Scientific Industries Reports Financial Results for First Quarter of Fiscal Year 2022

Rhea-AI Summary

Scientific Industries (OTCQB:SCND) reported strong financial results for the first quarter of fiscal 2022, with net revenues reaching $2.9 million, a 41% increase from the previous year. Gross profit also rose to $1.5 million, marking a 43% growth. EBITDA for the Benchtop Laboratory Equipment division increased by 50% to $600,000. Despite these gains, the company incurred a net loss of $1.2 million, up from a loss of $263,300 in Q1 2021, largely due to heightened operating expenses in its Bioprocessing Systems Operations. The company’s cash and equivalents decreased to $12.3 million from $13.4 million in the previous quarter.

Positive

• Net revenues of $2.9 million for Q1 2022, a 41% increase YoY.
• Gross profit rose to $1.5 million, an increase of 43% YoY.
• EBITDA for Benchtop Laboratory Equipment increased by 50% to $600,000.

Negative

• Net loss of $1.2 million for Q1 2022, compared to a loss of $263,300 in Q1 2021.
• Loss from continuing operations before income tax benefit was $1.5 million, up from $189,200 the previous year.
• Increased operating expenses primarily due to product development and marketing costs.

Benchtop Lab Equipment Reports Record Revenues and Earnings

Company Focuses On Growth of Digitally Simplified Bioprocessing

BOHEMIA, NY / ACCESSWIRE / November 16, 2021 / Scientific Industries, Inc. (OTCQB:SCND), a life sciences tool provider, and a developer of digitally simplified bioprocessing products, yesterday reported financial results for the three months ended September 30, 2021.

2022 First Quarter Financial Highlights:

• Net revenues were $2.9 million for the first quarter of fiscal 2022, an increase of $.8 million, or 41%, compared to $2.1 million in the prior year period
• Gross profit was $1.5 million for the first quarter of fiscal 2022, an increase of $.5 million, or 43%, compared to $1.0 million in the prior year period
• Benchtop Laboratory Equipment EBITDA was $.6 million for the first quarter of fiscal 2022, an increase of $.2 million, or 50%, compared to $0.4 million in the prior year period
• Cash and cash equivalents and investments were $12.3 million at September 30, 2021, compared to $13.4 million at June 30, 2021
• Working capital was $15.5 million as of September 30, 2021 compared to $16.1 million as of June 30, 2021

Management Discussion

Helena Santos, Chief Executive Officer of Scientific Industries, stated, "Our strong first quarter performance in the Benchtop Laboratory Equipment Operations reflects continued momentum in our core business and the relevance of the Genie brand products. We had another quarter of double-digit revenue growth while maintaining our gross margins despite increased production costs."

John Moore, Chairman of Scientific Industries and President of Scientific Bioprocessing, Inc., ("SBI"), said, "We continue to execute on our long-term growth strategy, investing our resources to become the market leader for non-invasive online and real time monitoring for bioprocessing applications."

2022 First Quarter Financial Review

Net revenues for the three months ended September 30, 2021 increased $835,300, or 41.4% to $2,854,500 from $2,019,200 for the three months ended September 30, 2020, reflecting an increase of $599,600 in net sales of the Benchtop Laboratory Equipment Operations' Genie brand products, and an increase of $235,700 in net revenues of the Company's Bioprocessing Systems Operations, primarily due to net sales from its German subsidiary, aquila biolabs GmbH, which was acquired in the fourth quarter of fiscal year 2021. The Company realized a loss from continuing operations before income tax benefit of $1,532,300 for the three months ended September 30, 2021 compared to a loss of $189,200 for the three months ended September 30, 2020, primarily due to increased operating expenses incurred by its Bioprocessing Systems Operations, which included significant amounts for product development, sales and marketing, and non-cash compensation expenses related to stock options, partially offset by the record profits generated by increased sales of the Benchtop Laboratory Equipment Operations.

As a result of the above, the Company reflected a net loss of $1,208,800 (or $(0.19) per share) for the three months ended September 30, 2021 compared to a net loss of $263,300 (or $(0.09) per share) for the three months ended September 30, 2020 based on a weighted average number of shares outstanding of 6,458,143 shares and 2,861,263 shares for the three months ended September 30, 2021 and 2020, respectively.

Conference Call Details

Scientific Industries will conduct a conference call to discuss financial results for first quarter of fiscal 2022 on Monday, November 22, 2021, at 4:30 P.M. ET. Interested parties can access the conference call by dialing (877) 270-2148 or (412) 902-6510 (international). A webcast of the call will be available on the Company's Investor Relations page at https://www.scientificindustries.com/investor-relations/ or at https://www.webcaster4.com/Webcast/Page/2521/43769.

