10-Q

                           UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549

                            FORM 10-Q

(Mark One)
  X   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For quarterly period ended September 30, 2011

      TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________ to_________

Commission File Number:             0-6658
                       ____________________________

                       SCIENTIFIC INDUSTRIES, INC.
____________________________________________________________________
    (Exact name of registrant as specified in its charter)

       Delaware         	              04-2217279
____________________________    ____________________________________
(State or other jurisdiction	  (IRS Employer Identification No.)
 of incorporation or
 organization)

70 Orville Drive, Bohemia, New York                  11716
________________________________________          __________
(Address of principal executive offices)	  (Zip Code)

                              (631)567-4700
_____________________________________________________________________
      (Registrant's telephone number, including area code)

                          Not Applicable
_____________________________________________________________________
(Former name, former address and former fiscal year, if changed since
last report)

Indicate by check whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a small
reporting company.  See the definitions of "large accelerated filer,"
"accelerated filer" and "small reporting company" in Rule 12b-2 of the
Exchange Act.

	Large accelerated filer      	Accelerated Filer

	Non-accelerated filer        	Smaller reporting company  [ X ]
    (Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).
						Yes [  ] No [ X ]

The number of shares outstanding of the issuer's common stock par
value, $0.05 per share, as of October 14, 2011 was 1,196,577 shares.




					TABLE OF CONTENTS



PART I  - FINANCIAL INFORMATION


ITEM 1    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED):

					                             Page
                                                                     ____
	    Condensed Consolidated Balance Sheets		        1


	    Condensed Consolidated Statements of Income		        2


	    Condensed Consolidated Statements of Cash Flows	        3


	    Notes to Condensed Consolidated Financial Statements        4

ITEM 2    MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS   10

ITEM 4    CONTROLS AND PROCEDURES                                      12

PART II - OTHER INFORMATION

ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K                             13

SIGNATURE                                                              14

EXHIBITS                                                               15




                    PART I-FINANCIAL INFORMATION

Item 1.  Financial Statements


	     SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES

               CONDENSED CONSOLIDATED BALANCE SHEETS

                            ASSETS
				              September 30,          June 30,
                                              _____________         __________
                                                  2011                 2011
                                              _____________         __________
                                                (Unaudited)
Current Assets:
  Cash and cash equivalents			$  783,100          $  907,800
  Investment securities				   695,400	       693,400
  Trade accounts receivable, net		   852,600	       620,000
  Inventories					 1,592,600	     1,639,800
  Prepaid expenses and other current assets        148,900	       197,700
  Deferred taxes				    77,700	        77,700
                                                __________          __________
		Total current assets		 4,150,300	     4,136,400

Property and equipment, net			   211,200	       175,100

Intangible assets, net  			    85,300	       112,300

Goodwill					   447,900	       447,900

Other assets             			    25,700	        25,700

Deferred taxes					   112,400	       115,800
                                                __________          __________
		Total assets                    $5,032,800	    $5,013,200
                                                ==========          ==========

             LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
  Accounts payable				$  106,800	    $  128,100
  Accrued expenses and taxes			   266,100	       284,300
  Dividends payable				    59,800	         -
                                                __________          __________
		Total current liabilities	   432,700	       412,400
                                                __________          __________
Shareholders' Equity:
  Common stock, $.05 par value; authorized 7,000,000 shares;
    1,216,379 issued and outstanding                60,800	        60,800
  Additional paid-in capital                     1,559,100	     1,558,500
  Accumulated other comprehensive loss          (   22,400)	    (   21,500)
  Retained earnings                              3,055,000	     3,055,400
                                               ___________         ___________
                                                 4,652,500	     4,653,200
  Less common stock held in treasury, at cost
   19,802 shares                                    52,400	        52,400
                                               ___________         ___________
		Total shareholders' equity       4,600,100	     4,600,800
                                               ___________         ___________
		Total liabilities and
                shareholders' equity            $5,032,800	    $5,013,200
                                                ==========         ===========


       See notes to unaudited condensed consolidated financial statements


                             1




         SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)




		 			     For the Three Month
					         Periods Ended
					          September 30,
                                        __________________________
     					    2011            2010
                                        __________      __________

Net sales                	        $1,541,000      $1,255,500
Cost of goods sold     		           937,000         746,800
                                        __________      __________
Gross profit              		   604,000         508,700
                                        __________      __________
Operating Expenses:
 General & administrative		   290,900         286,800
 Selling				   189,000         140,400
 Research & development		            46,900          87,500
                                        __________      __________
 Total operating expenses		   526,800         514,700
                                        __________      __________
Income (loss) from operations		    77,200      (    6,000)

Interest & other income, net		     6,800           9,200
                                        __________      __________
Income before income taxes		    84,000           3,200
                                        __________      __________
Income tax expense (benefit):
  Current			  	    21,200           6,600
  Deferred			             3,400     (     5,600)
                                        __________      __________
				   	    24,600           1,000
                                        __________     ___________
Net income 			        $   59,400     $     2,200
                                        ==========     ===========


