Scientific Industries Q2 2023 Earnings Call Transcript

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August 15, 2023

There are 9 speakers on the call.

Operator

Morning, and welcome to the Scientific Industries Second Quarter Fiscal Year 2023 Financial Results Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Joe Dorme with Witham Partners.

Operator

Please go ahead.

Speaker 1

Thank you, Andrea. Good morning and thank you for joining us today to review the financial results of Scientific Industries for the Q2 of 2023 ended June 30, 2023. With us today on the call are Helena Santos, Chief Executive Officer Daniel Grunez, CEO of Scientific Bioprocessing and John Moore, Chairman. After the conclusion of today's prepared remarks, we will open the call Before we begin with prepared remarks, I would like to remind everyone certain statements made by the management team of Scientific Industries During this conference call constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for the statements of historical fact, this conference call may contain forward looking statements that involve risks and uncertainties, some of which are detailed under risk factors documents filed by the company with the Securities and Exchange Commission, including the annual report on Form 10 ks for the year ended December 31, 2022.

Speaker 1

Forward looking statements speak only as of the date the statements were made. The company can give no assurance that such forward looking statements will prove to be correct. Scientific Industries does not undertake and specifically disclaims any obligation to update any forward looking statements except as required by law. Now I'd like to turn the call over to Helena Santos, CEO of Scientific Industries. Helena?

Speaker 2

Good morning, Joe, and good morning, everyone. Welcome to the Scientific Industry's 2nd quarter earnings call. I'm excited to share details of our progress in the metamorphosis of Scientific Industry. The common themes between our 2 growth businesses TorBell and FBI or bioprocessing are we now are automating our customers' Manual workflows affordably, solving 2 of their biggest pain points. 1 is the high turnover or scarcity of skilled workers and 2, which is probably the most important, expensive data and control for regulatory, quality and productivity reasons.

Speaker 2

In our Q2, our bench top lab equipment business generated approximately $250,000 of positive cash flow. This after investing approximately $130,000 for development of the final two models of our vivid pill counter line called the workstation. To date, we have sold nearly 1,000 units of the Vivid and generated close to $2,000,000 of revenue at approximately a 50% gross margin. This means we are already earning a return on our 800,000 Investments in vivid product development costs to date. Vivid sales are more than double last year in the comparable 6 month period and sales growth is accelerating with Q2 2023 sales up 140% versus the same period last year.

Speaker 2

Sales growth could accelerate even faster with the November implementation of the FDA mandate for track and trace across the entire U. S. Pharmaceutical supply chain. Our track and trace feature is very proficient And because we do it in the cloud, it is arguably better than what others are offering and this is a great selling point for our Vivint. And even more important to customers, particularly the change is what is referred to as TB2, which is final prescription verification And this will also be available in our workstation.

Speaker 2

In addition, Q1 2024 will see the launch of the first of these two Vivint workstation models. To date, the Vivint products we launched have been less expensive than all of our competitors. We strive to make our Vivid pill counter one of the best in the market with constant improvements and updates based on user feedback. Our customers are now processing over 400,000 scripts a day using our Pivot Pill Counter, bringing the total number to date of counts to over $5,000,000 and we expect to double that within the next 12 months. The workstation will set Sell at a premium to our customers' competitor to our competitors' offering price, but it will deliver greater feature sets and return on investment at a $15,000 price point.

Speaker 2

When this product is launched, We will be the only provider of solutions at every customer price point in this growing market. We feel that we're just scratching the surface of the 88,000 U. S. Retail pharmacies that could ultimately benefit from the Vivid family of automated pill counters. And with that, I would now like to hand the call over to Daniel Brunas, He is the CEO of SBI to discuss our progress in our very promising bioprocessing business.

Speaker 2

Daniel?

Speaker 3

Thank you, Helena, and good morning, everyone. The advent of synthetic biology is As exciting as the accomplishments of the Internet, the development of personal computer or the invention of the smartphone, and we are standing at the threshold of Technological revolution that is poised to redefine industries and reshape human lives. Synbio is already creating synthetic fuels, LabCorp meat or green chemicals from agricultural waste and it has given rise to alternative sources for medicinal products and more targeted treatment options for diseases like cancer. The potential is surely normal. A recent McKinsey report paints a vivid picture of the synbio potential projecting an astounding $4,000,000,000,000 in direct global impact over the next decade and Forbes Magazine The wealthiest individuals on the planet going all in on the megatrend with investors like Bill Gates, Eric Schmidt, Pettersil or Jerry Yang silently building up their synbio portfolios.

