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 March 31, 2012

______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), other than Form 8-K
Reports, and (2) has been subject to such filing requirements for the
past 90 days.   Yes [X]    No [ ],except for a Form 8-K Report related
to a recent acquisition.

Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company.  See the definitions of "large accelerated filer,"
"accelerated filer" and "smaller 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    X  No
                                                  _____     _____

The number of shares outstanding of the issuer's common stock par
value, $0.05 per share, as of April 27, 2012 was 1,335,712 shares.






                                 TABLE OF CONTENTS



PART I  -  FINANCIAL INFORMATION


ITEM 1	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:


                                                                    Page

                                                                    ____

Condensed Consolidated Balance Sheets				      1


Unaudited Condensed Consolidated Statements of Operations             2

Unaudited Condensed Consolidated Statements of Comprehensive
 Income (Loss)                                                        3

Unaudited Condensed Consolidated Statements of Cash Flows             4


Notes to Condensed Consolidated Financial Statements                  5

ITEM 2	MANAGEMENT=S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS   14

ITEM 4	CONTROLS AND PROCEDURES                                      17

PART II -  OTHER INFORMATION

ITEM 6	EXHIBITS AND REPORTS ON FORM 8-K                             17

SIGNATURE                                                            18










PART I-FINANCIAL INFORMATION
Item 1.  Financial Statements

         SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED BALANCE SHEETS

                           ASSETS
                                           March 31,        June 30,
                                               2012            2011
                                           __________     __________
Current Assets:		                  (Unaudited)
  Cash and cash equivalents		   $  552,200     $  907,800
  Investment securities			      713,900	     693,400
  Trade accounts receivable, net	      569,000	     620,000
  Inventories				    2,132,400	   1,639,800
  Prepaid expenses and other current assets   156,700	     197,700
  Deferred taxes			       74,800	      77,700
                                           __________     __________
           Total current assets		    4,199,000	   4,136,400

Property and equipment at cost, net	      187,100	     175,100

Intangible assets, net  		      905,600	     112,300

Goodwill				      589,900	     447,900

Other assets            		       25,700	      25,700

Deferred taxes				      113,900	     115,800
                                           __________     __________
           Total assets                    $6,021,200	  $5,013,200
                                           ==========     ==========
	LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Accounts payable			   $  151,600	  $  128,100
  Customer advances			      307,100	        -
  Notes payable, current		       75,200	        -
  Accrued expenses and taxes		      309,200	     284,300
                                           __________     __________
 	   Total current liabilities	      843,100	     412,400

Contingent consideration payable	       92,900	        -

Notes payable, long-term		      124,200	        -
                                           __________     __________
           Total liabilities		    1,060,200	     412,400
                                           __________     __________
Shareholders' equity:
  Common stock, $.05 par value; authorized 7,000,000 shares;
    1,355,514 and 1,216,379 issued and outstanding at
    March 31, 2012 and June 30, 2011           67,800	      60,800
  Additional paid-in capital                1,966,900	   1,558,500
  Accumulated other comprehensive loss    (    12,600)	  (   21,500)
  Retained earnings                         2,991,300	   3,055,400
                                          ___________     __________
                                            5,013,400	   4,653,200
  Less common stock held in treasury, at cost,
   19,802 shares                               52,400	      52,400
                                          ___________     __________
           Total shareholders' equity       4,961,000	   4,600,800
                                          ___________     __________
           Total liabilities and
             Shareholders' equity          $6,021,200	  $5,013,200
                                          ===========     ==========

See notes to unaudited condensed consolidated financial statements



                                  1





           SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                         For the Three Month     For the Nine Month
                         Periods Ended	         Periods Ended
                         March 31,               March 31,
                         ______________________  ______________________
                            2012        2011       2012         2011
                         ______________________  ______________________
Net sales                $1,519,500  $1,460,300  $4,258,000  $4,747,200
Cost of goods sold          920,500     863,500   2,564,700   2,772,500
                         __________  __________  __________  __________
Gross profit                599,000     596,800   1,693,300   1,974,700
                         __________  __________  __________  __________
Operating Expenses:
 General & administrative   318,900     282,800     945,000     879,800
 Selling                    170,800     159,000     519,800     502,300
 Research & development     125,000      90,300     250,500     267,700
                         __________  __________  __________  __________
                            614,700     532,100   1,715,300   1,649,800
                         __________  __________  __________  __________
Income (loss)
 from operations        (    15,700)	 64,700 (   22,000)     324,900

Interest & other
 income, net		      4,300       9,800     16,100       25,400
                         __________  __________  __________  __________
Income (loss)
 before income taxes	 (   11,400)     74,500 (    5,900)     350,300
                         __________  __________  __________  __________
Income tax expense (benefit):
  Current	         (    2,900)     19,300 (    3,400)     113,100
  Deferred	         (      300) (    5,000)     1,700   (   14,800)
                         __________  __________  __________  __________
                         (    3,200)     14,300 (    1,700)      98,300
                         __________  __________  __________  __________
Net income (loss)        ($   8,200)  $  60,200 ($   4,200)  $  252,000
                         ==========  ==========  ==========  ==========

Basic earnings (loss) per common
 share			 ($  .01)     $  .05	 $ .00	     $ .21

Diluted earnings (loss) per common
 share  		 ($  .01)     $  .05	 $ .00	     $ .21

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



   See notes to unaudited condensed consolidated financial statements



                                   2





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



                         For the Three Month     For the Nine Month
                         Periods Ended	         Periods Ended
                         March 31,               March 31,
                         _______________________  ____________________
                             2012        2011        2012       2011
                         _______________________  ____________________
Net income (loss)            ($ 8,200)  $ 60,200  ($ 4,200) $  252,000

Other comprehensive income:
 Unrealized holding gain
 arising during period,
 net of tax                     7,500      2,300     8,900       5,000
                             _________  ________  ________  __________
Comprehensive income (loss)  ($   700)  $ 62,500  $  4,700  $  257,000
                             =========  ========  ========  ==========