A replay of the call will be available through November 29, 2021 at (877) 344-7529 or (412) 317-0088 (international), confirmation #10162123, or for 30 days at https://www.scientificindustries.com/investor-relations/.

About Scientific Industries, Inc.

Scientific Industries (OTCQB:SCND), is a life science tool provider. It designs, manufactures, and markets laboratory equipment, including the world-renowned Vortex-Genie^® 2 Mixer and Torbal^® balances, and bioprocessing systems under the product name Cell Growth Quantifier and Liquid Injection System. Scientific Industries' products are generally used and designed for research purposes in laboratories of universities, hospitals, pharmaceutical companies, medical device manufacturers, and pharmacies. To learn more, visit www.scientificindustries.com.

About Scientific Bioprocessing, Inc.

Scientific Bioprocessing, Inc. ("SBI") is dedicated to providing state-of-the-art instruments, strategies, and technologies to expedite the production of viable cells and therapies with a streamlined process and product consistency. SBI's mission is to develop sensor technologies and instruments that make cell culture and bioprocessing work easier, experiments more reproducible, and culture conditions better suited to meet experimental objectives. SBI is a subsidiary of Scientific Industries Holdings, Inc. To learn more, visit www.scientificbio.com.

Safe Harbor Statement

Statements made in this press release that relate to future events, performance or financial results of the Company are forward-looking statements which involve uncertainties that could cause actual events, performance or results to materially differ. The Company undertakes no obligation to update any of these statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Accordingly, any forward-looking statement should be read in conjunction with the additional information about risks and uncertainties set forth in the Company's Securities and Exchange Commission reports, including our annual report on Form 10-K.

Company Contact:

Helena R. Santos
CEO and President
Phone: 631-567-4700
hsantos@scientificindustries.com
info@scientificindustries.com

or

Joe Dorame
Lytham Partners, LLC
Phone: (602) 889-9700
SCND@lythampartners.com

--FINANCIAL TABLES FOLLOW-

SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED BALANCE SHEETS (UNAUDITED)
	30-Sep-21				30-Jun-21
ASSETS
Cash and Cash Equivalents	$	5,268,700			$	9,675,200
Investment Securities		6,985,800				3,744,600
Other Current Assets		5,212,200				5,011,300
Intangibles Assets and Goodwill		6,814,300				6,953,200
Other Long Term Assets		3,933,300				3,622,100
Total Assets	$	28,214,300			$	29,006,400
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities	$	1,994,000			$	2,286,800
Long-Term Liabilities		492,600				494,800
Shareholders' Equity		25,727,700				26,224,800
Total Shareholders' Equity & Liabilities	$	28,214,300			$	29,006,400

SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
	30-Sep-21				30-Sep-20
Revenues	$	2,854,500			$	2,019,200
Gross Profit		1,513,600				1,056,700
Operating Expenses		3,038,000				1,257,400
Loss From Operations		(1,524,400	)			(200,700)
Total Other Income (Expense), Net		(7,900	)			11,500
Loss From Continuing Operations Before Income Tax (Benefit)		(1,532,300	)			(189,200
Income Tax (Benefit), Deferred		(322,600	)			(35,600)
Loss From Continuing Operations		(1,209,700	)			(153,600)
Gain (Loss) From Discontinued Operations, Net of Tax		900				(109,700)
Net Loss		(1,208,800	)			(263,300)
Other Comprehensive Gain		36,300				-
Comprehensive Loss	$	(1,172,500	)		$	(263,300)
Basic Loss Per Common Share:
Continuing Operations	$	(0.19	)		$	(0.05)
Discontinued Operations	$	-			$	(0.04)
Consolidated Operations	$	(0.19	)		$	(0.09)
Weighted average number of outstanding shares (basic):		6,458,143				2,861,263

SOURCE: Scientific Industries, Inc.

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FAQ

What were the net revenues for SCND in Q1 2022?

SCND reported net revenues of $2.9 million for the first quarter of fiscal 2022.

How did the gross profit for SCND change in Q1 2022?

Gross profit increased to $1.5 million, a 43% increase compared to the same quarter last year.

What was the net loss reported by SCND for Q1 2022?

SCND reported a net loss of $1.2 million for the first quarter of fiscal 2022.

What is the EBITDA for SCND's Benchtop Laboratory Equipment in Q1 2022?

EBITDA for the Benchtop Laboratory Equipment division increased by 50% to $600,000.

When will SCND hold its conference call to discuss financial results?

SCND will conduct a conference call on November 22, 2021, at 4:30 PM ET.