Cover
Cover | 9 Months Ended |
Mar. 31, 2022 | |
Cover [Abstract] | |
Entity Registrant Name | SCIENTIFIC INDUSTRIES, INC. |
Entity Central Index Key | 0000087802 |
Document Type | S-1 |
Amendment Flag | false |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Filer Category | Non-accelerated Filer |
Entity Incorporation State Country Code | DE |
Entity Tax Identification Number | 04-2217279 |
Entity Address Address Line 1 | 80 Orville Drive |
Entity Address Address Line 2 | Suite 102 |
Entity Address City Or Town | Bohemia |
Entity Address State Or Province | NY |
Entity Address Postal Zip Code | 11716 |
City Area Code | 631 |
Local Phone Number | 567-4700 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 4,068,000 | $ 9,675,200 | $ 7,559,700 |
Investment securities | 7,768,600 | 3,744,600 | 331,800 |
Trade accounts receivable, less allowance for doubtful accounts of $15,600 at March 31, 2022 and June 30, 2021 | 1,712,900 | 1,294,700 | 1,064,000 |
Inventories | 4,367,900 | 2,977,100 | 2,541,000 |
Income tax receivable | 161,100 | 333,300 | 334,800 |
Prepaid expenses and other current assets | 312,800 | 350,900 | 112,400 |
Assets of discontinued operations | 600 | 55,300 | 793,000 |
Total current assets | 18,391,900 | 18,431,100 | 12,736,700 |
Property and equipment, net | 566,900 | 412,600 | 278,300 |
Goodwill | 4,395,400 | 4,395,400 | 257,300 |
Intangible assets, net | 2,216,300 | 2,557,800 | 128,700 |
Other intangible assets, net | 2,216,300 | 2,557,800 | |
Deferred taxes | 3,445,300 | 2,489,900 | 537,100 |
Operating lease right-of-use assets | 1,448,600 | 665,300 | 803,300 |
Other assets | 62,400 | 54,300 | 56,000 |
Total assets | 30,526,800 | 29,006,400 | 14,797,400 |
Current liabilities: | |||
Accounts payable | 1,051,100 | 453,500 | 334,600 |
Accrued expenses | 661,100 | 633,500 | 679,000 |
Contract liabilities | 0 | 20,000 | |
Contingent consideration | 117,500 | 136,600 | 111,000 |
Bank overdraft | 40,600 | 321,700 | 43,100 |
Lease liabilities, current portion | 124,300 | 270,500 | 195,800 |
Paycheck Protection Program loan | 0 | 433,800 | 563,800 |
Liabilities of discontinued operations | 7,900 | 37,200 | 240,900 |
Total current liabilities | 2,002,500 | 2,286,800 | 2,188,200 |
Contingent consideration payable, less current portion | 0 | 23,400 | 247,000 |
Lease liabilities, less current portion | 1,388,100 | 460,500 | 640,800 |
Other long-term liabilities | 0 | 10,900 | 0 |
Total liabilities | 3,390,600 | 2,781,600 | 3,076,000 |
Shareholders' equity: | |||
Common stock, $.05 par value; 20,000,000 and 15,000,000 shares authorized; 7,023,401 and 6,477,945 shares issued; 7,003,599 and 6,458,143 shares outstanding at March 31, 2022 and June 30, 2021 | 351,200 | 324,000 | 144,100 |
Additional paid-in capital | 31,233,600 | 26,613,500 | 8,608,300 |
Accumulated comprehensive loss | (104,800) | (9,200) | 0 |
Accumulated deficit | (4,291,400) | (651,100) | 3,021,400 |
Total | 27,188,600 | 26,277,200 | 11,773,800 |
Less common stock held in treasury at cost, 19,802 shares | 52,400 | 52,400 | 52,400 |
Total shareholders' equity | 27,136,200 | 26,224,800 | 11,721,400 |
Total liabilities and shareholders' equity | $ 30,526,800 | $ 29,006,400 | $ 14,797,400 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Allowance doubtful accounts | $ 15,600 | $ 15,600 | $ 11,600 |
Shareholders' equity: | |||
Common stock,par value | $ 0.05 | $ 0.05 | $ 0.05 |
Common stock, authorized shares | 20,000,000 | 15,000,000 | 15,000,000 |
Common stock, issued shares | 7,023,401 | 6,477,945 | 2,881,065 |
Common stock, outstanding shares | 7,003,599 | 6,458,143 | 2,861,263 |
Stock held in treasury, shares | 19,802 | 19,802 | 19,802 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||
Revenues | $ 2,864,900 | $ 2,508,600 | $ 8,623,500 | $ 7,245,100 | $ 9,775,200 | $ 7,784,400 |
Cost of revenues | 1,318,300 | 1,145,700 | 4,154,600 | 3,419,400 | 4,799,800 | 3,847,000 |
Gross profit | 1,546,600 | 1,362,900 | 4,468,900 | 3,825,700 | 4,975,400 | 3,937,400 |
Operating expenses: | ||||||
General and administrative | 1,610,400 | 1,385,600 | 4,442,300 | 2,441,700 | 4,028,500 | 2,275,400 |
Selling | 1,054,000 | 1,386,100 | 2,996,800 | 2,658,900 | 4,031,900 | 1,185,800 |
Research and development | 624,500 | 450,000 | 2,141,300 | 1,024,000 | 1,623,800 | 1,139,700 |
Total operating expenses | 3,288,900 | 3,221,700 | 9,580,400 | 6,124,600 | 9,684,200 | 4,600,900 |
Loss from operations | (1,742,300) | (1,858,800) | (5,111,500) | (2,298,900) | (4,708,800) | (663,500) |
Other income (expense): | ||||||
Other income (expense), net | (102,700) | 6,100 | 363,500 | 22,300 | 571,600 | 12,600 |
Interest income | 400 | 22,500 | 49,800 | 71,400 | 82,200 | 16,500 |
Total other income (expense), net | (102,300) | 28,600 | 413,300 | 93,700 | 653,800 | (3,900) |
Loss from continuing operations before income tax benefit | (1,844,600) | (1,830,200) | (4,698,200) | (2,205,200) | (4,055,000) | (667,400) |
Income tax benefit, current | (95,100) | 0 | (95,100) | 0 | ||
Income tax benefit, deferred | (222,100) | (378,200) | (959,400) | (472,300) | (945,000) | (214,000) |
Total Income tax benefit | (317,200) | (378,200) | (1,054,500) | (472,300) | (1,152,500) | (436,600) |
Loss from continuing operations | (1,527,400) | (1,452,000) | (3,643,700) | (1,732,900) | (3,110,000) | (453,400) |
Discontinued operations (Note 9): | ||||||
Gain (loss) from discontinued operations, net of tax | (7,600) | 16,400 | 3,400 | (578,500) | (562,500) | (249,900) |
Net loss | (1,535,000) | (1,435,600) | (3,640,300) | (2,311,400) | (3,672,500) | (703,300) |
Comprehensive loss: | ||||||
Unrealized holding loss on investment securities, net of tax | (4,700) | 0 | (5,100) | 0 | ||
Foreign currency translation adjustment | (194,500) | 0 | (90,500) | 0 | (9,200) | |
Comprehensive loss | (199,200) | 0 | (95,600) | 0 | ||
Total comprehensive loss | $ (1,734,200) | $ (1,435,600) | $ (3,735,900) | $ (2,311,400) | $ (3,681,700) | $ (703,300) |
Basic loss per common share: | ||||||
Continuing operations | $ (0.23) | $ (0.51) | $ (0.56) | $ (0.61) | $ (0.97) | $ (0.30) |
Discontinued operations | 0 | 0.01 | 0 | (0.20) | (0.18) | (0.16) |
Consolidated operations | $ (0.23) | $ (0.50) | $ (0.56) | $ (0.81) | $ (1.15) | $ (0.46) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY - USD ($) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit Retained Earnings |
Balance, shares at Jun. 30, 2019 | 1,513,914 | 19,802 | ||||
Balance, amount at Jun. 30, 2019 | $ 6,340,700 | $ 75,700 | $ 52,400 | $ 2,592,700 | $ 3,724,700 | |
Net 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 | 6,004,400 | $ 67,500 | 5,936,900 | |||
Stock options exercised, shares | 17,301 | |||||
Stock options exercised, amount | 13,800 | $ 900 | 12,900 | |||
Stock-based compensation | 65,800 | 65,800 | ||||
Unrealized holding gain on investment securities, net of tax | 12,400 | |||||
Balance, shares at Jun. 30, 2020 | 2,881,065 | 19,802 | ||||
Balance, amount at Jun. 30, 2020 | 11,721,400 | $ 144,100 | $ 52,400 | 8,608,300 | 3,021,400 | |
Net loss | (2,311,400) | |||||
Foreign currency translation adjustment | 0 | |||||
Unrealized holding gain on investment securities, net of tax | 18,900 | |||||
Balance, shares at Mar. 31, 2021 | 2,882,065 | 19,802 | ||||
Balance, amount at Mar. 31, 2021 | 10,842,400 | $ 144,200 | $ 52,400 | 10,040,600 | 710,000 | |
Balance, shares at Jun. 30, 2020 | 2,881,065 | 19,802 | ||||
Balance, amount at Jun. 30, 2020 | 11,721,400 | $ 144,100 | $ 52,400 | 8,608,300 | 3,021,400 | |
Net loss | (3,672,500) | 0 | $ 0 | (3,672,500) | ||
Issuance of Common Stock and Warrants, net of issuance costs, shares | 3,595,880 | |||||
Issuance of Common Stock and Warrants, net of issuance costs, amount | 16,074,000 | $ 179,800 | 0 | 15,894,200 | 0 | |
Stock options exercised, shares | 1,000 | |||||
Stock options exercised, amount | 3,100 | $ 100 | 0 | 3,000 | 0 | |
Stock-based compensation | 2,108,000 | 0 | 0 | 2,108,000 | 0 | |
Foreign currency translation adjustment | (9,200) | $ 0 | $ 0 | 0 | (9,200) | 0 |
Unrealized holding gain on investment securities, net of tax | 10,400 | |||||
Balance, shares at Jun. 30, 2021 | 6,477,945 | 19,802 | ||||
Balance, amount at Jun. 30, 2021 | 26,224,800 | $ 324,000 | $ 52,400 | 26,613,500 | (9,200) | (651,100) |
Balance, shares at Jul. 01, 2020 | 2,881,065 | 19,802 | ||||
Balance, amount at Jul. 01, 2020 | 11,721,400 | $ 144,100 | $ 52,400 | 8,608,300 | 3,021,400 | |
Net loss | (263,300) | (263,300) | ||||
Stock-based compensation | 61,300 | 61,300 | ||||
Balance, shares at Sep. 30, 2020 | 2,881,065 | 19,802 | ||||
Balance, amount at Sep. 30, 2020 | 11,519,400 | $ 144,100 | $ 52,400 | 8,669,600 | 2,758,100 | |
Net loss | (612,500) | (612,500) | ||||
Stock-based compensation | 76,100 | 76,100 | ||||
Balance, shares at Dec. 31, 2020 | 2,881,065 | 19,802 | ||||
Balance, amount at Dec. 31, 2020 | 10,983,000 | $ 144,100 | $ 52,400 | 8,745,700 | 2,145,600 | |
Net loss | (1,435,600) | (1,435,600) | ||||
Stock options exercised, shares | 1,000 | |||||
Stock options exercised, amount | 3,000 | $ 100 | 2,900 | |||
Stock-based compensation | 1,292,000 | 1,292,000 | ||||
Foreign currency translation adjustment | 0 | |||||
Balance, shares at Mar. 31, 2021 | 2,882,065 | 19,802 | ||||
Balance, amount at Mar. 31, 2021 | 10,842,400 | $ 144,200 | $ 52,400 | 10,040,600 | 710,000 | |
Balance, shares at Jun. 30, 2021 | 6,477,945 | 19,802 | ||||
Balance, amount at Jun. 30, 2021 | 26,224,800 | $ 324,000 | $ 52,400 | 26,613,500 | (9,200) | (651,100) |
Net loss | (3,640,300) | |||||
Foreign currency translation adjustment | (90,500) | |||||
Unrealized holding gain on investment securities, net of tax | 102,800 | |||||
Balance, shares at Mar. 31, 2022 | 7,023,401 | 19,802 | ||||
Balance, amount at Mar. 31, 2022 | 27,136,200 | $ 351,200 | $ 52,400 | 31,233,600 | (104,800) | (4,291,400) |
Balance, shares at Jul. 01, 2021 | 6,477,945 | 19,802 | ||||
Balance, amount at Jul. 01, 2021 | 26,224,800 | $ 324,000 | $ 52,400 | 26,613,500 | (9,200) | (651,100) |
Net loss | (1,208,800) | 0 | 0 | 0 | 0 | (1,208,800) |
Stock-based compensation | 675,400 | 0 | 0 | 675,400 | 0 | 0 |
Foreign currency translation adjustment | 34,100 | 0 | 0 | 0 | 34,100 | 0 |
Unrealized holding gain on investment securities, net of tax | 2,200 | $ 0 | $ 0 | 0 | 2,200 | 0 |
Balance, shares at Sep. 30, 2021 | 6,477,945 | 19,802 | ||||
Balance, amount at Sep. 30, 2021 | 25,727,700 | $ 324,000 | $ 52,400 | 27,288,900 | 27,100 | (1,859,900) |
Net loss | (896,500) | 0 | 0 | 0 | 0 | (896,500) |
Stock-based compensation | 591,000 | 0 | 0 | 591,000 | 0 | 0 |
Foreign currency translation adjustment | 69,900 | 0 | 0 | 0 | 69,900 | 0 |
Unrealized holding gain on investment securities, net of tax | (2,600) | $ 0 | $ 0 | 0 | (2,600) | 0 |
Balance, shares at Dec. 31, 2021 | 6,477,945 | 19,802 | ||||
Balance, amount at Dec. 31, 2021 | 25,489,500 | $ 324,000 | $ 52,400 | 27,879,900 | 94,400 | (2,756,400) |
Net loss | (1,535,000) | $ 0 | 0 | 0 | 0 | (1,535,000) |
Issuance of Common Stock and Warrants, net of issuance costs, shares | 545,456 | |||||
Issuance of Common Stock and Warrants, net of issuance costs, amount | 2,727,200 | $ 27,200 | 0 | 2,700,000 | 0 | 0 |
Stock-based compensation | 653,700 | 0 | 0 | 653,700 | 0 | 0 |
Foreign currency translation adjustment | (194,500) | 0 | 0 | (194,500) | 0 | |
Unrealized holding gain on investment securities, net of tax | (4,700) | $ 0 | $ 0 | 0 | (4,700) | 0 |
Balance, shares at Mar. 31, 2022 | 7,023,401 | 19,802 | ||||
Balance, amount at Mar. 31, 2022 | $ 27,136,200 | $ 351,200 | $ 52,400 | $ 31,233,600 | $ (104,800) | $ (4,291,400) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||||
Net loss | $ (3,640,300) | $ (2,311,400) | $ (3,672,500) | $ (703,300) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Loss/(Gain) on sale of investments | 11,100 | (34,600) | (35,600) | (4,400) |
Unrealized holding loss on investments | 102,800 | 18,900 | 10,400 | 12,400 |
Extinguishment of debt | (433,800) | 0 | (531,100) | |
Depreciation and amortization | 581,800 | 126,700 | 251,500 | 160,900 |
Deferred income tax benefit | (955,400) | (652,300) | (1,152,500) | (106,000) |
Provision for bad debt | 4,000 | 3,400 | ||
Loss on disposal of subsidiary | 0 | 405,400 | 405,400 | |
Gain on sale of fixed assets | (300) | |||
Stock-based compensation | 1,920,100 | 1,429,400 | 2,108,000 | 65,800 |
Change in fair value of contingent consideration | (42,500) | (118,500) | (30,000) | 112,600 |
Changes in operating assets and liabilities: | ||||
Trade accounts receivable | (328,700) | (758,500) | (75,500) | 906,800 |
Inventories | (1,383,900) | (697,700) | (560,000) | (292,400) |
Carrying value of right of use assets | 783,300 | 87,700 | ||
Income tax receivable | 172,200 | (1,500) | 1,500 | (334,800) |
Prepaid and other current assets | (127,700) | 57,400 | (211,400) | (22,400) |
Right-of-use assets | 138,000 | (803,300) | ||
Accounts payable | 585,500 | 142,600 | 79,600 | (214,400) |
Contract liabilities | 796,100 | (20,000) | (20,000) | 89,000 |
Lease liabilities | 0 | (51,000) | (105,600) | 867,700 |
Bank overdraft | (281,100) | 7,500 | 278,600 | (96,900) |
Other assets | 107,100 | 0 | ||
Discontinued operations | 25,400 | 0 | ||
Accrued expenses | (20,700) | (222,600) | (195,200) | 191,500 |
Other long-term liabilities | 10,900 | 0 | ||
Total adjustments | (55,000) | (281,100) | 371,000 | 535,200 |
Net cash used in operating activities | (3,695,300) | (2,592,500) | (3,301,500) | (168,100) |
Investing activities: | ||||
Redemption of investment securities | 1,278,500 | 1,631,000 | 6,181,400 | 55,000 |
Purchase of investment securities | (5,422,700) | (6,609,200) | (9,569,000) | (63,400) |
Proceeds from sale of fixed assets | 0 | 1,000 | ||
Proceeds from sale of assets of discontinued operations | 0 | 440,000 | ||
Capital expenditures | (337,400) | (183,700) | (198,700) | (50,900) |
Proceeds from sale Altamaria | 440,000 | 0 | ||
Purchase of Aquila, net of cash acquired | (7,679,000) | 0 | ||
Purchase of other intangible assets | (67,000) | (41,200) | (58,700) | (25,800) |
Net cash used in investing activities | (4,548,600) | (4,763,100) | (10,884,000) | (84,100) |
Financing activities: | ||||
Repayment of 1st Payroll Protection Plan loan | (32,700) | |||
Proceeds from issuance of common stock | $ 3,000,000 | 0 | ||
Issuance of common stock and warrants, net of issuance costs | $ 17,080,400 | 6,004,400 | ||
Issuance costs of common stock and warrants | (272,800) | (1,006,400) | ||
Payments of contingent consideration | $ 0 | (13,400) | $ (168,000) | (372,600) |
Proceeds from Payroll Protection Program | 0 | 433,800 | 433,800 | 563,800 |
Proceeds from stock options exercised | 0 | 3,000 | 3,100 | 13,800 |
Net cash provided by financing activities | 2,727,200 | 423,400 | 16,310,200 | 6,209,400 |
