addition, certain disclosures of revenues and earnings of Aquila since the acquisition are impracticable as they are minimal to the Company as a whole. | On April 29, 2021, the Company received proceeds of approximately $7,580,500 from the sale of its securities to private investors upon the issuance of 1,595,880 shares of the Company’s Common Stock at an offering price of $4.75 per share which included warrants to purchase up to 797,940 shares of the Company’s Common Stock at $9.50 per share. These warrants are exercisable immediately and expire five years from date of issuance. Using the proceeds received, the Company, through its newly organized wholly owned subsidiary Scientific Bioprocessing Holdings, Inc., purchased 100% of the capital stock in aquila biolabs, GmbH (“Aquila”), a German bioprocessing company, for approximately $7,880,000. On June 18, 2021, the Company received proceeds of approximately $9,500,000 from the sale of its securities to private investors upon the issuance of 2,000,000 shares of the Company’s Common Stock at an offering price of $4.75 per share which included warrants to purchase up to 999,993 shares of the Company’s Commons Stock at $9.50 per share. These warrants are exercisable immediately and expire five years from date of issuance. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Nature of Operations | Scientific Industries, Inc. and its subsidiaries (the “Company”) design, manufacture, and market a variety of benchtop laboratory equipment, bioprocessing products and catalyst research instruments. The Company is headquartered in Bohemia, New York where it produces benchtop laboratory equipment. Additionally, the Company has two other locations in Pittsburgh, Pennsylvania, where it produces a variety of custom-made catalyst research instruments and designs bioprocessing products, and an administrative facility in Orangeburg, New York related to sales and marketing. The products, which are sold to customers worldwide, include mixers, shakers, stirrers, refrigerated incubators, pharmacy balances and scales, force gauges, catalyst characterization instruments, reactor systems and high throughput systems. The Company also sublicenses certain patents and technology under a license with the University of Maryland, Baltimore County, and receives royalty fees from the sublicenses. | |
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 (“discontinued operation”) 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 certain loan amounts 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 the discontinued operation due to customer shutdowns, and there was a material negative impact on the revenues of the discontinued operation. 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. | The challenges posed by the COVID-19 pandemic on the global economy began to take effect and 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 has been able to retain its employees without furloughs or layoffs, in part, due to the Company’ receipt of $563,800 loan under the Federal Government’s Paycheck Protection Program. The Company has not experienced 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. 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. |
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 (discontinued as of November 2020), 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. | The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc., Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary, Altamira Instruments, Inc. (“Altamira”), a Delaware corporation and wholly-owned subsidiary which was discontinued as of November 30, 2020, and Scientific Bioprocessing, Inc. (“SBI”), a Delaware corporation and wholly-owned subsidiary, (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated. |
Revenue Recognition | On July 1, 2018 the Company adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers, as amended” (“ASC Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of the adoption date. The adoption of the standard did not have a material impact on how the Company recognizes its revenues. In accordance with 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) Catalyst Research Instruments, and (3) Royalties. Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ - $ 7,784,400 Foreign Sales 2,589,800 1,000,400 586,500 4,176,700 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2019: Revenues $ 7,078,800 $ 1,306,100 $ - 8,384,900 Foreign Sales 2,680,300 1,301,200 1,102,300 5,083,800 Benchtop laboratory equipment sales comprise 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. Warranty usually comprises of one to two year parts and labor and is deemed immaterial. catalyst research instrument sales related primarily to large instruments which begin with a standard model and then are customized to a customer’s specifications. The sales cycle can be quite long, typically ranging from one to three months, from the time an order is received to the time the instrument is shipped to the customer. Payment terms vary from customer to customer and can include advance payments which are recorded as contract liabilities. Some contracts call for training and installation, which is considered ancillary and not a material part of the contract. Due to the size and nature of the instruments, the Company subjects the instruments to an extensive factory acceptance testing process prior to shipment to ensure that they are fully operational once they reach the customer’s site. Normally, the Company warrantees its instruments for a period of twelve months for parts and labor which normally consists of replacement of small components or software support. Catalyst research instruments are never returned for repairs. Royalty revenues pertain to royalties earned by the Company, which are paid to the Company on a calendar year basis, under a licensing agreement from a single licensee and its sublicensees. The license pertained to royalties received under a United States patent and a European Union patent. As of January 2020, the European Union patent which was due to expire in August 2021, was terminated and the Company will only receive royalties under the United States patent, which will have a material reduction in total royalties expected to be received. 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. 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 Financial Accounting Standards Board (“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. | |