Speaker 3

However, the truth is synbio is still too fragmented, too expensive and too time consuming to be disruptive or to compete with traditional solutions and products in the first place. Current technologies To develop these processes come at a pickup price of up to $1,000,000 in CapEx per experiment cost of around $1,000 and require highly trained labor to operate the devices. Hence, the vast majority of the market cannot afford these systems. On top of that, they only provide insights into very selected process steps, while others remain unaccessible black boxes, As a result of which recent BCG study concluded that 90% of all syn bioprocesses still fail today. Especially in times where companies are faced with inflation, blockbuster patent expirations, rising R and D expenditures and a disconcerting trend of diminishing returns on investment, There's an urgent need for simpler, cheaper and more affordable technologies.

Speaker 3

And this is where DOTS where we are coming into play The DOTS platform for digitally simplified bioprocessing. With DOTS, we are taking a simple Shake Plus, the most ubiquitous vessel in the market, And we're retrofitted with the technical capabilities of the established BioReactor solution to enable simpler, faster and more affordable bio In our last earnings call, I have given you an update on the introduction of the first component software, which enabled us to migrate all our legacy products into a single platform and to unlock closed loop control in Shake's glass. During this last quarter then, we have been working to further develop the Dot software based on market feedback from our growing customer base And in anticipation of the launch of our next product generation towards end of this year, we have redesigned the software to Significantly reduced the clicks required to start an experiment in line with the plug and play character that we seek to achieve. Additionally, we have successfully integrated licensing features into the DOTS software, which enables subscription based SaaS models to be implemented with the next release and which is an important step towards the launch of our multi parameter reader.

Speaker 3

And lastly, we have further worked on third party integration as well as further IoT connectivity, which in part was implemented through prepaid customer requests. As we got the second component of DOTS, the multi parameter reader, We have continued the optimization and evaluation of our sensor electronics up until the functional design freeze and first pilot batch to test the manufacturing process of the reader. On the basis of the positive results, we were currently we are currently kicking off the 1st larger production batch of the readers in preparation for early access customer studies. At the same time, our R and D team has made remarkable strides Advancing the 3rd component of DOTS, our new chemo sensor PIS. On the one hand, the last quarter was focused on the further technical evaluation, optimization and performance improvements of our sensor system as well as the development and the assessment of the sterilization and packaging of the new PIS.

Speaker 3

On the other hand, following 2 years of negotiations, we entered into a long term strategic agreement with Pyroscience, a world leader world leading manufacturer of state of the art optical sensor technology, which ensures SEI to have exclusive access to their technology as well as their decades of domain expertise and which Our top sensing fields will play an essential role to unlock the full potential of the platform as they translate the sensing capabilities of complex, expensive and disadvantageous applications via electrodes and SPOC technologies into the form factor of a pill, which will make PH, DO, glucose or metabolite sensing as easy as popping an Advil for your headache. Excitingly, with these developments, we are well on track for upcoming pilot tests with early access customers as well as the planned Q4 launch of the technologies. And with our clear and defined product roadmap, we are poised to continuously enhance our platform by introducing new sensors every 6 to 12 months, ultimately delivering significant value to our customers. Before I finish my portion, let me briefly comment on the progress from our operational and commercial team. And with regards to operations, we have continued our post merger integration efforts to become a more professional, a more effective and leaner organization.

Speaker 3

As such, Q2 saw us launch our new company wide ERP system, which centralizes all data resources at SEI and enables cross functional access to our global sales and service At the same time, we have finalized the implementation of our new HR management tools and kicked off a project on quality management to become a more standardized and compliant with ISO standards organization, which will not only help us to run the company more efficiently, but also opens doors towards new customer segments that require such standardization. As regards to commercial side, You may recall that we have recently adjusted our go to market strategy, have set up dedicated distribution management and have focused our sales team towards a more specialized profile with a clear focus on the identification of product application fit. Also, we have continued to restructure our sales force and going forward, We will unlock untapped potential in the commercial team with dedicated segment and product trainings as well as a close alignment between marketing and sales. Certainly, These adjustments will take time to show their full effect, but we are on a very promising path. The feedback we receive from the market, from our customers and from potential strategic partners clearly shows the opportunity at hand.