Effect of changes in foreign currency exchange rates | (90,500) | 0 | (9,200) | |
Net decrease in cash and cash equivalents | (5,607,200) | (6,932,200) | 2,115,500 | 5,957,200 |
Cash and cash equivalents, beginning of year | 9,675,200 | 7,559,700 | 7,559,700 | 1,602,500 |
Cash and cash equivalents, end of period | 4,068,000 | 627,500 | 9,675,200 | 7,559,700 |
SUPPLEMENTAL DISCLOSURES | ||||
Income taxes | 0 | 2,500 | $ 2,500 | $ 40,900 |
Record right-of-use assets | 941,300 | 0 | ||
Record lease liabilities | $ 941,300 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Summary of Significant Accounting Policies | ||
Summary of Significant Accounting Policies | 1. Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc., its wholly- owned subsidiary, Scientific Bioprocessing Holdings, Inc. (“SBHI”), SBHI’s wholly-owned subsidiaries, Scientific Bioprocessing, Inc. (“SBI”), and aquila biolabs GmbH (“Aquila”), a German corporation, which was acquired on April 29, 2021, Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary, and Altamira Instruments, Inc. (“Altamira”), and wholly-owned subsidiary (accounted for as a discontinued operation as of November 30, 2020) (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. COVID-19 Pandemic The challenges posed by the COVID-19 pandemic on the global economy began to take effect and adversely affected the Company’s operations at the end of the third quarter of the fiscal year ended June 30, 2020. At that time, the Company took appropriate action and put plans in place to diminish the adverse 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 pertaining to COVID-19 preparedness by implementing the US 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. The Company experienced supply chain disruptions which had an impact on its operations causing delayed delivery of some products to its customers, and production inefficiencies. SBI’s facility was shut down temporarily due to state mandates, however, the impact on operations was minimal, and the Company was able to retain its employees without furloughs or layoffs, in part, due to the Company’s receipt of two loans under the Federal Government’s Small Business Administration Paycheck Protection Program (“PPP”). The Company received $563,800 and $433,800 in PPP loans in April 2020 and March 2021, respectively. The first loan was forgiven in June 2021 except for $32,700 which was repaid by the Company and the second loan was forgiven in full in December 2021. The Company elected to account for its PPP Loans in accordance with Accounting Standards Codification (“ASC”), Topic 470 Debt Imputation of Interest Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The adoption of this standard as of July 1, 2021 did not have a material impact on the Company’s financial statements. Recently Issued Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and is evaluating any that may impact its financial statements. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. | 1. Summary of Significant Accounting Policies Nature of Business Scientific Industries, Inc. and its subsidiaries (the “Company”) design, manufacture, and market a variety of benchtop laboratory equipment and bioprocessing products. The Company is headquartered in Bohemia, New York where it produces benchtop laboratory equipment. Additionally, the Company has two other locations in Pittsburgh, Pennsylvania and Baesweiller, Germany, where it designs and produces a variety of 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, bioprocessing-sensors and analytical tools. The Company also sublicenses certain patents and technology under a license agreement with the University of Maryland, Baltimore County, and receives royalty fees from sublicenses (see Note 1- Revenue Recognition). COVID-19 Pandemic The challenges posed by the COVID-19 pandemic on the global economy began to take effect and impacted 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. The Bioprocessing Systems Operations’ SBI facility was shut down temporarily 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 two loans under the Federal Government’s Small Business Administration Paycheck Protection Program. The Company received $563,800 and $433,800 in Payroll Protection Program loans in April 2020 and March 2021, respectively. The first loan was forgiven in June 2021 except for $32,700 which was repaid by the Company. The Company expects to apply and receive forgiveness for the second loan. The operations of aquila biolabs GmbH ("Aquila") which was acquired on April 29, 2021 was negatively impacted in its ability to secure new orders because Aquila had historically relied on face-to-face meetings at trade shows for its sales opportunities. While it has participated in virtual trade shows, management believes that certain sales opportunities are lost as a result. 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 which have benefitted from the Pandemic due to the nature of the products and have the ability to pay. The Company has not experienced and does not anticipate any material impairment to its tangible and intangible assets, system of internal controls, 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 Company is currently experiencing some delays from its supply chain which is having an impact on delayed delivery of some products, however this is deemed temporary and does not affect the Company’s major product – the Vortex-Genie 2. In addition, due to the travel restrictions imposed by the United States and other governments worldwide, Company personnel may be restricted from traveling to conduct its operations including site visits, customer visits and installations, vendor facility visits, and other sales and marketing related travel that can negatively impact the Company. 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 (discontinued operation as of November 30, 2020), and Scientific Bioprocessing Holdings, Inc. (“SBHI”), a newly incorporated Delaware corporation and its wholly-owned subsidiaries, Scientific Bioprocessing, Inc. (“SBI”), a Delaware corporation, and Aquila, a German corporation, which was acquired on April 29, 2021, (all collectively referred to as the “Company”). On April 30, 2021 Scientific Industries, Inc. contributed 100% of the stock of Scientific Bioprocessing, Inc. to its wholly owned subsidiary Scientific Bioprocessing Holdings, Inc. All material intercompany balances and transactions have been eliminated in consolidation. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board ('FASB") Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers, (“ASC 606”). In accordance with ASC 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. All of the Company's contracts have a single performance obligation. As permitted by ASC 606, the Company does not disclose the amount of unsatisfied performance obligations for client contracts with an original expected length of one year or less. 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 Nature of Products and Services We generate revenues from the following sources: (1) Benchtop Laboratory Equipment and (2) Bioprocessing Systems. Benchtop Laboratory Equipment Bioprocessing Systems Consolidated June 30, 2021: Revenues $ 9,043,600 731,600 $ 9,775,200 Foreign Sales 3,483,700 684,600 4,168,300 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ 7,784,400 Foreign Sales 2,589,800 1,000,400 3,590,200 Benchtop laboratory equipment sales comprise primarily of standard benchtop laboratory equipment 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. Revenue is recognized at a point in time when the risks and rewards of ownership have tranferred to the customer, which is generally upon shipment. Bioprocessing revenues consist of royalty revenues generated through SBI and product revenues generated primarily through Aquila. Royalty revenues are earned by the Company under a licensing agreement from a single licensee and its sublicenses. The license agreement includes two United States patents and a European Union patent (through December 2019). In January 2020, the European Union patent which was due to expire in August 2020, was terminated and the Company will only receive royalties under the United States patents through December 2023, which will result in a material reduction in total royalties expected to be received. The Company is obligated to pay 50% of all royalties earned to the entity that licenses the intellectual property to the Company. Royalty revenue requires significant judgement in estimating royalty revenue to be recognized during the year. The Company has made the following accounting policy elections and elected to use certain practical expedients, as permitted by the FASB, in applying ASC 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, 2021, and 2020, $8,922,800 and $6,729,300 respectively of cash balances were in excess of such limit. Reclasses Certain amounts on the balance sheet as of June 30, 2021 and 2020 pertaining to inventories, property and equipment, goodwill, accounts payable, accrued expenses, contract liabilities, and operating leases liabilities were reclassed as assets and liabilities of discontinued operations due to the sale of the Company's wholly owned subsidiary, Altamira Instruments, Inc. on November 30, 2020. 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 and customer satisfaction claims. 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 comprehensive loss. The Company determines the cost of the investment sold based on an average cost basis at the individual security level and records 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. Research and Development Expenses Research and development expenses are expensed as incurred and consist principally of internal and external costs which includes the cost of patent licenses, contract research services, laboratory supplies, in-process research and development acquired, as well as product developments and enhancements. Finite Lived Intangible Assets Intangible assets consist primarily of acquired technology, customer relationships, non-compete agreements, patents, licenses, websites, and in process research and development (“IPR&D”), trademarks and trade names. All finite lived 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 Indefinite Lived Intangible Assets Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill and indefinite lived intangible assets are tested for impairment at least annually in accordance with the provisions of ASC 350, “Intangibles-Goodwill and Other” (“ASC 350”). ASC 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, 2021 and 2020, there was no impairment of goodwill or indefinite lived intangible assets. Impairment of Long-Lived Assets The Company follows the provisions of ASC No. 360, “Property, Plant and Equipment - Impairment or Disposal of Long-Lived Assets (“ASC 360"). ASC 360 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, 2021 and 2020, 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 $399,700 and $218,700 for the years ended June 30, 2021 and 2020, respectively. 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 1,193,000 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 through 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, 2021 and 2020, 5,243 and 147,414 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. The amount of compensation cost is measured based on the grant-date fair value of the equity issued and expensed ratably over the requisite service period. 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, fair value of stock options, the fair values of intangibles and goodwill, and provision or benefit for income taxes. 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. Since the Company was in a loss position during the years ended June 30, 2021 and 2020, respectively, basic net loss per share is the same as dilutive net loss per share as the inclusion of the weighted-average number of all potential dilutive common shares which consists of stock options and warrants are anti-dilutive. 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. 2020-12 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 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. 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, 2022 | |
Revenue | |
Revenue | 2. Revenue The Company generates 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, 2022 and 2021. Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2022: Revenues $ 2,434,600 $ 430,300 $ 2,864,900 Foreign Sales 783,600 269,700 1,053,300 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 Nine Months Ended March 31, 2022: Revenues $ 7,465,700 $ 1,157,800 $ 8,623,500 Foreign Sales 2,814,700 791,200 3,605,900 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 sales are comprised primarily of standard benchtop laboratory equipment sold to laboratory equipment distributors, or directly to end users primarily online via the Company’s website. The sales cycle from time of receipt of order to shipment ranges from a day to a few weeks. Customers either pay by credit card (online sales) or Net 30-90 days, depending on the customer. Once the item is shipped under the terms specified in the order, which is primarily “FOB Factory”, other than a standard warranty, there are no other obligations to the customer. The standard warranty is typically one or two years, covering parts and labor, and is deemed immaterial. Revenue is recognized at the point in time when the risks and rewards of ownership have transferred to the customer, which is generally upon shipment. Bioprocessing Systems revenues consist of royalty revenues generated through SBI and product revenues generated primarily through Aquila. Royalty revenues are earned by the Company under a licensing agreement from a single licensee and its sublicenses. The license agreement included two United States patents, which expired in August 2021. The Company is obligated to pay 50% of all royalties earned to the entity that licensed the intellectual property to the Company. |
Segment Information
Segment Information | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Segment Information | ||