Cash and Cash Equivalents | The Company considers all highly liquid debt instruments purchased with original maturities of 90 days or less to be cash equivalents. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. As of June 30, 2020, and 2019, $6,729,300 and $1,328,600, respectively of cash balances were in excess of such limit. | |
Accounts Receivable | In order to record the Company’s accounts receivable at their net realizable value, the Company must assess their collectability. A considerable amount of judgment is required in order to make this assessment, including an analysis of historical bad debts and other adjustments, a review of the aging of the Company’s receivables, and the current creditworthiness of the Company’s customers. The Company has recorded allowances for receivables which it considered uncollectible, including amounts for the resolution of potential credit and other collection issues such as disputed invoices, customer satisfaction claims and pricing discrepancies. However, depending on how such potential issues are resolved, or if the financial condition of any of the Company’s customers was to deteriorate and its ability to make required payments became impaired, increases in these allowances may be required. The Company actively manages its accounts receivable to minimize credit risk. The Company does not obtain collateral for its accounts receivable. Based on its assessment, the Company concluded that there are no collection issues related to the COVID-19 Pandemic. | |
Contract Liabilities | Contract liabilities consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Amounts that have been invoiced are initially recorded in accounts receivable and contract liabilities. The Company invoices its customers in accordance with the terms of the underlying contract. Accordingly, the contract liabilities balance does not represent the total contract value of outstanding arrangements. Contract liabilities that are expected to be recognized during the subsequent 12-month period are recorded as current and the remaining portion as noncurrent. | |
Investment Securities | Investment securities consist of equity securities and mutual funds with realized gains and losses recorded using the specific identification method. Changes in fair value are recorded as unrealized holding gains or losses in other income (loss), net on the statement of operations. We determine the cost of the investment sold based on an average cost basis at the individual security level, and record the interest income and realized gains or losses on the sale of these investments in other income (loss), net. | |
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 management’s 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. | |
Property and Equipment | Property and equipment are stated at cost. Depreciation of property and equipment is provided for primarily by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized by the straight-line method over the remaining term of the related lease or the estimated useful lives of the assets, whichever is shorter. | |
Intangible Assets | Intangible assets consist primarily of acquired technology, customer relationships, non-compete agreements, patents, licenses, websites, intellectual property and research and development (“IPR&D”), trademarks and trade names. All intangible assets are amortized on a straight-line basis over the estimated useful lives of the respective assets, generally 3 to 10 years. The Company continually evaluates the remaining estimated useful lives of intangible assets that are being amortized to determine whether events or circumstances warrant a revision to the remaining period of amortization. | |
Goodwill and Long-Lived Assets | Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill and long-lived intangible assets are tested for impairment at least annually in accordance with the provisions of ASC No. 350, “Intangibles-Goodwill and Other” (“ASC No. 350”). ASC No. 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The Company tests goodwill and long-lived assets annually as of June 30, the last day of its fiscal year, unless an event occurs that would cause the Company to believe the value is impaired at an interim date. The Company concluded as of June 30, 2020 and 2019, there was no impairment of goodwill. | |
Impairment of Long-Lived Assets | The Company follows the provisions of ASC No. 360-10, “Property, Plant and Equipment - Impairment or Disposal of Long-Lived Assets (“ASC No. 360-10”). ASC No. 360-10 which requires evaluation of the need for an impairment charge relating to long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an evaluation for impairment is required, the estimated future undiscounted cash flows associated with the asset would be compared to the asset’s carrying amount to determine if a write down to a new depreciable basis is required. If required, an impairment charge is recorded based on an estimate of future discounted cash flows. The Company concluded as of June 30, 2020 and 2019, there was no impairment of long-lived assets. | |
Income Taxes | The Company and its subsidiaries file a consolidated U.S. federal income tax return. Income taxes are accounted for under the asset and liability method. The Company provides for federal, and state income taxes currently payable, as well as for those deferred due to timing differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributed to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in income tax rates is recognized as income or expense in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |
Advertising | Advertising costs are expensed as incurred. Advertising expense amounted to $218,700 and $207,500 for the years ended June 30, 2020 and 2019, respectively. | |
