Scientific Industries, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated revenues of $2,769,100, marking a 7.1% increase from $2,585,500 in the same period of 2023. This growth was driven by increased sales in both the Benchtop Laboratory Equipment Operations and Bioprocessing Systems Operations, with notable contributions from Torbal and VIVID brand products. Gross profit for the quarter improved to $1,363,200, resulting in a gross profit margin of 49.2%, up from 45.7% in the prior year, attributed to higher margins in Bioprocessing Systems.

Despite the revenue growth, the company reported a loss from operations of $(1,258,600) for the quarter, although this was an improvement from a loss of $(2,225,400) in Q3 2023. The net loss for the quarter was $(1,180,100), down from $(2,201,100) in the previous year. For the nine months ended September 30, 2024, net revenues totaled $7,899,900, a decrease of 5.7% from $8,373,400 in 2023, primarily due to reduced sales in the Benchtop Laboratory Equipment segment, particularly the Genie brand, which faced market softness in China.

Total operating expenses for the three months ended September 30, 2024, were $2,621,800, a significant decrease from $3,406,400 in the same period last year, largely due to a reduction in sales and marketing personnel as part of a strategic operational plan. Research and development expenses also fell by 23.7% to $683,200, reflecting completed product developments and reduced expenditures.

The company’s total assets decreased from $16,730,500 at the end of 2023 to $13,306,800 as of September 30, 2024, while total liabilities also declined to $2,372,200 from $2,845,100. However, total shareholders’ equity decreased to $10,934,600 from $13,885,400, indicating a challenging financial environment.

Cash flows showed some improvement, with net cash used in operating activities decreasing to $(3,304,600) from $(4,821,600) in the prior year. The company also reported net cash provided by financing activities of $645,700, a significant increase from $13,300 in 2023, primarily due to the issuance of common stock.

Management expressed concerns regarding the company's ability to continue as a going concern, citing insufficient cash on hand and the need for additional capital resources. The company is exploring various means to secure these resources, including potential capital from management and significant shareholders.