☒ |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 04-2217279 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
80 Orville Drive, Suite 102, Bohemia, New York | 11716 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☐(Do not check if a smaller reporting company) | Smaller reporting company ☒ |
Emerging Growth |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act) | Yes☐ No ☒ |
PART I - Financial Information | ||
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | ||
Condensed Consolidated Balance Sheets | 2 | |
Condensed Consolidated Statements of Operations | 3 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | 4 | |
Condensed Consolidated Statements of Changes in | 5 | |
Condensed Consolidated Statements of Cash Flows | 6 | |
Notes to Unaudited Condensed Consolidated Financial Statements | 7 | |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | ||
CONTROLS AND PROCEDURES | 18 | |
PART II - Other Information | ||
OTHER INFORMATION | ||
EXHIBITS AND REPORTS ON FORM 8-K | ||
September 30, 2019 | June 30, 2019 | December 31, 2019 | June 30, 2019 | |
Current assets: | (Unaudited) | (Unaudited) | ||
Cash and cash equivalents | $1,259,700 | $1,602,500 | $1,044,000 | $1,602,500 |
Investment securities | 333,600 | 330,900 | 345,200 | 330,900 |
Trade accounts receivable, less allowance for doubtful accounts of $11,600 at September 30, and $15,000 at June 30, 2019 | 1,867,800 | 1,974,200 | ||
Trade accounts receivable, less allowance for doubtful accounts of $11,600 at December 31, 2019 and $15,000 at June 30, 2019 | 1,812,500 | 1,974,200 | ||
Inventories | 2,713,100 | 2,592,300 | 3,003,800 | 2,592,300 |
Prepaid expenses and other current assets | 93,500 | 91,200 | 62,500 | 91,200 |
Total current assets | 6,267,700 | 6,591,100 | 6,268,000 | 6,591,100 |
Property and equipment, net | 314,400 | 318,800 | 309,400 | 318,800 |
Intangible assets, net | 162,900 | 175,000 | 143,200 | 175,000 |
Goodwill | 705,300 | 705,300 | ||
Other assets | 59,200 | 54,700 | 56,000 | 54,700 |
Deferred taxes | 450,600 | 431,100 | 451,200 | 431,100 |
Operating lease right-of-use assets | 902,500 | - | 930,700 | - |
Total assets | $8,862,600 | $8,276,000 | $8,863,800 | $8,276,000 |
Current liabilities: | ||
Accounts payable | $457,200 | $569,000 |
Accrued expenses and taxes | 437,700 | 608,300 |
Contract liabilities | 62,000 | - |
Contingent consideration, current portion | 268,000 | 268,000 |
Bank overdraft | 9,400 | 140,000 |
Current portion of operating lease liabilities | 231,100 | - |
Total current liabilities | 1,465,400 | 1,585,300 |
Contingent consideration payable, less current portion | 350,000 | 350,000 |
Operating lease liabilities, less current portion | 738,000 | - |
Total liabilities | 2,553,400 | 1,935,300 |
Shareholders’ equity: | ||
Common stock, $.05 par value; authorized 7,000,000 shares; issued 1,515,914 shares and 1,513,914, outstanding 1,496,112 and 1,494,112 shares at September 30 and June 30, 2019 | 75,800 | 75,700 |
Additional paid-in capital | 2,617,300 | 2,592,700 |
Retained earnings | 3,668,500 | 3,724,700 |
6,361,600 | 6,393,100 | |
Less common stock held in treasury at cost, 19,802 shares | 52,400 | 52,400 |
Total shareholders’ equity | 6,309,200 | 6,340,700 |
Total liabilities and shareholders’ equity | $8,862,600 | $8,276,000 |
Current liabilities: | ||
Accounts payable | $474,700 | $569,000 |
Accrued expenses and taxes | 338,500 | 608,300 |