Research and Development | Research and development costs consisting of expenses for activities that are useful in developing and testing new products, as well as expenses that may significantly improve existing products, are expensed as incurred. | |
Stock Compensation Plan | The Company has a ten-year stock option plan (the “2012 Plan”) which provides for the grant of options to purchase up to 250,000 shares of the Company’s Common Stock, par value $.05 per share (“Common Stock”), plus up to 57,000 shares under options previously granted under the 2002 Stock Option Plan of the Company (the “Prior Plan”). The 2012 Plan provides for the granting of incentive or non-incentive stock options as defined in the 2012 Plan and options under the 2012 Plan may be granted until 2022. Incentive stock options may be granted to employees at an exercise price equal to 100% (or 110% if the optionee owns directly or indirectly more than 10% of the outstanding voting stock) of the fair market value of the shares of Common Stock on the date of the grant. Non-incentive stock options shall be granted at the fair market value of the shares of Common Stock on the date of grant. At June 30, 2020 and 2019, 147,414 and 20,795 shares respectively, of Common Stock were available for grant of options under the 2012 Plan. Stock-based compensation is accounted for in accordance with ASC No. 718 “Compensation-Stock Compensation” (“ASC No. 718”) which requires compensation costs related to stock-based payment transactions to be recognized. With limited exceptions, the amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued. In addition, liability awards are measured at each reporting period. Compensation costs are recognized over the period that an employee provides service in exchange for the award. During the years ended June 30, 2020 and 2019, the Company granted 25,881 and 6,705 options, respectively, to employees that had a fair value of $144,500 and $12,000, respectively. The fair value of the options granted during the years ended June 30, 2020 and 2019, were determined using the Black-Scholes-Merton option-pricing model. The weighted average assumptions used for the years ended June 30, 2020 and 2019, was an expected life of 10 years; risk free interest rate of .89% and 2.44%; volatility of 74% and 35%, and dividend yield of .08% and 1.29%, respectively. The Company declared a dividend of $0.05 per share during the year ended June 30, 2019 and none in 2020. The weighted-average value per share of the options granted during the years ended June 30, 2020 and 2019, was $5.58 and $1.79, respectively, and total stock-based compensation costs were $65,800 and $46,800 for the years ended June 30, 2020 and 2019, respectively. Stock-based compensation costs related to nonvested awards expected to be recognized in the future are $113,400 and $38,600 as of June 30, 2020 and 2019, respectively. | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. Estimates are used for, but not limited to, the allowance for doubtful accounts, slow-moving inventory reserves, depreciation and amortization, assumptions made in valuing equity instruments issued for services, and the fair values of intangibles and goodwill. The actual results experienced by the Company may differ materially from management’s estimates. | |
Earnings (Loss) Per Common Share | Basic earnings or loss per common share is computed by dividing net income (loss) by the weighted-average number of shares outstanding. Diluted earnings per common share includes the dilutive effect of stock options, if any. | |
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. | In August 2018, the 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 is effective for fiscal years beginning after December 15, 2019. Early adoption is 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 Company is currently evaluating the impact of adopting this guidance. 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. |
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. | In February 2016, the FASB issued ASU No. 2016-02, Leases, which replaces previous lease guidance in its entirety with ASC 842 and requires lessees to recognize lease assets and lease liabilities for those arrangements classified as operating leases under previous guidance, with the exception of leases with a term of twelve months or less. The Company adopted ASU No. 2016-02 on July 1, 2019 using the additional transition method, which allows prior periods to be presented under previous lease accounting guidance. Refer to Note 11, "Leases", for related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Disaggregation of revenues | Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2021: Revenues $ 2,365,700 $ 142,900 $ 2,508,600 Foreign Sales 942,200 102,600 1,044,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2020: Revenues $ 1,800,700 $ 335,500 $ 2,136,200 Foreign Sales 743,000 335,000 1,078,000 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Nine Months Ended March 31, 2021: Revenues $ 6,803,300 $ 441,800 $ 7,245,100 Foreign Sales 2,724,800 395,000 3,119,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Nine Months Ended March 31, 2020: Revenues $ 5,320,300 $ 914,200 $ 6,234,500 Foreign Sales 1,996,400 913,700 2,910,100 | Benchtop Laboratory Equipment Bioprocessing Corporate and Other Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ — $ 7,784,400 Foreign Sales 2,589,800 1,000,400 586,500 4,176,700 Benchtop Laboratory Equipment Bioprocessing Corporate and Other Consolidated June 30, 2019: Revenues $ 7,078,800 $ 1,306,100 $ — 8,384,900 Foreign Sales 2,680,300 1,301,200 1,102,300 5,083,800 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Disaggregation of revenues | Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2021: Revenues $ 2,365,700 $ 142,900 $ 2,508,600 Foreign Sales 942,200 102,600 1,044,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2020: Revenues $ 1,800,700 $ 335,500 $ 2,136,200 Foreign Sales 743,000 335,000 1,078,000 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Nine Months Ended March 31, 2021: Revenues $ 6,803,300 $ 441,800 $ 7,245,100 Foreign Sales 2,724,800 395,000 3,119,800 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Nine Months Ended March 31, 2020: Revenues $ 5,320,300 $ 914,200 $ 6,234,500 Foreign Sales 1,996,400 913,700 2,910,100 | Benchtop Laboratory Equipment Bioprocessing Corporate and Other Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ — $ 7,784,400 Foreign Sales 2,589,800 1,000,400 586,500 4,176,700 Benchtop Laboratory Equipment Bioprocessing Corporate and Other Consolidated June 30, 2019: Revenues $ 7,078,800 $ 1,306,100 $ — 8,384,900 Foreign Sales 2,680,300 1,301,200 1,102,300 5,083,800 |
