Scientific Industries Inc

Good morning and welcome to the Scientific Industries second quarter fiscal year 2023 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 with LISM Partners. Please go ahead.

Thank you, Andrea. Good morning and thank you for joining us today to review the financial results of scientific industries for the second quarter of 2023, ended June 30th, 2023. With us today on the call are Helena Santos, Chief Executive Officer, Daniel Grunes, CEO of Scientific Bioprocessing, and John Moore, Chairman. After the conclusion of today's prepared remarks, we will open the call for questions. 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 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 December 31, 2022. 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?

Good morning, Joe, and good morning, everyone. Welcome to the Scientific Industries second quarter earnings call. I'm excited to share details of our progress in the metamorphosis of Scientific Industries. The common themes between our two growth businesses Torbell and FBI or bioprocessing are, we now are automating our customers' manual workflows affordably, solving two of their biggest pain points. One is the high turnover or scarcity of skilled workers. And two, which is probably the most important, expensive data and control for regulatory, quality, and productivity reasons. In our second quarter, our benchtop 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 million of revenue at approximately a 50% gross margin. This means we are already earning a return on our $800,000 investment and Vivid product development costs to date. Vivid sales are more than double last year in the comparable six-month period, and sales growth is accelerating with Q2 2023 sales up 140% versus the same period last year. 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 Vivid. And even more important to customers, particularly the chains, is what is referred to as PV2 which is final prescription verification, and this will also be available in our workstation. In addition, Q1 2024, we'll see the launch of the first of these two Vivid workstation models. To date, the Vivid 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 Vivid Pill Counter, bringing the total number to date of counts to over 5 million. And we expect to double that within the next 12 months. The workstation will sell at a premium to our competitors' offering price, but it will deliver greater feature sets and return on investment at a $15,000 price point. 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 Grunas. He's the CEO of FBI to discuss our progress in our very promising bioprocessing business. Daniel.