Basic earnings per common
 share	                 		  $  .05         $   -

Diluted earnings per common
 share  				  $  .05         $   -

Cash dividends declared
 per common share		  	  $  .05         $  .09




See notes to unaudited condensed consolidated financial statements


                               2



        SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


                                 	For the Three Month Periods Ended
					 Sept. 30, 2011  Sept. 30, 2010
                                        ______________  ______________
Operating activities:
  Net income 		                     $  59,400     $  2,200
                                             _________     _________
  Adjustments to reconcile net income
   to net cash provided by (used in) operating activities:
      Depreciation and amortization             47,100       47,400
      Deferred income taxes			 3,400   (    5,600)
	 Stock-based compensation		   600	      3,100
	 Changes in operating assets and liabilities:
         Accounts receivable                 ( 232,600)	    729,800
         Inventories                            47,200   (  294,700)
         Prepaid expenses and other
          current assets                        48,800   (   22,000)
         Accounts payable                    (  21,300)  (  157,200)
         Customer advances	 		  -         128,500
         Accrued expenses and taxes          (  18,200)  (   72,500)
                                            __________    __________
       Total adjustments		     ( 125,000)     356,800
                                            __________    __________
       Net cash provided by (used in)
        operating activities	             (  65,600)     359,000
                                            __________    __________
Investing activities:
 Additional consideration for acquisition
    of Altamira Instruments, Inc.	          -      (  139,900)
  Purchase of investment securities,
    available-for-sale                       (   2,900)  (    3,400)
  Capital expenditures                       (  54,900)  (    5,200)
  Purchases of intangible assets             (   1,300)  (    3,300)
                                             __________  ___________
       Net cash used in
	   investing activities		     (  59,100)  (  151,800)
                                             __________  ___________
Net increase (decrease) in cash and
  cash equivalents	 	             ( 124,700)     207,200
Cash and cash equivalents,
  beginning of period		               907,800      632,700
                                            __________    __________
Cash and cash equivalents, end of period     $ 783,100    $ 839,900
                                            ==========    ==========

Supplemental disclosures:

Cash paid during the period for:
  Income Taxes                               $   1,500	  $  94,000


 See notes to unaudited condensed consolidated financial statements

                                3



       SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


General:	The accompanying unaudited interim condensed
consolidated financial statements are prepared pursuant to the
Securities and Exchange Commission's rules and regulations for
reporting on Form 10-Q. Accordingly, certain information and
footnotes required by accounting principles generally accepted
in the United States for complete financial statements are not
included herein. The Company believes all adjustments necessary
for a fair presentation of these interim statements have been
included and that they are of a normal and recurring nature.
These interim statements should be read in conjunction with the
Company's financial statements and notes thereto, included in its
Annual Report on Form 10-K, for the fiscal year ended June 30, 2011.
The results for the three months ended September 30, 2011, are not
necessarily an indication of the results for the full fiscal
year ending June 30, 2012.

1.	Summary of significant accounting policies:

	Principles of consolidation:

The accompanying consolidated financial statements include the
accounts of Scientific Industries, Inc., Altamira Instruments, Inc.
("Altamira"), a Delaware corporation and wholly-owned subsidiary,
and  Scientific Packaging Industries, Inc., an inactive wholly-owned
subsidiary (all collectively referred to as the "Company").  All
material intercompany balances and transactions have been eliminated.

2.	New Accounting Pronouncements:


In June 2011, the Financial Accounting Standards Board ("FASB")
issued Accounting Standards Update ("ASU") No. 2011-05,
"Comprehensive Income (ASC Topic 220): Presentation of Comprehensive
Income," ("ASU No. 2011-05") which amends current comprehensive
income guidance. This accounting update eliminates the option to
present the components of other comprehensive income as part of the
statement of stockholders' equity. Instead, the Company must report
comprehensive income in either a single continuous statement of
comprehensive income which contains two sections, net income and
other comprehensive income, or in two separate but consecutive
statements.  ASU 2011-05 will be effective for public companies
during the interim and annual periods beginning after December 15,
2011 with early adoption permitted.  The Company has not adopted
this standard yet and does not expect that the adoption of ASU
2011-05 will have an impact on its consolidated results of
operations, financial condition or cash flows as it only
requires a change in the format of our current presentation.



                                    4




In December 2010, the FASB issued ASU No. 2010-29, "Disclosure of
Supplementary Pro Forma Information for Business Combinations."  This
standard requires an entity to disclose revenue and earnings of the
combined entity as though the business combination(s) that occurred
during the current year had occurred as of the beginning of the
comparable prior annual reporting period.  ASU No. 2010-29 is effective
prospectively for business combinations that occur on or after the
beginning of the first annual reporting period beginning after
December 15, 2010. The Company does not expect that the adoption of
ASU No. 2010-29 will have an impact on its consolidated results of
operations, financial condition or cash flows.



3.	Segment Information and Concentrations:

The Company views its operations as two segments:  the manufacture and
marketing of standard benchtop laboratory equipment for research in
university, hospital and industrial laboratories sold primarily through
laboratory equipment distributors ("Benchtop Laboratory Equipment
Operations"), and the manufacture and marketing of custom-made catalyst
research instruments for universities, government laboratories, and
chemical and petrochemical companies sold on a direct basis ("Catalyst
Research Instruments Operations").