Segment Information and Conce_2
Segment Information and Concentrations (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||
Segment information | Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended March 31, 2021: Revenues $ 2,365,700 $ 142,900 $ - $ 2,508,600 Foreign Sales 942,200 102,600 1,044,800 Income (Loss) From Operations 774,600 (1,722,200 ) (911,200 ) (1,858,800 ) Assets 5,979,400 1,281,200 6,639,700 13,900,300 Long-Lived Asset Expenditures 18,600 92,100 - 110,700 Depreciation and Amortization 30,000 16,700 - 43,700 Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended March 31, 2020: Revenues $ 1,800,700 $ 335,500 $ - $ 2,136,200 Foreign Sales 743,000 335,000 - 1,078,000 Income (Loss) From Operations 138,800 (193,100 ) (180,700 ) (235,000 ) Assets 5,229,700 1,647,800 2,042,400 8,919,900 Long-Lived Asset Expenditures 4,900 11,700 - 16,600 Depreciation and Amortization 29,600 11,000 300 40,900 Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Nine Months Ended March 31, 2021: Revenues $ 6,803,300 $ 441,800 $ - $ 7,245,100 Foreign Sales 2,724,800 395,000 - 3,119,800 Income (Loss) From Operations 1,727,000 (2,996,300 ) (1,029,600 ) (2,298,900 ) Assets 5,979,400 1,281,200 6,639,700 13,900,300 Long-Lived Asset Expenditures 54,100 170,800 - 224,900 Depreciation and Amortization 79,700 46,500 500 126,700 Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Nine Months Ended March 31, 2020: Revenues $ 5,320,300 $ 914,200 $ - $ 6,234,500 Foreign Sales 1,996,400 913,700 - 2,910,100 Income (Loss) From Operations 331,300 (209,400 ) (180,700 ) (58,800 ) Assets 5,229,700 1,647,800 2,042,400 8,919,900 Long-Lived Asset Expenditures 26,800 31,300 - 58,100 Depreciation and Amortization 90,900 31,500 900 123,300 | Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ - $ 7,784,400 Foreign Sales 2,589,800 1,000,400 586,500 4,176,700 Income (Loss) From Operations 449,700 (727,500 ) (385,700 ) (663,500 ) Assets 12,232,600 546,100 2,018,700 14,797,400 Long-Lived Asset Expenditures 36,000 40,700 - 76,700 Depreciation and Amortization 116,900 42,700 1,300 160,900 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated June 30, 2019: Revenues $ 7,078,800 $ 1,306,100 $ - $ 8,384,900 Foreign Sales 2,680,300 $ 1,301,200 1,102,300 5,083,800 Income (Loss) From Operations 449,800 365,000 91,900 906,700 Assets 5,280,700 790,100 2,205,200 8,276,000 Long-Lived Asset Expenditures 194,500 15,700 2,200 212,400 Depreciation and Amortization 217,800 38,500 1,000 257,300 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||
Fair value inputs | Fair Value Measurements Using Inputs Considered as Fair Value at March 31, 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 627,500 $ 627,500 $ - $ - Investment securities 5,325,700 5,325,700 - - Total $ 5,953,200 $ 5,953,200 - $ - Liabilities: Contingent consideration $ 226,100 $ - $ - $ 226,100 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 | 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 Fair Value Measurements Using Inputs Considered as Fair Value at June 30, 2019 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 1,602,500 $ 1,602,500 $ - $ - Investment securities 330,900 330,900 - - Total $ 1,933,400 $ 1,933,400 $ - $ - Liabilities: Contingent consideration $ 618,000 $ - $ - $ 618,000 |
Analysis of changes in Level 3 financial liabilities | 2020 2019 Beginning balance $ 618,000 $ 408,000 Increase in contingent consideration liability 112,600 521,200 Payments and accruals (372,600 ) (311,200 ) Ending balance $ 358,000 $ 618,000 | |
Investments in marketable securitites | Cost Fair Value Unrealized Holding Gain (Loss) At March 31, 2021: Equity securities $ 102,200 $ 148,100 $ 45,900 Mutual and bond funds 5,169,700 5,177,600 7,900 $ 5,271,900 $ 5,325,700 $ 53,800 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 | Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2020: Equity securities $ 77,600 $ 101,900 $ 24,300 Mutual funds 250,300 229,900 (20,400 ) $ 327,900 $ 331,800 $ 3,900 Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2019: Equity securities $ 47,100 $ 72,000 $ 24,900 Mutual funds 292,300 258,900 (33,400 ) $ 339,400 $ 330,900 $ (8,500 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | ||
Inventories | March 31, 2021 June 30, 2020 Raw materials $ 2,191,200 $ 1,726,400 Work-in-process 74,100 35,700 Finished goods 619,900 778,900 $ 2,885,200 $ 2,541,000 | 2020 2019 Raw materials $ 1,726,400 $ 1,597,100 Work-in-process 35,700 77,700 Finished goods 778,900 708,800 $ 2,541,000 $ 2,383,600 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Useful Lives (Years) 2020 2019 Automobiles 5 $ 22,000 $ 22,000 Computer equipment 3-5 215,300 200,300 Machinery and equipment 3-7 847,500 823,400 Furniture and fixtures 4-10 142,300 138,500 Leasehold improvements 3-10 50,300 42,300 1,277,400 1,226,500 Less accumulated depreciation and amortization 999,100 910,400 $ 278,300 $ 316,100 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets | Useful Lives Cost Accumulated Amortization Net At March 31, 2021: Technology, trademarks 5/10 yrs. $ 364,700 $ 362,200 $ 2,500 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 120,000 94,400 25,600 Sublicense agreements 10 yrs. 294,000 275,600 18,400 Non-compete agreements 5 yrs. 282,000 282,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 287,800 212,800 75,000 $ 1,808,500 $ 1,687,000 $ 121,500 