Contract liabilities | 104,000 | - |
Contingent consideration, current portion | 268,000 | 268,000 |
Bank overdraft | - | 140,000 |
Current portion of operating lease liabilities | 142,700 | - |
Total current liabilities | 1,327,900 | 1,585,300 |
Contingent consideration payable, less current portion | 350,000 | 350,000 |
Operating lease liabilities, less current portion | 855,400 | - |
Total liabilities | 2,533,300 | 1,935,300 |
Shareholders’ equity: | ||
Common stock, $.05 par value; authorized 7,000,000 shares; issued 1,522,575 and 1,513,914 shares, and 1,502,773 and 1,494,112 shares outstanding at December 31, 2019 and June 30, 2019 | 76,100 | 75,700 |
Additional paid-in capital | 2,634,700 | 2,592,700 |
Retained earnings | 3,672,100 | 3,724,700 |
6,382,900 | 6,393,100 | |
Less common stock held in treasury at cost, 19,802 shares | 52,400 | 52,400 |
Total shareholders’ equity | 6,330,500 | 6,340,700 |
Total liabilities and shareholders’ equity | $8,863,800 | $8,276,000 |
For the Three Month Period Ended September 30, 2019 | For the Three Month Period Ended September 30, 2018 | |
Revenues | $2,004,200 | $2,038,600 |
Cost of revenues | 1,023,800 | 1,092,900 |
Gross profit | 980,400 | 945,700 |
Operating expenses: | ||
General and administrative | 510,200 | 416,500 |
Selling | 309,100 | 236,100 |
Research and development | 236,600 | 117,400 |
Total operating expenses | 1,055,900 | 770,000 |
Income (loss) from operations | (75,500) | 175,700 |
Other income (expense): | ||
Other income (expense), net | (200) | 2,200 |
Interest expense | - | (400) |
Total other income (expense), net | (200) | 1,800 |
Income (loss) before income tax expense (benefit) | (75,700) | 177,500 |
Income tax expense (benefit): | ||
Current | - | 29,500 |
Deferred | (19,500) | 6,000 |
Total income tax expense (benefit) | (19,500) | 35,500 |
Net income (loss) | $(56,200) | $142,000 |
Basic earnings (loss) per common share | $(.04) | $.10 |
Diluted earnings (loss) per common share | $(.04) | $.09 |
For the Three Month Period Ended December 31, | For the Three Month Period Ended December 31, | For the Six Month Period Ended December 31, | For the Six Month Period Ended December 31, | |
2019 | 2018 | 2019 | 2018 | |
Revenues | $2,272,300 | $2,163,200 | $4,276,500 | $4,201,800 |
Cost of revenues | 1,180,800 | 1,187,500 | 2,204,600 | 2,280,400 |
Gross profit | 1,091,500 | 975,700 | 2,071,900 | 1,921,400 |
Operating expenses: | ||||
General and administrative | 510,100 | 462,100 | 1,020,300 | 878,600 |
Selling | 330,500 | 248,200 | 639,600 | 484,300 |
Research and development | 260,000 | 109,400 | 496,600 | 226,700 |
Total operating expenses | 1,100,600 | 819,700 | 2,156,500 | 1,589,600 |
Income (loss) from operations | (9,100) | 156,000 | (84,600) | 331,800 |
Other income (expense): | ||||
Interest income | 9,200 | 2,500 | 9,700 | 2,800 |
Other income (expense), net | 2,900 | (9,300) | 2,200 | (7,400) |
Interest expense | - | (400) | (800) | |
Total other income (expense), net | 12,100 | (7,200) | 11,900 | (5,400) |
Income (loss) before income tax expense (benefit) | 3,000 | 148,800 | (72,700) | 326,400 |
Income tax expense (benefit): | ||||
Current | - | 24,400 | - | 53,900 |
Deferred | (600) | 6,000 | (20,100) | 12,000 |
Total income tax expense (benefit) | (600) | 30,400 | (20,100) | 65,900 |
Net income (loss) | $3,600 | $118,400 | $(52,600) | $260,500 |
Basic earnings (loss) per common share | $.00 | $.08 | $(.04) | $.17 |