	Segment information is reported as follows:

			Benchtop    Catalyst	Corporate
		       Laboratory   Research	    and
			Equipment   Instruments    Other    Consolidated
                      ___________  ___________  _________   ____________
Three months ended September 30, 2011:

 Net Sales	       $1,075,200   $  465,800   $    -	    $1,541,000
 Foreign Sales		  608,700      112,600        -	       721,300
 Segment Profit (Loss)    135,800    (  58,600)       -	        77,200
 Segment Assets	        2,621,100    1,078,300   1,333,400   5,032,800
 Long-Lived Asset
    Expenditures	    8,200	46,700        -	        54,900
 Depreciation and
    Amortization	   11,800       35,300	     -	        47,100


			 Benchtop    Catalyst	  Corporate
			Laboratory   Research	    and
			 Equipment   Instruments    Other    Consolidated
                      ___________    ___________  _________  ____________

Three months ended September 30, 2010:

 Net Sales	        $1,022,100   $  233,400    $  -	     $1,255,500
 Foreign Sales		   520,200       26,000	      -	        546,200
 Segment Profit (Loss)     125,000   (  131,000)      -	     (    6,000)
 Segment Assets	         2,182,500    1,467,300  1,301,500    4,951,300
 Long-Lived Asset
    Expenditures	     3,400	  1,800      -	          5,200
 Depreciation and
    Amortization            13,900	 33,500      -	         47,400


                                    5




Approximately 63% and 66% of net sales of benchtop laboratory equipment
for the three month periods ended September 30, 2011 and 2010, respectively,
were derived from the Company's main product, the Vortex-Genie 2(R) mixer,
excluding accessories.

Two customers accounted in the aggregate for approximately 20% of the net
sales of the Benchtop Laboratory Equipment Operations and 14% of total
sales for the three months ended September 30, 2011, and 27% of net sales
of the segment and 22% of total sales for the three months ended
September 30, 2010.  Sales of catalyst research instruments generally
comprise a few very large orders averaging $100,000 per order to a limited
number of customers, who differ from order to order.  Sales to three
customers represented approximately 91% of the Catalyst Research Instrument
Operations' net sales and 28% of total sales for the three months ended
September 30, 2011.  Sales to two different customers represented 75% of the
segment's net sales and 14% of total sales for the year earlier
comparable period.

The Company's foreign sales are principally to customers in Europe and Asia.

4.	Fair Value of Financial Instruments:

The FASB defines the fair value of financial instruments as the amount
that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.
Fair value measurements do not include transaction costs.

The accounting guidance also expands the disclosure requirements around
fair value and establishes a fair value hierarchy of valuation inputs.
The hierarchy prioritizes the inputs into three levels based on the extent
to which inputs used in measuring fair value are observable in the market.
Each fair value measurement is reported in one of the three levels, which
is determined by the lowest level input that is significant to the fair
value measurement in its entirety.  These levels are described below:

	Level 1	Inputs that are based upon unadjusted quoted prices for
identical instruments traded in active markets.

	Level 2	Quoted prices in markets that are not considered to be
active or financial instruments for which all significant inputs are
observable, either directly or indirectly.

	Level 3	Prices or valuation that require inputs that are both
significant to the fair value measurement and unobservable.



                                   6




The following tables set forth by level within the fair value hierarchy the
Company's financial assets that were accounted for at fair value on a
recurring basis at September 30, 2011 and June 30, 2011 according to the
valuation techniques the Company used to determine their fair values:


                                  Fair Value Measurements Using Inputs
                                            Considered as

                            Fair Value at
                            September 30,
                               2011         Level 1   Level 2  Level 3
                            _____________ __________  _______  ________
Cash and cash equivalents     $  783,100  $  783,100   $  -     $  -
Available for sale securities    695,400     695,400      -        -
                              __________  __________   ______   _______
Total			      $1,478,500  $1,478,500   $  -      $  -
                              ==========  ==========   ======   =======


                                  Fair Value Measurements Using Inputs
                                             Considered as

                            Fair Value at
                            June 30, 2011   Level 1    Level 2  Level 3
                            _____________ __________  _______  ________
Cash and cash equivalents     $  907,800  $  907,800  $   -    $   -
Available for sale securities    693,400     693,400      -        -
                              __________  __________  _______  ________
Total                         $1,601,200  $1,601,200  $   -    $   -
                              ==========  ==========  =======  ========

Investments in marketable securities classified as available-for-sale by
security type at September 30, 2011 and June 30, 2011 consisted of the
following:

                                                             Unrealized
                                               	    Fair    Holding Gain
                                        Cost        Value      (Loss)
	                             _____________  ________ ____________
At September 30, 2011:
   Available for sale:
   Equity securities		     $    7,800	    $ 13,000  $   5,200
   Mutual funds				710,000      682,400	(27,600)
                                     __________    _________  __________
				     $  717,800	    $695,400  $ (22,400)
                                     ==========    =========  ==========


                                                            Unrealized
                                               	    Fair    Holding Gain
                                        Cost        Value     (Loss)
	                             __________  _________  ____________

At June 30, 2011:

       Available for sale:
        Equity securities           $    7,800   $  13,300  $   5,500
        Mutual funds                   707,100     680,100    (27,000)
                                    __________   _________  __________
                                    $  714,900   $ 693,400  $ (21,500)
                                    ==========   =========  ==========

						7





5.	Inventories:

Inventories for financial statement purposes are based on perpetual
inventory records at September 30, 2011 and June 30, 2011.  Components
of inventory are as follows:

			    September 30,  	June 30,
				2011   		  2011
                              __________        __________

	Raw Materials         $1,114,800	$1,051,300
	Work in process          279,000    	   408,200
	Finished Goods           198,800	   180,300
                              __________        __________
			      $1,592,600	$1,639,800
                              ==========        ==========

6.  Earnings per common share:

Basic earnings per common share are computed by dividing net income by
the weighted-average number of shares outstanding.  Diluted earnings
per common share include the dilutive effect of stock options, if any.