Segment Information | 3. 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, manufacture, and marketing of bioprocessing systems and products (“Bioprocessing Systems”) and related royalty income. Segment information is reported as follows: Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended March 31, 2022: Revenues $ 2,434,600 $ 430,300 $ - $ 2,864,900 Foreign Sales 783,600 269,700 - 1,053,300 Income (Loss) From Operations 247,300 (1,651,700 ) (337,900 ) (1,742,300 ) Assets 10,231,100 10,024,261 10,271,439 30,526,800 Long-Lived Asset Expenditures 16,500 158,000 - 174,500 Depreciation and Amortization 24,600 229,900 - 254,500 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 394,700 (1,323,900 ) (929,600 ) (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 - 46,700 Approximately 50% and 55% of net sales from Benchtop Laboratory Equipment Operations (42% and 52% of total revenues) for the three months ended March 31, 2022 and 2021, respectively, were derived from sales of the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 24% and 20% of total Benchtop Laboratory Equipment Operations sales (20% and 19% of total revenues) were derived from the Torbal Scales Division for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022 and 2021, respectively, three customers accounted for approximately 19% and 26% of net sales of the Benchtop Laboratory Equipment Operations (16% and 25% of the Company’s total revenues), respectively. Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Nine Months Ended March 31, 2022: Revenues $ 7,465,700 $ 1,157,800 $ - $ 8,623,500 Foreign Sales 2,814,700 791,200 - 3,605,900 Income (Loss) From Operations 1,107,000 (5,091,300 ) (1,127,200 ) (5,111,500 ) Assets 10,231,100 10,024,261 10,271,439 30,526,800 Long-Lived Asset Expenditures 83,100 321,300 - 404,400 Depreciation and Amortization 71,200 510,600 - 581,800 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 1,347,100 (2,598,000 ) (1,048,000 ) (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 49% and 51% of total Benchtop Laboratory Equipment Operations sales (42% and 47% of total revenues) for the nine months ended March 31, 2022 and 2021, respectively, were derived from sales of the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories. Approximately 24% and 23% for both periods of total Benchtop Laboratory Equipment Operations sales (21% and 21% of total revenues) were derived from the Torbal Scales Division for the nine months ended March 31, 2022 and 2021, respectively. For each of the nine-month periods ended March 31, 2022 and 2021, three customers accounted for approximately 20% and 23% of net sales of the Benchtop Laboratory Equipment Operations (17% and 21% of the Company’s total revenues), respectively. | 2. Segment Information 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, 2021: Revenues $ 9,043,600 $ 731,600 $ - $ 9,775,200 Foreign Sales 3,483,700 684,600 _ 4,168,300 Income (Loss) From Operations 1,461,300 (4,828,600 ) (1,341,400 ) (4,708,800 ) Assets 14,783,000 8,735,100 5,488,300 29,006,400 Long-Lived Asset Expenditures 60,500 196,900 - 257,400 Depreciation and Amortization 103,100 148,400 - 251,500 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 - 3,590,200 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 - 159,600 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Fair Value of Financial Instruments | ||
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments 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 or liabilities during the period. The fair value 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 table. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at March 31, 2022 and June 30, 2021 according to the valuation techniques the Company used to estimate their fair values: Fair Value at Fair Value Measurements Using Inputs Considered as March 31, 2022 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 4,068,000 $ 4,068,000 $ - $ - Investment securities 7,768,600 6,796,500 972,100 - Total $ 11,836,600 $ 10,864,500 $ 972,100 $ - Liabilities: Contingent consideration $ 117,500 $ - $ - $ 117,500 Fair Value at Fair Value Measurements Using Inputs Considered as June 30, 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 9,675,200 $ 9,675,200 $ - $ - Investment securities 3,744,600 2,920,600 824,000 - Total $ 13,419,800 $ 12,595,800 $ 824,000 $ - Liabilities: Contingent consideration $ 160,000 $ - $ - $ 160,000 Investments in marketable securities by security type at March 31, 2022 and June 30, 2021 consisted of the following: Cost Fair Value Unrealized Holding Gain (Loss) At March 31, 2022: Equity securities $ 118,900 $ 176,900 $ 58,000 Mutual funds 6,708,300 6,619,600 (88,700 ) Debt securities 977,200 972,100 (5,100 ) $ 7,804,400 7,768,600 (35,800 ) Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2021: Equity securities $ 102,200 $ 154,100 $ 51,900 Mutual funds 2,752,400 2,766,500 14,100 Debt securities 832,700 824,000 (8,700 ) $ 3,687,300 $ 3,744,600 $ 57,300 | 3. 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 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, 2021 and 2020 according to the valuation techniques the Company used to determine their fair values: Fair Value at June 30, Fair Value Measurements Using Inputs Considered as 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 9,675,200 $ 9,675,200 $ - $ - Investment securities 3,744,600 2,920,600 824,000 - Total $ 13,419,800 $ 12,595,800 $ 824,000 $ - Liabilities: Contingent consideration $ 160,000 $ - $ 160,000 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 The following table sets forth an analysis of changes during the years ended June 30, 2021 and 2020, respectively, in Level 3 financial liabilities of the Company: 2021 2020 Beginning balance $ 358,000 $ 618,000 Increase (decrease) in contingent consideration liability (30,000 ) 112,600 Payments (168,000 ) (372,600 ) Ending balance $ 160,000 $ 358,000 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, 2021 and 2020, the Company recorded an increase (decrease) in the estimated fair value of contingent liabilities of approximately ($30,000) and $112,600, respectively related to its Bioprocessing Systems Operations segment. Investments in marketable securities by security type at June 30, 2021 and 2020 consisted of the following: Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2021: Equity securities $ 102,200 $ 154,100 $ 51,900 Mutual funds 2,752,400 2,766,500 14,100 Debt securities 832,700 824,000 (8,700 ) $ 3,687,300 $ 3,744,600 $ 57,300 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 |
Inventories
Inventories | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Inventories | ||
Inventories | 5 Inventories March 31, 2022 June 30, 2021 Raw materials $ 3,058,100 $ 2,170,400 Work-in-process 106,400 39,600 Finished goods 1,203,400 767,100 $ 4,367,900 $ 2,977,100 | 4. Inventories 2021 2020 Raw materials $ 2,170,400 $ 1,726,400 Work-in-process 39,600 35,700 Finished goods 767,100 778,900 $ 2,977,100 $ 2,541,000 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Property and Equipment | 5. Property and Equipment Useful Lives (Years) 2021 2020 Automobiles 5 $ 22,000 $ 22,000 Computer equipment 3-5 233,500 215,300 Machinery and equipment 3-7 1,047,600 847,500 Furniture and fixtures 4-10 148,800 142,300 Leasehold improvements 3-10 64,400 50,300 1,516,300 1,277,400 Less accumulated depreciation and amortization 1,103,700 999,100 $ 412,600 $ 278,300 Depreciation expense was $104,600 and $88,700 for the years ended June 30, 2021 and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Goodwill and Other Intangible Assets | ||
Goodwill and Other Intangible Assets | 6 Goodwill and Finite Lived Intangible Assets Goodwill amounted to $4,395,400 at March 31, 2022 and June 30, 2021, all of which is expected to be deductible for tax purposes. The components of finite-lived intangible assets are as follows: Useful Lives Cost Accumulated Amortization Net At March 31, 2022: Technology, trademarks 5-10 yrs. $ 817,000 $ 431,800 $ 385,200 Trade names 3-6 yrs. 140,000 140,000 - Websites 3-7 yrs. 210,000 210,000 - Customer relationships 4-10 yrs. 372,200 133,100 239,100 Sublicense agreements 10 yrs. 294,000 294,000 - Non-compete agreements 4-5 yrs. 1,060,500 455,300 605,200 In-process research and development 3-5 yrs. 917,600 249,600 668,000 Patents 5-7 yrs. 593,000 274,200 318,800 $ 4,404,300 $ 2,188,000 $ 2,216,300 Useful Lives Cost Accumulated Amortization Net At June 30, 2021: Technology, trademarks 5-10 yrs. $ 364,700 $ 362,200 $ 2,500 Trade names 3-6 yrs. 592,300 152,600 439,700 Websites 3-7 yrs. 210,000 210,000 - Customer relationships 4-10 yrs. 372,200 102,400 269,800 Sublicense agreements 10 yrs. 294,000 283,000 11,000 Non-compete agreements 4-5 yrs. 1,060,500 308,600 751,900 In-process research and development 3-5 yrs. 852,100 134,800 717,300 Patents 5-7 yrs. 591,500 225,900 365,600 $ 4,337,300 $ 1,779,500 $ 2,557,800 Total amortization expense was $134,600 and $16,000 for the three months ended March 31, 2022 and 2021, respectively, and $408,500 and $48,500 for the nine months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, estimated future amortization expense related to intangible assets is $134,300 for the remainder of the fiscal year ending June 30, 2022, $520,900 for fiscal 2023, $518,900 for fiscal 2024, $485,100 for fiscal 2025, $284,600 for fiscal 2026 and $137,500 thereafter. | 6. Goodwill and Finite Lived 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 $4,395,400 at June 30, 2021 and 257,300 at June 30, 2020, all of which is expected to be deductible for tax purposes. The components of finite lived intangible assets are as follows: Useful Lives Cost Accumulated Amortization Net At June 30, 2021: Technology, trademarks 5-10 yrs. $ 364,700 $ 362,200 $ 2,500 Trade names 3-6 yrs. 592,300 152,600 439,700 Websites 3-7 yrs. 210,000 210,000 - Customer relationships 4-10 yrs. 372,200 102,400 269,800 Sublicense agreements 10 yrs. 294,000 283,000 11,000 Non-compete agreements 4-5 yrs. 1,060,500 308,600 751,900 IPR&D 3-5 yrs. 852,100 134,800 717,300 Patents 5-7 yrs. 591,500 225,900 365,600 $ 4,337,300 $ 1,779,500 $ 2,557,800 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 - Patents 5 yrs. 246,600 196,600 50,000 $ 2,406,300 $ 2,277,600 $ 128,700 Total amortization expense was $146,900 and $72,000 in 2021 and 2020, respectively. Estimated future amortization expense of intangible assets as of June 30, 2021 is as follows: Year Ended June 30, 2022 $ 525,700 2023 520,000 2024 508,800 2025 473,100 2026 530,200 Total $ 2,557,800 |
Lines of Credit
Lines of Credit | 12 Months Ended |
Jun. 30, 2021 | |
Lines of Credit | |
Lines of credit | 7. Line of Credit The Company has a Demand Line of Credit through December 2021 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 financial covenants and borrowings are secured by a pledge of substantially all of the assets of the Company. As of June 30, 2021 and 2020, there were no borrowings outstanding under the line. |
Payroll Protection Program Loan
Payroll Protection Program Loan | 12 Months Ended |
Jun. 30, 2021 | |
Payroll Protection Program Loan | |
Payroll Protection Program Loan | 8. Payroll Protection Program Loan The Company received $563,800 and $433,800 in Payroll Protection Program loans in April 2020 and March 2021, respectively, pursuant to the Paycheck Protection Program loan (“PPP”) administered by the U.S. Small Business Administration through its bank. The first loan was forgiven in June 2021, and reflected as other income in the accompanying statements of comprehensive loss , except for $32,700 which was repaid by the Company. The remaining loan bears interest at 1% per annum and matures in March 2026 and contains no collateral or guarantee requirements. The Company expects to apply and receive forgiveness for the second loan. |
Loss Per Common Share
Loss Per Common Share | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Loss Per Common Share | ||
Loss Per Common Share | 7. Loss Per Common Share The Company presents the computation of earnings per share (“EPS”) on a basic basis. Basic EPS is computed by dividing net income, if any, 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; accordingly, no dilution is shown for loss periods. 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, 2022 For the Three Month Period Ended March 31, 2021 For the Nine Month Period Ended March 31, 2022 For the Nine Month Period Ended March 31, 2021 Weighted average number of common shares outstanding 6,633,901 2,861,607 6,544,112 2,861,376 Effect of dilutive securities - - - - Weighted average number of dilutive common shares outstanding 6,633,901 2,861,607 6,544,112 2,861,376 Basic and diluted loss per common share: Continuing operations $ (0.23 ) $ (0.51 ) $ (0.56 ) $ (0.61 ) Discontinued operations $ - $ 0.01 $ - $ (0.20 ) Consolidated operations $ (0.23 ) $ (0.50 ) $ (0.56 ) $ (0.81 ) Approximately 3,452,542 and 3,451,461 shares of the Company’s common stock issuable upon the exercise of options and warrants, respectively, were excluded from the calculation because the effect would be anti-dilutive due to the loss for the three and nine months ended March 31, 2022. Approximately 259,357 and 1,349,850 shares of the Company’s common stock issuable upon the exercise of options and warrants, respectively, were excluded from the calculation because the effect would be anti-dilutive due to the loss for the three and nine months ended March 31, 2021. | 14. Earnings (Loss) Per Common Share The Company presents the computation of earnings per share (“EPS”) on a basic 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. 2021 2020 Weighted average number of common shares outstanding 3,189,602 1,515,103 Effect of dilutive securities: - - Weighted average number of dilutive common shares outstanding 3,189,602 1,515,103 Basic and Diluted loss per common share: Continuing operations $ (0.97 ) $ (0.30 ) Discontinued operations $ (0.18 ) $ (0.16 ) Consolidated operations $ (1.15 ) $ (0.46 ) Approximately 88,691 and 2,481,783 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, 2021. 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2021 | |
Employee Benefit Plans | |
Employee Benefit Plans | 9. 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 $90,700 and $84,100 for the years ended June 30, 2021 and 2020, respectively. |
Leases
Leases | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Leases | ||