Diluted earnings (loss) per common share | $.00 | $.08 | $(.04) | $.17 |
Cash dividends declared per common share | $.00 | $.05 | $.00 | $.05 |
For the Three Month Period Ended September 30, 2019 | For the Three Month Period Ended September 30, 2018 | For the Three Month Period Ended December 31, 2019 | For the Three Month Period Ended December 31, 2018 | For the Six Month Period Ended December 31, 2019 | For the Six Month Period Ended December 31, 2018 | |
Net income (loss) | $(56,200) | $142,000 | $3,600 | $118,400 | $(52,600) | $260,500 |
Other comprehensive loss: | ||||||
Unrealized holding loss | ||||||
arising during period, | ||||||
net of tax | - | (18,100) | - | (2,900) | - | (21,000) |
Comprehensive income (loss) | $(56,200) | $123,900 | $3,600 | $115,500 | $(52,600) | $239,500 |
Additional | Accumulated Other | Total | Additional | Accumulated Other | Total | |||||||||||
Common Stock | Paid-in | Comprehensive | Retained | Treasury Stock | Shareholders’ | Common Stock | Paid-in | Comprehensive | Retained | Treasury Stock | Shareholders’ | |||||
Fiscal Year 2020 | Shares | Amount | Capital | Gain (Loss) | Earnings | Shares | Amount | Equity | ||||||||
Fiscal Year 2020: | Shares | Amount | Capital | Gain (Loss) | Earnings | Shares | Amount | Equity | ||||||||
Balance, July 1, 2019 | 1,513,914 | $75,700 | $2,592,700 | $- | $3,724,700 | 19,802 | $52,400 | $6,340,700 | 1,513,914 | $75,700 | $2,592,700 | $- | $3,724,700 | 19,802 | $52,400 | $6,340,700 |
Net loss | - | (56,200) | - | (56,200) | - | (56,200) | - | (56,200) | ||||||||
Stock options exercised | 2,000 | 100 | 6,900 | - | - | 7,000 | 2,000 | 100 | 6,900 | - | 7,000 | |||||
Stock-based compensation | - | 17,700 | - | 17,700 | - | 17,700 | - | 17,700 | ||||||||
Balance, September 30, 2019 | 1,515,914 | $75,800 | $2,617,300 | $- | $3,668,500 | 19,802 | $52,400 | $6,309,200 | 1,515,914 | 75,800 | 2,617,300 | - | 3,668,500 | 19,802 | 52,400 | 6,309,200 |
Net income | - | 3,600 | - | 3,600 | ||||||||||||
Stock options exercised | 6,661 | 300 | (300) | - | ||||||||||||
Stock-based compensation | - | 17,700 | - | 17,700 | ||||||||||||
Balance, December 31, 2019 | 1,522,575 | $76,100 | $2,634,700 | $ - | $3,672,100 | 19,802 | $52,400 | $6,330,500 | ||||||||
Additional | Accumulated Other | Total | Additional | Accumulated Other | Total | |||||||||||
Common Stock | Paid-in | Comprehensive | Retained | Treasury Stock | Shareholders’ | Common Stock | Paid-in | Comprehensive | Retained | Treasury Stock | Shareholders’ | |||||
Fiscal Year 2019 | Shares | Amount | Capital | Gain (Loss) | Earnings | Shares | Amount | Equity | ||||||||
Fiscal Year 2019: | Shares | Amount | Capital | Gain (Loss) | Earnings | Shares | Amount | Equity | ||||||||
Balance, July 1, 2018 | 1,513,914 | $75,700 | $2,545,900 | $1,200 | $3,131,800 | 19,802 | $52,400 | $5,702,200 | 1,513,914 | $75,700 | $2,545,900 | $1,200 | $3,131,800 | 19,802 | $52,400 | $5,702,200 |
Cumulative effect of the adoption of | - | - | 22,000 | - | 22,000 | - | 22,000 | 22,000 | ||||||||
ASU 2016-01 – Financial Instruments | ||||||||||||||||
Net income | - | 142,000 | - | 142,000 | - | 142,000 | - | 142,000 | ||||||||
Cash dividend declared, $.05 | - | (74,700) | - | (74,700) | - | (74,700) | - | (74,700) | ||||||||
Unrealized holding loss on investment securities, net of tax | - | (18,100) | - | (18,100) | - | (18,100) | - | (18,100) | ||||||||