	Earnings per common share was computed as follows:

                           		  For the Three Month
                           		  Periods Ended
                             	          September 30,
                                          _______________________
    					     2011         2010
                                          _______________________

	Net income		          $   59,400   $    2,200
                                          ==========   ==========
	Weighted average common
 	  shares outstanding		    1,196,577   1,196,577
	Dilutive  securities	               14,924      15,413
                                           __________   __________
	Weighted average dilutive
	  common shares outstanding	    1,211,501 	1,211,990
                                           =========    =========
	Basic earnings per
	  common share		             $   .05	   $   -
                                            ========     ========
	Diluted earnings per
	  common share		             $   .05	   $   -
                                            ========     ========

Approximately 2,000 shares of the Company's Common Stock issuable
upon the exercise of outstanding stock options were excluded from the
calculation of diluted earnings per common share for the three months
ended September 30, 2011, because the effect would be anti-dilutive.


7.  Comprehensive Income:

The FASB establishes standards for disclosure of comprehensive income
or loss, which includes net income or loss and any changes in equity
from non-owner sources that are not recorded in the income statement
(such as changes in the net unrealized gains or losses on securities.)
The Company's only source of comprehensive income or loss other than
net income is the net unrealized gain or loss on securities.  The
components of comprehensive income were as follows:


                               8





				  	  For the Three Month
			            	  Periods Ended
			              	  September 30,
                                          ______________________
    			     	   	     2011        2010
                                          ______________________

	Net income		          $  59,400   $   2,200

	Other comprehensive income (loss):
	  Unrealized holding gain (loss)
  	    arising during period  	 (      900)     10,400
                                        ___________   _________
	Comprehensive income		  $  58,500   $  12,600
                                        ===========   =========



8.   Goodwill and Other Intangible Assets:

In conjunction with the acquisition of Altamira, management of the
Company valued the tangible and intangible assets acquired, including
customer relationships, non-compete agreements and technology which
encompasses trade names, trademarks and licenses. The valuation resulted
in an initial negative goodwill of approximately $91,500 on the date
of acquisition which was subsequently adjusted to positive goodwill of
$447,900 as of September 30, 2011 and June 30, 2011, all of which was
deductible for tax purposes.  The agreement provided for
contingent payments to the former shareholders based on net sales of
the Catalyst Research Instrument Operations subject to certain limits,
which were earned and paid.

The components of other intangible assets are as follows:

			   Useful             Accumulated
			   Lives     Cost     Amortization      Net
                           _______  ________  ____________   _________
 At September 30, 2011:

 Technology		   5 yrs.   $300,000   $290,000       $  10,000
 Customer relationships   10 yrs.    237,000 	183,200          53,800
 Non-compete agreement     5 yrs.    102,000     98,600           3,400
 Other intangible assets   5 yrs.    140,300    122,200          18,100
                                    ________   ________       _________
                                    $779,300   $694,000	      $  85,300
                                    ________   ________       _________

			  Useful               Accumulated
			  Lives       Cost     Amortization      Net
                          _______   ________   ____________   _________
 At June 30, 2011:

 Technology		   5 yrs.   $300,000   $275,000       $ 25,000
 Customer relationships   10 yrs.    237,000 	177,200         59,800
 Non-compete agreement     5 yrs.    102,000     93,500          8,500
 Other intangible assets   5 yrs.    139,000    120,000         19,000
                                    ________   ________       ________
				    $778,000   $665,700       $112,300
                                    ________   ________       ________

Total amortization expense was $28,300 and $29,400 for the three months
ended September 30, 2011 and 2010, respectively.  As of September 30, 2011,
estimated future amortization expense related to intangible assets is
$32,500 for the remainder of the fiscal year ending June 30, 2012, $15,800
for fiscal 2013, $12,000 for fiscal 2014, $8,400 for fiscal 2015, $13,100
for fiscal 2016, and $3,500 thereafter.


				   9




               SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES


Item 2. Management's Discussion and Analysis or Plan of Operations

Certain statements contained in this report are not based on historical
facts, but are forward-looking statements that are based upon various
assumptions about future conditions.  Actual events in the future could
differ materially from those described in the forward-looking information.
Numerous unknown factors and future events could cause such differences,
including but not limited to, product demand, market acceptance, impact
of competition, the ability to reach final agreements, the ability to
finance and produce to customers? specifications catalyst research
instruments, adverse economic conditions, and other factors affecting
the Company's business that are beyond the Company's control.
Consequently, no forward-looking statement can be guaranteed.

We undertake no obligation to publicly update forward-looking
statements, whether as a result of new information, future events or
otherwise.


Liquidity and Capital Resources

Cash and cash equivalents decreased by $124,700 to $783,100 as of
September 30, 2011 from $907,800 as of June 30, 2011.

Net cash used in operating activities was $65,600 for the three months
ended September 30, 2011 as compared to cash provided of $359,000 for
the comparable three month period in 2010, due mainly to the higher
accounts receivable balances originating in the current period compared
to the prior period.  Cash used in investing activities was $59,100
for the three month period ended September 30, 2011 compared to
$151,800 for the three month period ended September 30, 2010 due
primarily to the consideration paid in the prior year relating to
the acquisition of Altamira Instruments, Inc.