Leases | 8. Leases The Company leases certain properties consisting principally of (i) a facility in Bohemia, New York (headquarters) through October 2028, (ii) a facility in Pittsburgh, Pennsylvania for SBI’s Bioprocessing Systems Operations through May 2023, and (iii) a facility for sales and administration in Orangeburg, New York 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. 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. Each 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 or 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, 2022, the weighted-average remaining lease term for operating lease liabilities was approximately 5.32 years and the weighted-average discount rate was 5.0%. Total cash payments under these leases were approximately $82,000 and $240,200, for the three and nine months ended March 31, 2022 of which $81,800 and $226,300 was recorded as leases expense, respectively. The Company’s approximate future minimum rental payments under all leases existing at March 31, 2022 through October 2028 are as follows: Fiscal year ending June 30, Amount Remainder of 2022 $ 82,200 2023 311,400 2024 247,600 2025 255,000 2026 262,700 Thereafter 609,600 Total future minimum payments 1,768,500 Less imputed interest (256,100 ) Total Present Value of Operating Lease Liabilities $ 1,512,400 | 11. Leases 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 which was amended in September 2021 to increase the space by approximately 25% and lease term through approximately October 2028, a facility in Pittsburgh, Pennsylvania for its Bioprocessing Systems Operations through May 2023, and a facility for sales and administration in Orangeburg, New York through October 2022. The Company had a lease for its discontinued operations through November 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, 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, 2021, the weighted-average remaining lease term for operating lease liabilities was approximately 2.68 years and the weighted-average discount rate was 5.0%. Total cash payments under these leases were $289,100 for the year ended June 30, 2021, of which $277,300 was recorded as lease expense. The Company’s approximate future minimum rental payments under all leases existing at June 30, 2021, through January 2025 are as follows: Year ended June 30, Amount 2022 $ 260,300 2023 245,300 2024 195,900 2025 91,600 Total future minimum payments $ 793,100 Less: Imputed interest (62,100 ) Total Present Value of Operating Lease Liabilities $ 731,000 |
Discontinued Operations
Discontinued Operations | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Discontinued Operations | ||
Discontinued Operations | 9. Discontinued Operations Effective November 30, 2020, as part of its strategic shift to becoming a life sciences tool provider, the Company sold its operations relating to the manufacture and marketing of custom-made catalyst research instruments for universities, government laboratories, and chemical petrochemical companies sold on direct basis (the “Catalyst Research Instruments Operations”) through the sale by Altamira of substantially all of its 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 which was fully paid in cash by January 2021, resulting in a $405,400 pre-tax loss. To preserve business continuity for the buyer, Altamira agreed to purchase certain components on behalf of JWGB for which JWGB agreed to reimburse Altamira. 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 have been shipped, product warranty and other miscellaneous liabilities related to certain employee benefits, and expenses related to the closure of the Altamira facility, which was 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, 2022 June 30, 2021 Cash $ 600 $ - Accounts receivable - 52,000 Inventories - 3,300 $ 600 $ 55,300 Liabilities: March 31, 2022 June 30, 2021 Accrued expenses and taxes $ - $ 20,700 Contract liabilities 7,900 16,500 $ 7,900 $ 37,200 Three Months Ended Nine Months Ended March 31,2022 March 31,2021 March 31,2022 March 31,2021 Revenues $ - $ 107,800 $ 20,600 $ 387,700 Cost of goods sold 6,900 78,800 10,300 458,500 Gross profit (loss) (6,900 ) 29,000 10,300 (70,800 ) Selling, general and administrative expenses 700 12,600 2,900 282,200 Income (loss) from operations (7,600 ) 16,400 7,400 (353,000 ) Loss on disposal - - - (405,400 ) Income (loss) before income tax benefit (7,600 ) 16,400 7,400 (758,400 ) Income tax expense (benefit) - - 4,000 (179,900 ) Net income (loss) attributable to discontinued operations $ (7,600 ) $ 16,400 $ 3,400 $ (578,500 ) In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash provided by (used in) operating activities from discontinued operations for nine months ended March 31, 2022 and March 31, 2021 was $25,400 and $(502,900), respectively. Cash provided by investing activities from discontinued operations for the nine months ended March 31, 2022 was none and $440,000 for the nine months ended March 31, 2021. There was no cash provided by or used in financing activities for either period. | 17. 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: June 30, 2021 June 30, 2020 Accounts receivable $ 52,000 $ - Inventories 3,300 343,700 Property and equipment, net - 1,400 Goodwill - 447,900 Discontinued operations $ 55,300 $ 793,000 Liabilities: June 30, 2021 June 30, 2020 Accounts payable $ - $ 20,100 Accrued expenses and taxes 20,700 120,700 Contract liabilities 16,500 69,000 Operating lease liabilities, current portion - 31,100 $ 37,200 $ 240,900 Years Ended June 30, 2021 June 30, 2020 Revenues $ 387,700 $ 785,900 Cost of goods sold 471,800 869,900 Gross profit (84,100 ) (84,000 ) Selling, general and administrative expenses 280,400 388,500 Loss from operations (364,500 ) (472,500 ) Loss on disposal (405,400 ) -- Loss before income tax benefit (769,900 ) (472,500 ) Income tax benefit, all deferred (207,400 ) (222,600 ) Net income (loss) attributable to discontinued operations $ (562,500 ) $ (249,900 ) 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 year ended June 30, 2021 and June 30, 2020 was ($75,000) and $66,100, respectively. Cash provided by investing activities from discontinued operations for the year ended June 30, 2021 was $440,000 and $2,200 for the year ended June 30, 2020. There was no cash provided or used by the discontinued operations for financing activities for both the current and prior year periods. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. 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 each one year periods ending June 30, 2021 and 2022. 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 the 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. Bonuses totaling $100,000 and $50,000 were awarded for the years ended June 30, 2021 and 2020, respectively. 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, 2021, and 215,366 shares were authorized to be granted by the Board of Directors during the year ended June 30, 2020, which shares were not available and subject to amendment to the Company’s 2012 Stock Option Plan which was approved in February 2021. The agreement also contains a provision that within one year of a change of control, if either the Company terminates the employment for any reason other than for "cause" or the Presidents terminates her employment for "good reason", the President will have the right to receive a lump sum payment equal to three times the average of her total annual compensation paid for the last five years preceding such termination. 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 each one year period ending June 30, 2021 and 2022. 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. No bonus was awarded for the year ended June 30, 2021 and a $5,000 bonus was awarded in 2020. 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, 2021 or 2020. The Company has a three-year employment contract with its President and Director of Marketing 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 each one year periods ending June 30, 2021 and 2022. 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, 2021 or 2020. A performance-based bonus of $10,000 was awarded during the years ended June 30, 2020. No bonus was awarded for the year ended June 30, 2021. 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, 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, which shares were not available and subject to amendment to the Company’s 2012 Stock Option Plan which was approved in February 2021. Prior to July 1, 2020, the officer had a consulting agreement, which terminated upon becoming an employee of the Company. Consulting fees paid under this agreement amounted to $145,000 for the year ended June 30, 2020, respectively plus stock options valued at $36,000 were granted as part of the total compensation under the consulting agreement, for the year ended June 30, 2020. Bonuses amounting to $100,000 were awarded during the year ended June 30, 2021 and $50,000 in 2020. The employment agreement contains termination provisions stipulating that if the Company terminates the employment other than for death, disability, or cause (as such term is defined therein), or if employee resigns for “good reason”(as such term is defined in the agreement) , the Company shall pay severance payments equal to either one year’s salary at the rate of the compensation at the time of termination is employee is terminated within 12 months of the date of the agreement or six months’ salary is the employee is terminated after 12 months of the date of the agreement, continue to pay the regular benefits provided by the Company for the period equal to the length of the severance payments and pay a pro rata portion of any bonus achieved prior to such termination of employment. On April 30, 2021, the Company entered into an employment agreement with each of the four managing directors and sellers of Aquila for an indefinite term, which can be terminated by either party upon six months’ written notice in accordance with German law. The agreements, which are identical, stipulate that in calendar year 2021, the employees will receive a salary of 105,000 euros, and a guaranteed bonus of 45,000 euros for a total of 150,000 euros per year on a pro-rata basis, and in calendar year 2022, they will receive a salary of 105,000 euros and a bonus of 45,000 euros, subject to the achievement by Aquila of certain targets. In addition, the employment agreements included a one time retention bonus of 10,000 euros upon closing of the acquisition which was paid in May 2021 by Aquila, and a retention bonus of 25,000 euros if the employee does not terminate his employment with the Company within two years after the agreement date or the Company does not terminate his employment for good cause. The Company has a consulting agreement, which expires on December 31, 2021, 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 which were awarded during the year ended June 30, 2020. Consulting expense related to this agreement amounted to $108,000 and $76,200 for the years ended June 30, 2021 and 2020, respectively. On July 20, 2020, the Company entered into a two-year consulting agreement with a Director and Chairman of the Board of SBI for consulting on strategic matters of the Company’s Bioprocessing Systems Operations. The agreement provided that the consultant be paid a monthly retainer of 5,000 euros which was increased to 12,500 euros effective March 2021 plus the issuance of 125,000 stock options of the Company which were awarded during the year ended June 30, 2021. Consulting expense related to this agreement amounted to $207,900 for the year ended June 30, 2021 and none in 2020, respectively. 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 through December 2023, at which time the related patents will expire. Total contingent consideration payments made for this acquisition amounted to $168,000 and $372,600 for the years ended June 30, 2021 and 2020, respectively. The fair value of contingent consideration estimated to be paid as of June 30, 2021 is as follows: Year ended June 30, Amount 2022 $ 136,600 2023 12,000 2024 11,400 160,000 |
Acquisition of Aquila Biolabs G
Acquisition of Aquila Biolabs GmbH | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Acquisition of Aquila Biolabs GmbH | ||
Acquisition of Aquila Biolabs GmbH | 10 Acquisition of Aquila Biolabs GmbH Effective April 29, 2021, the Company acquired all the outstanding capital stock of Aquila, a German start-up company engaged from its facility in Baesweiler, Germany in the design, production, and sale of bioprocessing systems and products which focus on the control and analysis of bioprocesses in bioreactors and incubation shakers for an aggregate purchase price of $7,880,100 in cash upon closing. Aquila’s principal customers are universities, pharmaceutical companies, and industrial companies. Aquila’s products are sold primarily on a direct basis and to a lesser extent, through distributors. The acquisition was accounted for in accordance with ASC 805, Business Combinations For purposes of measuring the estimated fair value, where applicable, of the assets acquired and liabilities assumed, as reflected in the unaudited pro forma condensed consolidated financial information, the guidance in ASC 820, Fair Value Measurements and Disclosures Management of the Company allocated the purchase price based on its estimated valuation of the assets acquired and liabilities assumed as follows: Amount Useful life Fair value of assets acquired: Current assets: Cash and cash equivalents $ 201,100 Accounts receivable 159,200 Inventory 187,500 Prepaid expenses and other current assets 25,400 Property, plant and equipment 40,200 Deferred tax asset 800,300 Tradename 452,300 6 years Non-compete agreements 784,500 4 years In-process research and development 742,100 5 years Customer relationships 252,200 9 years Patents and other intangibles 286,200 7 years Total assets acquired $ 3,931,000 Fair value of liabilities assumed: Accounts payable $ (39,300 ) Accrued expenses (90,300 ) Other current liabilities (59,400 ) Total liabilities assumed $ (189,000 ) Total identifiable net assets $ 3,742,000 Fair value of consideration transferred 7,880,100 Goodwill $ 4,138,100 | 16 Acquisition of Aquila Biolabs GmbH Effective April 29, 2021, pursuant to a Stock Purchase Agreement ("SPA") the Company acquired all the outstanding capital stock of Aquila biolabs GmbH, a German start-up company engaged from its facility in Baesweiler, Germany in the design, production, and sale of bioprocessing systems and products which focus on the control and analysis of bioprocesses in bioreactors and incubation shakers for an aggregate purchase price of $7,880,100 in cash upon closing. Aquila’s principal customers are universities, pharmaceutical companies, and industrial companies. The products are sold primarily on a direct basis and to a lesser extent, through distributors. The acquisition was accounted for under the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations For purposes of measuring the estimated fair value, where applicable, of the assets acquired and liabilities assumed, as reflected in the unaudited pro forma condensed consolidated financial information, the guidance in ASC 820, Fair Value Measurements and Disclosures Management of the Company allocated the purchase price based on its valuation of the assets acquired and liabilities assumed as follows: Amount Useful life Fair value of assets acquired Current assets: Cash and cash equivalents $ 201,100 Accounts receivable 159,200 Inventory 187,500 Prepaid expenses and other current assets 25,400 Property, plant and equipment 40,200 Deferred tax asset 800,300 Tradename 452,300 6 years Non-compete agreements 784,500 4 years IPR&D 742,100 5 years Customer relationships 252,200 9 years Patents and other intangibles 286,200 7 years Total assets acquired $ 3,931,000 Fair value of liabilities assumed: Accounts payable $ (39,300 ) Accrued expenses (90,300 ) Other current liabilities (59,400 ) Total liabilities assumed (189,000 ) Total identifiable net assets 3,742,000 Fair value of consideration transferred 7,880,100 Goodwill $ 4,138,100 Accounting Periods Presented Aquila’s fiscal year ended on December 31. Its historical results have been aligned to more closely conform to the Company’s June 30 fiscal year end by taking Aquila’s interim financial results for six months ended December 31, 2019 and for the six months ended June 30, 2020. In addition, certain historical Aquila balances have been reclassified to conform to the pro forma consolidated presentation. There were no transactions between the two companies during the period presented. No pro forma adjustments were made to conform Aquila’s accounting policies which follow Germany’s generally accepted accounting principles (“German GAAP”) to the Company’s accounting principles, as any differences were deemed immaterial. Unaudited Pro forma information is as follows: (In $000’s) 6/30/2020 Revenues $ 9,346 Net loss (1,650 ) Earnings per share Diluted $ (0.37 ) Basic (0.37 ) These pro forma results do not represent financial results that would have been realized had the acquisition actually occurred on July 1, 2019, nor are they intended to be a projection of future results. For additional information, please refer to the Company’s current report on Form 8-KA, filed on July12, 2021. |
