About Scientific Industries

Scientific Industries, Inc., along with its subsidiaries, engages in the design, manufacture, and marketing of standard benchtop laboratory equipment (Benchtop Laboratory Equipment). The company, through its wholly-owned subsidiary, Scientific Bioprocessing Holdings, Inc., a Delaware corporation (SBHI), engages in the design, manufacture, and marketing of bioprocessing systems and products (Bioprocessing Systems). SBHI has two wholly-owned subsidiaries - Scientific Bioprocessing, Inc., a Delaware corporation (SBI), and aquila biolabs GmbH, a German corporation (Aquila). The company's products are used primarily for research purposes by universities, pharmaceutical companies, pharmacies, national laboratories, medical device manufacturers, and other industries performing laboratory-scale research. Segments The company views its operations as two segments: the manufacture and marketing of standard Benchtop Laboratory Equipment, which includes various types of equipment used for research and sample preparation in university, pharmacy and industrial laboratories sold primarily through laboratory equipment distributors and online; and the design, development, manufacture and marketing of bioprocessing products, principally products incorporating smart sensors and state of the art software analytics, sold primarily on a direct basis through the company's internal sales force. Products Benchtop Laboratory Equipment The company's Benchtop Laboratory Equipment products consist of mixers and shakers, rotators/rockers, refrigerated and shaking incubators, and magnetic stirrers sold under the 'Genie' division, and pharmacy and laboratory balances and scales, force gauges, automated pill counters and moisture analyzers under the 'Torbal' division. Sale of the company's principal product, the Vortex-Genie 2 Mixer, excluding accessories, represented approximately 38% of the company's total net revenues for the six-month periods ended December 31, 2022. The company's vortex mixer is used to mix the contents of test tubes, beakers, and other various containers by placing such containers on a rotating cup or other attachments which cause the contents to be mixed at varying speeds. The company's additional mixers and shakers include a high-speed touch mixer, a mixer with an integral timer, a patented cell disruptor, microplate mixers, two vortex mixers incorporating digital control and display, a large capacity multi-vessel vortex mixer, and a line of various orbital shakers. The company also offers various benchtop multi-purpose rotators and rockers, designed to rotate and rock a wide variety of containers, and a refrigerated incubator and incubated shakers, which are multi-functional benchtop environmental chambers designed to perform various shaking and stirring functions under controlled environmental conditions. The company's line of magnetic stirrers includes a patented high/low programmable magnetic stirrer, a four-place high/low programmable magnetic stirrer, a large volume magnetic stirrer, and a four-place general purpose stirrer. The company's Torbal division line of products includes pharmacy, laboratory, and industrial digital scales, moisture analyzers, mechanical and VIVID automated pill counters, force gauges and test stands. Bioprocessing Systems SBHI, through its two wholly-owned subsidiaries, SBI and Aquila, engages in the design, development, manufacture and marketing of bioprocessing products, principally products incorporating smart sensors and state of the art software analytics. Products offered for sale include the Cell Growth Quantifier ('CGQ') for Biomass monitoring in shake flasks, the Liquid Injection System ('LIS') for automated feeding in shake flasks, and a line of coaster systems and flow-through cells for pH and DO monitoring and analytical software. The company, through SBI, sublicensed certain patents and technology it holds relating to bioprocessing products exclusively under a license with the University of Maryland, Baltimore County ('UMBC'), for which it received royalties for patents that expired in August 2021. Product Development The company designs and develops substantially all of its products. The company engages outside consultants to augment its internal engineering capabilities in areas, such as industrial and electronics design. Major Customers Sales to three customers, principally of the Vortex-Genie 2 Mixer, represented 32% of total net revenues for the six-month periods ended December 31, 2022. The three customers also represented 36% of Benchtop Laboratory Equipment product sales, for the six-month periods ended December 31, 2022. Marketing Benchtop Laboratory Equipment The company's Benchtop Laboratory Equipment products sold under the 'Genie' brand are generally