SCIENTIFIC INDUSTRIES INC 10-Q

Item 1. Financial Statements SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS As of March 31, 2025 As of December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 470,100 $ 587,900 Investment securities 785,100 1,985,000 Trade accounts receivable, less allowance for doubtful accounts of $ 15,600 at March 31, 2025 and December 31, 2024 1,207,000 1,202,600 Inventories 4,354,000 4,085,900 Income tax receivable 73,600 73,600 Prepaid expenses and other current assets 502,300 352,700 Total current assets 7,392,100 8,287,700 Property and equipment, net 899,400 885,000 Goodwill 115,300 115,300 Other intangible assets, net 626,300 752,300 Inventories 542,900 509,500 Operating lease right-of-use assets 935,300 947,900 Other assets 58,800 63,100 Total assets $ 10,570,100 $ 11,560,800 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 973,400 $ 586,100 Accrued expenses 778,200 790,100 Contract liabilities 63,900 63,500 Lease liabilities, current portion 317,300 307,300 Total current liabilities 2,132,800 1,747,000 Lease liabilities, less current portion 669,400 694,400 Total liabilities 2,802,200 2,441,400 Shareholders’ equity: Common stock, $ 0.05 par value; 30,000,000 shares authorized; 10,503,599 , shares issued and outstanding at March 31, 2025 and December 31, 2024 525,200 525,200 Additional paid-in capital 42,940,400 42,637,800 Accumulated other comprehensive gain (loss) 11,300 ( 113,100 ) Accumulated deficit ( 35,709,000 ) ( 33,930,500 ) Total shareholders’ equity 7,767,900 9,119,400 Total liabilities and shareholders’ equity $ 10,570,100 $ 11,560,800 See notes to unaudited condensed consolidated financial statements. 3 Table of Contents SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) For the Three Months Ended March 31, 2025 2024 Revenues $ 2,406,500 $ 2,483,500 Cost of revenues 1,389,900 1,442,700 Gross profit 1,016,600 1,040,800 Operating expenses: General and administrative 1,251,300 1,521,800 Selling 924,200 897,800 Research and development 652,000 710,700 Total operating expenses 2,827,500 3,130,300 Loss from operations ( 1,810,900 ) ( 2,089,500 ) Other income: Other income (expense), net 12,200 ( 4,300 ) Interest income 20,200 42,200 Total other income, net 32,400 37,900 Loss from operations before income tax expense ( 1,778,500 ) ( 2,051,600 ) Income tax expense - - Total income tax expense - - Net loss $ ( 1,778,500 ) $ ( 2,051,600 ) Comprehensive gain (loss): Foreign currency translation gain (loss) 124,400 ( 60,300 ) Comprehensive gain (loss) 124,400 ( 60,300 ) Total comprehensive loss $ ( 1,654,100 ) $ ( 2,111,900 ) Basic and Diluted loss per common share $ ( 0.16 ) $ ( 0.20 ) See notes to unaudited condensed consolidated financial statements. 4 Table of Contents SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) Additional Accumulated Other Total Common Stock Paid-in Comprehensive Accumulated Treasury Stock Stockholders’ Shares Amount Capital Income (Loss) Deficit Shares Amount Equity Balance December 31, 2024 10,503,599 $ 525,200 $ 42,637,800 $ ( 113,100 ) $ ( 33,930,500 ) - $ - $ 9,119,400 Net loss - - - - ( 1,778,500 ) - - ( 1,778,500 ) Foreign currency translation adjustment - - - 124,400 - - - 124,400 Stock-based compensation - - 302,600 - - - - 302,600 Balance March 31, 2025 10,503,599 $ 525,200 $ 42,940,400 $ 11,300 $ ( 35,709,000 ) - - $ 7,767,900 Common Stock Additional Paid-in Accumulated Other Comprehensive Accumulated Treasury Stock Total Stockholders’ Shares Amount Capital Income (Loss) Deficit Shares Amount Equity Balance December 31, 2023 10,145,211 $ 507,300 $ 40,844,600 $ 18,600 $ ( 27,485,100 ) - $ - $ 13,885,400 Net loss - - - - ( 2,051,600 ) - - ( 2,051,600 ) Issuance of Common Stock and Warrants, net of issuance costs (Note 7) 358,388 17,900 204,000 - - - 221,900 Fair value modification of warrants recorded as stock issuance costs - - 423,800 - - - 423,800 Foreign currency translation adjustment - - - ( 60,300 ) - - - ( 60,300 ) Stock-based compensation - - 199,900 - - - - 199,900 Balance March 31, 2024 10,503,599 $ 525,200 $ 41,672,300 $ ( 41,700 ) $ ( 29,536,700 ) - - $ 12,619,100 See notes to unaudited condensed consolidated financial statements 5 Table of Contents SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Three Months Ended March 31, 2025 2024 Operating activities: Net loss $ ( 1,778,500 ) $ ( 2,051,600 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 166,700 188,100 Stock-based compensation 302,600 199,900 Provision for bad debt - 2,000 Loss on sale of investment securities ( 19,100 ) 1,400 Unrealized holding (gain) on investment securities ( 11,300 ) ( 5,600 ) Noncash lease expense 16,000 82,500 Changes in operating assets and liabilities: Trade accounts receivable 300 9,600 Inventories ( 243,600 ) ( 19,500 ) Prepaid and other current assets ( 130,200 ) ( 55,800 ) Other assets 4,300 - Accounts payable 403,400 56,700 Accrued expenses ( 23,200 ) 110,200 Lease liabilities ( 18,500 ) ( 83,000 ) Net cash used in operating activities ( 1,331,100 ) ( 1,565,100 ) Investing activities: Purchase of investment securities - ( 247,300 ) Redemption of investment securities 1,230,300 775,400 Capital expenditures ( 26,300 ) ( 47,500 ) Net cash provided by investing activities 1,204,000 480,600 Financing activities: Proceeds from issuance of common stock - 716,800 Issuance costs of common stock and warrants - ( 71,100 ) Net cash provided by financing activities - 645,700 Effect of changes in foreign currency exchange rates on cash and cash equivalents 9,300 ( 5,600 ) Net decrease in cash and cash equivalents ( 117,800 ) ( 444,400 ) Cash and cash equivalents, beginning of period 587,900 796,100 Cash and cash equivalents, end of period $ 470,100 $ 351,700 See notes to unaudited condensed consolidated financial statements 6 Table of Contents SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Nature of the Business and Basis of Presentation 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 and pharmacy equipment. Additionally, the Company has a location in Baesweiller, Germany, where it designs and produces a variety of bioprocessing products, and administrative facilities in Pearl River, New York and Pittsburgh, Pennsylvania 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 accompanying (a) unaudited condensed balance sheet as of December 31, 2024, which has been derived from audited financial statements, and (b) unaudited interim condensed consolidated financial statements are prepared pursuant to the Securities and Exchange Commission’s rules and regulations for reporting on Form 10-Q. Accordingly, certain information and notes required by accounting principles generally accepted in the United States for complete financial statements are not included herein. The Company believes all adjustments necessary for a fair presentation of these interim statements have been included and that they are of a normal and recurring nature. These interim statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto, included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The results for the three months ended March 31, 2025, are not necessarily an indication of the results for the full fiscal year ending December 31, 2025. 2. Significant Accounting Policies Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Scientific Industries, Inc., Scientific Bioprocessing Holdings, Inc. (“SBHI”), a Delaware corporation and wholly-owned subsidiary, which holds 100% of the outstanding stock of Scientific Bioprocessing, Inc. (“SBI”), a Delaware corporation, and aquila biolabs GmbH (“Aquila”), a German corporation and Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated in consolidation. Liquidity and Going Concern Considerations The Company has evaluated whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date of the Consolidated Financial Statements are issued. Based upon the recuring losses from operations and continued cash outflow from operating activities (as described below), the Company has concluded that there is substantial doubt about the ability to continue as a going concern for a period of one year from the date that these Consolidated Financial Statements are issued. For the three months ended March 31, 2025, the Company generated negative cash flows from operations of $ 1,331,100 and has an accumulated deficit of $ 35,709,000 as of March 31, 2025. In order to continue as a going concern, the Company will need, among other things, additional capital resources in addition to those secured on April 18, 2025 as detailed in the Subsequent Events Footnote [Note 11]. Management has developed a strategic plan to secure such resources for the Company which may include capital from management and significant shareholders sufficient to meet its operating expenses and third-party equity and/or debt financing and exploring the sale of assets. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The Consolidated Financial Statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, Consolidated Financial Statements have been prepared on the basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and the commitments in the ordinary course of business. 7 Table of Contents New Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes - Improvements to Income Tax Disclosures. This standard includes enhanced income tax disclosures primarily related to the effective tax rate reconciliation and income taxes paid for annual periods. For public companies, the amendments in this update are effective for annual periods beginning after December 12, 2024, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosure (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU No. 2025-01 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-04. The ASU requires, among other things, more detailed disclosures about the type of expenses in commonly presented expense captions such as cost of sales and selling, general and administrative expenses and is intended to improve the disclosures about an entity’s expenses including purchases of inventory, employee compensation, depreciation and intangible asset amortization. ASU 2024-03 will also require the Company to disclose both the amount and the Company’s definition of selling expenses. The guidance, clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods for fiscal years beginning after December 15, 2027, on a prospective or retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our disclosures. 3. Fair Value of Financial Instruments The Company follows ASC - Accounting Standards Codification (“ASC 820”), Fair Value Measurement, which has defined 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. 8 Table of Contents 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 as of March 31, 2025, and December 31, 2024, according to the valuation techniques the Company used to determine their fair values: Fair Value Measurement as of March 31, 2025 Level 1 Level 2 Level 3 Total Investment securities - mutual funds $ 785,100 $ - $ - $ 785,100 Total $ 785,100 $ - $ - $ 785,100 Fair Value Measurement as of December 31, 2024 Level 1 Level 2 Level 3 Total Investment securities - mutual funds $ 1,985,000 $ - $ - $ 1,985,000 Total $ 1,985,000 $ - $ - $ 1,985,000 Investments in marketable securities by security type as of March 31, 2025, and December 31, 2024, consisted of the following: As of March 31, 2025: Cost Fair Value Unrealized Holding Gain Mutual funds $ 773,800 $ 785,100 $ 11,300 Total $ 773,800 $ 785,100 $ 11,300 As of December 31, 2024: Cost Fair Value Unrealized Holding Gain Mutual funds $ 1,729,000 $ 1,985,000 $ 256,000 Total $ 1,729,000 $ 1,985,000 $ 256,000 9 Table of Contents 4. Inventories As of March 31, 2025 As of December 31, 2024 Raw materials $ 3,112,400 $ 3,015,700 Work-in-process 99,600 28,500 Finished goods 1,684,900 1,551,200 Total Inventories $ 4,896,900 $ 4,595,400 Inventories - Current Asset $ 4,354,000 $ 4,085,900 Inventories - Noncurrent Asset $ 542,900 $ 509,500 5. 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 $ 115,300 as of March 31, 2025, and December 31, 2024, all of which is expected to be deductible for tax purposes. Finite lived intangible assets are as follows: As of March 31, 2025 Useful Lives Cost Accumulated Amortization Net Technology, trademarks 3 -- 10 yrs. $ 1,216,800 $ 1,057,400 $ 159,400 Trade names 3 -- 6 yrs. 592,300 436,100 156,200 Websites 3 -- 7 yrs. 210,000 210,000 - Customer relationships 4 -- 10 yrs. 372,200 228,100 144,100 Sublicense agreements 10 yrs. 294,000 294,000 - Non-compete agreements 4 -- 5 yrs. 1,060,500 1,042,100 18,400 Patents 5 -- 7 yrs. 605,600 457,400 148,200 $ 4,351,400 $ 3,725,100 $ 626,300 As of December 31, 2024 Useful Lives Cost Accumulated Amortization Net