SCND Swings to Profit on Genie Product Line Sale, Boosts Liquidity

TL;DR

**SCND's massive asset sale is a game-changer, injecting much-needed cash and turning a loss into a profit, making it a speculative buy for growth in bioprocessing.**

AI Summary

SCIENTIFIC INDUSTRIES INC (SCND) reported a significant turnaround for the nine months ended September 30, 2025, achieving a net income of $692,200, a substantial improvement from a net loss of $4,515,400 in the prior year. This positive shift was primarily driven by a $5,263,400 gain on the disposition of its Genie Product Line in August 2025. Revenues from continuing operations for the nine months decreased slightly to $3,427,100 from $3,514,600 year-over-year, while gross profit also declined to $1,363,000 from $1,551,500. Operating expenses saw a reduction, falling to $6,797,700 from $7,237,300, mainly due to lower general and administrative, selling, and research and development costs. The company's cash and cash equivalents more than doubled to $1,162,600 as of September 30, 2025, from $587,900 at December 31, 2024, largely due to $7,614,200 in proceeds from the Genie Product Line sale. Investment securities also surged to $7,131,100 from $1,985,000. Despite an accumulated deficit of $33,238,300, the company believes its current cash and investments are sufficient to fund operations for at least one year.

Why It Matters

This filing is critical for investors as SCIENTIFIC INDUSTRIES INC has historically faced recurring losses and cash outflows. The strategic divestiture of the Genie Product Line, generating over $5.2 million in gain and $7.6 million in cash proceeds, fundamentally alters the company's financial stability and liquidity profile, moving it from a going concern risk to a more secure position for at least the next year. This move allows SCND to focus on its Bioprocessing Systems Operations, a start-up stage business, potentially increasing its competitive edge in that niche. For employees, this could signal a more stable future, while customers might see a more focused product offering. The broader market will watch if this strategic pivot can lead to sustained profitability in its core bioprocessing segment.

Risk Assessment

Risk Level: medium — While the company generated significant cash from the sale of the Genie Product Line, it still faces an accumulated deficit of $33,238,300 as of September 30, 2025, and continues to generate negative cash flows from its continuing operations. The Bioprocessing Systems Operations, its strategic focus, is still in a 'start-up stage,' indicating inherent risks associated with new ventures and unproven profitability.

Analyst Insight

Investors should consider SCND as a speculative investment, acknowledging the improved liquidity from the asset sale but also the ongoing operational losses in its core bioprocessing business. Monitor future filings closely for signs of profitability and growth in the Bioprocessing Systems Operations to determine if the strategic pivot is successful.

Financial Highlights

debt To Equity

0.17

revenue

$3,427,100

operating Margin

N/A

total Assets

$14,557,400

total Debt

$2,095,700

net Income

$692,200

eps

N/A

gross Margin

39.8%

cash Position

$1,162,600

revenue Growth

-2.5%

Key Numbers

• $692,200 — Net Income (For the nine months ended September 30, 2025, a significant turnaround from a $4,515,400 net loss in the prior year.)
• $5,263,400 — Gain on disposition of Genie Product Line (Major contributor to net income for the nine months ended September 30, 2025.)
• $1,162,600 — Cash and cash equivalents (As of September 30, 2025, more than double from $587,900 at December 31, 2024.)
• $7,131,100 — Investment securities (As of September 30, 2025, a substantial increase from $1,985,000 at December 31, 2024.)
• $7,614,200 — Proceeds from gain on sale of Genie Product Line (Cash inflow from investing activities for the nine months ended September 30, 2025.)
• $3,427,100 — Revenues from continuing operations (For the nine months ended September 30, 2025, a slight decrease from $3,514,600 in the prior year.)
• $33,238,300 — Accumulated deficit (As of September 30, 2025, indicating historical losses despite recent net income.)
• $4,390,700 — Net cash used in continuing operations (For the nine months ended September 30, 2025, highlighting ongoing operational cash burn.)