distributed and marketed through an established network of domestic and overseas laboratory equipment distributors who sell its products through websites, printed catalogs and sales force. The company's 'Torbal' brand weighing products are primarily marketed and sold online, and primarily on a direct basis, with only a few distributors. The company's VIVID brand, automated pill counter is sold through two exclusive distributors in North America. The company markets its products through online and trade publication advertising, brochures and catalogs, the company's websites, one sales manager in the U.S., a consultant in Europe and, when practicable, attendance at industry trade shows. Bioprocessing Systems The company's Bioprocessing Systems products are marketed under a newly created marketing category 'Digitally Simplified Bioprocessing' through a direct sales force consisting of ten sales professionals and application scientists plus one distributor. Sales are supported via marketing through websites, content creation, application notes, mailings, trade shows, online marketing campaigns, and membership in various public/private research partnerships. Assembly and Production The company has facilities in Bohemia, New York and Orangeburg, New York where it conducts the Benchtop Laboratory Equipment operations. The company also has an operating facility in Pittsburgh, Pennsylvania and in Baesweiller, Germany, where it conducts the Bioprocessing Systems operations. The company's production operations principally involve assembly of components supplied by various domestic and international independent suppliers. Patents, Trademarks and Licenses The company holds several patents relating to its benchtop laboratory products, which include a United States patent expiring in November 2022 on the MagStir Genie and on the MultiMagStir Genie, another patent that relates to its Vortex-Genie Pulse expiring in January 2036, and a patent relating to Torbal's VIVID automated pill counter, which expires in March 2039. The company's Bioprocessing Systems operations' Aquila subsidiary holds two U.S. patents relating to bioprocessing, which expire in January 2035 and February 2038, respectively. In addition, Aquila holds several European and German patents and Patent Cooperation Treaty (the 'PCT') patents, and has several other patent applications pending in the United States, Europe, and under the PCT. The company has various proprietary trademarks, including aquila biolabs (in Germany), Bead Genie, Disruptor Beads, Disruptor Genie, DOTS, Enviro-Genie, Genie, Genie Temp-Shaker, Incubator Genie, MagStir Genie, MegaMag Genie, MicroPlate Genie, MultiMagStir Genie, Multi-MicroPlate Genie, Orbital Genie, QuadMag Genie, Rotator Genie, Roto-Shake Genie, Torbal, TurboMix, VIVID, and Vortex-Genie, each of which it considers important to the success of the related product. The company also has several trademark applications pending with the United States Patent and Trademark Office. The company held an exclusive license from UMBC with respect to rights and know-how under a United States patent held by UMBC related to disposable sensor technology, which the company further sublicensed on an exclusive basis to a German company, and non-exclusive rights related to the use of the technology with vessels of sizes ranging from 250 milliliters to 5 liters. This patent and the company's related license expired in August 2021. Foreign Sales The company's sales to overseas customers, principally in Asia and Europe, accounted for approximately 34% of the company's net revenues for the six-month periods ended December 31, 2022. Competition The company's major competitors for its Genie brand Benchtop Laboratory Equipment are Henry Troemner, Inc. (a private label supplier to the two largest laboratory equipment distributors in the U.S. and Europe), IKA-Werke GmbH & Co. KG, a German company, Benchmark Scientific, Inc. (a United States importer of China-produced products), and Heidolph Instruments GmbH, a German company. The company's main competitors for its Torbal brand products are Ohaus Corporation, an American company, A&D Company Ltd., a Japanese company, Adam Equipment Co., Ltd., a British company, and Avery Weigh-Tronix, an American company for its VIVID brand automated pill counters. The major competitors for the company's Bioprocessing Systems products are ABER Instruments (United Kingdom), Hamilton (USA), Kuhner AG (Switzerland), Optek (Germany), PreSens GmbH (Germany), Eppendorf AG GmbH (Germany), and PyroScience (Germany). Research and Development For the year ended June 30, 2022, the company's research and development expenses included $2,873,300. History Scientific Industries, Inc., a Delaware corporation, was founded in 1954. The company was incorporated in 1954.