 See notes to unaudited condensed consolidated financial statements



                                3































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

                                 	  For the Nine Month Periods Ended
                                            March 31, 2012  March 31, 2011
                                            _______________ ______________
Operating activities:
  Net income (loss)			        ($   4,200)  $  252,000
                                                ___________  __________
  Adjustments to reconcile net income (loss)
   to net cash provided by operating activities:
      Depreciation and amortization		   141,600      142,200
      Deferred income tax (benefit)		     1,700   (   14,800)
      Stock-based compensation			     5,700	 20,800
      Changes in operating assets and liabilities:
         Accounts receivable			    51,000      871,100
         Inventories			        (  492,600)  (   94,600)
         Prepaid expenses and other current assets  41,000   (   39,300)
         Accounts payable                           23,500   (  114,300)
         Customer advances		           307,100         -
         Accrued expenses and taxes          	     5,900   (  148,200)
                                                __________   ___________
      Total adjustments	        	            84,900      622,900
                                                __________   ___________
      Net cash provided by operating activities	    80,700      874,900
                                                __________   ___________
Investing activities:
  Additional consideration for acquisition of
    Altamira Instruments, Inc.			      -	     (  182,600)
  Intangible assets acquired in
    acquisition (Note3)                         (  260,000)        -
  Purchase of investment securities,
    available-for-sale				(    8,300)  (   11,100)
  Capital expenditures				(   66,100)  (   61,500)
  Purchase of intangible assets, other		(    4,900)  (    8,800)
                                               ___________  ___________
       Net cash used in investing activities	(  339,300)  (  264,000)
                                               ___________  ___________
Financing activities:
 Line of credit proceeds			    60,000         -
 Line of credit repayments		        (   60,000)        -
 Payments of contingent consideration		(   16,100)        -
 Proceeds from exercise of stock options	     9,600	   -
 Cash dividend declared and paid		(   59,900)  (  107,700)
 Principal payments on note payable		(   30,600)        -
                                               ___________  ___________
	 Net cash used in financing activities	(   97,000)  (  107,700)
                                               ___________  ___________
Net increase (decrease) in cash
 and cash equivalents				(  355,600)     503,200

Cash and cash equivalents, beginning of year	   907,800      632,700
                                               ___________  ___________
Cash and cash equivalents, end of period        $  552,200  $ 1,135,900
                                               ===========  ===========
Supplemental disclosures:
Cash paid during the period for:
 Income taxes				 	$    3,300  $   298,400
Non-cash investing and financing activities (Note3):
 Fair value of stock issued for acquisition	$  400,000  $      -
 Fair value of note payable issued for acquisition 230,000         -
 Fair value of contingent consideration payable
  in connection with acquisition		   128,000	   -


   See notes to unaudited condensed consolidated financial statements

                                 4





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 and nine months ended March 31, 2012,
          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. ("Scientific", a Delaware
corporation), Altamira Instruments, Inc.("Altamira", a wholly owned
subsidiary and Delaware corporation), Scientific Packaging
Industries, Inc. (an inactive wholly owned subsidiary and New York
corporation) and since October 4, 2011, Scientific Bioprocessing,
Inc., ("SBI"), a wholly owned subsidiary and Delaware corporation).
All are collectively referred to as the "Company".  All material
intercompany balances and transactions have been eliminated.

2.	New Accounting Pronouncements:

In September 2011, the Financial Accounting Standards Board ("FASB")
issued Accounting Standards Update ("ASU") No. 2011-08, Intangibles-
Goodwill and Other (Topic 350)-Testing Goodwill for Impairment (ASU
2011-08), to allow entities to use a qualitative approach to test
goodwill for impairment. ASU 2011-08 permits an entity to first
perform a qualitative assessment to determine whether it is more
likely than not that the fair value of a reporting unit is less than
its carrying value. If it is concluded that this is the case, it is
necessary to perform the currently prescribed two-step goodwill
impairment test. Otherwise, the two-step goodwill impairment test is
not required. ASU 2011-08 is effective for the Company in fiscal 2013
and earlier adoption is permitted.  The Company is currently
evaluating the impact of the future adoption of ASU 2011-08 on its
consolidated financial statements.



In June 2011, the FASB issued "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 and requires the
Company 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.  The
Company adopted the standard during the periods ended March 31, 2012.


                                    5


3.     Acquisition:

On November 14, 2011, the Company through SBI acquired substantially all
of the assets of a privately owned company consisting principally of a
license and sublicenses under patents held by the University of Maryland,
Baltimore County ("UMBC") with respect to the design, development and
production of bioprocessing methods, systems and products. The acquisition
was pursuant to an asset purchase agreement("APA") whereby the Company paid
to the seller $260,000 in cash, issued 135,135 shares of Common Stock valued
at $400,000, issued to UMBC a $230,000 36-month note payable, and agreed
to make additional cash payments equal to 30% of net royalties received under
the acquired license and sublicenses, estimated at a present value of
$128,000 on the date of acquisition. The seller maintained that audited
financial statements could not be provided in connection with the
acquisition.  The inability to include the related audited financial
statements as required by the Securities Exchange Act of 1934 in the related
Current Report on Form 8-K filing resulted in the inability of the Company
to register under the Securities Act of 1933, as amended, offerings of the
Company's securities during the one year period ending November 2012.

SBI's revenues and profits (if any) are derived from royalties received by
SBI under the various sublicense agreements, and revenues from sales of
certain products being developed under its existing license.  University,
government, and industrial laboratories working primarily in the
biotechnology industry worldwide are its targeted customers.

Management of the Company allocated the purchase price based on its
valuation of the assets acquired, all of which are intangible, as follows:

        Technology, trademarks, and in-process
        research & development ("IPR&D")		$  500,000
        Sublicense agreements				   294,000
        Engineering drawings and software 		    64,000
        Non-competition agreements			    18,000
        Goodwill*				           142,000
                                                        __________
        Total Purchase Price				$1,018,000
                                                        ==========

        *See Note 8, "Goodwill and Other Intangible Assets".

The amounts allocated to Technology, Trademarks, and IPR&D and Sublicense
Agreements are deemed to have a useful life of 10 years, and to the
remaining intangible assets to have a useful life of 5 years, all of
which are being amortized on a straight-line basis, except for goodwill.

In connection with the acquisition, SBI entered into a research and
development agreement providing for the seller to perform services
with respect to the research and development of bioprocessing methods,
systems, and products pursuant to programs set forth in the Agreement.
The services are to be performed under the supervision of the designated
officer of seller or a qualified replacement.  The developer is to
receive a fee of $14,000 per month with SBI to bear all related expenses.
The agreement is for a two year term  with SBI having three one-year
extension options.  SBI has the right to terminate the agreement in
the event of a failure to achieve the designated product development
terms set forth in the agreement.