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 | Useful Lives Cost Accumulated Amortization Net At June 30, 2020: Technology, trademarks 5/10 yrs. $ 664,700 $ 662,000 $ 2,700 Trade names 6 yrs. 140,000 140,000 - Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 357,000 321,400 35,600 Sublicense agreements 10 yrs. 294,000 253,600 40,400 Non-compete agreements 5 yrs. 384,000 384,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 246,600 196,600 50,000 $ 2,406,300 $ 2,277,600 $ 128,700 Useful Lives Cost Accumulated Amortization Net At June 30, 2019: Technology, trademarks 5/10 yrs. $ 663,800 $ 661,700 $ 1,100 Trade names 6 yrs. 140,000 124,400 16,600 Websites 5 yrs. 210,000 210,000 - Customer relationships 9/10 yrs. 357,000 308,100 48,900 Sublicense agreements 10 yrs. 294,000 224,100 69,900 Non-compete agreements 5 yrs. 384,000 384,000 - IPR&D 3 yrs. 110,000 110,000 - Other intangible assets 5 yrs. 221,700 183,200 38,500 $ 2,380,500 $ 2,205,500 $ 175,000 |
Estimated future amortization expense of intangible assets | Year Ended June 30, 2021 $ 59,800 2022 36,800 2023 20,200 2024 8,400 2025 3,500 Total $ 128,700 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Fair value of contingent consideration | Year ended June 30, Amount 2021 $ 111,000 2022 95,000 2023 82,000 2024 70,000 $ 358,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Future minimum rental payments | Fiscal year ending June 30, Amount Remainder of 2021 $ 64,000 2022 260,300 2023 245,300 2024 195,900 2025 91,600 Total future minimum payments $ 857,100 Less: Imputed interest 71,500 Total Present Value of Operating Lease Liabilities $ 785,600 | Year ended June 30, Amount 2021 $ 234,300 2022 210,600 2023 198,900 2024 195,900 2025 91,600 Total future minimum payments $ 931,300 Less: Imputed interest 94,700 Total Present Value of Operating Lease Liabilities $ 836,600 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income tax reconciliation | 2020 2019 Computed “expected” income tax (benefit) $ (239,400 ) $ 161,700 Research and development credits (89,400 ) (24,300 ) Rate changes and NOL carrybacks (122,600) - Other, net 14,800 (12,800 ) Income tax expense (benefit) $ (436,600 ) $ 124,600 |
Deferred tax assets and liabilities | 2020 2019 Deferred tax assets: Amortization of intangible assets $ 329,700 $ 303,900 Research and development credits 89,400 Various accruals 150,700 173,600 Other 19,400 13,300 589,200 490,800 Deferred tax liability: Depreciation of property and amortization of goodwill (52,100 ) (59,700 ) Net deferred tax assets $ 537,100 $ 431,100 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Option activity | June 30, 2020 June 30, 2019 Weighted- Weighted- Average Average Exercise Exercise Shares Price Shares Price Shares under option: Outstanding, beginning of year 97,205 $ 3.24 92,000 $ 3.15 Granted 25,881 7.47 6,705 4.54 Exercised (24,000 ) 3.35 - - Forfeited (2,500 ) 3.08 1,500 3.27 Outstanding, end of year 96,586 $ 4.35 97,205 $ 3.24 Options exercisable at year-end 49,236 $ 3.29 50,167 $ 3.29 Weighted average fair value per share of options granted during the fiscal year $ 5.58 $ 1.79 |
Options outstanding | As of June 30, 2020 Options Outstanding As of June 30, 2020 Exercisable Weighted- Average Weighted- Weighted- Range Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price $ 5.35 - 11.30 25,881 9.87 $ 7.47 - $ 0.00 $ 2.91 - 4.65 70,705 6.46 $ 3.33 49,236 $ 3.29 96,586 49,236 As of June 30, 2019 Options Outstanding As of June 30, 2019 Exercisable Weighted- Average Weighted- Weighted- Range Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life (Years) Price Outstanding Price $ 2.91 - $ 3.08 70,500 7.81 $ 3.07 30,167 $ 2.80 $ 3.65 - $ 4.65 26,705 5.57 $ 4.02 20,000 $ 3.84 97,205 50,167 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Loss per common share | For the Three Month Period Ended March 31, 2021 For the Three Month Period Ended March 31, 2020 For the Nine Month Period Ended March 31, 2021 For the Nine Month Period Ended March 31, 2020 Weighted average number of common shares outstanding 2,861,607 1,502,773 2,861,376 1,497,567 Effect of dilutive securities - - - - Weighted average number of dilutive common shares outstanding 2,861,607 1,502,773 2,861,376 1,497,567 Basic and diluted earnings (loss) per common share Continuing operations $ (.51 ) $ (.15 ) $ (.61 ) $ (.05 ) Discontinued operations $ .01 $ (.06 ) $ (.20 ) $ (.20 ) Consolidated operations $ (.50 ) $ (.21 ) $ (.81 ) $ (.25 ) | 2020 2019 Weighted average common shares outstanding 1,515,103 1,494,112 Effect of dilutive securities - 18,066 Weighted average dilutive common shares outstanding 1,515,103 1,512,178 Basic and diluted earnings (loss) per common share: Continuing operations $ (.30 ) $ .49 Discontinued operations $ (.16 ) $ (.06 ) Consolidated operations $ (.46 ) $ .43 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Discontinued Operations | Assets: March 31, 2021 June 30, 2020 Cash $ 12,100 $ - Accounts receivable 109,300 - Inventories 3,200 343,700 Property and equipment, net - 1,400 Goodwill - 447,900 Discontinued operations $ 124,600 $ 793,000 Liabilities: March 31, 2021 June 30, 2020 Accounts payable $ 2,900 $ 20,100 Accrued expenses and taxes 45,000 120,700 Contract liabilities 16,500 69,000 Operating lease liabilities, current portion - 31,100 $ 64,400 $ 240,900 Three Months Ended Nine Months Ended March 31,2021 March 31,2020 March 31,2021 March 31,2020 Revenues $ 107,800 $ 241,800 $ 387,700 $ 420,000 Cost of goods sold 78,800 237,700 458,500 500,300 Gross profit 29,900 4,100 (70,800 ) (80,300 ) Selling, general and administrative expenses 12,600 103,700 282,200 280,000 Income (loss from operations) 16,400 (99,600 ) (353,000 ) (360,300 ) Loss on disposal - - (405,400 ) - Income (loss) before income tax benefit 16,400 (99,600 ) (758,400 ) (360,300 ) Income tax benefit, all deferred - (16,400 ) (179,900 ) (67,000 ) Net income (loss) attributable to discontinued operations $ 16,400 $ (83,200 ) $ (578,500 ) $ (293,300 ) | 2020 2019 Assets: Inventories $ 343,700 $ 208,700 Property and equipment, net 1,400 2,700 Goodwill 447,900 447,900 Discontinued operations $ 793,000 $ 659,300 June 30, 2020 June 30, 2019 Accounts payable $ 20,100 $ 84,500 Accrued expenses and taxes 120,700 177,500 Contract liabilities 69,000 — Operating lease liabilities, current portion 31,100 — $ 240,900 $ 262,000 Revenues $ 785,900 $ 1,814,900 Cost of goods sold 869,900 1,490,600 Gross profit (84,000 ) 324,300 Selling, general and administrative expenses 388,500 456,300 Loss from operations before income tax benefit (472,500 ) (132,000 ) (222,600 ) (36,000 ) Net loss attributable to discontinued operations $ (249,900 ) $ (96,000 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 2,508,600 | $ 2,136,200 | $ 7,245,100 | $ 6,234,500 | $ 7,784,400 | $ 8,384,900 |