Stock-based compensation | - | 8,700 | - | 8,700 | - | 8,700 | - | 8,700 | ||||||||
Balance, September 30, 2018 | 1,513,914 | $75,700 | $2,554,600 | $(16,900) | $3,221,100 | 19,802 | $52,400 | $5,782,100 | 1,513,914 | 75,700 | 2,554,600 | (16,900) | 3,221,100 | 19,802 | 52,400 | 5,782,100 |
Net income | - | 118,400 | - | 118,400 | ||||||||||||
Unrealized holding loss on investment securities, net of tax | - | (2.900) | - | (2,900) | ||||||||||||
Stock-based compensation | - | 9,500 | - | 9,500 | ||||||||||||
Balance, December 31, 2018 | 1,513,914 | $75,700 | $2,564,100 | $(19,800) | $3,339,500 | 19,802 | $52,400 | $5,907,100 |
For the Six Month Period Ended December 31, | ||||
For the Three Month Period Ended September 30, 2019 | For the Three Month Period Ended September 30, 2018 | 2019 | 2018 | |
Operating activities: | ||||
Net income (loss) | $(56,200) | $142,000 | $(52,600) | $260,500 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Adjustments to reconcile net income (loss) provided by (used in) operating activities: | ||||
Gain (loss) on sale of investments | (3,100) | 5,000 | ||
Unrealized holding gain (loss) on investments | (1,200) | 3,300 | ||
Depreciation and amortization | 41,000 | 75,900 | 82,400 | 151,900 |
Deferred income taxes | (19,500) | 6,000 | (20,100) | 7,100 |
Stock-based compensation | 17,700 | 8,700 | 35,400 | 18,200 |
Loss on sale of investments | 800 | 5,000 | ||
Unrealized holding gain of investments | (2,300) | (6,400) | ||
Changes in operating assets and liabilities: | ||||
Trade accounts receivable | 106,400 | 254,100 | 161,700 | 227,600 |
Contract assets, current | - | 211,100 | ||
Right -of- use assets | (902,500) | - | ||
Lease liability | 969,100 | - | ||
Contract assets | - | 216,400 | ||
Inventories | (120,800) | (33,100) | (411,500) | (456,000) |
Prepaid and other assets | (6,800) | (33,500) | ||
Right - of- use assets | (930,700) | - | ||
Prepaid and other current assets | 27,400 | (67,900) | ||
Lease liabilities | 998,100 | - | ||
Accounts payable | (111,800) | (65,400) | (94,300) | 142,700 |
Contract liabilities | 62,000 | 12,100 | 104,000 | 50,500 |
Accrued expenses and taxes | (301,200) | (115,800) | (409,600) | (162,000) |
Total adjustments | (267,900) | 318,700 | (461,500) | 136,800 |
Net cash provided by (used in) operating activities | (324,100) | 460,700 | (514,100) | 397,300 |
Investing activities: | ||||
Redemption of investment securities | 51,900 | 75,100 | ||
Purchase of investment securities | (25,000) | (75,200) | (61,800) | (75,200) |
Redemption of investment securities | 23,800 | 72,500 | ||
Capital expenditures | (17,000) | (900) | (34,100) | (7,900) |
Purchase of other intangible assets | (7,500) | (1,300) | (7,400) | (6,300) |
Net cash used in investing activities | (25,700) | (4,900) | (51,400) | (14,300) |
Financing activities: | ||||
Proceeds from stock options exercised | 7,000 | - | 7,000 | - |
Cash dividend declared and paid | - | (74,700) | ||
Principal payments on notes payable | - | (1,600) | - | (3,300) |
Net cash provided by (used in) financing activities | 7,000 | (1,600) | 7,000 | (78,000) |
Net increase (decrease) in cash and cash equivalents | (342,800) | 454,200 | (558,500) | 305,000 |
Cash and cash equivalents, beginning of year | 1,602,500 | 1,053,100 | 1,602,500 | 1,053,100 |
Cash and cash equivalents, end of period | $1,259,700 | $1,507,300 | $1,044,000 | $1,358,100 |