Paycheck Protection Program Loa
Paycheck Protection Program Loan | 9 Months Ended |
Mar. 31, 2022 | |
Acquisition of Aquila Biolabs GmbH | |
Paycheck Protection Program Loan | 11. Paycheck Protection Program Loan The Company received a second $433,800 PPP loan in March 2021, pursuant to the PPP loan administered by the U.S. Small Business Administration through its bank. The full amount of this loan was forgiven in December 2021, and is reflected as other income (extinguishment of debt) in the accompanying statements of operations and comprehensive loss. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | 12. Income Taxes The reconciliation of the provision for income taxes at the federal statutory rate of 21% to the actual tax benefit for the applicable fiscal year was as follows: 2021 2020 Computed “expected” income tax benefit $ (1,014,300 ) $ (239,400 ) Research and development credits (93,900 ) (89,400 ) Rate changes and NOL carrybacks - (122,600 ) Incentive Stock Option Expense 59,500 13,800 PPP Loan Forgiveness (111,700 ) 0 Other, net (7,900 ) 1,000 Income tax benefit $ (1,152,500 ) $ (436,600 ) Deferred tax assets and liabilities consist of the following: 2021 2020 Deferred tax assets: Amortization of intangible assets, including goodwill $ 374,000 $ 329,700 Research and development credits 164,600 89,400 Various accruals 64,600 150,700 Stock options expense 383,200 - Net operating loss 1,515,800 - Other 24,900 19,400 2,527,100 589,200 Deferred tax liability: Depreciation of property and amortization of goodwill (37,200 ) (52,100 ) Net deferred tax assets $ 2,489,900 $ 537,100 The Company has incurred cumulatively $715,800 of US net operating losses and $800,300 of German net operating losses as of June 30, 2021. These will be carried forward indefinitely without expiration, until fully utilized. The company expects to fully utilize these losses to offset taxable income in future years. 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, 2021 and 2020, 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, 2018 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, 2021 | |
Stock Options | |
Stock Options | 13. Stock Options Equity 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, 2021 and 2020, the Company granted 1,094,171 and 25,881 options, respectively, to employees that had a fair value of $7,929,600 and $144,500, respectively. The fair value of the options granted during the years ended June 30, 2021 and 2020, were determined using the Black-Scholes-Merton option-pricing model. The weighted average assumptions used for the years ended June 30, 2021 and 2020, was an expected life of 10 years; risk free interest rate of 1.40% and .89%; volatility of 66% and 74%, and dividend yield of 0% and .08%, respectively. The Company declared no dividends for the years ending June 30, 2021 or 2020. The weighted-average fair value per share of the options granted during the years ended June 30, 2021 and 2020, was $7.25 and $5.58, respectively, and total stock-based compensation costs were $2,108,000 and $65,800 for the years ended June 30, 2021 and 2020, respectively. Stock-based compensation costs related to nonvested awards expected to be recognized in the future are $5,935,000 and $113,400 as of June 30, 2021 and 2020, respectively. The stockholders approved an amendment to the Company’s 2012 Stock Option Plan (“Plan”) to increase the number of shares available 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, were registered by the Company on a Form S-8 Registration Statement with the Securities and Exchange Commission on March 15, 2021. The Company’s Board of Directors authorized and approved the grant of Stock 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 Vice President of Sales-Americas of Company’s Bioprocessing Systems. Option activity is summarized as follows: June 30, 2021 June 30, 2020 Weighted- Weighted- Average Average Exercise Exercise Shares Price Shares Price Shares under option: Outstanding, beginning of year 96,586 $ 4.35 97,205 $ 3.24 Granted 1,094,171 9.07 25,881 7.47 Exercised (1,000 ) 3.05 (24,000 ) 3.35 Forfeited (9,000 ) 3.11 (2,500 ) 3.08 Outstanding, end of year 1,180,757 $ 8.73 96,586 $ 4.35 Options exercisable at year-end 296,821 $ 7.69 49,236 $ 3.29 Weighted average fair value per share of options granted during the fiscal year $ 7.25 $ 5.58 As of June 30, 2021 Options Outstanding As of June 30, 2021 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 1,120,052 9.35 $ 9.03 238,351 $ 8.76 $2.91 - $ 4.65 60,705 5.28 $ 3.36 58,470 $ 3.32 1,180,757 296,821 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 |
Equity
Equity | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Stockholders Equity Abstract | ||
Equity | 12 Equity Authorized Shares On February 25, 2022, at the Company’s Annual Stockholders Meeting, the stockholders of the Company approved an amendment to its Certificate of Incorporation to increase the number of authorized shares of the Company’s common stock by 5,000,000 shares from 15,000,000 to 20,000,000 shares. In addition, the stockholders also approved the adoption of the Company’s 2022 Equity Incentive Plan (“Plan”) providing for the issuance of up to 1,750,000 shares plus outstanding options granted under the Company’s 2012 Stock Option Plan that expire or are forfeited. The Plan provides various stock awards including incentive and nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other stock awards, which can be awarded to employees and directors of the Company and its subsidiaries. Issuance and Sale of Common Stock On March 2, 2022, the Company entered into a Securities Purchase Agreement with certain private investors pursuant to which the Company issued and sold an aggregate of 545,456 shares of common stock and warrants to purchase up to an additional 274,727 shares of common stock, at an offering price of $5.50 per share, for a gross consideration of $3,000,000. The issuance cost related to this private placement stock issuance amounted to approximately $272,800. Under the terms of Securities Purchase Agreement between the Company and the investors, the Company must use commercially reasonable efforts to file a registration statement with the SEC within 90 days of the closing date to register for resale the shares of common stock sold in the private offering, including the shares of common stock issuable upon the exercise of the warrants. As of March 31, 2022, the Company had not yet filed a registration statement with respect to the offering. | 15. 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, and a further amendment was approved by a majority of the Company’s shareholders on June 17, 2021 increasing the authorized shares to 15,000,000. On June 18, 2020, the Company entered into a securities purchase agreement in the amount of $6,074,400 with several accredited investors for the sale and issuance of 1,349,850 shares of the Company’s Common Stock at an offering price of $4.50 per share and warrants to purchase up to 1,349,850 shares of the Company’s Common Stock exercisable at $9.0 0 per share. The issuance cost realated to this stock issuance amounted to approximately $70,000. The proceeds were used to fund the operations of the Company’s Bioprocessing Systems Operations. The warrants were 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. On April 29, 2021, the Company received proceeds of approximately $7,580,400 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 exercisable at $9.50 per share. The issuance costs related to this stock issuance amounted to approximately $581,000. In June 2021, the Company received an additional $9.5 million through the sale of an additional 2,000,000 shares of the Company’s Common Stock at $4.75 per share which also included warrants to purchase up to 999,993 of the Company's Common Stock exercisable at $9.50 per share. The issuance costs related to this stock issuance amounted to approximately $425,400. These warrants are exercisable immediately and expire five years from date of issuance. The Company utilized the services of brokers for both transactions and incurred a total of approximately $1.0 million in issuance related costs for broker and legal fees. The Company was required under a registration rights agreement to register the shares, which it did through an S-1 Registration Statement filed with the Securities and Exchange Commission, which became effective on August 13, 2021. The proceeds were used for the Aquila acquisition with the remainder being used to fund the Bioprocessing Systems Operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Summary of Significant Accounting Policies | ||
Nature of Operations | The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc., its wholly- owned subsidiary, Scientific Bioprocessing Holdings, Inc. (“SBHI”), SBHI’s wholly-owned subsidiaries, Scientific Bioprocessing, Inc. (“SBI”), and aquila biolabs GmbH (“Aquila”), a German corporation, which was acquired on April 29, 2021, Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary, and Altamira Instruments, Inc. (“Altamira”), and wholly-owned subsidiary (accounted for as a discontinued operation as of November 30, 2020) (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. | Scientific Industries, Inc. and its subsidiaries (the “Company”) design, manufacture, and market a variety of benchtop laboratory equipment and bioprocessing products. The Company is headquartered in Bohemia, New York where it produces benchtop laboratory equipment. Additionally, the Company has two other locations in Pittsburgh, Pennsylvania and Baesweiller, Germany, where it designs and produces a variety of 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, bioprocessing-sensors and analytical tools. The Company also sublicenses certain patents and technology under a license agreement with the University of Maryland, Baltimore County, and receives royalty fees from sublicenses (see Note 1- Revenue Recognition). |
COVID-19 Pandemic | The challenges posed by the COVID-19 pandemic on the global economy began to take effect and adversely affected the Company’s operations at the end of the third quarter of the fiscal year ended June 30, 2020. At that time, the Company took appropriate action and put plans in place to diminish the adverse 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 pertaining to COVID-19 preparedness by implementing the US 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. The Company experienced supply chain disruptions which had an impact on its operations causing delayed delivery of some products to its customers, and production inefficiencies. SBI’s facility was shut down temporarily due to state mandates, however, the impact on operations was minimal, and the Company was able to retain its employees without furloughs or layoffs, in part, due to the Company’s receipt of two loans under the Federal Government’s Small Business Administration Paycheck Protection Program (“PPP”). The Company received $563,800 and $433,800 in PPP loans in April 2020 and March 2021, respectively. The first loan was forgiven in June 2021 except for $32,700 which was repaid by the Company and the second loan was forgiven in full in December 2021. The Company elected to account for its PPP Loans in accordance with Accounting Standards Codification (“ASC”), Topic 470 Debt Imputation of Interest | The challenges posed by the COVID-19 pandemic on the global economy began to take effect and impacted 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. The Bioprocessing Systems Operations’ SBI facility was shut down temporarily 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 two loans under the Federal Government’s Small Business Administration Paycheck Protection Program. The Company received $563,800 and $433,800 in Payroll Protection Program loans in April 2020 and March 2021, respectively. The first loan was forgiven in June 2021 except for $32,700 which was repaid by the Company. The Company expects to apply and receive forgiveness for the second loan. The operations of aquila biolabs GmbH ("Aquila") which was acquired on April 29, 2021 was negatively impacted in its ability to secure new orders because Aquila had historically relied on face-to-face meetings at trade shows for its sales opportunities. While it has participated in virtual trade shows, management believes that certain sales opportunities are lost as a result. 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 which have benefitted from the Pandemic due to the nature of the products and have the ability to pay. The Company has not experienced and does not anticipate any material impairment to its tangible and intangible assets, system of internal controls, 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 Company is currently experiencing some delays from its supply chain which is having an impact on delayed delivery of some products, however this is deemed temporary and does not affect the Company’s major product – the Vortex-Genie 2. In addition, due to the travel restrictions imposed by the United States and other governments worldwide, Company personnel may be restricted from traveling to conduct its operations including site visits, customer visits and installations, vendor facility visits, and other sales and marketing related travel that can negatively impact the Company. |