                                      6




       Pro forma results

The unaudited pro forma condensed consolidated financial information
in the table below summarizes the consolidated results of operations
of Scientific, Altamira and SBI on a pro forma basis, as though the
companies had been combined as of the beginning of each of the
periods presented, giving effect to SBI's acquisition of assets in
November 2011.  The unaudited pro forma condensed financial
information presented below is for informational purposes only
and is not intended to represent or be indicative of the
consolidated results of the operations that would have been
achieved if the acquisition had been completed as of the
commencement of the period presented.  In addition, the seller was
unable to provide audited historical financial statements and therefore
the information presented is based on management's best judgment using
the unaudited financial information provided and the effects of the
acquisition including amortization and interest expenses excluding
total acquisition related costs incurred of $78,500 for the nine
month period ended March 31, 2012:


			For the Three Month For the Nine Month
			Period Ended        Periods Ended
			March 31,           March 31,
                        ___________________ ______________________
			    2011              2012       2011
                        ___________________ ______________________
  Net sales	        $1,497,800  	    $4,333,000  $4,859,700

  Net income (loss)	$   22,000         ($   12,900) $  161,000

  Net income (loss)
    per share - basic	     $.02               ($.01)       $.12

  Net income (loss)
     per share - diluted     $.02	        ($.01)       $.12

4.	Segment Information and Concentrations:

The Company views its operations as three 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"), 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") and the marketing and production
of bioprocessing systems for laboratory research in the
biotechnology industry sold directly to customers and through
distributors ("Bioprocessing Systems").





       		                7






       Segment information is reported as follows:


               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ ___________
Three months ended March 31, 2012:

 Net Sales     $1,025,300  $  418,300   $   75,900  $    -    $1,519,500
 Foreign Sales	  613,900     405,900        3,600	 -     1,023,400
 Profit(Loss)      85,000  (   76,000) (    16,300)(   4,100) (   11,400)
 Assets     	2,446,300   1,239,700      842,700 1,492,500   6,021,200
 Long-Lived Asset
    Expenditures    7,500        -            -         -          7,500
 Depreciation and
    Amortization   12,500       5,900       24,000      -         42,400





               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ ___________
Three months ended March 31, 2011:

 Net Sales     $1,164,900  $  295,400   $    -     $    -    $1,460,300
 Foreign Sales	  720,800     201,400        - 	        -	922,200
 Profit(Loss)     138,900 (    74,200)       -         9,800     74,500
 Assets     	2,313,900   1,300,400        -     1,318,400  4,932,700
 Long-Lived Asset
    Expenditures    5,800         800        -          -         6,600
 Depreciation and
    Amortization   13,800      32,800        -          -        46,600


Approximately 62% and 70% of net sales of benchtop laboratory equipment
for the three month periods ended March 31, 2012 and 2011, respectively,
were derived from the Company's main product, the Vortex-Genie 2 mixer,
excluding accessories.

Two benchtop laboratory equipment customers accounted for approximately
27% and 23% of the segment's net sales,(42% and 19% of total net sales)
for the three month periods ended March 31, 2012 and 2011, respectively.

Sales of catalyst research instruments are generally pursuant to large
orders averaging more than $100,000 per order to a limited numbers of
customers.  Sales to two customers in the three months ended March 31,
2012 and two different customers in the three months ended March 31,
2011, accounted respectively for 92% and 93% of the segment's net sales
(25% and 19% of total net sales) for the respective periods.




				 8





               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ ___________
Nine months ended March 31, 2012:

 Net Sales     $3,208,900  $  973,200   $   75,900 $    -     $4,258,000
 Foreign Sales	1,977,700      27,000        3,600      -      2,508,300
 Profit(Loss)     357,400  (  252,400) (    48,600) ( 62,300) (    5,900)
 Assets     	2,446,300   1,239,700      842,700 1,492,500   6,021,200
 Long-Lived Asset
    Expenditures   21,500      49,500      876,000      -        947,000
 Depreciation and
    Amortization   36,700      68,900       36,000      -        141,600





               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ ___________
Nine months ended March 31, 2011:

 Net Sales     $3,431,900  $1,315,300   $     -    $    -    $4,747,200
 Foreign Sales	1,946,300     746,000         - 	-     2,692,300
 Profit(Loss)     486,800  (  161,900)        -       25,400    350,300
 Assets     	2,313,900   1,300,400         -    1,318,400  4,932,700
 Long-Lived Asset
    Expenditures   38,100      23,400         -         -        61,500
 Depreciation and
    Amortization   42,600      99,600         -         -       142,200


Approximately 63% and 69% of net sales of benchtop laboratory equipment
for the nine month periods ended March 31, 2012 and 2011, respectively,
were derived from the Company's main product, the Vortex-Genie 2 mixer,
excluding accessories.

Two benchtop laboratory equipment customers, accounted for approximately
26% and 29% of the segment's net sales (20% and 21% of total net sales)
for the nine month periods ended March 31, 2012 and 2011, respectively.

Sales of catalyst research instruments to three customers in the nine
months ended March 31, 2012 and to three other customers in the nine
months ended March 31, 2011 accounted for approximately 65% and 43% of
that segment's net sales (15% and 12% of total net sales) for the
respective nine month periods.

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

5.	Fair Value of Financial Instruments:

The Financial Accounting Standards Board ("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.




			         9





The accounting guidance also expands the disclosure requirements
concerning 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 valuations 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 and liabilities that were accounted for at fair
value on a recurring basis at March 31, 2012 and June 30, 2011 according to
the valuation techniques the Company used to determine their fair values:

                                    Fair Value Measurements Using Inputs
                                                Considered as

Assets:
                          Fair Value at
                          March 31, 2012     Level 1    Level 2  Level 3
                          _________________  __________ _______  _______


Cash and cash equivalents	$  552,200  $  552,200  $  -     $  -
Available for sale securities      713,900     713,900     -        -
                                __________  __________  _______  _______
Total			        $1,266,100  $1,266,100  $  -     $  -
                                ==========  ==========  =======  =======
Liabilities:

Contingent consideration        $  111,900  $    -      $  -   	 $111,900
                                ==========  ==========  =======  ========

                                      Fair Value Measurements Using Inputs
                                                  Considered as

Assets:
                          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  $  -     $  -
                                ==========  ==========  =======  =======
Liabilities:

Contingent consideration        $     -     $    -      $  -   	 $  -
                                ==========  ==========  =======  =======



Investments in marketable securities classified as available-for-sale by
security type at March 31, 2012 and June 30, 2011 consisted of the
following:
                                                        Unrealized
                                           Fair	       Holding Gain
                            Cost  	   Value  	  (Loss)
                        _________       _________     _____________
At March 31, 2012:
   Available for sale:
   Equity securities	$   7,800	$  16,600     $    8,800
   Mutual funds		  718,700	  697,300	 (21,400)
                        _________       _________     ___________
                        $ 726,500	$ 713,900     $  (12,600)
                        =========       =========     ===========