Key Players & Entities

• SCIENTIFIC INDUSTRIES INC (company) — Registrant and primary entity
• Genie Product Line (company) — Discontinued operations sold in August 2025
• Scientific Bioprocessing Holdings, Inc. (company) — Wholly-owned subsidiary
• Scientific Bioprocessing, Inc. (company) — Subsidiary focused on bioprocessing
• aquila biolabs GmbH (company) — German subsidiary designing bioprocessing products
• FASB (regulator) — Financial Accounting Standards Board
• SEC (regulator) — Securities and Exchange Commission
• Bloomberg (company) — Financial news organization

FAQ

Risk Factors

• Dependence on Sale of Assets for Profitability [medium — financial]: The company's net income for the nine months ended September 30, 2025, was heavily influenced by a $5,263,400 gain on the disposition of its Genie Product Line. This indicates a potential over-reliance on asset sales rather than core operational performance for profitability, posing a risk if such opportunities are not repeatable.
• Declining Revenues from Continuing Operations [medium — operational]: Revenues from continuing operations decreased to $3,427,100 for the nine months ended September 30, 2025, from $3,514,600 in the prior year. This trend, coupled with a decline in gross profit from $1,551,500 to $1,363,000, suggests potential challenges in the core business segments.
• Significant Accumulated Deficit [medium — financial]: Despite recent gains, the company maintains a substantial accumulated deficit of $33,238,300 as of September 30, 2025. This reflects a history of losses and could impact future financing or investor confidence.
• Ongoing Operating Cash Burn [medium — operational]: For the nine months ended September 30, 2025, the company reported net cash used in continuing operations of $4,390,700. While mitigated by asset sale proceeds, this ongoing operational cash burn requires careful management and strategic planning.
• Reduced Intangible Assets [low — financial]: Other intangible assets, net, decreased from $746,000 at December 31, 2024, to $449,300 at September 30, 2025. This reduction may be due to amortization or impairment, which could signal a decrease in the value of certain acquired assets.

Industry Context

SCIENTIFIC INDUSTRIES INC operates in the scientific equipment and laboratory product manufacturing sector. This industry is characterized by innovation, demand for precision instruments, and a customer base in research, healthcare, and industrial sectors. Competition can be intense, with established players and niche manufacturers vying for market share. Trends include automation, digitalization, and the development of more sophisticated analytical tools.

Regulatory Implications

As a publicly traded company, SCIENTIFIC INDUSTRIES INC is subject to SEC regulations and reporting requirements. Compliance with accounting standards (GAAP) is crucial for accurate financial reporting. Any specific regulations related to the manufacturing or sale of its laboratory equipment would also need to be adhered to, though no specific regulatory risks are detailed in this section of the 10-Q.

What Investors Should Do

1. Monitor core business performance
2. Evaluate the use of increased cash and investments
3. Assess the reduction in operating expenses

Key Dates

• 2025-08-01: Disposition of Genie Product Line — Generated a significant gain of $5,263,400, substantially improving net income for the nine-month period and providing a cash inflow of $7,614,200.
• 2025-09-30: End of Nine-Month Period — Reported net income of $692,200, a turnaround from a net loss in the prior year, with cash and cash equivalents more than doubling to $1,162,600.
• 2024-12-31: End of Fiscal Year — Company had $587,900 in cash and cash equivalents and an accumulated deficit of $33,930,500.

Glossary

Accumulated deficit

The total cumulative net losses of a company since its inception that have not been offset by net income or additional paid-in capital. (Indicates the company's historical unprofitability, despite recent positive net income from an asset sale.)

Gain on disposition

The profit realized from selling an asset or a business segment. (This was the primary driver of the company's net income for the nine months ended September 30, 2025.)

Continuing operations

The revenues and expenses related to the ongoing business activities of a company, excluding discontinued operations or divested segments. (Highlights the performance of the core business, which showed a slight revenue decline.)