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 (discontinued operation as of November 30, 2020), and Scientific Bioprocessing Holdings, Inc. (“SBHI”), a newly incorporated Delaware corporation and its wholly-owned subsidiaries, Scientific Bioprocessing, Inc. (“SBI”), a Delaware corporation, and Aquila, a German corporation, which was acquired on April 29, 2021, (all collectively referred to as the “Company”). On April 30, 2021 Scientific Industries, Inc. contributed 100% of the stock of Scientific Bioprocessing, Inc. to its wholly owned subsidiary Scientific Bioprocessing Holdings, Inc. All material intercompany balances and transactions have been eliminated in consolidation. | |
Revenue Recognition | The Company recognizes revenue in accordance with Financial Accounting Standards Board ('FASB") Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers, (“ASC 606”). In accordance with ASC 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. All of the Company's contracts have a single performance obligation. As permitted by ASC 606, the Company does not disclose the amount of unsatisfied performance obligations for client contracts with an original expected length of one year or less. 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 Nature of Products and Services We generate revenues from the following sources: (1) Benchtop Laboratory Equipment and (2) Bioprocessing Systems. Benchtop Laboratory Equipment Bioprocessing Systems Consolidated June 30, 2021: Revenues $ 9,043,600 731,600 $ 9,775,200 Foreign Sales 3,483,700 684,600 4,168,300 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ 7,784,400 Foreign Sales 2,589,800 1,000,400 3,590,200 Benchtop laboratory equipment sales comprise primarily of standard benchtop laboratory equipment 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. Revenue is recognized at a point in time when the risks and rewards of ownership have tranferred to the customer, which is generally upon shipment. Bioprocessing revenues consist of royalty revenues generated through SBI and product revenues generated primarily through Aquila. Royalty revenues are earned by the Company under a licensing agreement from a single licensee and its sublicenses. The license agreement includes two United States patents and a European Union patent (through December 2019). In January 2020, the European Union patent which was due to expire in August 2020, was terminated and the Company will only receive royalties under the United States patents through December 2023, which will result in a material reduction in total royalties expected to be received. The Company is obligated to pay 50% of all royalties earned to the entity that licenses the intellectual property to the Company. Royalty revenue requires significant judgement in estimating royalty revenue to be recognized during the year. The Company has made the following accounting policy elections and elected to use certain practical expedients, as permitted by the FASB, in applying ASC 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, 2021, and 2020, $8,922,800 and $6,729,300 respectively of cash balances were in excess of such limit. | |
Reclasses | Certain amounts on the balance sheet as of June 30, 2021 and 2020 pertaining to inventories, property and equipment, goodwill, accounts payable, accrued expenses, contract liabilities, and operating leases liabilities were reclassed as assets and liabilities of discontinued operations due to the sale of the Company's wholly owned subsidiary, Altamira Instruments, Inc. on November 30, 2020. | |
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 and customer satisfaction claims. 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. | |
Recent Accounting Pronouncements | The Company has implemented all new accounting pronouncements that are in effect and is evaluating any that may impact its financial statements. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. | 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. 2020-12 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 December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The adoption of this standard as of July 1, 2021 did not have a material impact on the Company’s financial statements. | 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. 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. |
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 comprehensive loss. The Company determines the cost of the investment sold based on an average cost basis at the individual security level and records 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. | |
Research and Development Expenses | Research and development expenses are expensed as incurred and consist principally of internal and external costs which includes the cost of patent licenses, contract research services, laboratory supplies, in-process research and development acquired, as well as product developments and enhancements. | |
Intangible Assets | Intangible assets consist primarily of acquired technology, customer relationships, non-compete agreements, patents, licenses, websites, and in process research and development (“IPR&D”), trademarks and trade names. All finite lived 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 Indefinite Lived Intangible Assets | Goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill and indefinite lived intangible assets are tested for impairment at least annually in accordance with the provisions of ASC 350, “Intangibles-Goodwill and Other” (“ASC 350”). ASC 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, 2021 and 2020, there was no impairment of goodwill or indefinite lived intangible assets. | |
Impairment of Long-Lived Assets | The Company follows the provisions of ASC No. 360, “Property, Plant and Equipment - Impairment or Disposal of Long-Lived Assets (“ASC 360"). ASC 360 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, 2021 and 2020, 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 $399,700 and $218,700 for the years ended June 30, 2021 and 2020, respectively. | |
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 1,193,000 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 through 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, 2021 and 2020, 5,243 and 147,414 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. The amount of compensation cost is measured based on the grant-date fair value of the equity issued and expensed ratably over the requisite service period. | |
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, fair value of stock options, the fair values of intangibles and goodwill, and provision or benefit for income taxes. 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. Since the Company was in a loss position during the years ended June 30, 2021 and 2020, respectively, basic net loss per share is the same as dilutive net loss per share as the inclusion of the weighted-average number of all potential dilutive common shares which consists of stock options and warrants are anti-dilutive. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Summary of Significant Accounting Policies | ||
Disaggregation of revenues | Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2022: Revenues $ 2,434,600 $ 430,300 $ 2,864,900 Foreign Sales 783,600 269,700 1,053,300 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 Nine Months Ended March 31, 2022: Revenues $ 7,465,700 $ 1,157,800 $ 8,623,500 Foreign Sales 2,814,700 791,200 3,605,900 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 June 30, 2021: Revenues $ 9,043,600 731,600 $ 9,775,200 Foreign Sales 3,483,700 684,600 4,168,300 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ 7,784,400 Foreign Sales 2,589,800 1,000,400 3,590,200 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Revenue (Tables) | ||
Schedule Of Revenue | Benchtop Laboratory Equipment Bioprocessing Systems Consolidated Three Months Ended March 31, 2022: Revenues $ 2,434,600 $ 430,300 $ 2,864,900 Foreign Sales 783,600 269,700 1,053,300 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 Nine Months Ended March 31, 2022: Revenues $ 7,465,700 $ 1,157,800 $ 8,623,500 Foreign Sales 2,814,700 791,200 3,605,900 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 June 30, 2021: Revenues $ 9,043,600 731,600 $ 9,775,200 Foreign Sales 3,483,700 684,600 4,168,300 Benchtop Laboratory Equipment Bioprocessing Systems Consolidated June 30, 2020: Revenues $ 6,783,600 $ 1,000,800 $ 7,784,400 Foreign Sales 2,589,800 1,000,400 3,590,200 |
Segment Information and Concent
Segment Information and Concentrations (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Segment Information | ||
Segment information | Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Three Months Ended March 31, 2022: Revenues $ 2,434,600 $ 430,300 $ - $ 2,864,900 Foreign Sales 783,600 269,700 - 1,053,300 Income (Loss) From Operations 247,300 (1,651,700 ) (337,900 ) (1,742,300 ) Assets 10,231,100 10,024,261 10,271,439 30,526,800 Long-Lived Asset Expenditures 16,500 158,000 - 174,500 Depreciation and Amortization 24,600 229,900 - 254,500 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 394,700 (1,323,900 ) (929,600 ) (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 - 46,700 Benchtop Laboratory Equipment Bioprocessing Systems Corporate And Other Consolidated Nine Months Ended March 31, 2022: Revenues $ 7,465,700 $ 1,157,800 $ - $ 8,623,500 Foreign Sales 2,814,700 791,200 - 3,605,900 Income (Loss) From Operations 1,107,000 (5,091,300 ) (1,127,200 ) (5,111,500 ) Assets 10,231,100 10,024,261 10,271,439 30,526,800 Long-Lived Asset Expenditures 83,100 321,300 - 404,400 Depreciation and Amortization 71,200 510,600 - 581,800 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 1,347,100 (2,598,000 ) (1,048,000 ) (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 June 30, 2021: Revenues $ 9,043,600 $ 731,600 $ - $ 9,775,200 Foreign Sales 3,483,700 684,600 _ 4,168,300 Income (Loss) From Operations 1,461,300 (4,828,600 ) (1,341,400 ) (4,708,800 ) Assets 14,783,000 8,735,100 5,488,300 29,006,400 Long-Lived Asset Expenditures 60,500 196,900 - 257,400 Depreciation and Amortization 103,100 148,400 - 251,500 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 - 3,590,200 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 - 159,600 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Fair Value of Financial Instruments | ||
Fair value inputs | Fair Value at Fair Value Measurements Using Inputs Considered as March 31, 2022 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 4,068,000 $ 4,068,000 $ - $ - Investment securities 7,768,600 6,796,500 972,100 - Total $ 11,836,600 $ 10,864,500 $ 972,100 $ - Liabilities: Contingent consideration $ 117,500 $ - $ - $ 117,500 Fair Value at Fair Value Measurements Using Inputs Considered as June 30, 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 9,675,200 $ 9,675,200 $ - $ - Investment securities 3,744,600 2,920,600 824,000 - Total $ 13,419,800 $ 12,595,800 $ 824,000 $ - Liabilities: Contingent consideration $ 160,000 $ - $ - $ 160,000 | Fair Value at June 30, Fair Value Measurements Using Inputs Considered as 2021 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 9,675,200 $ 9,675,200 $ - $ - Investment securities 3,744,600 2,920,600 824,000 - Total $ 13,419,800 $ 12,595,800 $ 824,000 $ - Liabilities: Contingent consideration $ 160,000 $ - $ 160,000 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 |
Investments in marketable securitites | Cost Fair Value Unrealized Holding Gain (Loss) At March 31, 2022: Equity securities $ 118,900 $ 176,900 $ 58,000 Mutual funds 6,708,300 6,619,600 (88,700 ) Debt securities 977,200 972,100 (5,100 ) $ 7,804,400 7,768,600 (35,800 ) Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2021: Equity securities $ 102,200 $ 154,100 $ 51,900 Mutual funds 2,752,400 2,766,500 14,100 Debt securities 832,700 824,000 (8,700 ) $ 3,687,300 $ 3,744,600 $ 57,300 | Cost Fair Value Unrealized Holding Gain (Loss) At June 30, 2021: Equity securities $ 102,200 $ 154,100 $ 51,900 Mutual funds 2,752,400 2,766,500 14,100 Debt securities 832,700 824,000 (8,700 ) $ 3,687,300 $ 3,744,600 $ 57,300 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 |
Analysis of changes in Level 3 financial liabilities | 2021 2020 Beginning balance $ 358,000 $ 618,000 Increase (decrease) in contingent consideration liability (30,000 ) 112,600 Payments (168,000 ) (372,600 ) Ending balance $ 160,000 $ 358,000 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Inventories | ||
Inventories | March 31, 2022 June 30, 2021 Raw materials $ 3,058,100 $ 2,170,400 Work-in-process 106,400 39,600 Finished goods 1,203,400 767,100 $ 4,367,900 $ 2,977,100 | 2021 2020 Raw materials $ 2,170,400 $ 1,726,400 Work-in-process 39,600 35,700 Finished goods 767,100 778,900 $ 2,977,100 $ 2,541,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property and Equipment | |
Schedule of property and equipment | Useful Lives (Years) 2021 2020 Automobiles 5 $ 22,000 $ 22,000 Computer equipment 3-5 233,500 215,300 Machinery and equipment 3-7 1,047,600 847,500 Furniture and fixtures 4-10 148,800 142,300 Leasehold improvements 3-10 64,400 50,300 1,516,300 1,277,400 Less accumulated depreciation and amortization 1,103,700 999,100 $ 412,600 $ 278,300 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Goodwill and Other Intangible Assets | ||
Intangible assets | Useful Lives Cost Accumulated Amortization Net At March 31, 2022: Technology, trademarks 5-10 yrs. $ 817,000 $ 431,800 $ 385,200 Trade names 3-6 yrs. 140,000 140,000 - Websites 3-7 yrs. 210,000 210,000 - Customer relationships 4-10 yrs. 372,200 133,100 239,100 Sublicense agreements 10 yrs. 294,000 294,000 - Non-compete agreements 4-5 yrs. 1,060,500 455,300 605,200 In-process research and development 3-5 yrs. 917,600 249,600 668,000 Patents 5-7 yrs. 593,000 274,200 318,800 $ 4,404,300 $ 2,188,000 $ 2,216,300 Useful Lives Cost Accumulated Amortization Net At June 30, 2021: Technology, trademarks 5-10 yrs. $ 364,700 $ 362,200 $ 2,500 Trade names 3-6 yrs. 592,300 152,600 439,700 Websites 3-7 yrs. 210,000 210,000 - Customer relationships 4-10 yrs. 372,200 102,400 269,800 Sublicense agreements 10 yrs. 294,000 283,000 11,000 Non-compete agreements 4-5 yrs. 1,060,500 308,600 751,900 In-process research and development 3-5 yrs. 852,100 134,800 717,300 Patents 5-7 yrs. 591,500 225,900 365,600 $ 4,337,300 $ 1,779,500 $ 2,557,800 | Useful Lives Cost Accumulated Amortization Net At June 30, 2021: Technology, trademarks 5-10 yrs. $ 364,700 $ 362,200 $ 2,500 Trade names 3-6 yrs. 592,300 152,600 439,700 Websites 3-7 yrs. 210,000 210,000 - Customer relationships 4-10 yrs. 372,200 102,400 269,800 Sublicense agreements 10 yrs. 294,000 283,000 11,000 Non-compete agreements 4-5 yrs. 1,060,500 308,600 751,900 IPR&D 3-5 yrs. 852,100 134,800 717,300 Patents 5-7 yrs. 591,500 225,900 365,600 $ 4,337,300 $ 1,779,500 $ 2,557,800 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 - Patents 5 yrs. 246,600 196,600 50,000 $ 2,406,300 $ 2,277,600 $ 128,700 |