Speaker 3

We are happy to see that more and more customers are sharing their success stories with our technologies and that even big corporations are reaching out to us to become early access testers of the new platform. At the same time, our marketing and early stage sales pipelines are encouraging and our conversion rates are improving. And we have managed to compensate for the loss of royalties from patent expirations by increasing our product revenues with the Acryla legacy tech and already prior to market launching the new products. As such, our Q2 product sales of $368,000 are up 65% compared to the previous quarter and the backlog into the 3rd quarter indicates an increase of 96% in customer orders compared to the same quarter last year. And with that, I would like to hand back to Hillina.

Speaker 1

Andrea? We're ready to take any questions. Can you please provide the instructions on how to queue up?

Operator

We will now begin the question and answer session. And our first question will come from Harrison Schmitt from Paul Knight of KeyBanc. Please go ahead.

Speaker 4

Hi. This is Amanda Young on for Paul Knight at KeyBanc Capital Markets. How are you guys?

Speaker 2

Good. How are you today? I'm

Speaker 4

doing well. Nice to see you guys again. I had a couple of questions for you guys today. And just first, Looking at it, I'm seeing all of your vivid products. I understand that they are the most inexpensive on the market compared to your competitors Still offering the same variety.

Speaker 4

I just wanted to see, are there any risk factors that we need to be aware of for the Vivid products? None

Speaker 2

that come to mind other than general business risks, but In terms of any others, now the only thing that one could say at some point in time In the future, and I would say within the next few years, could there be anything that's related to HIPAA loss that we might have to take into consideration, but other than that, I'm not aware of anything.

Speaker 4

Okay. Sounds good. And then just another one really quickly. When we're talking about your DOTS program and the different stages that it's going through. You guys briefly talked about different licensing features.

Speaker 4

Could you just expand a little bit more on that?

Speaker 3

Yes. Hi. So essentially, when I talked about the DOT licensing features, I'm talking about the implementation of features in the software that allow for a subscription based business model. Essentially, up until now, and that's historic with our industry, We are selling our software as a one time service, so you acquire license and become the owner of the software. And in the future with the multi parameter reader and the different pills that we're launching, essentially what we want to do is that Essentially, the customer acquires a subscription, an annual subscription to the software.

Speaker 3

And then if, let's say, they start with a system that Allows them to measure oxygen for that matter. They can, at a later point in time, enlarge the system by saying, now I want to also add A biomass feature and just subscribe to that feature in the software rather than acquiring a new software. And for us, it's a means to Establish annual recurring revenue out of a previously one time revenue product.

Speaker 4

That makes a lot of sense. Could we potentially go into some of the new various features that you guys are thinking about adding onto the new DOTS Programs?

Speaker 3

Yes. So essentially, on a very high level, what we're adding, so Maybe to zoom out for a sec. So essentially, the DOT platform has 4 components. It has the multi parameter reader. It has the liquid injection system, which allows you based on the signals from the reader to add substances To the cultures and thereby control whatever happens in the flat, then it has the software itself that Pools or the data provides the data analytics and is almost like the navigation system for the customer in the experiments.

Speaker 3

And it has the sensing pills, right? So and the product roadmap that I was referring to Where we have very clear foreseeable path and launch path ahead of us is with regards to the sensor pills, where we would start Launching the first pill by the end of this year dispatching beginning next year, which is dissolved oxygen. Then Throughout the year 2024, we will launch pH. And with pH, NDO as well as the other tech, we would Basically, at that point, have mimicked what a bioreactor can in the form factor of a Shake Plus. And as of then, we aim to take the Shake Plus beyond what a bio reactor can beyond the capabilities of that Of those established systems with a launch of glucose sensing and then metabolites That I don't need to go into the details, but metabolite sensing is certainly something that is very interesting.

Speaker 3

And our ambition is to launch new Sensors new sensing pills every 6 to 12 months in a frequency of every 6 to 12 months.

Speaker 4

Understood. And it definitely sounds like something that's very exciting for you guys. Will you guys say that you guys have new products Every 6 to 12 months, can we how long are we expecting for this to go on for? And then is there anything particularly exciting for you guys that you guys are really looking forward to?

Speaker 3

Yes. I mean, Currently, of course, what we're doing is we're planning for a 3 to 5 year roadmap, and That's what I'm willing to communicate. Certainly, as you can imagine, a start up embedded in a Promising organization like we are in a market that is unfolding and given the customer feedback that we received that naturally we're working on Further innovations in the background. Now I'm particularly excited after 8 years Of market testing and from being a founder of the organization to bringing the tech to the market for market testing. And by the end of this year, having all the platform components available to us, I'm particularly excited to unlock This vast majority of customers that currently cannot afford established solutions because they are too expensive and thereby democratize The bioprocessing technologies and unlock a new era for synthetic biology.