					10





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)
                        =========       =========     ============
6.	Inventories:

At interim reporting periods, inventories for financial statement
purposes are based on perpetual inventory records. Components of
inventory are as follows:

                       March 31,  		   June 30,
                          2012   		    2011
                      __________                ___________

Raw Materials         $1,218,700		$1,051,300
Work in process          681,000    		   408,200
Finished Goods           232,700		   180,300
                      __________                __________
                      $2,132,400                $1,639,800
                      ==========                ==========

7.	Earnings (Loss) per common share:

Basic earnings (losses) 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 (Loss) per common share was computed as follows:

                           For the Three Month	 For the Nine Month
                           Periods Ended	 Periods Ended
                           March 31,           	 March 31,
                         ______________________  _____________________
    			      2012       2011  	   2012        2011
                         ______________________  _____________________
Net income (loss)       ($    8,200) $  60,200  ($    4,200) $ 252,000
                         ==========  =========   ==========  =========
Weighted average common
 shares outstanding       1,335,712  1,196,577    1,265,714  1,196,577
Effect of dilutive
 securities                    -        17,110	       -        16,610
                         __________  _________   __________  _________
Weighted average dilutive
common shares outstanding 1,335,712  1,213,687    1,265,714  1,213,187
                         ==========  =========   ==========  =========
Basic earnings (loss) per
common share		   ($   .01)  $   .05	 ($    .00)  $   .21
                           =========  =======    ==========  =======
Diluted earnings (loss) per
common share 		   ($   .01)  $   .05	 ($    .00)  $   .21
                           =========  =======    ==========  =======




					11




Approximately 55,000 shares of the Company's common stock
issuable upon the exercise of outstanding options were excluded from
the calculation of diluted loss per common share, for the three and
nine month periods ended March 31, 2012, respectively, because the
effect would be anti-dilutive due to the losses for the periods.



8.   Goodwill and Other Intangible Assets:

Goodwill represents the excess of the purchase price over the fair value
of the net assets acquired in connection with the Company's acquisition of
Altamira and SBI's acquisition of assets.  Goodwill amounted to $589,900
and $447,900 as of March 31, 2012 and June 30, 2011, respectively, of which
$142,000 relates to the newly acquired assets of SBI as of March 31, 2012
and $447,900 relates to the acquisition of Altamira as of the end of both
periods.

The components of other intangible assets are as follows:

			  Useful                Accumulated
			  Lives      Cost       Amortization     Net
                         ________   _________   ____________ _________
 At March 31, 2012:

 Technology, trademarks  5/10 yrs.  $ 864,000   $   323,500  $ 540,500
 Customer relationships   10 yrs.     237,000 	    189,400     47,600
 Sublicense agreements    10 yrs.     294,000        11,000    283,000
 Non-compete agreements    5 yrs.     120,000       103,400     16,600
 Other intangible assets   5 yrs.     143,900       126,000     17,900
                                   __________   ___________  _________
	                           $1,658,900   $   753,300  $ 905,600
                                   ==========   ===========  =========


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

 Technology, trademarks	   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 $26,300 and $26,500 for the three months
ended March 31, 2012 and 2011, respectively and $87,600 and $84,900 for
the nine months ended March 31, 2012 and 2011, respectively.  As of March
31, 2012, estimated future amortization expense related to intangible
assets is $30,800 for the remainder of the fiscal year ending June 30,
2012, $111,600 for fiscal 2013, $107,800 for fiscal 2014, $104,200 for
fiscal 2015, $108,900 for fiscal 2016, and $442,300 thereafter.

9.	Loan Payable, Bank

The Company has a line of credit with its bank, JPMorgan Chase Bank, N.A.
(the "Bank"), providing for maximum borrowings of up to $700,000, bearing
interest at 3.08 percentage points above a defined LIBOR Index, (3.33% at
March 31, 2012) and 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 related note evidencing the borrowing.  No amounts were
outstanding at March 31, 2012 and June 30, 2011.


		                12







10.	Notes Payable

In conjunction with the acquisition described in footnote number 3, the
Company issued a $230,000 promissory note bearing interest at 3.25% payable
in 36 equal monthly installments of $6,700 with the last payment due October
2014. As of March 31, 2012 the current and long-term portions of the note
were $75,200 and $124,200, respectively.





                                 13




          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 catalyst research instruments to customers'
satisfaction, 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 $355,600 to $552,200 as of
March 31, 2012 from $907,800 as of June 30, 2011.

Operating activities provided $80,700 of cash for the nine month period
ended March 31, 2012 as compared to $874,900 for the nine month period
ended March 31, 2011, due mainly to higher inventory balances and lower
income partially offset by advances from customers of Altamira with
respect to their orders and a much lower change in accounts receivable
balances.  Cash used in investing activities was $339,300 for the nine
month period ended March 31, 2012 compared to $264,000 for the nine month
period ended March 31, 2011 primarily due to the acquisition by SBI of
intangible assets.  Cash used in financing activities was $97,000 for the
nine month period ended March 31, 2012 compared to $107,700 for the nine
month period ended March 31, 2011, due primarily to a lower dividend
paid in the current fiscal year.

On September 13, 2011, the Board of Directors of the Company declared a
cash dividend of $.05 per share of Common Stock which was paid on
November 18, 2011 to holders of record as of the close of business on
September 26, 2011 as compared to $.09 per share paid in the prior
fiscal year period.

The Company's working capital decreased by $349,100 to $3,374,900 as of
March 31, 2012 from working capital of $3,724,000 at June 30, 2011 mainly
the result of the asset purchase acquisition by SBI.

Management believes that the Company will be able to meet its cash flow
needs for the next 12 months from its available financial resources,
including its cash and cash equivalents, the line of credit and investment
securities.



		                  14






Results of Operations

Financial Overview

The Company recorded a loss before income tax benefit of $11,400 for the
three month period ended March 31 2012 compared to income before income
taxes of $74,500 for the comparative period last year, primarily as a
result of the reduction in income for the Benchtop Laboratory Equipment
Operations and a loss generated by the new Bioprocessing Systems business.
For the comparative nine month periods ended March 31, 2012, the Company
reflected a loss before income tax benefit of $5,900 compared to income
before income taxes of $350,300 for the comparable 2011 period, also
principally due to the lower income generated by the Benchtop Laboratory
 Equipment Operations, the increased loss for the Catalyst Research
Instrument Operations, the loss derived by the new Bioprocessing Systems
Operations and the related acquisition costs.

