Scientific Industries Reports $1.78 Million Net Loss and Revenue Decline for Q1 2025

Scientific Industries, Inc. reported a net loss of $1.78 million for the three months ending March 31, 2025, a decrease from a loss of $2.05 million during the same period in 2024. The company's revenues for the quarter were $2.41 million, reflecting a 3.1% decline from $2.48 million in the prior year. This decrease was primarily attributed to a $182,600 drop in revenues from the Bioprocessing Systems Operations, which was partially offset by a $105,600 increase in sales from the Benchtop Laboratory Equipment Operations. The gross profit margin improved slightly to 42.2% from 41.9% year-over-year, driven by better margins in the Bioprocessing segment.

In terms of operational efficiency, Scientific Industries implemented cost-cutting measures that resulted in a significant reduction in general and administrative expenses, which fell by 17.8% to $1.25 million from $1.52 million in the previous year. Research and development expenses also decreased by 8.3% to $652,000, reflecting a strategic shift in resource allocation. Selling expenses increased slightly by 2.9% to $924,200, primarily due to higher commissions related to the Laboratory Equipment Operations.

The company’s balance sheet showed total assets of $10.57 million as of March 31, 2025, down from $11.56 million at the end of 2024. Current liabilities increased to $2.13 million from $1.75 million, largely due to a rise in accounts payable. Shareholders' equity decreased to $7.77 million from $9.12 million, with an accumulated deficit growing to $35.71 million. The company reported cash and cash equivalents of $470,100, down from $587,900 at the end of the previous quarter.

Looking ahead, Scientific Industries faces challenges related to liquidity, as it generated negative cash flows from operations of $1.33 million during the quarter. The company has acknowledged substantial doubt about its ability to continue as a going concern without securing additional capital resources. To address this, management is exploring various options, including potential equity or debt financing and asset sales. On April 18, 2025, the company entered into a Securities Purchase Agreement to raise $1.55 million, which it plans to use for operations and working capital. The outlook remains cautious as the company navigates its financial challenges while aiming to stabilize and grow its operations.