Supplemental disclosures: | ||||
Cash paid during the period for: | ||||
Income taxes | $40,900 | $500 | $37,900 | $39,700 |
Interest | - | 400 | - | 800 |
Non-cash financing activities: | ||||
Issuance of 6,661 shares of the Company's Common Stock in cashless stock option exercises during the three and six months ended December 31, 2019. |
General: | The accompanying unaudited interim condensed consolidated financial statements are prepared pursuant to the Securities and Exchange Commission’s rules and regulations for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements are not included herein. The Company believes all adjustments necessary for a fair presentation of these interim statements have been included and that they are of a normal and recurring nature. These interim statements should be read in conjunction with the Company’s financial statements and notes thereto, included in its Annual Report on Form 10-K, for the fiscal year ended June 30, 2019. The results for the three and six months ended |
Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Consolidated | Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Consolidated | |
September 30, 2019: | ||||||||
Three Months Ended December 31, 2019: | ||||||||
Revenues | $1,576,200 | $138,700 | $289,300 | $2,004,200 | $1,943,400 | $39,500 | $289,400 | $2,272,300 |
Foreign Sales | 397,600 | 71,700 | - | 469,300 | 855,800 | 10,200 | 289,400 | 1,155,400 |
September 30, 2018: | ||||||||
Three Months Ended December 31, 2018: | ||||||||
Revenues | $1,691,900 | $217,500 | $129,200 | $2,038,600 | $1,803,100 | $227,200 | $132,900 | $2,163,200 |
Foreign Sales | 635,700 | 142,300 | - | 778,000 | 743,600 | 222,900 | 128,600 | 1,095,100 |
Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Consolidated | |
Six Months Ended December 31, 2019: | ||||
Revenues | $3,519,600 | $178,200 | $578,700 | $4,276,500 |
Foreign Sales | 1,253,400 | 81,900 | 578,700 | 1,914,000 |
Six Months Ended December 31, 2018: | ||||
Revenues | $3,495,100 | $444,600 | $262,100 | $4,201,800 |
Foreign Sales | 1,379,300 | 365,200 | 257,100 | 2,001,600 |
● | 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 |
Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Corporate And Other | Consolidated | Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Corporate And Other | Consolidated | |
Three Months Ended September 30, 2019: | ||||||||||
Three Months Ended December 31, 2019: | ||||||||||
Revenues | $1,576,200 | $138,700 | $289,300 | $- | $2,004,200 | $1,943,400 | $39,500 | $289,400 | $- | $2,272,300 |
Foreign Sales | 397,600 | 71,700 | - | 469,300 | 855,800 | 10,200 | 289,400 | - | 1,155,400 | |
Income (Loss) From Operations | 12,900 | (90,200) | 1,800 | - | (75,500) | 179,400 | (170,400) | (18,100) | - | (9,100) |
Assets | 5,589,400 | 1,400,900 | 1,088,100 | 784,200 | 8,862,600 | 5,551,100 | 1,166,300 | 1,350,000 | 796,400 | 8,863,800 |
Long-Lived Asset Expenditures | 7,800 | - | 16,700 | - | 24,500 | 14,100 | - | 2,900 | - | 17,000 |
Depreciation and Amortization | 30,500 | 400 | 10,100 | - | 41,000 | 30,800 | 200 | 10,400 | - | 41,400 |
Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Corporate And Other | Consolidated | Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Corporate And Other | Consolidated | |
Three Months Ended September 30, 2018: | ||||||||||
Three Months Ended December 31, 2018: | ||||||||||