The Three Months Ended March 31, 2012 Compared With the Three Months
Ended March 31, 2011

Net sales for the three months ended March 31, 2012 increased by $59,200
(4.1%) to $1,519,500 from $1,460,300 for the three months ended March 31,
2011 as a result of a $122,900 increase in catalyst research instrument
sales and revenues of $75,900, primarily royalties, of the new
Bioprocessing Systems Operations, partially offset by a $139,600 decrease
in sales of benchtop laboratory equipment.  Sales of benchtop laboratory
equipment products generally comprise many small orders from distributors,
while catalyst research instruments are sold pursuant to a small number of
larger orders, typically averaging over $100,000 each, resulting in
significant swings in revenues.  The Bioprocessing Systems Operations
generate revenues from royalties.  Once new product development is
completed, it expects to also generate sales from such products, although
no assurance can be given that the future developed products will
result in meaningful sales.  The backlog of orders for catalyst research
instruments was $850,000 as of March 31, 2012, substantially all of which
is expected to be delivered by fiscal year end, as compared to the
backlog as of March 31, 2011 of $240,000.

The gross profit percentage for the three months ended March 31, 2012
decreased to 39.4% compared to 40.9% for the three months ended March
31, 2011, due primarily to the increase in overhead costs for the
Catalyst Research Instrument Operations.

General and administrative expenses for the three months ended March
31, 2012 increased $36,100 (12.8%) to $318,900 from $282,800 for the
three months ended March 31, 2011, primarily due to the amortization
expenses incurred by the new Bioprocessing Systems Operations.

Selling expenses for the three months ended March 31, 2012 increased
$11,800 (7.4%) to $170,800 from $159,000 for the three months ended
 March 31, 2011, primarily the result of higher selling costs incurred
by the Benchtop Laboratory Equipment Operations.

Research and development expenses for the three months ended March
31, 2012 increased by $34,700 (38.4%) to $125,000 from $90,300 for
the three months ended March 31, 2011, primarily the result of new
product development costs related to the new Bioprocessing
Systems Operations.

Interest and other income, net, decreased to $4,300 for the three
months ended March 31, 2012 from $9,800 for the prior year period,
mostly due to lower cash balances and interest rates, and the interest
expense incurred by the new Bioprocessing Systems Operations.

As a result of the loss of $11,400 for the three months ended March
31, 2012, the Company recorded an income tax benefit of $3,200 compared
to income tax expense of $14,300 for the three months ended March 31, 2011.

The result of the foregoing was a net loss for the three months ended
March 31, 2012 of $8,200 compared to net income of $60,200 for the three
months ended March 31, 2011.



                                  15




Nine Months Ended March 31, 2012 Compared With the Nine Months Ended
March 31, 2011

Net sales for the nine months ended March 31, 2012 decreased by $489,200
(10.3%) to $4,258,000 compared to $4,747,200 for the nine months ended
March 31, 2011, due to decreases of $342,100 in catalyst research
instrument sales and $223,000 in benchtop laboratory equipment sales, the
latter reflecting a decrease in orders from both U.S. customers and
European customers.  Sales of benchtop laboratory equipment products
generally are comprised of many small purchase orders from distributors,
while sales of catalyst research instruments are comprised of a small
number of large orders, typically averaging over $100,000 each, resulting
in significant swings in revenues.  The backlog of orders for catalyst
research instruments was $850,000 as of March 31, 2012, substantially
all of which is anticipated to be delivered by fiscal year end, as
compared with $240,000 as of March 31, 2011.

The gross profit percentage for the nine months ended March 31, 2012
was 39.8% as compared with 41.6% for the prior year period mostly due to
the reduced margins for the Benchtop Laboratory Equipment Operations.

General and administrative expenses increased by $65,200 (7.4%) to
$945,000 for the nine months ended March 31, 2012 from $879,800 for
the comparable period last year, primarily the result of
amortization for the new Bioprocessing Systems Operations including
costs related to the asset acquisition by SBI.

Selling expenses for the nine months ended March 31, 2012 increased
by $17,500 (3.5%) to $519,800 compared to $502,300 for the nine months
ended March 31, 2011, due to higher selling expenses incurred by the
 Benchtop Laboratory Equipment Operations related to its foreign sales.

Research and development expenses for the nine months ended March 31,
2012 decreased by $17,200 (6.4%) to $250,500 from $267,700 for the
nine months ended March 31, 2011, due to a reduction in new product
development activity by both the Benchtop Laboratory Equipment and
Catalyst Research Instruments Operations, partially offset by the new
costs incurred by the Bioprocessing Systems Operations.

Interest and other income, net, decreased to $16,100 for the nine
months ended March 31, 2012 from $25,400 for the nine month period of
the prior year period, mainly due to smaller cash balances and lower
interest rates, and the interest expense incurred by the new
Bioprocessing Systems Operations.

Due to the loss incurred for the nine months ended March 31, 2012,
the Company reflected an income tax benefit of $1,700 compared to
income tax expense of $98,300 for the nine months ended March 31, 2011.

As a result of the foregoing, the net loss for the nine months ended
March 31, 2012 was $4,200 compared to net income of $252,000 for the
nine months ended March 31, 2011.





                                 16






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.



Part II B 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 January 23, 2012 reporting under
                        Items 1.01 and 5.07.





		                        17





                    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: May 15, 2012









	                                      18

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 March 31, 2012:

(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.





May 15, 2012


/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.

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 March 31, 2012 of Scientific Industries, Inc., a smaller
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.

May 15, 2012


/s/ Helena R. Santos
_____________________

Helena R. Santos
Chief Executive Officer and Chief Financial Officer

XML

Acquisition:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Acquisition:

3. Acquisition:

On November 14, 2011, the Company through SBI acquired substantially all of the assets of a privately owned company consisting principally of a license and sublicenses under patents held by the University of Maryland, Baltimore County (“UMBC”) with respect to the design, development and production of bioprocessing methods, systems and products. The acquisition was pursuant to an asset purchase agreement(“APA”) whereby the Company paid to the seller $260,000 in cash, issued 135,135 shares of Common Stock valued at $400,000, issued to UMBC a $230,000 36-month note payable, and agreed to make additional cash payments equal to 30% of net royalties received under the acquired license and sublicenses, estimated at a present value of $128,000 on the date of acquisition. The seller maintained that audited financial statements could not be provided in connection with the acquisition. The inability to include the related audited financial statements as required by the Securities Exchange Act of 1934 in the related Current Report on Form 8-K filing resulted in the inability of th e Company to register under the Securities Act of 1933, as amended, offerings of the Company's securities during the one year period ending November 2012.