Speaker 3

So that's certainly what I'm looking for And to see where we can land with this because it's super exciting.

Speaker 5

So and specifically, Amanda, the company initially invented the first automated Biomass monitoring system that was 6 years, 7 years ago. And then about 6 or 7 months ago Well, I should say probably 2 years ago they invented this liquid injection system and then 6 months ago they developed a way of combining So that you're actually feeding the cells based upon the growth of the biomass. And then This in the Q4, we're going to be introducing oxygen based feeding. Later, we're going to be introducing pH based feeding, and then even later after that glucose based feeding. So Everything we're doing is we're tightening this gap that Daniel was talking about between what can be done in a $10,000 experiment, In a bioreactor or $2,000 experiment in a Amber system to being more like a $100 experiment in a shake flask.

Speaker 5

So that's the real price and scientific revolution and all that's going to be important because it's going to Enable machine learning and artificial intelligence to take much larger structured data sets And really reduce the cost of science even further.

Speaker 3

Yes. I wanted to add to exactly that point, John. So essentially, that's what we're enabling. And You must imagine, Amanda, that in our industry, our customers, they try to keep their processes in the design space by following up with So called critical quality attributes and critical process parameters. And we always say that if you measure much More than what is deemed to be critical at this point in time because how can you really say that something is critical if you cannot measure it.

Speaker 3

And we want to take it beyond that measure what we can measure and then Via patent recognition, you will see other factors that determine the product quality, product yield and outcomes in a process Eventually much better than what we currently know.

Speaker 4

Absolutely. Thank you guys so much for the time. I really appreciate it today.

Speaker 3

Thank you for your time.

Operator

The next question comes from Harrison Sreedj of KeyBanc. Please go ahead.

Speaker 6

Hey, guys. Harrison here also with KeyBanc. Just a couple of quick questions. I was wondering what you're seeing in the rest of your portfolio outside of the bioprocessing and Broader Torbole division, obviously strong growth in bioprocessing 108% in Vivid. What's offsetting that On the rest of the portfolio for total growth of 7%.

Speaker 2

Good morning. How are you today?

Speaker 6

Doing well. How are you?

Speaker 2

Good, good. So the only thing that we see Past what we've discussed in terms of the bioprocessing business and the Torbel is that on the Genie brand, There is some softness just like most of the business that you and Paul and your team have been covering, Particularly with the trends of the destocking and some of the slow growth in certain Asian markets. And just like you guys have seen And the other companies that you follow, we see the market stabilizing towards the end This calendar year and coming back to the normal single digit growth. That's what we're seeing in the Genie brand business. Still generating positive cash flow, of course.

Speaker 6

Got it. And so just to hone in on that a little bit more here. So you're only seeing that in Genie or you're not seeing that in the portions of the business at all? No.

Speaker 2

No, we're seeing a nice constant growth And the rest of the portfolio, particularly with the Torvao, which is obviously more immediate because That's just a different product line going to a different market. And that we see a constant growth from quarter to quarter and expect it With no headwinds in sight.

Speaker 6

Got it. In the press release, you cited increased I was wondering if you could help us kind of quantify that maybe year over year growth. And I suppose it sounds like to the point we've just talked about, you're not really seeing any of those broader bioprocessing Headwinds as much in that division. I mean, is there any change in customer behavior there at all?

Speaker 3

Yes, very briefly. So I don't have the numbers with me right now in terms of customer Growth year over year, but happy to get back to you on that. With regards to headwinds, I mean, Certainly, in some of the segments we're selling to, you see them. Talking about the chemical industry, for example, If you look at the biggest companies and their outlook as regards the expected Results by the end of the year, expected revenue by the end of the year, some of them might be more cautious. But the beautiful thing about our Position right now and about our technologies is that they have a wide application towards basically any kind of segment within various industries, which is also the reason why we switched from a segmentation specific Sales approach towards a product application fit approach because you could have the various Within a certain segment.

Speaker 3

So we are selling from the chemical industry to the food industry to red biotech and pharma From big blue chips to the most innovative startups and organizations like the FDA or the U. S. Government. So that means essentially headwinds in one segment are usually balanced with tailwinds in others, which is why we as a technology provider are at least for The past 6 years that we are on the market, not so much affected by headwinds in specific industries.