Benchtop Laboratory Equipment | ||||||
Revenues | 2,365,700 | 1,800,700 | 6,803,300 | 5,320,300 | 6,783,600 | 7,078,800 |
Foreign sales | 942,200 | 743,000 | 2,724,800 | 1,996,400 | 2,589,800 | 2,680,300 |
Bioprocessing Systems | ||||||
Revenues | 142,900 | 335,500 | 441,800 | 914,200 | 1,000,800 | 1,306,100 |
Foreign sales | 102,600 | 335,000 | 395,000 | 913,700 | 1,000,400 | 1,301,200 |
Corporate and Other | ||||||
Revenues | 0 | 0 | 0 | 0 | 0 | 0 |
Foreign sales | 0 | 0 | 0 | 0 | 586,500 | 1,102,300 |
Consolidated | ||||||
Revenues | 2,508,600 | 2,136,200 | 7,245,100 | 6,234,500 | 7,784,400 | 8,384,900 |
Foreign sales | $ 1,044,800 | $ 1,078,000 | $ 3,119,800 | $ 2,910,100 | $ 4,176,700 | $ 5,083,800 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 2,508,600 | $ 2,136,200 | $ 7,245,100 | $ 6,234,500 | $ 7,784,400 | $ 8,384,900 |
Benchtop Laboratory Equipment | ||||||
Revenues | 2,365,700 | 1,800,700 | 6,803,300 | 5,320,300 | 6,783,600 | 7,078,800 |
Foreign sales | 942,200 | 743,000 | 2,724,800 | 1,996,400 | 2,589,800 | 2,680,300 |
Bioprocessing Systems | ||||||
Revenues | 142,900 | 335,500 | 441,800 | 914,200 | 1,000,800 | 1,306,100 |
Foreign sales | 102,600 | 335,000 | 395,000 | 913,700 | 1,000,400 | 1,301,200 |
Consolidated | ||||||
Revenues | 2,508,600 | 2,136,200 | 7,245,100 | 6,234,500 | 7,784,400 | 8,384,900 |
Foreign sales | $ 1,044,800 | $ 1,078,000 | $ 3,119,800 | $ 2,910,100 | $ 4,176,700 | $ 5,083,800 |
Segment Information and Conce_3
Segment Information and Concentrations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 2,508,600 | $ 2,136,200 | $ 7,245,100 | $ 6,234,500 | $ 7,784,400 | $ 8,384,900 |
Depreciation and Amortization and Impairment | 126,700 | 123,300 | 160,900 | 257,300 | ||
Benchtop Laboratory Equipment | ||||||
Revenues | 2,365,700 | 1,800,700 | 6,803,300 | 5,320,300 | 6,783,600 | 7,078,800 |
Foreign Sales | 942,200 | 743,000 | 2,724,800 | 1,996,400 | 2,589,800 | 2,680,300 |
Income (Loss) from Operations | 774,600 | 138,800 | 1,727,000 | 331,300 | 449,700 | 449,800 |
Assets | 5,979,400 | 5,229,700 | 5,979,400 | 5,229,700 | 12,232,600 | 5,280,700 |
Long-lived Asset Expenditures | 18,600 | 4,900 | 54,100 | 26,800 | 36,000 | 194,500 |
Depreciation and Amortization and Impairment | 30,000 | 29,600 | 79,700 | 90,900 | 116,900 | 217,800 |
Bioprocessing Systems | ||||||
Revenues | 142,900 | 335,500 | 441,800 | 914,200 | 1,000,800 | 1,306,100 |
Foreign Sales | 102,600 | 335,000 | 395,000 | 913,700 | 1,000,400 | 1,301,200 |
Income (Loss) from Operations | (1,722,200) | (193,100) | (2,996,300) | (209,400) | (727,500) | 365,000 |
Assets | 1,281,200 | 1,647,800 | 1,281,200 | 1,647,800 | 546,100 | 790,100 |
Long-lived Asset Expenditures | 92,100 | 11,700 | 170,800 | 31,300 | 40,700 | 15,700 |
Depreciation and Amortization and Impairment | 16,700 | 11,000 | 46,500 | 31,500 | 42,700 | 38,500 |
Corporate and Other | ||||||
Revenues | 0 | 0 | 0 | 0 | 0 | 0 |
Foreign Sales | 0 | 0 | 0 | 0 | 586,500 | 1,102,300 |
Income (Loss) from Operations | (911,200) | (180,700) | (1,029,600) | (180,700) | (385,700) | 91,900 |
Assets | 6,639,700 | 2,042,400 | 6,639,700 | 2,042,400 | 2,018,700 | 2,205,200 |
Long-lived Asset Expenditures | 0 | 0 | 0 | 0 | 0 | 2,200 |
Depreciation and Amortization and Impairment | 0 | 300 | 500 | 900 | 1,300 | 1,000 |
Consolidated | ||||||
Revenues | 2,508,600 | 2,136,200 | 7,245,100 | 6,234,500 | 7,784,400 | 8,384,900 |
Foreign Sales | 1,044,800 | 1,078,000 | 3,119,800 | 2,910,100 | 4,176,700 | 5,083,800 |
Income (Loss) from Operations | (1,858,800) | (235,000) | (2,298,900) | (58,800) | (663,500) | 906,700 |
Assets | 13,900,300 | 8,919,900 | 13,900,300 | 8,919,900 | 14,797,400 | 8,276,000 |
Long-lived Asset Expenditures | 110,700 | 16,600 | 224,900 | 58,100 | 76,700 | 212,400 |
Depreciation and Amortization and Impairment | $ 43,700 | $ 40,900 | $ 126,700 | $ 123,300 | $ 160,900 | $ 257,300 |
Segment Information and Conce_4
Segment Information and Concentrations (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Assets of disposal group | $ 124,600 | $ 1,227,900 | $ 124,600 | $ 1,227,900 | $ 793,000 | $ 659,300 |
Depreciation and amortization, discontinued operations | $ 0 | $ 300 | $ 500 | $ 900 | ||
Benchtop Laboratory Equipment | Three Customers | ||||||
Net sales | 26.00% | 16.00% | 23.00% | 17.00% | ||
Total revenues | 25.00% | 12.00% | 21.00% | 13.00% | ||
Benchtop Laboratory Equipment | Vortex-Genie 2 Mixer | ||||||
Net sales | 55.00% | 49.00% | 51.00% | 45.00% | ||
Total revenues | 52.00% | 37.00% | 47.00% | 36.00% | ||
Benchtop Laboratory Equipment | Torbal Scales Division | ||||||
Net sales | 20.00% | 24.00% | 23.00% | 27.00% | ||
Total revenues | 19.00% | 18.00% | 21.00% | 21.00% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Assets | |||||
Cash and cash equivalents | $ 627,500 | $ 7,559,700 | $ 739,400 | $ 1,602,500 | $ 1,053,100 |
Available for sale securities | 5,325,700 | 331,800 | 330,900 | ||
Total | 5,953,200 | 7,891,500 | 1,933,400 | ||
Liabilities: | |||||
Contingent consideration | 226,100 | 358,000 | 618,000 | $ 408,000 | |
Level 1 | |||||
Assets | |||||
Cash and cash equivalents | 627,500 | 7,559,700 | 1,602,500 | ||
Available for sale securities | 5,325,700 | 331,800 | 330,900 | ||
Total | 5,953,200 | 7,891,500 | 1,933,400 | ||
Liabilities: | |||||
Contingent consideration | 0 | 0 | 0 | ||