SBI’s revenues and profits (if any) are derived from royalties received by SBI under the various sublicense agreements, and revenues from sales of certain products being developed under its existing license. University, government, and industrial laboratories working primarily in the biotechnology industry worldwide are its targeted customers.

Management of the Company allocated the purchase price based on its valuation of the assets acquired, all of which are intangible, as follows:

Technology, trademarks, and in-process
research & development ("IPR&D")	$	500,000
Sublicense agreements		294,000
Engineering drawings and software		64,000
Non-competition agreements		18,000
Goodwill*		142,000
Total Purchase Price	$	1,018,000

*See Note 8, “Goodwill and Other Intangible Assets”.

The amounts allocated to Technology, Trademarks, and IPR&D and Sublicense Agreements are deemed to have a useful life of 10 years, and to the remaining intangible assets to have a useful life of 5 years, all of which are being amortized on a straight-line basis, except for goodwill.

In connection with the acquisition, SBI entered into a research and

development agreement providing for the seller to perform services with respect to the research and development of bioprocessing methods, systems, and products pursuant to programs set forth in the Agreement. The services are to be performed under the supervision of the designated officer of seller or a qualified replacement. The developer is to receive a fee of $14,000 per month with SBI to bear all related expenses. The agreement is for a two year term with SBI having three one-year extension options. SBI has the right to terminate the agreement in the event of a failure to achieve the designated product development terms set forth in the agreement.

Pro forma results

The unaudited pro forma condensed consolidated financial information in the table below summarizes the combined results of operations of Scientific, Altamira and SBI on a pro forma basis, as though the companies had been consolidated as of the beginning of each of the periods presented, giving effect to SBI’s acquisition of assets in November 2011. The unaudited pro forma condensed financial information presented below is for informational purposes only and is not intended to represent or be indicative of the consolidated results of the operations that would have been achieved if the acquisition had been completed as of the commencement of the period presented. In addition, the seller was unable to provide audited historical financial statements and therefore the information presented is based on management’s best judgment using the unaudited financial information provided and the effects of the acquisition including amortization and interest expenses excluding total acquisition related costs incurred of $78,500 for the nine month period ended March 31, 2012:

	For the Three Month		For the Nine Month
	Period Ended		Period Ended
	March 31,		March 31,
	2011		2012			2011
Net sales	$	1,497,800	$	4,333,000		$	4,859,700
Net income (loss)	$	22,000	$	(12,900	)	$	161,000
Net income (loss)
per share - basic	$	0.02	$	(0.01	)	$	0.12
Net income (loss)
per share - diluted	$	0.02	$	(0.01	)	$	0.12

XML

New Accounting Pronouncements:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

New Accounting Pronouncements:

2. New Accounting Pronouncements:

In September 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-08, Intangibles—Goodwill and Other (Topic 350)—Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for the Company in fiscal 2013 and earlier adoption is permitted. The Company is currently evaluating the impact of the future adoption of ASU 2011-08 on its consolidated financial statements.

In June 2011, the FASB "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 and requires the Company 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. The Company adopted the standard during the periods ended March 31, 2012.

XML

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2012	Jun. 30, 2011
ASSETS
Cash and cash equivalents	$ 552,200	$ 907,800
Investment securities	713,900	693,400
Trade accounts receivable, net	569,000	620,000
Inventories	2,132,400	1,639,800
Prepaid and other current assets	156,700	197,700
Deferred taxes	74,800	77,700
Total current assets	4,199,000	4,136,400
Property and equipment, net	187,100	175,100
Intangible assets, net	905,600	112,300
Goodwill	589,900	447,900
Other assets	25,700	25,700
Deferred taxes	113,900	115,800
Total assets	6,021,200	5,013,200
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	151,600	128,100
Customer advances	307,100	0
Notes payable, current	75,200	0
Accrued expenses and taxes	309,200	284,300
Total current liabilities	843,100	412,400
Contingent consideration payable	92,900	0
Notes payable, long-term	124,200	0
Total liabilities	1,060,200	412,400
Shareholders' equity:
Common stock, $.05 par value; authorized 7,000,000 shares; 1,355,514 and 1,216,379 issued and outstanding at March 31, 2012 and June 30, 2011	67,800	60,800
Additional paid-in capital	1,966,900	1,558,500
Accumulated other comprehensive loss	(12,600)	(21,500)
Retained earnings	2,991,300	3,055,400
Total	5,013,400	4,653,200
Less common stock held in treasury at cost, 19,802 shares	52,400	52,400
Total shareholders' equity	4,961,000	4,600,800
Total liabilities and shareholders' equity	$ 6,021,200	$ 5,013,200

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Operating activities:
Net income	$ (4,200)	$ 252,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	141,600	142,200
Deferred income taxe (benefit)	1,700	(14,800)
Stock-based compensation	5,700	20,800
Changes in operating assets and liabilities:
Accounts receivable	51,000	871,100
Inventories	(492,600)	(94,600)
Prepaid expenses and other current assets	41,000	(39,300)
Accounts payable	23,500	(114,300)
Customer advances	307,100	0
Accrued expenses and taxes	5,900	(148,200)
Total adjustments	84,900	622,900
Net cash provided by operating activities	80,700	874,900
Investing activities:
Additional consideration for acquisition of Altamira Instruments, Inc.	0	(182,600)
Intangible assets acquired in acquisition (note 3)	(260,000)	0
Purchase of investment securities, available for sale	(8,300)	(11,100)
Capital expenditures	(66,100)	(61,500)
Purchase of intangible assets, other	(4,900)	(8,800)
Net cash used in investing activities	(339,300)	(264,000)
Financing activities:
Line of credit proceeds	60,000	0
Line of credit repayments	(60,000)	0
Payments for contingent consideration	(16,100)	0
Proceeds from exercise of stock options	9,600	0
Cash dividend declared and paid	(59,900)	(107,700)
Principal payments on note payable	(30,600)	0
Net cash used in financing activities	(97,000)	(107,700)
Net increase (decrease) in cash and cash equivalents	(355,600)	503,200
Cash and cash equivalents, beginning of year	907,800	632,700
Cash and cash equivalents, end of year	552,200	1,135,900
Supplemental disclosures of cash flow information:
Cash paid for income taxes	3,300	298,400
Non-cash investing and financing activities:
Fair value of stock issued for acquisition	400,000	0
Fair value of note payable issued for acquisition	230,000	0
Fair value of contingent consideration payable in connection with acquisition	$ 128,000	$ 0