Estimated future amortization expense of intangible assets | Year Ended June 30, 2022 $ 525,700 2023 520,000 2024 508,800 2025 473,100 2026 530,200 Total $ 2,557,800 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Fair value of contingent consideration | Year ended June 30, Amount 2022 $ 136,600 2023 12,000 2024 11,400 160,000 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Earnings (Loss) Per Common Share (Tables) | ||
Loss per common share | For the Three Month Period Ended March 31, 2022 For the Three Month Period Ended March 31, 2021 For the Nine Month Period Ended March 31, 2022 For the Nine Month Period Ended March 31, 2021 Weighted average number of common shares outstanding 6,633,901 2,861,607 6,544,112 2,861,376 Effect of dilutive securities - - - - Weighted average number of dilutive common shares outstanding 6,633,901 2,861,607 6,544,112 2,861,376 Basic and diluted loss per common share: Continuing operations $ (0.23 ) $ (0.51 ) $ (0.56 ) $ (0.61 ) Discontinued operations $ - $ 0.01 $ - $ (0.20 ) Consolidated operations $ (0.23 ) $ (0.50 ) $ (0.56 ) $ (0.81 ) | 2021 2020 Weighted average number of common shares outstanding 3,189,602 1,515,103 Effect of dilutive securities: - - Weighted average number of dilutive common shares outstanding 3,189,602 1,515,103 Basic and Diluted loss per common share: Continuing operations $ (0.97 ) $ (0.30 ) Discontinued operations $ (0.18 ) $ (0.16 ) Consolidated operations $ (1.15 ) $ (0.46 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Leases | ||
Future minimum rental payments | Fiscal year ending June 30, Amount Remainder of 2022 $ 82,200 2023 311,400 2024 247,600 2025 255,000 2026 262,700 Thereafter 609,600 Total future minimum payments 1,768,500 Less imputed interest (256,100 ) Total Present Value of Operating Lease Liabilities $ 1,512,400 | Year ended June 30, Amount 2022 $ 260,300 2023 245,300 2024 195,900 2025 91,600 Total future minimum payments $ 793,100 Less: Imputed interest (62,100 ) Total Present Value of Operating Lease Liabilities $ 731,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income tax reconciliation | 2021 2020 Computed “expected” income tax benefit $ (1,014,300 ) $ (239,400 ) Research and development credits (93,900 ) (89,400 ) Rate changes and NOL carrybacks - (122,600 ) Incentive Stock Option Expense 59,500 13,800 PPP Loan Forgiveness (111,700 ) 0 Other, net (7,900 ) 1,000 Income tax benefit $ (1,152,500 ) $ (436,600 ) |
Deferred tax assets and liabilities | 2021 2020 Deferred tax assets: Amortization of intangible assets, including goodwill $ 374,000 $ 329,700 Research and development credits 164,600 89,400 Various accruals 64,600 150,700 Stock options expense 383,200 - Net operating loss 1,515,800 - Other 24,900 19,400 2,527,100 589,200 Deferred tax liability: Depreciation of property and amortization of goodwill (37,200 ) (52,100 ) Net deferred tax assets $ 2,489,900 $ 537,100 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Stock Options | |
Option activity | June 30, 2021 June 30, 2020 Weighted- Weighted- Average Average Exercise Exercise Shares Price Shares Price Shares under option: Outstanding, beginning of year 96,586 $ 4.35 97,205 $ 3.24 Granted 1,094,171 9.07 25,881 7.47 Exercised (1,000 ) 3.05 (24,000 ) 3.35 Forfeited (9,000 ) 3.11 (2,500 ) 3.08 Outstanding, end of year 1,180,757 $ 8.73 96,586 $ 4.35 Options exercisable at year-end 296,821 $ 7.69 49,236 $ 3.29 Weighted average fair value per share of options granted during the fiscal year $ 7.25 $ 5.58 |
Options outstanding | As of June 30, 2021 Options Outstanding As of June 30, 2021 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 1,120,052 9.35 $ 9.03 238,351 $ 8.76 $2.91 - $ 4.65 60,705 5.28 $ 3.36 58,470 $ 3.32 1,180,757 296,821 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 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Discontinued Operations | ||
Discontinued operations | Assets: March 31, 2022 June 30, 2021 Cash $ 600 $ - Accounts receivable - 52,000 Inventories - 3,300 $ 600 $ 55,300 Liabilities: March 31, 2022 June 30, 2021 Accrued expenses and taxes $ - $ 20,700 Contract liabilities 7,900 16,500 $ 7,900 $ 37,200 Three Months Ended Nine Months Ended March 31,2022 March 31,2021 March 31,2022 March 31,2021 Revenues $ - $ 107,800 $ 20,600 $ 387,700 Cost of goods sold 6,900 78,800 10,300 458,500 Gross profit (loss) (6,900 ) 29,000 10,300 (70,800 ) Selling, general and administrative expenses 700 12,600 2,900 282,200 Income (loss) from operations (7,600 ) 16,400 7,400 (353,000 ) Loss on disposal - - - (405,400 ) Income (loss) before income tax benefit (7,600 ) 16,400 7,400 (758,400 ) Income tax expense (benefit) - - 4,000 (179,900 ) Net income (loss) attributable to discontinued operations $ (7,600 ) $ 16,400 $ 3,400 $ (578,500 ) | Assets: June 30, 2021 June 30, 2020 Accounts receivable $ 52,000 $ - Inventories 3,300 343,700 Property and equipment, net - 1,400 Goodwill - 447,900 Discontinued operations $ 55,300 $ 793,000 Liabilities: June 30, 2021 June 30, 2020 Accounts payable $ - $ 20,100 Accrued expenses and taxes 20,700 120,700 Contract liabilities 16,500 69,000 Operating lease liabilities, current portion - 31,100 $ 37,200 $ 240,900 Years Ended June 30, 2021 June 30, 2020 Revenues $ 387,700 $ 785,900 Cost of goods sold 471,800 869,900 Gross profit (84,100 ) (84,000 ) Selling, general and administrative expenses 280,400 388,500 Loss from operations (364,500 ) (472,500 ) Loss on disposal (405,400 ) -- Loss before income tax benefit (769,900 ) (472,500 ) Income tax benefit, all deferred (207,400 ) (222,600 ) Net income (loss) attributable to discontinued operations $ (562,500 ) $ (249,900 ) |
Acquisition of Aquila Biolabs_2
Acquisition of Aquila Biolabs GmbH (Tables) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Acquisition of Aquila Biolabs GmbH | ||
Purchase price allocation | Amount Useful life Fair value of assets acquired: Current assets: Cash and cash equivalents $ 201,100 Accounts receivable 159,200 Inventory 187,500 Prepaid expenses and other current assets 25,400 Property, plant and equipment 40,200 Deferred tax asset 800,300 Tradename 452,300 6 years Non-compete agreements 784,500 4 years In-process research and development 742,100 5 years Customer relationships 252,200 9 years Patents and other intangibles 286,200 7 years Total assets acquired $ 3,931,000 Fair value of liabilities assumed: Accounts payable $ (39,300 ) Accrued expenses (90,300 ) Other current liabilities (59,400 ) Total liabilities assumed $ (189,000 ) Total identifiable net assets $ 3,742,000 Fair value of consideration transferred 7,880,100 Goodwill $ 4,138,100 | Amount Useful life Fair value of assets acquired Current assets: Cash and cash equivalents $ 201,100 Accounts receivable 159,200 Inventory 187,500 Prepaid expenses and other current assets 25,400 Property, plant and equipment 40,200 Deferred tax asset 800,300 Tradename 452,300 6 years Non-compete agreements 784,500 4 years IPR&D 742,100 5 years Customer relationships 252,200 9 years Patents and other intangibles 286,200 7 years Total assets acquired $ 3,931,000 Fair value of liabilities assumed: Accounts payable $ (39,300 ) Accrued expenses (90,300 ) Other current liabilities (59,400 ) Total liabilities assumed (189,000 ) Total identifiable net assets 3,742,000 Fair value of consideration transferred 7,880,100 Goodwill $ 4,138,100 |
Pro forma information | (In $000’s) 6/30/2020 Revenues $ 9,346 Net loss (1,650 ) Earnings per share Diluted $ (0.37 ) Basic (0.37 ) |
Significant Accounting Policies
Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | $ 2,864,900 | $ 2,508,600 | $ 8,623,500 | $ 7,245,100 | $ 9,775,200 | $ 7,784,400 |
Benchtop Laboratory Equipment | ||||||
Revenues | 2,434,600 | 2,365,700 | 7,465,700 | 6,803,300 | 9,043,600 | 6,783,600 |
Foreign sales | 783,600 | 942,200 | 2,814,700 | 2,724,800 | 3,483,700 | 2,589,800 |
Bioprocessing Systems | ||||||
Revenues | 430,300 | 142,900 | 1,157,800 | 441,800 | 731,600 | 1,000,800 |
Foreign sales | $ 269,700 | $ 102,600 | $ 791,200 | $ 395,000 | 684,600 | 1,000,400 |
Consolidated | ||||||
Revenues | 9,775,200 | 7,784,400 | ||||
Foreign sales | $ 4,168,300 | $ 3,590,200 |
Significant Accounting Polici_2
Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Apr. 30, 2020 | |
FDIC excess cash balance | $ 8,922,800 | $ 6,729,300 | ||||
Advertising expense | $ 399,700 | $ 218,700 | ||||
Common stock available for grant | 5,243 | 147,414 | ||||
Cash | $ 0 | $ 600 | ||||
Payroll Protection Program [Member] | ||||||
Repayment of loan | $ 32,700 | |||||
Cash | $ 433,800 | $ 563,800 |
Revenues (Details)
Revenues (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | $ 2,864,900 | $ 2,508,600 | $ 8,623,500 | $ 7,245,100 | $ 9,775,200 | $ 7,784,400 |
Benchtop Laboratory Equipment | ||||||
Revenues | 2,434,600 | 2,365,700 | 7,465,700 | 6,803,300 | 9,043,600 | 6,783,600 |
Foreign Sales | 783,600 | 942,200 | 2,814,700 | 2,724,800 | 3,483,700 | 2,589,800 |
Bioprocessing Systems | ||||||
Revenues | 430,300 | 142,900 | 1,157,800 | 441,800 | 731,600 | 1,000,800 |
Foreign Sales | 269,700 | 102,600 | 791,200 | 395,000 | 684,600 | 1,000,400 |
Consolidated | ||||||
Revenues | 2,864,900 | 2,508,600 | 8,623,500 | 7,245,100 | 9,775,200 | 7,784,400 |
Foreign Sales | $ 1,053,300 | $ 1,044,800 | $ 3,605,900 | $ 3,119,800 | $ 4,168,300 | $ 3,590,200 |
Revenues (Details Narrative)
Revenues (Details Narrative) | 9 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Description of obligation | The Company is obligated to pay 50% of all royalties earned to the entity that licensed the intellectual property to the Company. |
Segment Information and Conce_2
Segment Information and Concentrations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | $ 2,864,900 | $ 2,508,600 | $ 8,623,500 | $ 7,245,100 | $ 9,775,200 | $ 7,784,400 |
Income (Loss) from Operations | 405,400 | |||||
Depreciation and Amortization and Impairment | 581,800 | 126,700 | 251,500 | 160,900 | ||
Benchtop Laboratory Equipment | ||||||
Revenues | 2,434,600 | 2,365,700 | 7,465,700 | 6,803,300 | 9,043,600 | 6,783,600 |
Foreign Sales | 783,600 | 942,200 | 2,814,700 | 2,724,800 | 3,483,700 | 2,589,800 |
Income (Loss) from Operations | 247,300 | 394,700 | 1,107,000 | 1,347,100 | 1,461,300 | 449,700 |
Assets | 10,231,100 | 5,979,400 | 10,231,100 | 5,979,400 | 14,783,000 | 12,232,600 |
Long-lived Asset Expenditures | 16,500 | 18,600 | 83,100 | 54,100 | 60,500 | 36,000 |
Depreciation and Amortization and Impairment | 24,600 | 30,000 | 71,200 | 79,700 | 103,100 | 116,900 |
Bioprocessing Systems | ||||||
Revenues | 430,300 | 142,900 | 1,157,800 | 441,800 | 731,600 | 1,000,800 |
Foreign Sales | 269,700 | 102,600 | 791,200 | 395,000 | 684,600 | 1,000,400 |
Income (Loss) from Operations | (1,651,700) | (1,323,900) | (5,091,300) | (2,598,000) | (4,828,600) | (727,500) |
Assets | 10,024,261 | 1,281,200 | 10,024,261 | 1,281,200 | 8,735,100 | 546,100 |
Long-lived Asset Expenditures | 158,000 | 92,100 | 321,300 | 170,800 | 196,900 | 40,700 |
Depreciation and Amortization and Impairment | 229,900 | 16,700 | 510,600 | 46,500 | 148,400 | 42,700 |
Consolidated | ||||||
Revenues | 2,864,900 | 2,508,600 | 8,623,500 | 7,245,100 | 9,775,200 | 7,784,400 |
Foreign Sales | 1,053,300 | 1,044,800 | 3,605,900 | 3,119,800 | 4,168,300 | 3,590,200 |
Income (Loss) from Operations | (1,742,300) | (1,858,800) | (5,111,500) | (2,298,900) | (4,708,800) | (663,500) |
Assets | 30,526,800 | 13,900,300 | 30,526,800 | 13,900,300 | 29,006,400 | 14,797,400 |
Long-lived Asset Expenditures | 174,500 | 110,700 | 404,400 | 224,900 | 257,400 | 76,700 |
Depreciation and Amortization and Impairment | 254,500 | 46,700 | 581,800 | 126,700 | 251,500 | 159,600 |
Corporate and Other [Member] | ||||||
Revenues | 0 | 0 | 0 | 0 | 0 | 0 |
Foreign Sales | 0 | 0 | 0 | 0 | 0 | 0 |
Income (Loss) from Operations | (337,900) | (929,600) | (1,127,200) | (1,048,000) | (1,341,400) | (385,700) |
Assets | 10,271,439 | 6,639,700 | 10,271,439 | 6,639,700 | 5,488,300 | 2,018,700 |
Long-lived Asset Expenditures | 0 | 0 | 0 | 0 | $ 0 | 0 |
Depreciation and Amortization and Impairment | $ 0 | $ 0 | $ 0 | $ 500 | $ 0 |
Segment Information and Conce_3
Segment Information and Concentrations (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Torbal Scales Division | ||||
Net sales percentage | 24.00% | 20.00% | 24.00% | 23.00% |
Total revenue | 20.00% | 19.00% | 21.00% | 21.00% |
Three Customerst [Member] | ||||
Net sales percentage | 19.00% | 26.00% | 20.00% | 23.00% |
Total revenue | 16.00% | 25.00% | 17.00% | 21.00% |
Benchtop Laboratory Operations Equipment [Member] | ||||
Net sales percentage | 50.00% | 55.00% | 49.00% | 51.00% |
Total revenue | 42.00% | 52.00% | 42.00% | 47.00% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
ASSETS | |||||
Cash and cash equivalents | $ 4,068,000 | $ 9,675,200 | $ 627,500 | $ 7,559,700 | $ 1,602,500 |
Investment securities | 7,768,600 | 3,744,600 | 331,800 | ||
Total | 11,836,600 | 13,419,800 | 7,891,500 | ||
Liabilities: | |||||
Contingent consideration | 117,500 | 160,000 | 358,000 | ||
Level 1 | |||||
ASSETS | |||||
Cash and cash equivalents | 4,068,000 | 9,675,200 | 7,559,700 | ||
Investment securities | 6,796,500 | 2,920,600 | 331,800 | ||
Total | 10,864,500 | 12,595,800 | 7,891,500 | ||
Liabilities: | |||||
Contingent consideration | 0 | 0 | 0 | ||
Level 2 | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Investment securities | 972,100 | 824,000 | 0 | ||
Total | 972,100 | 824,000 | 0 | ||
Liabilities: | |||||
Contingent consideration | 0 | 0 | 0 | ||
Level 3 | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 0 | ||
Investment securities | 0 | 0 | 0 | ||
Total | 0 | 0 | |||
Liabilities: | |||||
Contingent consideration | $ 117,500 | $ 160,000 | $ 358,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Cost | $ 7,804,400 | $ 3,687,300 | $ 327,900 |
Fair value | 7,768,600 | 3,744,600 | 331,800 |
Unrealized holding gain (loss) | (35,800) | 57,300 | (3,900) |
Equity Securities | |||
Cost | 118,900 | 102,200 | 77,600 |
Fair value | 176,900 | 154,100 | 101,900 |
Unrealized holding gain (loss) | (58,000) | (51,900) | (24,300) |
Mutual Funds | |||
Cost | 6,708,300 | 2,752,400 | 250,300 |
Fair value | 6,619,600 | 2,766,500 | 229,900 |
Unrealized holding gain (loss) | 88,700 | (14,100) | $ 20,400 |
Debt Securities | |||
Cost | 977,200 | 832,700 | |
Fair value | 972,100 | 824,000 | |
Unrealized holding gain (loss) | $ (5,100) | $ 8,700 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value of Financial Instruments | ||