Technology, trademarks 3 -- 10 yrs. $ 1,216,800 $ 1,020,100 $ 196,700 Trade names 3 -- 6 yrs. 592,300 417,300 175,000 Websites 3 -- 7 yrs. 210,000 210,000 - Customer relationships 4 -- 10 yrs. 372,200 221,200 151,000 Sublicense agreements 10 yrs. 294,000 294,000 - Non-compete agreements 4 -- 5 yrs. 1,060,500 993,200 67,300 Patents 5 -- 7 yrs. 605,600 443,300 162,300 $ 4,351,400 $ 3,599,100 $ 752,300 10 Table of Contents Total amortization expense was $ 126,000 and $ 127,000 for the three months ended March 31, 2025, and March 31, 2024, respectively. Estimated future fiscal year amortization expense of intangible assets as of March 31, 2025, is as follows: As of March 31, 2025 Amount Remainder of year ending 2025 $ 259,200 2026 195,900 2027 97,900 2028 43,700 2029 28,300 Thereafter 1,300 Total $ 626,300 6. Commitment and Contingencies Legal Matters During the normal course of business, the Company may be named from time to time as a party to claims and litigations arising in the ordinary course of business. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450, Contingencies. Litigation and contingency accruals are based on our assessment, including advice of legal counsel, regarding the expected outcome of litigation or other dispute resolution proceedings. If the Company determines that an unfavorable outcome is probable and can be reasonably assessed, it establishes the necessary accruals. As of March 31, 2025 and December 31, 2024, the Company is not aware of any contingent legal liabilities that should be reflected in the consolidated financial statements. Leases The Company’s approximate future minimum rental payments under all operating leases as of March 31, 2025, were as follows: As of March 31, 2025: Amount Remainder of fiscal year ending 2025 $ 282,100 2026 289,900 2027 296,700 2028 201,000 Total future minimum payments $ 1,069,700 Less: Imputed interest ( 83,000 ) Total Present Value of Operating Lease Liabilities $ 986,700 11 Table of Contents 7. Stockholders’ Equity Issuance of Common Stock and Warrants On January 17, 2024, the Company completed the last closing of its sale of securities pursuant to the Securities Purchase Agreement (the “2024 Purchase Agreement”) entered on December 13, 2023, as filed in the Company’s Form 8-K on December 15, 2023. At this closing, the Company sold an aggregate of 358,388 Units (“2024 Units”), comprising 358,388 shares of the Company’s common stock, par value $.05 per share (“Common Stock”) and warrants (“2024 Warrants”) to purchase 358,388 shares of Common Stock for a total consideration of $716,776. (the “2024 Offering”). The Company recognized $98,700 of issuance cost, which includes $71,100 attributable to legal and placement agent fees and $27,600 attributable to the fair value of warrants, issued to the placement agent, to purchase up to 17,919 shares of Common Stock at an exercise price of $2.00 per share on substantially the same terms as the 2024 Warrants issued to the purchasers of Units (“2024 Investors”) . As an incentive to certain 2024 Investors of the Company who participated in previous private placements (“Existing Investors”) and received as part of those financings, warrants (“Outstanding Warrants”) to purchase shares of Common Stock, the Company agreed that if any Existing Investor were to purchase 2024 Units at a certain level in the 2024 Offering, the Company would reduce the exercise price of the Outstanding Warrants held by such Existing Investor to $ 2.50 per share and extend the period in which such Outstanding Warrants could be exercised to the fifth anniversary of the date on which the Existing Investor purchased Units under the 2024 Purchase Agreement. Each Existing Investor purchasing Units at the requisite level received a new warrant (the “Replacement Warrants”) to replace such Existing Investor’s Outstanding Warrants. On January 17, 2024, as a result of their purchase of 2024 Units, Existing Investors became entitled to receive Replacement Warrants to replace 333,884 Outstanding Warrants, with each Replacement Warranting having a reduced exercise price of such Outstanding Warrants of $2.50 per share and exercisable until the fifth anniversary of the relevant closing under the 2024 Purchase Agreement. Salary