Speaker 6

Got it. That's helpful. Perfect. Yes, yes, that helps. And then Elena, last question for me.

Speaker 6

I was wondering if you could just kind of give an update on your cash burn and just kind of how you're thinking about the balance sheet and capital needs at this point Looking forward?

Speaker 2

Sure. Well, you could see from our financials That we go through about approximately $600,000 a month. And although we've put some cost cutting measures in place, mindful of the bottom line As well as the top line, particularly in our bioprocessing business, we've been able to do that. Obviously, you've seen that we've filed a To NASDAQ, so obviously our Board of Directors is considering all forms of Financing to finance and fund our operations going forward. I can't go into any more detail than that, because not public, but whatever is public, you can see that.

Speaker 6

Got it. Thanks, Lana. That's helpful.

Operator

The next question comes from Allen Klee of Maxim. Please go ahead.

Speaker 7

Yes, good morning. You talked about how in the Q4 you're looking at some oxygen based feeding and then some other PhD in glucose, could you give some examples of how your customers will be using this type of These different types of tests in their applications? Thank you.

Speaker 3

Yes. I mean, I tried to do it on a let's say, on a high level, giving an example. So in general, in synthetic biology, What we refer to as synthetic biology is that instead of other than biology, when When you are an organization, you're not only observing what an organism does, but you're essentially reengineering the organism in a way so that it performs Specific task for you. And usually that task is to turn a cheap raw material into a high value product. So So cheap raw material, for example, into an antibody or some sort of lab grown meat or synthetic cotton as one of the Most recent examples.

Speaker 3

And you do that by 100 and 1000 of manufacturing steps using Different vessels from small scale to large scale, so you start in your lab with small scale, few milliliters up to production capacities of 1,000 of liters. And what you do in order to get there Is that on the one hand, you need to find the right organism and engineer it in a way that it performs this task that you want that organism to achieve And to perform and then you need to develop a process by which that organism performs that task on a larger scale At production capacities. And in order to do that, you basically, on a high level, you have a reaction vessel that could be a That could be a shake cloth, that could be a bioreactor, that could be a tank reactor. You fill that reaction vessel with Some nutrients and the sales and then you either stir them or put them in motion so that oxygen gets transferred into the broth And that the sales start to grow based on a carbon source that they have in the liquid. And our technologies, for example, What they do is allow you to keep the organisms and keep that growth in the design space.

Speaker 3

So essentially, we measure How do the organisms do? Are they consuming the oxygen that they need? Are they limited in oxygen? So do we need to increase the flow rate the stir rate or the shaking speed so that they get more oxygen? Or are they limited in growth because they are changing the metabolism and they're not having enough carbon source or essentially they're not having enough Food available to them so that they can grow further.

Speaker 3

So if that happens, if our biomass sensor detects that they are not growing as they should, Then they could give a signal to the feeding system. The feeding system could add additional carbon source and add that food to that required food So that they continue growing as they should in the design space. So that's what we're doing. And Essentially, in the past, what we've been working with was biomass, so sales growth as a parameter. And that's a parameter that we call a trailing parameter.

Speaker 3

So it's almost like When you have a kid, that kid grows and you take them to the doctor every couple of months and then the doctor says, okay, That kid is overweight, underweight or within the range of the normal. And if you And if you detect any kind of change there, then you react to it by either feeding them more or feeding them less or whatever. And oxygen consumption, for example, that's the first period that we're launching by the end of this year. Oxygen consumption is a leading indicator. It directly shows you Are the sales alive?

Speaker 3

Are they breathing? Are they consuming the oxygen that we expect them to? Or is there something off with the culture? Do we need And keeping them in the design space so that you know when to harvest or when to transfer them To the next reaction vessel to the next larger batch or maybe when you have faith, you don't need to wait For a couple of days before you realize your endpoint is not there and you need to start over, but maybe you see that from a contamination or so in the data Immediately after a couple of hours and can fail faster and start from scratch earlier. So this is the kind of metrics that we're using, what we are What I described as critical process parameters and the process parameters that are currently being used in established solutions are pH, so Basically, measuring the base or the acidity in the sales and so forth.

Speaker 3

For human sales, that means They need to be in a certain space, otherwise it's a toxic environment and they are dying or Dissolved oxygen, so oxygen consumption or biomass growth, so that's sales growth. Those are the parameters that are currently being used. And then we're taking it Along our roadmap further with glucose or glucose consumption or metabolites such as Lactate, for example, that we can then measure.

