Scientific Industries Reports Financial Results for Second Quarter of Fiscal Year 2025

Core Insights - Scientific Industries, Inc. reported an 11% year-over-year increase in sales for its Torbal Division, driven by the growing demand for its VIVID line of automated pill counters [4][2] - The company successfully divested its Genie product line for approximately $10 million, a strategic move aimed at positioning for sustainable growth in the pharmacy and pharmaceutical sectors [2][4] - The VIVID product line, which utilizes machine learning for pill counting, is on track for commercial launch in Q1 2026 after being trained on over 7,700 pill images [2][4] Financial Performance - For the second quarter of 2025, net revenues decreased by 12% to $2.3 million compared to $2.6 million in the same period last year, primarily due to reduced sales from the Genie product line [6][4] - Gross profit for the second quarter was $1.0 million, resulting in a gross margin of 43.8%, down from 48.8% in the prior year [4][8] - The company reported a net loss of $1.5 million for the second quarter, compared to a net loss of $1.3 million in the same period last year, translating to a diluted loss per share of $(0.13) [10][19] Strategic Initiatives - The company is focusing on enhancing its VIVID product line by investing in hardware, firmware, and software upgrades, as well as integration with leading pharmacy management systems [2][4] - Scientific Industries is preparing its MPS DOTS system to become a standard in AI and digital biology, with ongoing pilot tests and collaborations with major biotech firms [3][4] - The DOTS platform has shown significant productivity improvements in customer studies, reducing optimization runs from 215 to just 10 while maintaining high yields [3][5] Market Position and Future Outlook - The company has gained access to sixteen new customer accounts in the second quarter, indicating a growing interest in its products among biotech customers [5][4] - The anticipated launch of new sensors and innovations in 2026 is expected to further enhance the company's market position and revenue potential [6][7]