Scientific Industries Inc

Good day and welcome to the Scientific Industries Report's fourth quarter fiscal year 2021 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Joe Dorme, Managing Partner with Lithum Partners. Please go ahead.

Thanks, Sarah. Good afternoon, and thank you for joining us today to review the financial results of Scientific Industries, Inc. for the fiscal year 2021, ended June 30, 2021. With us today on the call are John Moore, Chairman, and Helena Santos, Chief Executive Officer. After the conclusion of today's prepared remarks, we'll open the call for questions. If anyone participating on today's call does not have a full-text copy of the press release, you can retrieve it from the company's website at scientificindustries.com or numerous other financial websites. Before we begin with prepared remarks, I'd 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 and documents filed by the company with the Securities and Exchange Commission including the annual report on Form 10-K for the year-end of June 30, 2021. 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 industry does not undertake and specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. Now I'd like to turn the call over to John Moore, Chairman of Scientific Industries. John.

Thank you, and welcome to our first investor conference call in the 67-year history of scientific industries. Given the transformation taking place at the company, we believe it's important to share our vision and our goals in making scientific industries an even more valuable growth company. We're going to discuss two themes today. One, the demand unleashed for powerful new tools to enhance productivity during unique periods of synergy between different branches of science and engineering. And two, the opportunity we have to create wide-wheel businesses by leveraging the credibility of our well-known product brands and transforming our large installed base of instruments in pharmacy and life sciences from analog products to network systems delivering recurring revenue. Before we tell you about the important year that's just passed, and share some thoughts about upcoming inflection points, I'd like to review some historical context for the wave in demand that has created our current opportunities. Humor me, as I'm a huge history buff, and I promise this aside has important implications for projecting our futures in scientific industries. In 1887, Torvald creates the pharmacy torsion balance. In February of 1953, the structure of DNA was described by Watson and Crick. They note the ability to reproduce DNA, and this is the opening shot, what we now call the synthetic biology revolution. In 1954, scientific industry goes public, raises $50,000, and enters the general scientific instruments market with a line of rotators, peristaltic pumps, and micro gasometers. On October 4th of 1957, Sputnik is launched, excites the imagination of the American public and business community, and accelerates the synergy or collaboration between physics and engineering, allow both fields to answer really interesting questions. It also creates demand for novel productivity-enhancing tools. A lot of money in the USA is poured into the effort to compete with the Russians and to put a man on the moon. The National Science Foundation was established to fund science this year. In April 1959, while working at Scientific Industries, The Kraft brothers invent and patent the vortex mixer and scientific industries launches the vortex genie, which is destined to become a vital utility of every life science lab. More recently, Michael Milken wrote a Wall Street Journal article declaring COVID is the Sputnik of our generation. Again, flooding the life science industries with private and public capital and creating demand for even more productivity enhancing tools. Lastly, in her book, The Age of Living Machines, Dr. Susan Hochfeld, the first biologist president of MIT, claims the 21st century will be defined by the collaboration of biology and engineering. And we would add data science and network. So we're laying the groundwork to be important players in this collaboration between biology and engineering. And we expect to create even more substantial shareholder value. Our Torval business is speeding this convergence to reduce the cost and the delivery of small molecule drugs, commonly called pills, from the pharmacy to the consumer. Scientific bioprocessing is delivering powerful sensors and analytics combined in the first life science Internet of Things to harness the convergence between biologic or large molecule drugs, engineering, and the network, spanning from the research lab, through process development all the way through manufacturing. So we feel a sense of urgency to make the investments to establish our leadership. Why now, you may ask? Michael Greeley, my friend and founder of Flare Capital, a life science venture fund, compares the current state of healthcare to that of the advertising industry in 1996. At that time, the advertising industry had $200 billion of revenue. And the re-architecting and digitization of that industry created over $12 trillion of venture capital-backed value in companies like Google and Facebook. The healthcare industry today is five times the size of the advertising industry and rife with inefficiency. Implementing the power of convergence is the key to eliminating this inefficiency. Michael believes the digital re-architecting of healthcare will in turn create enormous value for investors, coupled with major savings for society. Early movers have huge advantages. Just as in the early days of advertising and the internet revolution, he predicts the next two years will determine the winners of the next five years, and the next five years, the dominant leaders of the next 20. Helena, Carl, and I are excited to share with you the investments we're making and how we intend to more firmly establish scientific industries as a leader in the fast-growing life science tool sector as it transforms industries even beyond healthcare. So fiscal 2021 was a year of growth and renewal for scientific industries. First, we focused on the life science tool business and the divestiture of the non-core asset, Altamira Instruments. We had a record year for the benchtop laboratory business, which our CEO, Helena Santos, will discuss in more detail. We raised capital and we expanded our shareholder base, adding experience, growth, and life science investors, thereby strengthening our relevant network and expertise to increase shareholder value. The continued transformation of the Benchtop Lab Equipment Torval Division from its base in pharmacy scales to renewed product lines with the introduction of the Vivid Pharmacy Enterprise Solution. We have Carl Nowiszewski, the president of Torbao to share the background and opportunity further. We acquired Aquila Biolabs with its roadmap to the first Internet of Things network for life sciences, which I'll explore further later on in the call. The common themes you'll hear about today between the Torbao division of the benchtop lab business and the bioprocessing business is how we're helping our customers reduce labor costs, improve operational efficiencies by elevating workflows of skilled workers, We're moving from products to platforms, and in the process, creating very valuable flywheel-type cloud-based businesses with recurring revenue and network effects. I'll now hand the call over to our CEO, Helena Santos, to discuss the company's fiscal 2021 results and the benchtop lab business.