Level 2 | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Available for sale securities | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Liabilities: | |||||
Contingent consideration | 0 | 0 | 0 | ||
Level 3 | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Available for sale securities | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Liabilities: | |||||
Contingent consideration | $ 226,100 | $ 358,000 | $ 618,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 618,000 | $ 408,000 |
Increase in contingent consideration liability | 112,600 | 521,200 |
Payments | (372,600) | (311,200) |
Ending balance | $ 358,000 | $ 618,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details 2) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Cost | $ 5,271,900 | $ 327,900 | $ 339,400 |
Fair value | 5,325,700 | 331,800 | 330,900 |
Unrealized holding gain (loss) | 53,800 | 3,900 | (8,500) |
Equity Securities | |||
Cost | 102,200 | 77,600 | 47,100 |
Fair value | 148,100 | 101,900 | 72,000 |
Unrealized holding gain (loss) | 45,900 | 24,300 | 24,900 |
Mutual Funds | |||
Cost | 5,169,700 | 250,300 | 292,300 |
Fair value | 5,177,600 | 229,900 | 258,900 |
Unrealized holding gain (loss) | $ 7,900 | $ (20,400) | $ (33,400) |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 2,191,200 | $ 1,726,400 | $ 1,597,100 |
Work-in-process | 74,100 | 35,700 | 77,700 |
Finished goods | 619,900 | 778,900 | 708,800 |
Inventory | $ 2,885,200 | $ 2,541,000 | $ 2,383,600 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2021 | Jun. 30, 2019 | |
Property and equipment, gross | $ 1,277,400 | $ 1,226,500 | |
Less accumulated depreciation and amortization | 999,100 | 910,400 | |
Property and equipment, net | $ 278,300 | $ 383,700 | 316,100 |
Automobiles | |||
Useful lives | 5 years | ||
Property and equipment, gross | $ 22,000 | 22,000 | |
Computer equipment | |||
Property and equipment, gross | $ 215,300 | 200,300 | |
Computer equipment | Minimum | |||
Useful lives | 3 years | ||
Computer equipment | Maximum | |||
Useful lives | 5 years | ||
Machinery and equipment | |||
Property and equipment, gross | $ 847,500 | 823,400 | |
Machinery and equipment | Minimum | |||
Useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Useful lives | 7 years | ||
Furniture and fixtures | |||
Property and equipment, gross | $ 142,300 | 138,500 | |
Furniture and fixtures | Minimum | |||
Useful lives | 4 years | ||
Furniture and fixtures | Maximum | |||
Useful lives | 10 years | ||
Leasehold improvements | |||
Property and equipment, gross | $ 50,300 | $ 42,300 | |
Leasehold improvements | Minimum | |||
Useful lives | 3 years | ||
Leasehold improvements | Maximum | |||
Useful lives | 10 years |
Property and Equipment (Detai_2
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 88,700 | $ 67,300 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cost | $ 1,808,500 | $ 2,406,300 | $ 2,380,500 |
Accumulated amortization | 1,687,000 | 2,277,600 | 2,205,500 |
Net | 121,500 | 128,700 | 175,000 |
Technology, trademarks | |||
Cost | 364,700 | 664,700 | 663,800 |
Accumulated amortization | 362,200 | 662,000 | 661,700 |
Net | $ 2,500 | $ 2,700 | $ 1,100 |
Technology, trademarks | Minimum | |||
Useful life | 5 years | 5 years | 5 years |
Technology, trademarks | Maximum | |||
Useful life | 10 years | 10 years | 10 years |
Trade names | |||
Cost | $ 140,000 | $ 140,000 | $ 140,000 |
Accumulated amortization | 140,000 | 140,000 | 124,400 |
Net | $ 0 | $ 0 | $ 16,600 |
Useful life | 6 years | 6 years | 6 years |
Websites | |||
Cost | $ 210,000 | $ 210,000 | $ 210,000 |
Accumulated amortization | 210,000 | 210,000 | 210,000 |
Net | $ 0 | $ 0 | $ 0 |
Useful life | 5 years | 5 years | 5 years |
Customer relationships | |||
Cost | $ 120,000 | $ 357,000 | $ 357,000 |
Accumulated amortization | 94,400 | 321,400 | 308,100 |
Net | $ 25,600 | $ 35,600 | $ 48,900 |
Customer relationships | Minimum | |||
Useful life | 9 years | 9 years | 9 years |
Customer relationships | Maximum | |||
Useful life | 10 years | 10 years | 10 years |
Sublicense agreements | |||
Cost | $ 294,000 | $ 294,000 | $ 294,000 |
Accumulated amortization | 275,600 | 253,600 | 224,100 |
Net | $ 18,400 | $ 40,400 | $ 69,900 |
Useful life | 10 years | 10 years | 10 years |
Non-compete agreements | |||
Cost | $ 282,000 | $ 384,000 | $ 384,000 |
Accumulated amortization | 282,000 | 384,000 | 384,000 |
Net | $ 0 | $ 0 | $ 0 |
Useful life | 5 years | 5 years | 5 years |
IPR and D | |||
Cost | $ 110,000 | $ 110,000 | $ 110,000 |
Accumulated amortization | 110,000 | 110,000 | 110,000 |
Net | $ 0 | $ 0 | $ 0 |
Useful life | 3 years | 3 years | 3 years |
Other intangible assets | |||
Cost | $ 287,800 | $ 246,600 | $ 221,700 |
Accumulated amortization | 212,800 | 196,600 | 183,200 |
Net | $ 75,000 | $ 50,000 | $ 38,500 |
Useful life | 5 years | 5 years | 5 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 1) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2021 | $ 59,800 | ||
2022 | 36,800 | ||
2023 | 20,200 | ||
2024 | 8,400 | ||
2025 | 3,500 | ||
Total | $ 121,500 | $ 128,700 | $ 175,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 257,300 | $ 257,300 | $ 257,300 |
Total amortization expense | $ 72,000 | $ 190,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details 1) | Jun. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 111,000 |
2022 | 95,000 |
2023 | 82,000 |
2024 | 70,000 |
Total | $ 358,000 |
Leases (Details)
Leases (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
2021 | $ 64,000 | $ 234,300 |
2022 | 260,300 | 210,600 |
2023 | 245,300 | 198,900 |
2024 | 195,900 | 195,900 |
2025 | 91,600 | 91,600 |
Total future minimum payments | 857,100 | 931,300 |
Less: Imputed interest | 71,500 | 94,700 |
Total present value of operating lease liabilities | $ 785,600 | $ 836,600 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | |||
Weighted-average remaining lease term | 2 years 8 months 12 days | 2 years 8 months 12 days | 3 years 10 months 6 days |
Weighted-average discount rate | 5.00% | 5.00% | 5.00% |
Total cash payments under leases | $ 64,000 | $ 218,700 | $ 295,700 |