Beginning balance | $ 358,000 | $ 618,000 |
Increase (decrease) in contingent consideration liability | (30,000) | 112,600 |
Payments | (168,000) | (372,600) |
Ending balance | $ 160,000 | $ 358,000 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Inventories | |||
Raw materials | $ 3,058,100 | $ 2,170,400 | $ 1,726,400 |
Work-in-process | 106,400 | 39,600 | 35,700 |
Finished goods | 1,203,400 | 767,100 | 778,900 |
Inventory | $ 4,367,900 | $ 2,977,100 | $ 2,541,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2022 | Jun. 30, 2020 | |
Property and equipment, gross | $ 1,516,300 | $ 1,277,400 | |
Less accumulated depreciation and amortization | 1,103,700 | 999,100 | |
Property and equipment, net | 412,600 | $ 566,900 | 278,300 |
Automobiles | |||
Property and equipment, gross | $ 22,000 | 22,000 | |
Useful lives | 5 years | ||
Computer equipment | |||
Property and equipment, gross | $ 233,500 | 215,300 | |
Computer equipment | Minimum | |||
Useful lives | 3 years | ||
Computer equipment | Maximum | |||
Useful lives | 5 years | ||
Machinery and equipment | |||
Property and equipment, gross | $ 1,047,600 | 847,500 | |
Machinery and equipment | Minimum | |||
Useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Useful lives | 7 years | ||
Furniture and fixtures | |||
Property and equipment, gross | $ 148,800 | 142,300 | |
Furniture and fixtures | Minimum | |||
Useful lives | 4 years | ||
Furniture and fixtures | Maximum | |||
Useful lives | 10 years | ||
Leasehold improvements | |||
Property and equipment, gross | $ 64,400 | $ 50,300 | |
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, 2021 | Jun. 30, 2020 | |
Property and Equipment | ||
Depreciation expense | $ 104,600 | $ 88,700 |
Goodwill and Finite Lived Intan
Goodwill and Finite Lived Intangible Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cost | $ 4,404,300 | $ 4,337,300 | $ 2,406,300 |
Accumulated amortization | 2,188,000 | 1,779,500 | 2,277,600 |
Net | 2,216,300 | 2,557,800 | 128,700 |
Technology, trademarks | |||
Cost | 817,000 | 364,700 | 664,700 |
Accumulated amortization | 431,800 | 362,200 | 662,000 |
Net | $ 385,200 | $ 2,500 | $ 2,700 |
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 | $ 592,300 | $ 140,000 |
Accumulated amortization | 140,000 | 152,600 | 140,000 |
Net | 0 | 439,700 | $ 0 |
Useful life | 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 | ||
Websites | Minimum | |||
Useful life | 3 years | 3 years | |
Websites | Maximum | |||
Useful life | 7 years | 7 years | |
Customer relationships | |||
Cost | $ 372,200 | $ 372,200 | $ 357,000 |
Accumulated amortization | 133,100 | 102,400 | 321,400 |
Net | $ 239,100 | $ 269,800 | $ 35,600 |
Customer relationships | Minimum | |||
Useful life | 4 years | 4 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 | 294,000 | 283,000 | 253,600 |
Net | $ 0 | $ 11,000 | $ 40,400 |
Useful life | 10 years | 10 years | 10 years |
Non-compete agreements | |||
Cost | $ 1,060,500 | $ 1,060,500 | $ 384,000 |
Accumulated amortization | 455,300 | 308,600 | 384,000 |
Net | 605,200 | 751,900 | $ 0 |
Useful life | 5 years | ||
IPR and D | |||
Cost | 917,600 | 852,100 | $ 110,000 |
Accumulated amortization | 249,600 | 134,800 | 110,000 |
Net | $ 668,000 | $ 717,300 | $ 0 |
Useful life | 3 years | ||
IPR and D | Minimum | |||
Useful life | 3 years | 3 years | |
IPR and D | Maximum | |||
Useful life | 5 years | 5 years | |
Other intangible assets | |||
Cost | $ 593,000 | $ 591,500 | $ 246,600 |
Accumulated amortization | 274,200 | 225,900 | 196,600 |
Net | $ 318,800 | $ 365,600 | $ 50,000 |
Useful life | 5 years | ||
Other intangible assets | Minimum | |||
Useful life | 5 years | 5 years | |
Other intangible assets | Maximum | |||
Useful life | 7 years | 7 years | |
Trade names | Minimum | |||
Useful life | 3 years | 3 years | |
Trade names | Maximum | |||
Useful life | 6 years | 6 years | |
Non-compete agreements | Minimum | |||
Useful life | 4 years | 4 years | |
Non-compete agreements | Maximum | |||
Useful life | 5 years | 5 years |
Goodwill and Finite Lived Int_2
Goodwill and Finite Lived Intangible Assets (Details 1) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Goodwill and Other Intangible Assets | |||
2022 | $ 134,300 | $ 525,700 | |
2023 | 520,900 | 520,000 | |
2024 | 518,900 | 508,800 | |
2025 | 485,100 | 473,100 | |
2026 | 284,600 | 530,200 | |
Total | $ 2,216,300 | $ 2,557,800 | $ 128,700 |
Goodwill and Finite Lived Int_3
Goodwill and Finite Lived Intangible Assets (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Other Intangible Assets | ||||||
Goodwill | $ 4,395,400 | $ 4,395,400 | $ 4,395,400 | $ 257,300 | ||
Total amortization expense | 134,600 | $ 16,000 | 408,500 | $ 48,500 | 146,900 | $ 72,000 |
2022 | 134,300 | 134,300 | 525,700 | |||
2023 | 520,900 | 520,900 | 520,000 | |||
2024 | 518,900 | 518,900 | 508,800 | |||
2025 | 485,100 | 485,100 | 473,100 | |||
2026 | 284,600 | 284,600 | $ 530,200 | |||
There after | $ 137,500 | $ 137,500 |
Loss Per Common Share (Details)
Loss Per Common Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings (Loss) Per Common Share (Tables) | ||||||
Weighted average common shares outstanding | 6,633,901 | 2,861,607 | 6,544,112 | 2,861,376 | 3,189,602 | 1,515,103 |
Weighted average dilutive common shares outstanding | 6,633,901 | 2,861,607 | 6,544,112 | 2,861,376 | 3,189,602 | 1,515,103 |
Continuing operations | $ (0.23) | $ (0.51) | $ (0.56) | $ (0.61) | $ (0.97) | $ (0.30) |
Discontinued operations | 0 | 0.01 | 0 | (0.20) | (0.18) | (0.16) |
Consolidated operations | $ (0.23) | $ (0.50) | $ (0.56) | $ (0.81) | $ (1.15) | $ (0.46) |
Loss Per Common Share (Details
Loss Per Common Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options | ||||||
Dilutive shares excluded | 3,452,542 | 3,451,461 | 88,691 | 54,513 | ||
Warrants | ||||||
Dilutive shares excluded | 259,357 | 1,349,850 | 2,481,783 | 1,349,850 |
Leases (Details)
Leases (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Leases | ||
Remainder of 2022 | $ 82,200 | $ 260,300 |
2023 | 311,400 | 245,300 |
2024 | 247,600 | 195,900 |
2025 | 255,000 | 91,600 |
2026 | 262,700 | |
Thereafter | 609,600 | |
Total future minimum payments | 1,768,500 | 793,100 |
Less: imputed interest | (256,100) | (62,100) |
Total present value of operating lease liabilities | $ 1,512,400 | $ 731,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | |
Leases | |||
Total cash payments under leases | $ 82,000 | $ 240,200 | $ 289,100 |
Weighted-average remaining lease term | 5 years 3 months 25 days | 2 years 8 months 4 days | |
Weighted-average discount rate | 5.00% | 5.00% | |
Discount rate on lease | 5.00% | 5.00% | |
Lease expense | $ 81,800 | $ 226,300 | $ 277,300 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Assets: | ||||||
Cash | $ 600 | $ 600 | $ 0 | |||
Accounts receivable | 0 | 0 | 52,000 | |||
Inventories | 0 | 0 | 3,300 | $ 343,700 | ||
Property and equipment, net | 1,400 | |||||
Goodwill | 447,900 | |||||
Discontinued operations | 600 | 600 | 55,300 | 793,000 | ||
Liabilities: | ||||||
Accrued expenses and taxes | 0 | 0 | 20,700 | 120,700 | ||
Accounts payable | 20,100 | |||||
Contract liabilities | 7,900 | 7,900 | 16,500 | 69,000 | ||
Operating lease liabilities, current portion | 31,100 | |||||
Liabilities of discontinued operations | 7,900 | 7,900 | 37,200 | 240,900 | ||
Revenues | 0 | $ 107,800 | 20,600 | $ 387,700 | 387,700 | 785,900 |
Cost of goods sold | 6,900 | 78,800 | 10,300 | 458,500 | 471,800 | 869,900 |
Gross profit (loss) | (6,900) | 29,000 | 10,300 | (70,800) | (84,100) | (84,000) |
Selling, general and administrative expenses | 700 | 12,600 | 2,900 | 282,200 | 280,400 | 388,500 |
Gain (loss) from operation | (7,600) | 16,400 | 7,400 | (353,000) | (364,500) | (472,500) |
Loss on disposal | 0 | 0 | 0 | (405,400) | (405,400) | 0 |
Income (loss) before income tax benefit | (7,600) | 16,400 | 7,400 | (758,400) | (769,900) | (472,500) |
Income tax expense (benefit) | 0 | 0 | 4,000 | (179,900) | (207,400) | (222,600) |
Net income (loss) from attributable to discontinued operations | $ (7,600) | $ 16,400 | $ 3,400 | $ (578,500) | $ (562,500) | $ (249,900) |
Discontinued Operations (Deta_2
Discontinued Operations (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Discontinued Operations | ||||
Cash paid to the related party | $ 440,000 | |||
Pre tax loss | 405,400 | |||
Cash provided by (used in) operating activities | 25,400 | $ (502,900) | $ (75,000) | $ 66,100 |
Cash provided by investing activities from discontinued operations | $ 0 | $ 440,000 | $ 440,000 | $ 2,200 |
Acquisition of Aquila Biolabs_3
Acquisition of Aquila Biolabs GmbH (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Apr. 29, 2021 | Jun. 30, 2021 | |
Current assets: | ||
Cash and cash equivalents | $ 201,100 | $ 201,100 |
Accounts receivable | 159,200 | 159,200 |
Inventory | 187,500 | 187,500 |
Prepaid expenses and other current assets | 25,400 | 25,400 |
Property, plant and equipment | 40,200 | 40,200 |
Deferred tax assets | 800,300 | 800,300 |
Tradename | 452,300 | 452,300 |
Non-compete agreements | 784,500 | 784,500 |
In-process research and development | 742,100 | 742,100 |
Customer relationships | 252,200 | 252,200 |
Patents and other intangibles | 286,200 | 286,200 |
Total assets acquired | 3,931,000 | 3,931,000 |
Fair value of liabilities assumed: | ||
Accounts payable | (39,300) | (39,300) |
Accrued expenses | (90,300) | (90,300) |
Other current liabilities | (59,400) | (59,400) |
Total liabilities assumed | (189,000) | (189,000) |
Total identifiable net assets | 3,742,000 | 3,742,000 |
Fair value of consideration transferred | 7,880,100 | 7,880,100 |
Goodwill | $ 4,138,100 | $ 4,138,100 |
Customer relationships | ||
Fair value of liabilities assumed: | ||
Useful life | 9 years | 9 years |
Non-compete agreements | ||
Fair value of liabilities assumed: | ||
Useful life | 4 years | 4 years |
Tradename | ||
Fair value of liabilities assumed: | ||
Useful life | 6 years | 6 years |
In-process research and development | ||
Fair value of liabilities assumed: | ||
Useful life | 5 years | 5 years |
Patents and Other Intangibles | ||
Fair value of liabilities assumed: | ||
Useful life | 7 years | 7 years |
Acquisition of Aquila Biolabs_4
Acquisition of Aquila Biolabs GmbH (Details 1) | 12 Months Ended |
Jun. 30, 2020USD ($)$ / shares | |
Acquisition of Aquila Biolabs GmbH | |
Revenues | $ | $ 9,346 |
Net loss | $ | $ (1,650) |
Earnings per share: Diluted | $ / shares | $ (0.37) |
Earnings per share: Basic | $ / shares | $ (0.37) |
Acquisition of Aquila Biolabs_5
Acquisition of Aquila Biolabs GmbH (Details Narrative) | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Acquisition of Aquila Biolabs GmbH | |
Aggregate purchase price | $ 7,880,100 |
Paycheck Protection Program L_2
Paycheck Protection Program Loan (Details Narrative) | Mar. 31, 2021USD ($) |
Paycheck Protection Program Loan [Member] | |
Debt intrument, face amount | $ 433,800 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | Mar. 02, 2022 | Feb. 25, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 24, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Equity (Details Narrative) | |||||||
Common share authorized | 20,000,000 | 20,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | ||
Increase in authorized share | 5,000,000 | ||||||
Offering price | $ 5.50 | ||||||
Proceeds from common stock | $ 3,000,000 | $ 3,000,000 | $ 0 | ||||
Issuence and sold aggregate shares of common stock and warrants | 545,456 | ||||||
Additional common stock purchased | 274,727 | ||||||
Issuance cost | $ 272,800 | ||||||
Issuance of shares | 1,750,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Jun. 30, 2021USD ($) |
Commitments and Contingencies | |
2022 | $ 136,600 |
2023 | 12,000 |
2024 | 11,400 |
Total | $ 160,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes | ||||||
Computed "expected" income tax (benefit) | $ (1,014,300) | $ (239,400) | ||||
Research and development credits | (93,900) | (89,400) | ||||
Rate changes and NOL carrybacks | 0 | (122,600) | ||||
Incentive stock option expense | 59,500 | 13,800 | ||||
PPP loan forgivness | (111,700) | 0 | ||||
Other, net | (7,900) | 1,000 | ||||
Income tax benefit | $ (317,200) | $ (378,200) | $ (1,054,500) | $ (472,300) | $ (1,152,500) | $ (436,600) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Amortization of intangibles | $ 374,000 | $ 329,700 |
Research and development credits | 164,600 | 89,400 |
Various accruals | 64,600 | 150,700 |
Stock options expense | 383,200 | 0 |
Net operating loss | 1,515,800 | 0 |
Other | 24,900 | 19,400 |
Total | 2,527,100 | 589,200 |
Deferred tax liability: | ||
Depreciation of property and amortization of goodwill | (37,200) | (52,100) |
Net deferred tax assets | $ 2,489,900 | $ 537,100 |
Stock Options (Details)
Stock Options (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options | ||
Number of Options Outstanding, Beginning | 96,586 | 97,205 |
Number of Options Granted | 1,094,171 | 25,881 |
Number of Options Exercised | (1,000) | (24,000) |
Number of Options Forfeited | (9,000) | (2,500) |
Number of Options Outstanding, Ending | 1,180,757 | 96,586 |
Number of Options Exercisable | 296,821 | 49,236 |
Weighted Average Exercise Price Outstanding, Beginning | $ 4.35 | $ 3.24 |
Weighted Average Exercise Price Granted | 9.07 | 7.47 |
Weighted Average Exercise Price Exercised | 3.05 | 3.35 |
Weighted Average Exercise Price Forfeited | 3.11 | 3.08 |
Weighted Average Exercise Price Outstanding, Ending | 8.73 | 4.35 |
Weighted Average Exercise Price Exercisable | 7.69 | 3.29 |
Weighted average fair value per share of options granted | $ 7.25 | $ 5.58 |
Stock Options (Details 1)
Stock Options (Details 1) - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Number of Options Outstanding, Beginning | 1,180,757 | 96,586 | 97,205 |
Weighted Average Exercise Price Outstanding, Beginning | $ 8.73 | $ 4.35 | $ 3.24 |
Number of Options Exercisable | 296,821 | 49,236 | |
Weighted Average Exercise Price Exercisable | $ 7.69 | $ 3.29 | |
Exercise Price Range 5.35 - 11.30 | |||
Number of Options Outstanding, Beginning | 1,120,052 | 25,881 | |
Weighted Average Exercise Price Outstanding, Beginning | $ 9.03 | $ 7.47 | |
Number of Options Exercisable | 238,351 | 0 | |
Weighted Average Exercise Price Exercisable | $ 8.76 | $ 0 | |
Weighted Average Remaining Contractual Life | 9 years 4 months 6 days | 9 years 10 months 13 days | |
Exercise Price Range 2.91 - 4.65 | |||
Number of Options Outstanding, Beginning | 60,705 | 70,705 | |
Weighted Average Exercise Price Outstanding, Beginning | $ 3.36 | $ 3.33 | |
Number of Options Exercisable | 58,470 | 49,236 | |
Weighted Average Exercise Price Exercisable | $ 3.32 | $ 3.29 | |
Weighted Average Remaining Contractual Life | 5 years 3 months 10 days | 6 years 5 months 15 days |