Speaker 7

That was great. Thank you. So if a customer would buy an spi. So is there a recurring nature that would go with that?

Speaker 3

So currently so in the current parameters that we've been market Testing and selling in the last couple of years, for example, that biomass sensor and the software, Those were historically always one time purchases, such as the Genie is a one time purchase or As much as you would purchase a car. And in the future, once we launch this full whole solution platform By the end of this year, we will essentially have 2 or 3, however you look at them, Consumable components. So we will have the multi parameter reader, which will remain a one time purchase. And then we have the software as Software as a Service subscription model, so annual subscriptions, where you subscribe to certain applications. For example, if you're using the multi Multi parameter reader and you want to use the biomass application, then you would subscribe to the biomass.

Speaker 3

And if it's if you want to use biomass and pH, you would subscribe to the biomass and pH applications. And then there's consumables involved in the liquid injection system and the PIS. So The liquid injection system is a combination of a little miniaturized pump and a little computer that sits on top of the reaction vessel And that you attach to a single use sterile pack cartridge. So essentially you Take out the zinc, the sterile cartridge, you fill it with whatever liquid solutions you like, let's say, a sugar solution, so a food source for the organism, You attach it to that miniaturized computer, you run the experiment afterwards, you can reuse that little miniaturized computer and pump, but you throw out the cartridge and for your next And the same is true for the pills. The pills will come as a sterile packed single use pill, As I said, almost like your Advair for your headache, it will likely come blister packed and you just if you want to measure pH, You will pop a pill into that reaction vessel and after the experiment you will throw out the pill and for the next experiment you will use a new one.

Speaker 3

And if you have various measurements in parallel, let's say you want to measure PHD and glucose for that matter in parallel, you would pop in 3 pills and throw out those 3 and for the next experiment Use additional ones. So we will essentially buy the combination of the subscription the software subscription, The consumables for the liquid injection system and the new sensing pills, we will create a significant portion of annual recurring revenue Components into the business model.

Speaker 7

That's great. Thank you so much.

Speaker 3

You're welcome.

Operator

This concludes our question and answer session. I would like to turn the conference back over to John Moore for any closing remarks.

Speaker 5

Great. Thank you so much. And so in conclusion, what I'd like to

Speaker 8

say is that what Helena started In 2011 with the licensing of this new generation of optical sensors that were little Sensors about the size of a postage stamp that replaced a foot long $1600 electrode That is still common and prevalent in the industry. Once she started with that, what Artorius integrated into the Amber system and their bio bag systems that sold 1,000,000,000 of dollars of products. We're now continuing through the acquisition of Aker Bio Labs, repositioning the company, investing The $24,000,000 we've invested to date, none of which has generated any additional revenue. We're on the precipice of these new products coming into the marketplace. It's what the customers have told us and the customers have told Daniel and his co founders That they want in the marketplace is a product that combines the convenience and low cost of a shake flask With the performance and the control of a bioreactor, we're about to deliver this to science.

Speaker 8

It's going to be A big force multiplier in the field of science and we're really excited to deliver the economic Benefits of all this investment we've made, thank you all so much for paying attention to our story and our progress and we're really excited for the next 6 to 9 months to show you what we've been working on so hard for last several years. Thank you all very much.

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Key Takeaways

  • Vivid pill counter division generated approximately $2 million in revenue at a 50% gross margin and sold nearly 1,000 units in Q2, producing $250,000 of positive cash flow after a $130,000 R&D investment, with sales up 140% YoY.
  • The new Vivid workstation models will launch in Q1 FY2024 at a $15,000 price point, featuring FDA track-and-trace and final prescription verification to address all U.S. retail pharmacy segments.
  • Scientific Bioprocessing’s DOTS platform unified its software, added IoT connectivity and subscription licensing features, and has its multi-parameter reader in pilot production for early-access customer studies ahead of a planned Q4 launch.
  • The company entered an exclusive strategic agreement with PyroScience to integrate advanced optical sensor technology into its single-use sensor pills, enabling in-flask pH, dissolved oxygen, glucose and future metabolite measurements.
  • Operational improvements—including a new ERP system, HR management tools and ISO-aligned quality processes—alongside commercial restructuring drove a 65% QoQ increase in Q2 product sales to $368,000 and a 96% YoY rise in Q3 backlog.
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Earnings Conference Call
Scientific Industries Q2 2023
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