On September 13, 2011, the Board of Directors of the Company declared a
cash dividend of $.05 per share of Common Stock payable on November 18, 2011
to holders of record as of the close of business on September 26, 2011.

The Company's working capital decreased slightly by $6,400 to $3,717,600
at September 30, 2011 from $3,724,000 at June 30, 2011.

The Company has a line of credit with its bank, JPMorgan Chase Bank, N.A.
which provides for maximum borrowings of up to $700,000, to bear interest
at 3.08 percentage points above the defined LIBOR Index.  The interest
rate as of September 30, 2011 was approximately 3.33% and is to be
secured by a pledge of collateral consisting of the inventory, accounts,
chattel paper, equipment and general intangibles of the Company.
Outstanding amounts are due and payable by June 13, 2013 with a
requirement that the Company is to reduce the outstanding principal
balance to zero during the 30 day period ending on the anniversary date
of the promissory note.  As of September 30, 2011 and June 30, 2011, no
borrowings under the line have been made.

Management believes that the Company will be able to meet its cash flow
needs during the next 12 months, including payments anticipated to be
made upon consummation of a previously reported proposed acquisition of
assets, primarily a license and sublicenses related to the research,
design and development, and sale of bioprocessing products and systems,
from its available financial resources which include its cash and
investment securities.


					10




Results of Operations

Financial Overview

The increase in the Company's income before income taxes of $80,800 to
$84,000 for the three month period ended September 30, 2011 compared to
$3,200 for the three month period ended September 30, 2010 was principally
due to a $10,800 increase in segment profit of the Benchtop Laboratory
Equipment Operations and a $72,400 reduction to $58,600 in the segment
loss of the Catalyst Research Instrument Operations resulting from
increased sales within that segment.

The Three Months Ended September 30, 2011 Compared With the Three Months
Ended September 30, 2010

Net sales for the three months ended September 30, 2011 increased by
$285,500 (22.7%) to $1,541,000 from $1,255,500 for the three months
ended September 30, 2010, substantially due to a $232,400 increase in
sales of catalyst research instruments.  Sales of these products are
comprised of a small number of large orders, typically averaging over
$100,000 each, while benchtop laboratory equipment sales consist of a
large number of small orders usually shipped from stock.  The backlog
of orders for catalyst research instruments products was $268,000 as
of September 30, 2011, all of which are anticipated to be delivered by
fiscal year end; the backlog as of September 30, 2010 was $692,000.

The gross profit percentage for the three months ended September 30, 2011
decreased to 39.2% compared to 40.5% for the three months ended
September 30, 2010, mainly as a result of higher material costs and
product engineering costs incurred to improve certain benchtop laboratory
products.

General and administrative expenses for the three months ended September
30, 2011 increased by $4,100 (1.4%) to $290,900 from $286,800 for the
comparable period of the prior year, mainly due to expenses incurred in
the investigation of other business opportunities.

Selling expenses increased $48,600 (34.6%) to $189,000 for the three month
period ended September 30, 2011 compared to $140,400 for the prior year
period, due to an increase in sales commissions paid to independent sales
representatives, travel expenses incurred by the Catalyst Research
Instruments Operations, costs related to the hiring of a new customer
service representative and a sales consultant for the Benchtop Laboratory
Equipment Operations.

Research and development expenses for the three months ended September
30, 2011 decreased $40,600 (46.4%) to $46,900 from $87,500 for the three
months ended September 30, 2010, primarily the result of a reduction in
new product development activity by the Company.

Interest and other income decreased for the comparative three month
periods by $2,400 (26.1%) to $6,800 from $9,200 mainly as a result of
lower cash balances and lower interest rates.


                                 11




The Company reflected income tax expense for the three months ended
September 30, 2011 of $24,600 on income before income taxes of $84,000
compared to $1,000 on income before income taxes of $3,200 for the three
months ended September 30, 2010.

As a result of the foregoing, the net income for the three months ended
September 30, 2011 was $59,400 compared to $2,200 for the three months
ended September 30, 2010.


Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures.  As of the end of the
period covered by this report, based on an evaluation of the Company's
disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934), the Chief Executive
and Chief Financial Officer of the Company has concluded that the Company's
disclosure controls and procedures are effective to ensure that information
required to be disclosed by the Company in its Exchange Act reports is
recorded, processed, summarized and reported within the applicable time
periods specified by the SEC's rules and forms. The Company also concluded
that information required to be disclosed in such reports is accumulated and
communicated to the Company's management, including its principal executive
and principal financial officer, as appropriate to allow timely decisions
regarding required disclosure.

Changes in Internal Control Over Financial Reporting. There was no
change in the Company's internal controls over financial reporting
that occurred during the most recently completed fiscal quarter that
materially affected or is reasonably likely to materially affect the
Company's internal controls over financial reporting.



                               12




Part II - OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

	(a) Exhibit Number:	Description

        31.1			Certification of Chief Executive
        Officer and Chief Financial Officer pursuant to Section 302
        of the Sarbanes-Oxley Act of 2002.

	  32.1			Certification of Chief Executive Officer
        and Chief Financial Officer pursuant to Section 906 of the
        Sarbanes-Oxley Act of 2002.


	(b) Reports on Form 8-K:

       Report dated August 9, 2011, related to the death of a member
       of the Board of Directors.

       Reported dated September 14, 2011, related to cash dividend
       declaration.





                                    13




			SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES



                                SIGNATURE



In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.