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Summary of significant accounting policies:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Summary of significant accounting policies:

1. Summary of significant accounting policies:

Principles of consolidation:

The accompanying consolidated financial statements include the accounts of Scientific Industries, Inc. (“Scientific”, a Delaware corporation), Altamira Instruments, Inc.(“Altamira”, a wholly owned subsidiary and Delaware corporation), Scientific Packaging Industries, Inc. (an inactive wholly owned subsidiary and New York corporation) and since October 4, 2011, Scientific Bioprocessing, Inc., (“SBI”, a wholly owned subsidiary and Delaware corporation). All are collectively referred to as the “Company”. All material intercompany balances and transactions have been eliminated.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2012	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	1,355,514	1,216,379
Stock held in treasury, shares	19,802	19,802

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Document and Entity Information	9 Months Ended
	Mar. 31, 2012	Apr. 27, 2012
Document And Entity Information
Entity Registrant Name	SCIENTIFIC INDUSTRIES INC
Entity Central Index Key	0000087802
Document Type	10-Q
Document Period End Date	Mar. 31, 2012
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 Common Stock, Shares Outstanding		1,335,712
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2012

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Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Mar. 31, 2012	Mar. 31, 2011
Condensed Consolidated Statements Of Operations
Net sales	$ 1,519,500	$ 1,460,300	$ 4,258,000	$ 4,747,200
Cost of goods sold	920,500	863,500	2,564,700	2,772,500
Gross profit	599,000	596,800	1,693,300	1,974,700
Operating expenses:
General and administrative	318,900	282,800	945,000	879,800
Selling	170,800	159,000	519,800	502,300
Research and development	125,000	90,300	250,500	267,700
Total operating expenses	614,700	532,100	1,715,300	1,649,800
Income (loss) from operations	(15,700)	64,700	(22,000)	324,900
Other income:
Interest & other income, net	4,300	9,800	16,100	25,400
Income before income taxes	(11,400)	74,500	(5,900)	350,300
Income tax expense (benefit):
Current	(2,900)	19,300	(3,400)	113,100
Deferred	(300)	(5,000)	1,700	(14,800)
Total	(3,200)	14,300	(1,700)	98,300
Net income (loss)	$ (8,200)	$ 60,200	$ (4,200)	$ 252,000
Basic earnings per common share	$ (0.01)	$ 0.05	$ 0	$ 0.21
Diluted earnings per common share	$ (0.01)	$ 0.05	$ 0	$ 0.21
Cash dividends declared per common share	$ 0	$ 0	$ 0.05	$ 0.09

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Inventories:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Inventories:

6. Inventories:

At interim reporting periods, inventories for financial statement purposes are based on perpetual inventory records. Components of inventory are as follows:

	March 31, 2012		June 30, 2011
Raw Materials	$	1,218,700	$	1,051,300
Work in process		681,000		408,200
Finished Goods		232,700		180,300
	$	2,132,400	$	1,639,800

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Fair Value of Financial Instruments:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Fair Value of Financial Instruments:

5. Fair Value of Financial Instruments:

The Financial Accounting Standards Board (“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 concerning 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 valuations 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 and liabilities that were accounted for at fair value on a recurring basis at March 31, 2012 and June 30, 2011 according to the valuation techniques the Company used to determine their fair values:

	Fair Value Measurements Using Inputs Considered as
Assets:
		Fair Value at March 31, 2012		Level 1		Level 2		Level 3
Cash and cash equivalents	$	552,200	$	552,200	$	—	$	—
Available for sale securities		713,900		713,900		—		—
Total	$	1,266,100	$	1,266,100	$	—	$	—
Liabilities:
Contingent consideration	$	111,900	$	—	$	—	$	111,900
		Fair Value Measurements Using Inputs Considered as
Assets:
		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	$	—	$	—
Liabilities:
Contingent consideration	$	—	$	—	$	—	$	—

Investments in marketable securities classified as available-for-sale by security type at March 31, 2012 and June 30, 2011 consisted of the following:

	Cost		Fair Value		Unrealized Holding Gain (Loss)
At March 31, 2012:
Available for sale:
Equity securities	$	7,800	$	16,600	$	8,800
Mutual funds		718,700		697,300		(21,400	)
	$	726,500	$	713,900	$	(12,600	)
		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	)

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Loan Payable, Bank:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Loan Payable, Bank

9. Loan Payable, Bank

The Company has a line of credit with its bank, JPMorgan Chase Bank, N.A.(the “Bank”), providing for maximum borrowings of up to $700,000, bearing interest at 3.08 percentage points above a defined LIBOR Index, (3.33% at March 31, 2012) and 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 related note evidencing the borrowing. No amounts were outstanding at March 31, 2012 and June 30, 2011.

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Earnings (Loss) per common share:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Earnings (Loss) per common share:

7. Earnings (Loss) per common share:

Basic earnings (losses) 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.

	For the Three Month					For the Nine Month
	Periods Ended					Periods Ended
	March 31,					March 31,
	2012			2011		2012			2011
Net income (loss)	$	(8,200	)	$	60,200	$	(4,200	)	$	252,000
Weighted average common shares outstanding		1,335,712			1,196,577		1,265,714			1,196,577
Dilutive securities		—			17,110		—			16,610
Weighted average dilutive common shares outstanding		1,335,712			1,213,687		1,265,714			1,213,187
Basic earnings (loss) per common share	$	(0.01	)	$	0.05	$	—		$	0.21
Diluted earnings (loss) per common share	$	(0.01	)	$	0.05	$	—		$	0.21

Approximately 55,000 shares of the Company’s common stock issuable upon the exercise of outstanding options were excluded from the calculation of diluted loss per common share, for the three and nine month periods ended March 31, 2012, respectively, because the effect would be anti-dilutive due to the losses for the periods.

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Goodwill and Other Intangible Assets:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Goodwill and Other Intangible Assets:

8. Goodwill and Other Intangible Assets:

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with the Company's acquisition of Altamira and SBI’s acquisition of assets. Goodwill amounted to $589,900 and $447,900 as of March 31, 2012 and June 30, 2011, respectively, of which $142,000 relates to the newly acquired assets of SBI as of March 31, 2012 and $447,900 relates to the acquisition of Altamira as of the end of both periods.