Lease expense | $ 59,900 | $ 211,100 | $ 293,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Computed "expected" income tax (benefit) | $ (239,400) | $ 161,700 |
Research and development credits | (89,400) | (24,300) |
Change in tax rate | (122,600) | 0 |
Other, net | 14,800 | (12,800) |
Income tax expense (benefit) | $ (436,600) | $ 124,600 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Deferred tax assets: | ||
Amortization of intangibles | $ 329,700 | $ 303,900 |
Research and development credits | 89,400 | 0 |
Various accruals | 150,700 | 173,600 |
Other | 19,400 | 13,300 |
Gross | 589,200 | 490,800 |
Deferred tax liability: | ||
Depreciation of property and amortization of goodwill | (52,100) | (59,700) |
Net deferred tax assets | $ 537,100 | $ 431,100 |
Stock Options (Details)
Stock Options (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Number of Options Outstanding, Beginning | 97,205 | 92,000 |
Number of Options Granted | 25,881 | 6,705 |
Number of Options Exercised | (24,000) | 0 |
Number of Options Forfeited | (2,500) | 1,500 |
Number of Options Outstanding, Ending | 96,586 | 97,205 |
Number of Options Exercisable | 49,236 | 50,167 |
Weighted Average Exercise Price Outstanding, Beginning | $ 3.24 | $ 3.15 |
Weighted Average Exercise Price Granted | 7.47 | 4.54 |
Weighted Average Exercise Price Exercised | 3.35 | 0 |
Weighted Average Exercise Price Forfeited | 3.08 | 3.27 |
Weighted Average Exercise Price Outstanding, Ending | 4.35 | 3.24 |
Weighted Average Exercise Price Exercisable | 3.29 | 3.29 |
Weighted average fair value per share of options granted | $ 5.58 | $ 1.79 |
Stock Options (Details 1)
Stock Options (Details 1) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Options Outstanding, Ending | 96,586 | 97,205 | 92,000 |
Weighted Average Exercise Price Outstanding, Ending | $ 4.35 | $ 3.24 | $ 3.15 |
Number of Options Exercisable | 49,236 | 50,167 | |
Weighted Average Exercise Price Exercisable | $ 3.29 | $ 3.29 | |
Exercise Price Range 5.35 - 11.30 | |||
Number of Options Outstanding, Ending | 25,881 | ||
Weighted Average Remaining Contractual Life | 9 years 10 months 13 days | ||
Weighted Average Exercise Price Outstanding, Ending | $ 7.47 | ||
Number of Options Exercisable | 0 | ||
Weighted Average Exercise Price Exercisable | $ .00 | ||
Exercise Price Range 2.91 - 4.65 | |||
Number of Options Outstanding, Ending | 70,705 | ||
Weighted Average Remaining Contractual Life | 6 years 5 months 16 days | ||
Weighted Average Exercise Price Outstanding, Ending | $ 3.33 | ||
Number of Options Exercisable | 49,236 | ||
Weighted Average Exercise Price Exercisable | $ 3.29 | ||
Exercise Price Range 3.65 to 4.65 | |||
Number of Options Outstanding, Ending | 70,500 | ||
Weighted Average Remaining Contractual Life | 7 years 9 months 22 days | ||
Weighted Average Exercise Price Outstanding, Ending | $ 3.07 | ||
Number of Options Exercisable | 30,167 | ||
Weighted Average Exercise Price Exercisable | $ 2.80 | ||
Exercise Price Range 2.91 to 3.08 | |||
Number of Options Outstanding, Ending | 26,705 | ||
Weighted Average Remaining Contractual Life | 5 years 6 months 25 days | ||
Weighted Average Exercise Price Outstanding, Ending | $ 4.02 | ||
Number of Options Exercisable | 20,000 | ||
Weighted Average Exercise Price Exercisable | $ 3.84 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Weighted average common shares outstanding | 2,861,607 | 1,502,773 | 2,861,376 | 1,497,567 | 1,515,103 | 1,494,112 |
Effect of dilutive securities | 0 | 0 | 0 | 0 | 0 | 18,066 |
Weighted average dilutive common shares outstanding | 2,861,607 | 1,502,773 | 2,861,376 | 1,497,567 | 1,515,103 | 1,512,178 |
Continuing operations (basic and fully diluted for each period) | $ (0.51) | $ (0.15) | $ (0.61) | $ (0.05) | $ (.30) | $ .49 |
Discontinued operations (basic for 2020 and 2019) | 0.01 | (0.06) | (0.20) | (0.20) | (.16) | (.06) |
Consolidated operations (basic for 2020; basic and fully diluted for 2019 | $ (0.50) | $ (0.21) | $ (0.81) | $ (0.25) | $ (.46) | $ .43 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Common stock issuable upon the exercise of stock options and warrants | 54,513 | 1,349,850 | ||
Common stock issuable upon the exercise of outstanding options | 0 | 1,600 | ||
Common shares | ||||
Antidilutive securities excluded | 259,357 | 259,357 | ||
Issuable upon exercise | ||||
Antidilutive securities excluded | 1,349,850 | 1,349,850 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||||
Cash | $ 12,100 | $ 12,100 | ||||
Accounts receivable | 109,300 | 109,300 | ||||
Inventories | 3,200 | 3,200 | 343,700 | 208,700 | ||
Property and equipment, net | 0 | 0 | 1,400 | 2,700 | ||
Goodwill | 0 | 0 | 447,900 | 447,900 | ||
Discontinued operations | 124,600 | $ 1,227,900 | 124,600 | $ 1,227,900 | 793,000 | 659,300 |
Accounts payable | 2,900 | 2,900 | 20,100 | 84,500 | ||
Accrued expenses and taxes | 45,000 | 45,000 | 120,700 | 177,500 | ||
Contract liabilities | 16,500 | 16,500 | 69,000 | 0 | ||
Operating lease liabilities, current portion | 0 | 0 | 31,100 | 0 | ||
Discontinued operations, liabilities | 64,400 | 64,400 | 240,900 | 262,000 | ||
Revenues | 107,800 | 241,800 | 387,700 | 420,000 | 785,900 | 1,814,900 |
Cost of goods sold | 78,800 | 237,700 | 458,500 | 500,300 | 869,900 | 1,490,600 |
Gross profit | 29,900 | 4,100 | (70,800) | (80,300) | (84,000) | 324,300 |
Selling, general and administrative expenses | 12,600 | 103,700 | 282,200 | 280,000 | 388,500 | 456,300 |
Income (Loss) from operations | 16,400 | (99,600) | (353,000) | (360,300) | ||
Loss on disposal | 0 | 0 | (405,400) | 0 | ||
Loss from operations before income tax benefit | 16,400 | (99,600) | (758,400) | (360,300) | (472,500) | (132,000) |
Income tax benefit, all deferred | 0 | (16,400) | (179,900) | (67,000) | ||
Net loss attributable to discontinued operations | $ 16,400 | $ (83,200) | $ (578,500) | $ (293,300) | $ (249,900) | $ (96,000) |
Discontinued Operations (Deta_2
Discontinued Operations (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Cash (used) and provided by operating activities | $ (502,900) | $ 17,900 |
Cash provided by investing activities | $ 440,000 | $ 0 |