                              Scientific Industries, Inc.
                              ___________________________
                              Registrant


                              /s/ Helena R. Santos
                              ____________________
                              Helena R. Santos
                              President, Chief Executive Officer
                              and Treasurer
                              Principal Executive, Financial and
                              Accounting Officer

Date: October 27, 2011



                                   14

EX-31

						                      Exhibit 31.1

                         CERTIFICATION

I, Helena R. Santos, certify that:

1. I have reviewed this report on Form 10-Q for the quarter ended
September 30, 2011 of Scientific Industries, Inc., a smalller reporting
company (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period
covered by this report;

3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows
of the Registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)
and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15 (f) and 15d-15(f) for the Registrant and have:

a) Designed such internal disclosure and procedures, or caused such
controls and procedures to be designed under my supervision, to ensure
that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to me by others within those
entities, particularly during the period in which this report is being
prepared;

b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under my
supervision, to provide reasonable assurance, regarding the reliability
of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles;

c) Evaluated the effectiveness of the Registrant's disclosure controls
and procedures and presented in this report my conclusions about the
effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant's internal
control over financial reporting that occurred during the Registrant's
most recent fiscal quarter that has materially affected, or is
reasonably likely to affect, the Registrant?s internal control over
financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal
controls over financial reporting, to the Registrant?s auditors and the
audit committee of the Registrant's board of directors (or persons
performing the equivalent functions):

a)  All significant deficiencies and material weaknesses in the design
or operation of internal controls over financial reporting which are
reasonably likely to adversely affect the Registrant's ability to
record, process, summarize and report financial information; and

b)  Any fraud, whether or not material, that involves management or
other employees who have a significant role in the Registrant's
internal controls over financial reporting.

October 27, 2011

/s/ Helena R. Santos
____________________

Helena R. Santos
Chief Executive Officer and Chief Financial Officer

EX-32

									Exhibit 32.1



                             CERTIFICATION

The undersigned as Chief Executive Officer and Chief Financial Officer
of the Company, does hereby certify that the foregoing Quarterly
Report of SCIENTIFIC INDUSTRIES, INC. (the "Company"), on Form 10-Q for
the period ended September 30, 2011:

	(1)	Fully complies with the requirements of Section 13 or 15
            (d) of the Securities Exchange Act of 1934; and

	(2)	Fairly presents, in all material respects, the financial
            condition and results of operations of the Company.





October 27, 2011


/s/ Helena R. Santos
____________________
Helena R. Santos
Chief Executive Officer and Chief Financial Officer



A signed original of this written statement required by Section 906 has
been provided to the Company and will be retained by the Company and
furnished to the Securities and Exchange Commission or its staff upon
request.

























							17

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2011	Jun. 30, 2011
Shareholders' equity:
Common stock,par value	$ 0.05	$ 0.05
Common stock, authorized shares	7,000,000	7,000,000
Common stock, issued shares	1,216,379	1,216,379
Stock held in treasury, shares	19,802	19,802

XML

Condensed Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Income Statement [Abstract]
Net sales	$ 1,541,000	$ 1,255,500
Cost of goods sold	937,000	746,800
Gross profit	604,000	508,700
Operating expenses:
General and administrative	290,900	286,800
Selling	189,000	140,400
Research and development	46,900	87,500
Total operating expenses	526,800	514,700
Income (loss) from operations	77,200	(6,000)
Other income:
Interest & other income, net	6,800	9,200
Income before income taxes	84,000	3,200
Income tax expense (benefit):
Current	21,200	6,600
Deferred	3,400	(5,600)
Total	24,600	1,000
Net income	$ 59,400	$ 2,200
Basic earnings per common share	$ 0.05	$ 0
Diluted earnings per common share	$ 0.05	$ 0
Cash dividends declared per common share	$ 0.05	$ 0.09

XML

Document and Entity Information (USD $)	3 Months Ended
	Sep. 30, 2011	Oct. 26, 2011
Document And Entity Information
Entity Registrant Name	SCIENTIFIC INDUSTRIES INC
Entity Central Index Key	0000087802
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 3,703,400
Entity Common Stock, Shares Outstanding		1,216,379
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2012

XML

Comprehensive Income

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Comprehensive Income

The FASB establishes standards for disclosure of comprehensive income or loss, which includes net income or loss and any changes in equity from non- owner sources that are not recorded in the income statement (such as changes in the net unrealized gains or losses on securities.) The Company's only source of comprehensive income or loss other than net income is the net unrealized gain or loss on securities. The components of comprehensive income were as follows:

	For the Three Month
	Periods Ended
	September 30,
	2011			2010
Net income	$	59,400		$	2,200
Other comprehensive income (loss):
Unrealized holidng gain (loss)
arising during period		(900	)		10,400
Comprehensive income	$	58,500		$	12,600

XML

Segment Information and Concentrations

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Segment Information and Concentrations

The Company views its operations as two segments: the manufacture and marketing of standard benchtop laboratory equipment for research in university, hospital and industrial laboratories sold primarily through laboratory equipment distributors (“Benchtop Laboratory Equipment Operations”), and the manufacture and marketing of custom-made catalyst research instruments for universities, government laboratories, and chemical and petrochemical companies sold on a direct basis (“Catalyst Research Instruments Operations”).