The components of other intangible assets are as follows:

	Useful Lives	Cost	Accumulated Amortization	Net
At March 31, 2012:
Technology	5/10 yrs	$     864,000	$     323,500	$   540,500
Customer relationships	10 yrs	237,000	189,400	47,600
Sublicense agreements	10 yrs	294,000	11,000	283,000
Non-compete agreements	5 yrs	120,000	103,400	16,600
Other intangible assets	5 yrs	143,900	126,000	17,900
		$  1,658,900	$     753,300	$   905,600
	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

Total amortization expense was $26,300 and $26,500 for the three months ended March 31, 2012 and 2011, respectively and $87,600 and $84,900 for the nine months ended March 31, 2012 and 2011, respectively. As of March 31, 2012, estimated future amortization expense related to intangible assets is $30,800 for the remainder of the fiscal year ending June 30, 2012, $111,600 for fiscal 2013, $107,800 for fiscal 2014, $104,200 for fiscal 2015, $108,900 for fiscal 2016, and $442,300 thereafter.

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Notes Payable:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Notes Payable:

10. Notes Payable

In conjunction with the acquisition described in footnote number 3, the Company issued a $230,000 promissory note bearing interest at 3.25% payable in 36 equal monthly installments of $6,700 with the last payment due October 2014. As of March 31, 2012 the current and long-term portions of the note were $75,200 and $124,200, respectively.

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Condensed Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Mar. 31, 2012	Mar. 31, 2011
Condensed Consolidated Statements Of Comprehensive Income
Net income (loss)	$ (8,200)	$ 60,200	$ (4,200)	$ 252,000
Other comprehensive income:
Unrealized holding gain arising during period, net of tax	7,500	2,300	8,900	5,000
Comprehensive income (loss)	$ (700)	$ 62,500	$ 4,700	$ 257,000

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Segment Information and Concentrations:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Segment Information and Concentrations:

4. Segment Information and Concentrations:

The Company views its operations as three segments: the manufacture and marketing of standard benchtop laboratory equipment for research in university, hospital and industrial laboratories sold primarily through laboratory equipment distributors (ABenchtop Laboratory Equipment), the manufacture and marketing of custom-made catalyst research instruments for universities, government laboratories, and chemical and petrochemical companies sold on a direct basis (ACatalyst Research Instruments) and the marketing and production of bioprocessing systems for laboratory research in the biotechnology industry sold directly to customers and through distributors (“Bioprocessing Systems”).

 Segment information is reported as follows:

	Benchtop Laboratory Equipment		Catalyst Research Instruments			Bioprocessing Systems			Corporate and Other			Consolidated
Three months ended March 31, 2012
Net Sales	$	1,025,300	$	418,300		$	75,900		$	—		$	1,519,500
Foreign Sales		613,900		405,900			3,600			—			1,023,400
Profit (Loss)		85,000		(76,000	)		(16,300	)		(4,100	)		(11,400	)
Assets		2,446,300		1,239,700			842,700			1,492,500			6,021,200
Long-Lived Asset Expenditures		7,500		—			—			—			7,500
Depreciation and Amortization		12,500		5,900			24,000			—			42,400
		Benchtop Laboratory Equipment		Catalyst Research Instruments			Bioprocessing Systems			Corporate and Other			Consolidated
Three months ended March 31, 2011
Net Sales	$	1,164,900	$	295,400		$	—		$	—		$	1,460,300
Foreign Sales		720,800		201,400			—			—			922,200
Profit (Loss)		138,900		(74,200	)		—			9,800			74,500
Assets		2,313,900		1,300,400			—			1,318,400			4,932,700
Long-Lived Asset Expenditures		5,800		800			—			—			6,600
Depreciation and Amortization		13,800		32,800			—			—			46,600

Approximately 62% and 70% of net sales of benchtop laboratory equipment for the three month periods ended March 31, 2012 and 2011, respectively, were derived from the Company=s main product, the Vortex-Genie 2 mixer, excluding accessories.

Two benchtop laboratory equipment customers accounted for approximately 27% and 23% of the segment=s net sales,(42% and 19% of total net sales) for the three month periods ended March 31, 2012 and 2011, respectively.

Sales of catalyst research instruments are generally pursuant to large orders averaging more than $100,000 per order to a limited numbers of customers. Sales to two customers in the three months ended March 31, 2012 and two different customers in the three months ended March 31, 2011, accounted respectively for 92% and 93% of the segment=s net sales (25% and 19% of total net sales) for the respective periods.

Nine months ended March 31, 2012
		Benchtop Laboratory Equipment		Catalyst Research Instruments			Bioprocessing Systems			Corporate and Other			Consolidated
Net Sales	$	3,208,900	$	973,200		$	75,900		$	—		$	4,258,000
Foreign Sales		1,977,700		527,000			3,600			—			2,508,300
Profit (Loss)		357,400		(252,400	)		(48,600	)		(62,300	)		(5,900	)
Assets		2,446,300		1,239,700			842,700			1,492,500			6,021,200
Long-Lived Asset Expenditures		21,500		49,500			876,000			—			947,000
Depreciation and Amortization		36,700		68,900			36,000			—			141,600
		Benchtop Laboratory Equipment		Catalyst Research Instruments			Bioprocessing Systems			Corporate and Other			Consolidated
Nine months ended March 31, 2011
Net Sales	$	3,431,900	$	1,315,300		$	—		$	—		$	4,747,200
Foreign Sales		1,946,300		746,000			—			—			2,692,300
Profit (Loss)		486,800		(161,900	)		—			25,400			350,300
Assets		2,313,900		1,300,400			—			1,318,400			4,932,700
Long-Lived Asset Expenditures		38,100		23,400			—			—			61,500
Depreciation and Amortization		42,600		99,600			—			—			142,200

Approximately 63% and 69% of net sales of benchtop laboratory equipment for the nine month periods ended March 31, 2012 and 2011, respectively, were derived from the Company=s main product, the Vortex-Genie 2 mixer, excluding accessories.

Two benchtop laboratory equipment customers, accounted for approximately 26% and 29% of the segment=s net sales (20% and 21% of total net sales) for the nine month periods ended March 31, 2012 and 2011, respectively.

Sales of catalyst research instruments to three customers in the nine months ended March 31, 2012 and to three other customers in the nine months ended March 31, 2011 accounted for approximately 65% and 43% of that segment's net sales (15% and 12% of total net sales) for the respective nine month periods.

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