Scientific Industries Inc

Good day and welcome to the Scientific Industries Report's third quarter fiscal year 2024 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the start 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 a touch-tone phone. 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 Dornay with Wolfram Partners. Please go ahead.

Thanks, Betsy. Good morning, and thank you all for joining us today to review Scientific Industries' financial results for the third quarter of 2024, ended September 30th, 2024. With us today on the call are Helena Santos, Chief Executive Officer, Daniel Donadie, CEO of SBI, 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 ended December 31st, 2023. 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?

Thank you, Joe, and thank you to our loyal shareholders who continue to be our partners in our journey in becoming a more valuable company in the near future. It is my belief that with each quarter, We take a step closer to our ultimate goal of transforming our company's scientific industries into a thriving life sciences tool business with growing sales, growing margins, growing recurring revenue, and growing profitability. Starting with our benchtop lab equipment business, the solid foundation for our company that is crucial in helping to fund our grand strategy. So in this third quarter, the legacy Genie business experienced a nice recovery, mirroring the industry as a whole with the stocking mostly behind us and a trend towards positive growth in the lab equipment markets. This after a couple years of negative industry growth. The Genie business continues to generate positive cash flow, which has enabled us to invest in the growth of our Vivid Pill Counter business, and also support the corporate structure required of a multinational company. Regarding our Torvald business, and more specifically our Vivid pill counter business, we're glad to say that for the most part, the funding constraints that plagued the independent pharmacy market in the first half of this year is for the most part behind us. And as a result, our Vivid sales this third quarter were up 50% compared to the second quarter of this year and 12% compared to the same quarter last year. All very encouraging signs for us. But the real exciting news this quarter is our work on the launch of our new state-of-the-art Vivid Workstation, which gives us the opportunity to catapult beyond the independent pharmacy market. The workstation is a real game-changer. It's an all-in-one pill counter that not only provides superior pill counting, but it also performs the functions of the pharmacy's management system in one complete space-saving machine. And believe me, space is important. Where the pharmacist now will be able to run all of the pharmacy software in one machine. The workstation is also ideal for telepharmacy or remote pharmacy operations. because of its ability to perform PV2 verification remotely with its color image log and vial and label content imagery. This refers to a second prescription verification process that most states require. So why is this important? Because as pharmacies close and more scripts are filled from these remote locations, the workstation will be an ideal pill counter to fulfill this verification requirement that most states are imposing and will continue to impose. We built the initial four units, and our partner, RxSystems, used them beginning in Q3 for internal testing as well as to exhibit at many industry trade shows to build demand. RxSystems has several decades experience in establishing our competitor Icon's product in the marketplace. Two years ago, they dropped the Icon because they bought into and helped shape the vision for our Vivid product line. They believed the Vivid, with its easily upgradable cloud-based architecture, could not only replace the aging installed base of about 13,000 Icons, but also convert the 75,000 independent pharmacies that are either using unreliable mechanical counting systems or are still counting by hand. They have been overwhelmed by customer response and believe it will become our best-selling product in terms of the number of units. And why is this important? Because this product sells for three times the price of our other products. We will be building our first lot of production units in the upcoming weeks. And we're also planning to put various units in the hands of external users next month and start taking orders right away in the beginning of January. Lastly, I'm happy to report that our cost-cutting initiatives and financial discipline are paying off, as evidenced by the continuing reduction in our cash burn without affecting the top line. Quarter by quarter, for the last four quarters, we've been able to reduce our operating expenses, this through voluntary management compensation reductions, as well as many of our valued employees, particularly in our bioprocessing unit, and also efficiencies in personnel and other operational areas wherever we can find savings. We will continue to be good stewards of our shareholders' investments and money, and the confidence they have placed in us to deliver long-term shareholder value. And with that, I'm going to turn it over to Mr. Daniel Donadio so he can talk about our company's bioprocessing segment. Daniel?