for Equity Incentive Options On April 1, 2024 and May 17, 2024, as part of the Company’s strategic initiatives to reduce operating costs and conserve cash for operations, the Company offered a voluntary Salary/Compensation Waiver Program pursuant to which each director, officer and employee of the Company and its subsidiaries could elect to waive a portion of his or her salary/compensation for twelve months and receive instead options to purchase shares of Common Stock of the Company (the “stock options”). Under this program, the Company issued 10 -year options to purchase 628,960 shares of Common Stock, each having an exercise price of $ 2.50 per share, vesting monthly over twelve months , valued at $ 948,200 on the grant date using the Black-Scholes-Merton option pricing model. Equity Cancel and Replacement Options On April 1, 2024, as part of the Company’s strategic initiatives to incentivize current employees, the Company entered into a cancellation and replacement agreement regarding certain out-of-the money outstanding employee stock options (the “replacement stock options”), whereby employees surrendered out-of-the-money outstanding stock options (“cancelled option awards") and the Company granted replacement stock options in the same number, having an exercise price of $ 2.50 per share, which replacement options vest monthly over three years from their date of issuance. The Company accounted for the issuance of these replacements options as a modification of the terms of the cancelled option awards and in accordance with ASC 718-20-35-2A the Company will recognize $ 613,400 stock compensation expense over the three-year vesting period, which was determined by the grant-date fair value of the original award for which the service is expected to be rendered at the cancellation date, plus incremental costs measured as the excess of the fair value of the replacement options on the grant date using the Black-Scholes-Merton option pricing model over the fair value of the cancelled option award at the cancellation date in accordance with ASC 718-20-35-3. Board of Director Stock Options On April 12, 2024, the Board of Directors of the Company (the “Board”) appointed Michael Blechman (“Mr. Blechman”) as (i) a Class B Director of the Company, (ii) a member of the Board’s audit committee, (iii) a member of the Board’s compensation committee, and (iv) the Chair and a member of the Company’s Nominating Committee. On May 17, 2024, in connection with such appointment, the Company granted and issued to Mr. Blechman stock options to purchase 25,000 shares of the Common Stock of the Company with an exercise price of $ 1.75 which vest monthly over three years , valued at $ 34,500 on the grant date using the Black-Scholes-Merton option pricing model. 12 Table of Contents On July 1, 2024, the Company granted and issued stock options to purchase 10,000 shares of the Common Stock of the Company, to each of Christopher Cox, John Nicols, and Jurgen Schumacher, as part of their annual compensation for serving as independent directors of the Board. The stock options have a 10 -year life, an exercise price of $ 1.29 , will be 100% vested one year after the grant date, and were valued at $ 10,400 on the grant date using the Black-Scholes-Merton option pricing model. On July 1, 2024, the Company granted and issued stock options to purchase 5,000 shares of the Common Stock of the Company, to each of Michael Blechman, Christopher Cox, and John Nicols, as part of their annual compensation serving as independent Committee Chairmen of the Company’s Board Committees. The stock options have a 10 -year life, an exercise price of $ 1.29 , will be 100% vested one year after the grant date, and were valued at $ 5,200 on the grant date using the Black-Scholes-Merton option pricing model. 8. 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. For the three months ended March 31, 2025 2024 Weighted average number of common shares outstanding 10,503,599 10,436,647 Effect of dilutive securities: - - Weighted average number of common shares outstanding 10,503,599 10,436,647 Basic and Diluted loss per common share: $ ( 0.16 ) $ ( 0.20 ) Approximately 1,831,447 and 8,232,510 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 three months ended March 31, 2025. Approximately 1,113,837 and 7,856,203 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 three months ended March 31, 2024. 