Segment information is reported as follows:

	Benchtop Laboratory Equipment	Catalyst Research Instruments	Corporate and Other	Consolidated
Three months ended September 30, 2011
Net Sales	$ 1,075,200	$   465,800	$             -	$ 1,541,000
Foreign Sales	608,700	112,600	-	721,300
Segment Profit (Loss)	135,800	(58,600)	-	77,200
Segment Assets	2,621,100	1,078,300	1,333,400	5,032,800
Long-Lived Asset Expenditures	8,200	46,700	-	54,900
Depreciation and Amortization	11,800	35,300	-	47,100
	Benchtop Laboratory Equipment	Catalyst Research Instruments	Corporate and Other	Consolidated
Three months ended September 30, 2010
Net Sales	$ 1,022,100	$   233,400	$             -	$ 1,255,500
Foreign Sales	520,200	26,000	-	546,200
Segment Profit (Loss)	125,000	(131,000)	-	(6,000)
Segment Assets	2,182,500	1,467,300	1,301,500	4,951,300
Segment Asset Expenditures	3,400	1,800	-	5,200
Depreciation and Amortization	13,900	33,500	-	47,400

Approximately 63% and 66% of net sales of benchtop laboratory equipment for the three month periods ended September 30, 2011 and 2010, respectively, were derived from the Company’s main product, the Vortex-Genie 2® mixer, excluding accessories.

Two customers accounted in the aggregate for approximately 20% of the net sales of the Benchtop Laboratory Equipment Operations and 14% of total sales for the three months ended September 30, 2011, and 27% of net sales of the segment and 22% of total sales for the three months ended September 30, 2010. Sales of catalyst research instruments generally comprise a few very large orders averaging $100,000 per order to a limited number of customers, who differ from order to order. Sales to three customers represented approximately 91% of the Catalyst Research Instrument Operations’ net sales and 28% of total sales for the three months ended September 30, 2011. Sales to two different customers represented 75% of the segment’s net sales and 14% of total sales for the year earlier comparable period.

The Company’s foreign sales are principally to customers in Europe and Asia.

XML

Goodwill and Other Intangible Assets

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Goodwill and Other Intangible Assets

In conjunction with the acquisition of Altamira, management of the Company valued the tangible and intangible assets acquired, including customer relationships, non-compete agreements and technology which encompasses trade names, trademarks and licenses. The valuation resulted in an initial negative goodwill of approximately $91,500 on the date of acquisition which was subsequently adjusted to positive goodwill of $447,900 as of September 30, 2011 and June 30, 2011, all of which was deductible for tax purposes. The agreement provided for contingent payments to the former shareholders based on net sales of the Catalyst Research Instrument Operations subject to certain limits, which were earned and paid.

The components of other intangible assets are as follows:

	Useful Lives	Cost	Accumulated Amortization	Net
At September 30, 2011:
Technology	5 yrs	$     300,000	$     290,000	$     10,000
Customer relationships	10 yrs	237,000	183,200	53,800
Non-compete agreement	5 yrs	102,000	98,600	3,400
Other intangible assets	5 yrs	140,300	122,200	18,100
		$     779,300	$     694,000	$     85,300
	Useful Lives	Cost	Accumulated Amortization	Net
At June 30, 2011:
Technology	5 yrs	$     300,000	$     275,000	$     25,000
Customer relationships	10 yrs	237,000	177,200	59,800
Non-compete agreement	5 yrs	102,000	93,500	8,500
Other intangible assets	5 yrs	139,000	120,000	19,000
		$     778,000	$     665,700	$   112,300

XML

Summary of significant accounting policies

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Summary of significant accounting policies

Principles of consolidation:

The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc., Altamira Instruments, Inc. (“Altamira”), a Delaware corporation and wholly-owned subsidiary, and Scientific Packaging Industries, Inc., an inactive wholly-owned subsidiary (all collectively referred to as the “Company”). All material intercompany balances and transactions have been eliminated.

XML

Fair Value of Financial Instruments

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Fair Value of Financial Instruments

The FASB defines the fair value of financial instruments as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs.

The accounting guidance also expands the disclosure requirements around fair value and establishes a fair value hierarchy of valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels, which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are described below:

Level 1: Inputs that are based upon unadjusted quoted prices for identical instruments traded in active markets.

Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3: Prices or valuation that require inputs that are both significant to the fair value measurement and unobservable.

The following tables set forth by level within the fair value hierarchy the Company's financial assets that were accounted for at fair value on a recurring basis at September 30, 2011 and June 30, 2011 according to the valuation techniques the Company used to determine their fair values:

	Fair Value Measurements Using Inputs Considered as
	Fair Value at September 30, 2011		Level 1		Level 2		Level 3
Cash and cash equivalents	$	783,100	$	783,100	$	—	$	—
Available for sale securities		695,400		695,400		—		—
Total	$	1,478,500	$	1,478,500	$	—	$	—

	Fair Value Measurements Using Inputs Considered as
	Fair Value at June 30, 2011		Level 1		Level 2		Level 3
Cash and cash equivalents	$	907,800	$	907,800	$	—	$	—
Available for sale securities		693,400		693,400		—		—
Total	$	1,601,200	$	1,601,200	$	—	$	—

Investments in marketable securities classified as available-for-sale by security type at September 30, 2011 and June 30, 2011 consisted of the following:

	Cost		Fair Value		Unrealized Holding Gain (Loss)
At September 30, 2011:
Available for sale:
Equity securities	$	7,800	$	13,000	$	5,200
Mutual funds		710,000		682,400		(27,600	)
	$	717,800	$	695,400	$	(22,400	)
		Cost		Fair Value		Unrealized Holding Gain (Loss)
At June 30, 2011:
Available for sale:
Equity securities	$	7,800	$	13,300	$	5,500
Mutual funds		707,100		680,100		(27,000	)
	$	714,900	$	693,400	$	(21,500	)

XML

Inventories

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Inventories

Inventories for financial statement purposes are based on perpetual inventory records at September 30, 2011 and based on a physical count as of June 30, 2011. Components of inventory are as follows:

		September 30, 2011		June 30, 2011
Raw Materials	$	1,114,800	$	1,051,300
Work in process		279,000		408,200
Finished Goods		198,800		180,300
	$	1,592,600	$	1,639,800

XML

Earnings per common share

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Earnings per common share

Basic earnings per common share are computed by dividing net income by the weighted-average number of shares outstanding. Diluted earnings per common share include the dilutive effect of stock options, if any.

Earnings per common share was computed as follows:

	For the Three Month
	Periods Ended
	September 30,
	2011		2010
Net income	$	59,400	$	2,200
Weighted average common shares outstanding		1,196,577		1,196,577
Dilutive securities		14,924		15,413
Weighted average dilutive common shares outstanding		1,211,501		1,211,990
Basic earnings per common share	$	0.05	$	—
Diluted earnings per common share	$	0.05	$	—

Approximately 2,000 shares of the Company’s Common Stock issuable upon the exercise of outstanding stock options were excluded from the calculation of diluted earnings per common share for the three months ended September 30, 2011, because the effect would be anti-dilutive.

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Operating activities:
Net income	$ 59,400	$ 2,200
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	47,100	47,400
Deferred income taxes	3,400	(5,600)
Stock-based compensation	600	3,100
Changes in operating assets and liabilities:
Accounts receivable	(232,600)	729,800
Inventories	47,200	(294,700)
Prepaid expenses and other current assets	48,800	(22,000)
Accounts payable	(21,300)	(157,200)
Customer advances	0	128,500
Accrued expenses and taxes	(18,200)	(72,500)
Total adjustments	(125,000)	356,800
Net cash provided by (used in) operating activities	(65,600)	359,000
Investing activities:
Additional consideration for acquisition of Altamira Instruments, Inc.	0	(139,900)
Purchase of investment securities, available for sale	(2,900)	(3,400)
Capital expenditures	(54,900)	(5,200)
Purchase of intangible assets	(1,300)	(3,300)
Net cash used in investing activities	(59,100)	(151,800)
Financing activities:
Net increase (decrease) in cash and cash equivalents	(124,700)	207,200
Cash and cash equivalents, beginning of year	907,800	632,700
Cash and cash equivalents, end of year	783,100	839,900
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$ 1,500	$ 94,000

XML

New Accounting Pronouncements

3 Months Ended

Sep. 30, 2011

Notes to Financial Statements

New Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-05, "Comprehensive Income (ASC Topic 220): Presentation of Comprehensive Income," ("ASU No. 2011-05") which amends current comprehensive income guidance. This accounting update eliminates the option to present the components of other comprehensive income as part of the statement of stockholders' equity. Instead, the Company must report comprehensive income in either a single continuous statement of comprehensive income which contains two sections, net income and other comprehensive income, or in two separate but consecutive statements. ASU 2011-05 will be effective for public companies during the interim and annual periods beginning after December 15, 2011 with early adoption permitted. The Company has not adopted this standard yet and does not expect that the adoption of ASU 2011-05 will have an impact on its consolidated results of operations, financial condition or cash flows as it only requires a change in the format of our current presentation.

In December 2010, the FASB issued ASU No. 2010-29, "Disclosure of Supplementary Pro Forma Information for Business Combinations." This standard requires an entity to disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period. ASU No. 2010-29 is effective prospectively for business combinations that occur on or after the beginning of the first annual reporting period beginning after December 15, 2010. The Company does not expect that the adoption of ASU No. 2010-29 will have an impact on its consolidated results of operations, financial condition or cash flows.

XML

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Jun. 30, 2011
ASSETS
Cash and cash equivalents	$ 783,100	$ 907,800
Investment securities	695,400	693,400
Trade accounts receivable, net	852,600	620,000
Inventories	1,592,600	1,639,800
Prepaid and other current assets	148,900	197,700
Deferred taxes	77,700	77,700
Total current assets	4,150,300	4,136,400
Property and equipment, net	211,200	175,100
Intangible assets, net	85,300	112,300
Goodwill	447,900	447,900
Other assets	25,700	25,700
Deferred taxes	112,400	115,800
Total assets	5,032,800	5,013,200
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	106,800	128,100
Accrued expenses and taxes	266,100	284,300
Dividends payable	59,800	0
Total current liabilities	432,700	412,400
Shareholders' equity:
Common stock, $.05 par value;authorized 7,000,000 shares; 1,216,379 issued and outstanding	60,800	60,800
Additional paid-in capital	1,559,100	1,558,500
Accumulated other comprehensive loss	(22,400)	(21,500)
Retained earnings	3,055,000	3,055,400
Total	4,652,500	4,653,200
Less common stock held in treasury at cost, 19,802 shares	52,400	52,400
Total shareholders' equity	4,600,100	4,600,800
Total liabilities and shareholders' equity	$ 5,032,800	$ 5,013,200