What changed in this filing

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Item 1. Business

2020-10-09 compared with 2019-10-04 · 113 added, 102 removed, 217 unchanged (50% of the section changed)

in 1954, Scientific Industries, Inc., a Delaware corporation (which

along with its subsidiaries, the “Company”) is engaged

in the design, manufacture, and marketing of standard benchtop

laboratory equipment (“Benchtop Laboratory Equipment”),

customized catalyst research instruments (“Catalyst Research

Instruments”) under its wholly-owned subsidiary, Altamira

Instruments, Inc.

(“Altamira”) and through its

wholly-owned subsidiary Scientific Bioprocessing, Inc.

(“SBI”), the licensing and development of bioprocessing

systems and products (“Bioprocessing Systems”).

Company’s products are used primarily for research purposes

by universities, pharmaceutical companies, pharmacies, national

laboratories, medical device manufacturers, petrochemical companies

and other industries performing laboratory-scale

Incorporated in 1954, Scientific Industries, Inc.,

a Delaware corporation (which along with its subsidiaries, the

“Company”) is engaged in the design, manufacture, and

marketing of standard benchtop laboratory equipment

(“Benchtop Laboratory Equipment”), customized catalyst

research instruments (“Catalyst Research Instruments”)

under its wholly-owned subsidiary, Altamira Instruments, Inc.

(“Altamira”) and through its wholly-owned subsidiary

Scientific Bioprocessing, Inc.

(“SBI”), the licensing

and development of bioprocessing systems and products

(“Bioprocessing Systems”).

The Company’s products

are used primarily for research purposes by universities,

pharmaceutical companies, pharmacies, national laboratories,

medical device manufacturers, petrochemical companies and other

industries performing laboratory-scale

The Company views its

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and the development and

sublicensing of bioprocessing systems for research in university

and industrial laboratories.

For certain financial information

regarding the Company’s operating segments, see Note 2 to the

consolidated financial statements included under Item

sublicensing of bioprocessing products.

For certain financial

information regarding the Company’s operating segments, see

Note 2 to the consolidated financial statements included under Item

Benchtop Laboratory

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environmental conditions.

line of magnetic stirrers include a patented high/low programmable

line of magnetic stirrers includes a patented high/low programmable

magnetic stirrer, a four-place high/low programmable magnetic

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laboratory, and industrial digital scales, mechanical balances,

moisture analyzers, and force gauges.

moisture analyzers, pill counters, and force gauges.

Catalyst Research

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instrument and incorporates proprietary LabVIEW®-based

The Company’s AMI-300 Catalyst Characterization

Instrument incorporates a sophisticated data handling package and

is designed to perform dynamic temperature-programmed catalyst

characterization experiments.

All AMI model instruments are

designed or adapted to a customer’s individual

requirements.

The Company’s AMI-300™

Characterization Instrument incorporates a sophisticated data

handling package and is designed to perform dynamic

temperature-programmed catalyst characterization experiments.

AMI model instruments are designed or adapted to a customer’s

individual requirements.

Altamira’s

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SBI, sublicenses the patents and technology it holds relating to

bioprocessing systems exclusively under a license with the

bioprocessing products exclusively under a license with the

University of Maryland, Baltimore County (“UMBC”), for

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The Company is also engaged in the design and development of

bioprocessing products, principally products incorporating coaster

systems using disposable sensors in vessels that include T-Flasks

and shake flasks.

bioprocessing products, principally products incorporating

disposable sensors which includes coaster systems and other shaking

products using vessels such as T-Flasks and shake

Development .

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customers, principally of the Vortex-Genie 2 Mixer, represented 17%

for both fiscal 2019 and fiscal 2018 of total net revenues, and 21%

and 20% of Benchtop Laboratory Equipment product sales, for fiscal

2019 and fiscal 2018, respectively.

Sales of Catalyst Research

Instrument products are generally pursuant to a few large orders

amounting on average to over $50,000 to a limited number of

and 15% of total net revenues for fiscal 2020 and fiscal 2019,

respectively, and 21% of Benchtop Laboratory Equipment product

sales, for both fiscal 2020 and fiscal 2019.

Sales of Catalyst

Research Instrument products are generally pursuant to a few large

orders amounting on average to over $50,000 to a limited number of

In fiscal 2020, sales to two customers accounted for 25%

of the segment’s sales (2% of total net revenues) and in

fiscal 2018 sales to four customers (one of which was a customer in

2019) accounted for 78% of the segment’s sales (13% of total

net revenues).

Benchtop Laboratory

The Company’s

Benchtop Laboratory Equipment products sold under the

“Genie”

brand are generally distributed and marketed

through an established network of domestic and overseas laboratory

equipment distributors who sell the Company’s products

through printed catalogs, websites and sales

fiscal 2019 sales to two other customers accounted for 27% of the

segment’s sales (5% of total net

Laboratory Equipment.

Company’s Benchtop Laboratory Equipment products sold under

the “Genie”

brand are generally distributed and

marketed through an established network of domestic and overseas

laboratory equipment distributors who sell the Company’s

products through printed catalogs, websites and sales

Company’s “Torbal”

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Equipment product to begin generating meaningful

Catalyst Research

Research Instruments.

Company’s Catalyst Research Instrument products are sold

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The Company’s

Bioprocessing Systems products are currently under development and

will be offered both directly and through distribution worldwide to

university, industrial and government

laboratories.