13 Table of Contents 9. Related Parties Consulting Agreements During the three months ended March 31, 2025, and March 31, 2024, respectively, the Company paid $ 24,000 and $ 16,000 , respectively, to Mr. John Nicols, a Director of the Company, who provided consulting services to the Bioprocessing Systems segment. 10. Segment Information and Concentration The Company views its operations as two operating 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 manufacture, design, and marketing of bioprocessing systems and products (“Bioprocessing Systems”). The Company also has included a non-operating Corporate segment. All inter-segment revenues are eliminated. Three Months Ended March 31, 2025 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated Revenues $ 2,273,000 $ 133,500 $ - $ 2,406,500 Foreign Sales 496,300 80,900 - 577,200 Income (Loss) From Operations 194,100 ( 1,492,500 ) ( 512,500 ) ( 1,810,900 ) Assets 3,390,100 3,692,400 3,487,600 10,570,100 Long-Lived Asset Expenditures 26,300 - - 26,300 Depreciation and Amortization 19,300 147,400 - 166,700 Three Months Ended March 31, 2024 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated Revenues $ 2,167,400 $ 316,100 $ - $ 2,483,500 Foreign Sales 655,100 200,500 - 855,600 Income (Loss) From Operations 72,800 ( 1,601,800 ) ( 560,500 ) ( 2,089,500 ) Assets 6,283,100 4,858,600 4,404,800 15,546,500 Long-Lived Asset Expenditures 45,800 1,700 - 47,500 Depreciation and Amortization 21,400 166,700 - 188,100 Segment information is reported as follows. For the three months ending March 31, 2025, two customers accounted for approximately 10 % or more of the Company’s total revenue. For the three months ending March 31, 2024, no customers accounted for approximately 10 % or more of the Company’s total revenue. 14 Table of Contents A reconciliation of the Company’s consolidated segment income (loss) from operations to consolidated loss from operations before income taxes and net loss for the three months ended March 31, 2025 and 2024, respectively are as follows: Three Months Ended March 31, 2025 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated Income (Loss from Operations) $ 194,100 $ ( 1,492,500 ) $ ( 512,500 ) $ ( 1,810,900 ) Other (expense) income, net ( 2,700 ) 14,900 - 12,200 Interest income 20,200 - - 20,200 Total other income, net 17,500 14,900 - 32,400 Income (Loss) from operations before operations and income taxes $ 226,900 $ ( 1,492,900 ) $ ( 512,500 ) $ ( 1,778,500 ) Three Months Ended March 31, 2024 Benchtop Laboratory Equipment Bioprocessing Systems Corporate and Other Consolidated Income (Loss from Operations) $ 72,800 $ ( 1,601,800 ) $ ( 560,500 ) $ ( 2,089,500 ) Other income (expense), net ( 9,800 ) 5,500 - ( 4,300 ) Interest income 42,200 - - 42,200 Total other income, net 32,400 5,500 - 37,900 Income (Loss) from operations before operations and income taxes $ 105,200 $ ( 1,596,300 ) $ ( 560,500 ) $ ( 2,051,600 ) 11. Subsequent Events On April 18, 2025, the Company entered into a Securities Purchase Agreement (the “2025 Purchase Agreement”) with certain investors (the “2025 Investors”) pursuant to which the Company sold in a private placement (the “Private Placement”), and the Investors purchased, an aggregate of 1,550,000 Units (the “2025 Units”), comprising (i) 1,050,000 shares of the Company’s Common Stock, pre-funded warrants (the “Pre-Funded Warrants”) to purchase 500,000 shares of Common Stock and (iii) warrants (“2025 Warrants”) to purchase 1,550,000 shares of Common Stock, for a total consideration of $ 1,550,000 . The Company intends to use the net proceeds from the sale of the securities for operations, working capital and other general corporate purposes. Each 2025 Warrant is exercisable for the purchase of one share of Common Stock at an exercise price of $ 1.00 per share. The 2025 Warrants are immediately exercisable and expire 6 months from their date of issuance. Certain of the 2025 Warrants are exercisable for Pre-funded Warrants to purchase shares of Common Stock in lieu of shares of Common Stock. 15 Table of Contents