Revenues | $1,691,900 | $217,500 | $129,200 | $- | $2,038,600 | $1,803,100 | $227,200 | $132,900 | $- | $2,163,200 |
Foreign Sales | 635,700 | 142,300 | - | 778,000 | 743,600 | 222,900 | 128,600 | - | 1,095,100 | |
Income (Loss) From Operations | 175,400 | (62,900) | 63,200 | - | 175,700 | 148,600 | (48,300) | 55,700 | - | 156,000 |
Assets | 4,633,500 | 1,343,100 | 623,500 | 709,300 | 7,309,400 | 4,762,000 | 1,376,100 | 727,300 | 693,300 | 7,558,700 |
Long-Lived Asset Expenditures | 2,200 | - | 2,200 | 10,800 | 1,200 | - | 12,000 | |||
Depreciation and Amortization | 66,300 | 200 | 9,400 | - | 75,900 | 66,400 | 200 | 9,400 | - | 76,000 |
Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Corporate And Other | Consolidated | |
Six Months Ended December 31, 2019: | |||||
Revenues | $3,519,600 | $178,200 | $578,700 | $- | $4,276,500 |
Foreign Sales | 1,253,400 | 81,900 | 578,700 | - | 1,914,000 |
Income (Loss) From Operations | 192,300 | (260,700) | (16,200) | - | (84,600) |
Assets | 5,551,100 | 1,166,300 | 1,350,000 | 796,400 | 8,863,800 |
Long-Lived Asset Expenditures | 21,900 | - | 19,600 | - | 41,500 |
Depreciation and Amortization | 61,300 | 600 | 20,500 | - | 82,400 |
Benchtop Laboratory Equipment | Catalyst Research Instruments | Bioprocessing Systems | Corporate And Other | Consolidated | |
Six Months Ended December 31, 2018: | |||||
Revenues | $3,495,100 | $444,600 | $262,100 | $- | $4,201,800 |
Foreign Sales | 1,379,300 | 365,200 | 257,100 | - | 2,001,600 |
Income (Loss) From Operations | 324,200 | (111,300) | 118,900 | - | 331,800 |
Assets | 4,762,000 | 1,376,100 | 727,300 | 693,300 | 7,558,700 |
Long-Lived Asset Expenditures | 13,000 | 1,200 | - | - | 14,200 |
Depreciation and Amortization | 132,700 | 400 | 18,800 | - | 151,900 |
Fair Value Measurements Using Inputs Considered as | Fair Value Measurements Using Inputs Considered as | |||||||
Fair Value at September 30, 2019 | Level 1 | Level 2 | Level 3 | Fair Value at December 31, 2019 | Level 1 | Level 2 | Level 3 | |
Assets: | ||||||||
Cash and cash equivalents | $1,259,700 | $- | $1,044,000 | $- | ||||
Investment securities | 333,600 | - | ||||||
Investment Securities | 345,200 | - | ||||||
Total | $1,593,300 | $- | $1,389,200 | $- | ||||
Liabilities: | ||||||||
Contingent consideration | $618,000 | $- | $618,000 | $618,000 | $- | $618,000 |
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 |
Cost | Fair Value | Unrealized Holding Gain (Loss) | |
At September 30, 2019: | |||
Equity securities | $71,300 | $96,500 | $25,200 |
Mutual funds | 246,600 | 237,100 | (9,500) |
$317,900 | $333,600 | $15,700 |
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) |
Cost | Fair Value | Unrealized Holding Gain (Loss) | |
At December 31, 2019: | |||
Equity securities | $79,500 | $109,500 | $30,000 |
Mutual funds | 251,000 | 235,700 | (15,300) |
$330,500 | $345,200 | $14,700 |
September 30, 2019 | June 30, 2019 | |
Raw materials | $1,737,500 | $1,738,300 |
Work-in-process | 229,900 | 106,400 |
Finished goods | 745,700 | 747,600 |
$2,713,100 | $2,592,300 |
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) |
December 31, 2019 | June 30,2019 | |
Raw materials | $1,927,500 | $1,738,300 |
Work-in-process | 340,400 | 106,400 |
Finished goods | 735,900 | 747,600 |
$3,003,800 | $2,592,300 |
Useful Lives | Cost | Accumulated Amortization | Net | Useful Lives | Cost | Accumulated Amortization | Net | |
At September 30, 2019: | ||||||||