The Company has an

operating facility in Bohemia, New York at which its Benchtop

Laboratory Equipment operations are conducted and one in

Pittsburgh, Pennsylvania at which its Catalyst Research Instruments

operations are conducted.

The Company also has a small facility in

Pittsburgh where it conducts product development and plans to

operate future small scale production for the Bioprocessing Systems

The Company’s production operations principally

involve assembly of components supplied by various domestic and

Bioprocessing Systems products are currently under development as

well as its sales and marketing activities for these products.

Company recently hired a Chief Commercial Officer as well as

several application scientists and a sales and marketing consultant

to implement a sales and marketing strategy for the Bioprocessing

Systems products that the Company plans to offer for sale in the

Its marketing efforts include a new website, trade

shows, online marketing campaigns, and membership in various

organizations.

The products, once available, will be offered for

sale both directly and through distribution

and Production .

The Company has

an operating facility in Bohemia, New York and a small facility in

Orangeburg, New York at which its Benchtop Laboratory Equipment

operations are conducted and one in Pittsburgh, Pennsylvania at

which its Catalyst Research Instruments operations are conducted.

The Company also has a small facility in Pittsburgh where it

conducts product development and plans to operate future

small-scale production for the Bioprocessing Systems operations.

The Company’s production operations principally involve

assembly of components supplied by various domestic and

international independent suppliers.

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and Licenses .

Company holds a United States patent which expires in November 2022

Company holds several patents relating to its benchtop laboratory

products which include a United States patent expiring in November

2022 on the MagStir Genie®

and on the MultiMagStir Genie®.

and on the MultiMagStir

®, another

patent that relates to its Vortex-Genie Pulse expiring in January

2036, and a newly issued patent relating to Torbal’s

automated pill counter which expires in March 2039.

additional patents held by the Company relating to Bioprocessing

Systems expire in January 2029 for a biocompatible bag with

integral sensors.

The last patent held by the Company expires in

2036 on an apparatus for detecting pH and dissolved oxygen.

Company also holds a patent that relates to a future vortexing

product which is still in development stages.

integral sensors and another patent expiring in 2036 on an

apparatus for detecting PH and dissolved oxygen.

The Company has

several patent applications pending.

The Company does not

anticipate any material adverse effect on its operations following

the expiration of the patents.

The Company has various proprietary trademarks,

including AMI™, BenchCAT™, Biocoaster™,

BioGenie®, Cellphase®, Cellstation®, Disruptor

Beads™, Disruptor Genie®, Enviro-Genie®,

Genie™, Genie Temp-Shaker™, Incubator Genie™,

MagStir Genie ®

several patent applications pending, related primarily to

bioprocessing technology.

The Company does not anticipate any

material adverse effect on its operations following the expiration

of the patents.

The Company has various proprietary trademarks, including

AMI™, BenchCAT™, Biocoaster™, BioGenie®,

Cellphase®, Cellstation®, Disruptor Beads™,

Disruptor Genie®, Enviro-Genie®, Genie™, Genie

Temp-Shaker ™,

ID.Developer’s Kit™, ID.Rocker™,

ID.Shaker™, Incubator Genie™, MagStir

, MegaMag Genie®, MicroPlate Genie®,

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Roto-Shake Genie ®

, Torbal ®, TurboMix™, VIVID™, and

Vortex-Genie ®

, Torbal ®, TurboMix™, VIVID ®

, and Vortex-Genie ®

, each of which it considers important to the

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existing or future trademark may provide.

Company has an exclusive license from UMBC with respect to rights

and know-how under a patent held by UMBC related to disposable

sensor technology, which the Company further sublicenses on an

exclusive basis to a German company, and non-exclusive rights held

by the Company as it relates to the use of the technology with

The Company has an exclusive license

from UMBC with respect to rights and know-how under a patent held

by UMBC related to disposable sensor technology, on a United States

patent through December 2023 and a European Union patent that

terminated in December 2019 which the Company further sublicenses

on an exclusive basis to a German company, and non-exclusive rights

held by the Company as it relates to the use of the technology with

vessels of sizes ranging from 250 milliliters to 5 liters.

license fees paid or owed by the Company under this license for

fiscal 2019 and fiscal 2018 amounted to $1,035,400 and $517,000,

total license fees paid or owed to the Company under this license

for fiscal 2020 and fiscal 2019 amounted to $1,286,800 and

$1,035,400, respectively.

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internally by research laboratory staff of potential customers.

Major competitors in the United States include Anton Paar (which is

also a customer) and Micromeritics Instrument Corporation, each a

privately-held company.

The Company sells instruments to Anton Paar

(formerly Quantachrome Instruments) under an OEM

Major competitors in the United States include Anton Paar (formerly

Quantachrome Instruments) and Micromeritics Instrument Corporation,

each a privately held company.

The Company sells instruments to

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incurred research and development expenses, the majority of which

related to its Benchtop Laboratory Equipment products, of $530,500

during fiscal 2019 compared to $520,900 during fiscal 2018.

Company expects that research and development expenditures in the

fiscal year ending June 30, 2020 will increase substantially due to

increased product development efforts for the Bioprocessing

related to its Bioprocessing Systems of $1,140,000 during fiscal

2020 compared to $530,500 during fiscal 2019.

The Company expects

that research and development expenditures in the fiscal year

ending June 30, 2021 will continue to increase due to increased

product development efforts for the Bioprocessing

Government and

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https://www.scientificindustries.com/sec-filings.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business