Scientific Industries Reports $6.4 Million Net Loss for Fiscal Year 2024

Scientific Industries, Inc. reported a net loss of $6.4 million for the fiscal year ending December 31, 2024, a decrease from a loss of $9.1 million in the previous year. The company's total net revenues fell by 3.6% to $10.7 million, down from $11.1 million in 2023. This decline was attributed to a significant drop in sales from its Benchtop Laboratory Equipment segment, particularly in the Torbal division, which saw revenues decrease to $3.1 million from $3.6 million. The company noted that reduced sales of its VIVID automated pill counters were primarily due to new regulations affecting the independent pharmacy market.

In terms of operational changes, Scientific Industries has focused on cost reductions, particularly within its Bioprocessing Systems segment, which has led to a decrease in general and administrative expenses by 11% to $4.8 million. Selling expenses also saw a significant reduction of 32.3%, reflecting a strategic operational plan that included a reduction in sales and marketing personnel. Research and development expenses decreased by 18.5% to $2.9 million, as the company streamlined its efforts following the completion of a new VIVID product.

The company continues to invest in its Bioprocessing Systems operations, which are still in the early stages of development. The introduction of the DOTS MPS product contributed to a slight increase in revenues from this segment. However, the overall market for bioprocessing products remains competitive and uncertain, with the company acknowledging the need for significant capital investment to support ongoing product development and commercialization efforts.

As of December 31, 2024, Scientific Industries had an accumulated deficit of $33.9 million and reported negative cash flows from operations of $3.7 million. The company is actively seeking additional capital resources to sustain its operations and has developed a strategic plan that may include equity financing and asset sales. The management has expressed concerns about the company's ability to continue as a going concern without securing further funding.

Looking ahead, Scientific Industries anticipates continued challenges in achieving profitability, particularly as it expands its Bioprocessing Systems operations. The company is focused on enhancing product development and market acceptance, which it views as critical to its long-term success. However, the uncertainties surrounding market conditions and the competitive landscape pose risks to its growth strategy.