At December 31, 2019: | ||||||||
Technology, trademarks | 5/10 yrs. | $663,800 | $661,800 | $2,000 | 5/10 yrs. | $663,800 | $661,800 | $2,000 |
Trade names | 6 yrs. | 140,000 | 130,300 | 9,700 | 6 yrs. | 140,000 | 136,200 | 3,800 |
Websites | 5 yrs. | 210,000 | - | 5 yrs. | 210,000 | - | ||
Customer relationships | 9/10 yrs. | 357,000 | 311,400 | 45,600 | 9/10 yrs. | 357,000 | 314,700 | 42,300 |
Sublicense agreements | 10 yrs. | 294,000 | 231,500 | 62,500 | 10 yrs. | 294,000 | 238,900 | 55,100 |
Non-compete agreements | 5 yrs. | 384,000 | - | 5 yrs. | 384,000 | - | ||
IPR&D | 3 yrs. | 110,000 | - | 3 yrs. | 110,000 | - | ||
Other intangible assets | 5 yrs. | 229,200 | 186,100 | 43,100 | 5 yrs. | 229,200 | 189,200 | 40,000 |
$2,388,000 | $2,225,100 | $162,900 | $2,388,000 | $2,244,800 | $143,200 |
Useful Lives | Cost | Accumulated Amortization | Net | |
At June 30, 2019: | ||||
Technology, trademarks | 5/10 yrs. | $663,800 | $661,700 | $2,100 |
Trade names | 6 yrs. | 140,000 | 124,400 | 15,600 |
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 |
Useful Lives | Cost | Accumulated Amortization | Net | |
At June 30, 2019: | ||||
Technology, trademarks | 5/10 yrs. | $663,800 | $661,700 | $2,100 |
Trade names | 6 yrs. | 140,000 | 124,400 | 15,600 |
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 |
For the Three Months Ended September 30, 2019 | For the Three Months Ended September 30, 2018 | |
Net income (loss) | $(56,200) | $142,000 |
Weighted average common shares outstanding | 1,494,212 | 1,494,112 |
Effect of dilutive securities | - | 3,897 |
Weighted average dilutive common shares outstanding | 1,494,212 | 1,498,009 |
Basic earnings (loss) per common share | (.04) | $.10 |
Diluted earnings (loss) per common share | (.04) | $.09 |
For the Three Month Period Ended December 31, 2019 | For the Three Month Period Ended December 31, 2018 | For the Six Month Period Ended December 31, 2019 | For the Six Month Period Ended December 31, 2018 | |
Net income (loss) | $3,600 | $118,400 | $(52,600) | $260,500 |
Weighted average common shares outstanding | 1,499,396 | 1,494,112 | 1,496,718 | 1,494,112 |
Effect of dilutive securities | 58,330 | 18,839 | - | 11,368 |
Weighted average dilutive common shares outstanding | 1,557,726 | 1,512,951 | 1,496,718 | 1,505,480 |
Basic earnings (loss) per common share | $.00 | $.08 | $(.04) | $.17 |
Diluted earnings (loss) per common share | $.00 | $.08 | $(.04) | $.17 |
Fiscal year ending June 30, | Amount (1) | |
Remainder of 2020 | $208,800 | |
2021 | 222,500 | |
2022 | 184,600 | |
2023 | 190,200 | |
2024 | 195,900 | |
2025 | 91,600 | |
Total future minimum payments | 1,093,600 | |
Less: Imputed interest | 124,500 | |
Total Present Value of Operating Lease Liabilities | 969,100 |
Fiscal year ending June 30, | Amount |
Remainder of 2020 | $153,900 |
2021 | 265,800 |
2022 | 210,600 |
2023 | 198,900 |
2024 | 195,900 |
2025 | 91,600 |
Total future minimum payments | 1,116,700 |
Less: Imputed interest | 118,600 |
Total Present Value of Operating Lease Liabilities | 998,100 |
Exhibit Number | Description | |
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
Monthly Retainer Agreement between the Company and Mr. Joseph Cremonese and affiliates |
Date: | SCIENTIFIC INDUSTRIES, INC. (Registrant) /s/ Helena R. Santos | |
Helena R. Santos President, Chief Executive Officer, Treasurer Chief Financial and Principal Accounting Officer |