Investment securities

Financial instruments that a company holds for investment purposes, such as stocks, bonds, or mutual funds. (Significantly increased, likely funded by proceeds from the asset sale, bolstering the company's financial position.)

Net cash used in continuing operations

The amount of cash consumed by the company's ongoing business activities during a specific period. (Shows that the core business is still burning cash, despite the overall positive net income.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, SCIENTIFIC INDUSTRIES INC has shown a dramatic improvement in net income, turning a $4,515,400 loss into a $692,200 profit, primarily due to the sale of its Genie Product Line. While revenues from continuing operations saw a slight decrease from $3,514,600 to $3,427,100, and gross profit declined, operating expenses were reduced. The company's balance sheet reflects a much stronger liquidity position, with cash and cash equivalents more than doubling and investment securities surging, largely funded by the asset sale.

Filing Documents

• scnd_10q.htm (10-Q) — 1115KB
• scnd_ex311.htm (EX-31.1) — 11KB
• scnd_ex312.htm (EX-31.2) — 12KB
• scnd_ex321.htm (EX-32.1) — 4KB
• scnd_ex322.htm (EX-32.2) — 3KB
• 0001654954-25-013308.txt ( ) — 4855KB
• scnd-20250930.xsd (EX-101.SCH) — 38KB
• scnd-20250930_lab.xml (EX-101.LAB) — 234KB
• scnd-20250930_cal.xml (EX-101.CAL) — 51KB
• scnd-20250930_pre.xml (EX-101.PRE) — 191KB
• scnd-20250930_def.xml (EX-101.DEF) — 91KB
• scnd_10q_htm.xml (XML) — 920KB

- Financial Information

PART I - Financial Information Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations and Comprehensive Loss 4 Condensed Consolidated Statements of Changes in Shareholders' Equity 5 Condensed Consolidated Statements of Cash Flows 6 Notes to Unaudited Condensed Consolidated Financial Statements 7 Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 17 Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 20 Item 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 20

- Other Information

PART II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A.

Risk Factors

Risk Factors 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 22 SIGNATURE 23 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS As of September 30, 2025 As of December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 1,162,600 $ 587,900 Investment securities 7,131,100 1,985,000 Trade accounts receivable, less allowance for doubtful accounts of $ 15,600 at September 30, 2025 and December 31, 2024 677,600 589,000 Inventories 2,044,000 2,059,200 Income tax receivable 73,600 73,600 Prepaid expenses and other current assets 691,800 261,600 Current Assets of Discontinued Operations 108,000 2,731,400 Total current assets 11,888,700 8,287,700 Property and equipment, net 765,600 769,500 Goodwill 115,300 115,300 Other intangible assets, net 449,300 746,000 Inventories 505,700 509,500 Operating lease right-of-use assets 773,600 947,900 Other assets 59,200 63,100 Noncurrent Assets of Discontinued Operations - 121,800 Total assets $ 14,557,400 $ 11,560,800 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 515,100 $ 286,100 Accrued expenses 577,600 567,000 Contract liabilities 105,200 63,500 Lease liabilities, current portion 277,800 307,300 Liabilities of discontinued operations 77,800 523,100 Total current liabilities 1,553,500 1,747,000 Lease liabilities, less current portion 542,200 694,400 Total liabilities 2,095,700 2,441,400 Shareholders' equity: Common stock, $ 0.05 par value; 30,000,000 shares authorized; 11,928,599 , shares issued and outstanding at September 30, 2025 and 10,503,599 shares issued and outstanding at December 31, 2024 596,400 525,200 Additional paid-in capital 44,966,900 42,637,800 Accumulated other comprehensive gain (loss) 136,700 ( 113,100 ) Accumulated deficit ( 33,238,300 ) ( 33,930,500 ) Total shareholders' equity 12,461,700 9,119,400 Total liabiliti

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