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, 2016

      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)

80 Orville Drive, Suite 102, 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 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 May 1, 2016 was 1,489,112 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 Operations		 2

Condensed Consolidated Statements of Comprehensive
Income (Loss)						 3

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	        18

SIGNATURE 						19

EXHIBITS						20







































PART I-FINANCIAL INFORMATION
Item 1.  Financial Statements

       SCIENTIFIC INDUSTRIES, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED BALANCE SHEETS

                               ASSETS
                                             March 31,    June 30,
                                           	2016         2015
                                           _____________ __________
Current Assets:		                    (Unaudited)
  Cash and cash equivalents		    $1,081,000   $  482,000
  Restricted cash			       300,000	    300,000
  Investment securities			       282,300	    281,800
  Trade accounts receivable, net	       717,100	  1,081,700
  Inventories				     3,674,900	  2,213,700
  Prepaid expenses and other current assets     54,800	     68,600
  Deferred taxes			       104,400	    114,200
                                             _________    _________
Total current assets			     6,214,500	  4,542,000

Property and equipment, net	       	       222,300	    235,200

Intangible assets, net  		     1,195,400	  1,451,900

Goodwill				       705,300	    705,300

Other assets            			52,500	     52,500

Deferred taxes				       208,300	    154,500
                                            __________   __________
Total assets                                $8,598,300	 $7,141,400
                                            ==========   ==========

	LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Accounts payable			    $  422,300	 $  227,600
  Customer advances			       267,800	     76,400
  Bank line of credit			       970,000	       -
  Notes payable				       200,000	    200,000
  Accrued expenses and taxes		       714,900	    519,900
  Contingent consideration, current portion    128,900	    106,800
                                            __________   __________
   		Total current liabilities    2,703,900	  1,130,700

Contingent consideration, less
  current portion	                       137,300	    260,300
                                            __________   __________
        Total liabilities		     2,841,200	  1,391,000
                                            __________   __________
Shareholders' equity:
  Common stock, $.05 par value; authorized 7,000,000 shares;
    1,508,914 outstanding at
    March 31, 2016 and June 30, 2015   		75,400	     75,400
  Additional paid-in capital                 2,497,900	  2,486,700
  Accumulated other comprehensive loss     (     5,200)	(     3,300)
  Retained earnings                          3,241,400	  3,244,000
                                           ___________   __________
                                             5,809,500	  5,802,800
  Less common stock held in treasury, at cost,
   19,802 shares                                52,400	     52,400
                                            __________   __________
        Total shareholders' equity           5,757,100	  5,750,400
                                            __________   __________
        Total liabilities and
                 shareholders' equity       $8,598,300	 $7,141,400
                                            ==========   ==========


See notes to unaudited condensed consolidated financial statements

                               1























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

                            For the Three Month	   For the Nine Month
                            Periods Ended          Periods Ended
                            March 31,              March 31,
                         ______________________ ______________________
                              2016      2015        2016       2015
                         __________  __________ __________  __________
Revenues                 $1,674,300  $1,729,200 $5,146,900  $5,082,400
Cost of sales		    993,100     961,900  3,032,900   3,125,800
                         __________  __________ __________  __________
Gross profit                681,200     767,300  2,114,000   1,956,600
                         __________  __________ __________  __________
Operating expenses:
 General & administrative   426,700     433,900  1,230,500   1,286,500
 Selling                    196,200     202,200    590,400     726,900
 Research & development      93,400      94,500    263,000     317,700
                         __________  __________ __________  __________
  Total operating
  expenses  		    716,300     730,600  2,083,900   2,331,100
                         __________  __________ __________  __________
Income (loss) from
 operations   		 (   35,100)     36,700     30,100  (  374,500)
                         __________  __________ __________  __________
Other income (expense):
 Investment income	        300       1,100      5,700      10,700
 Other			        200  (    4,600) (   3,000) (	 5,700)
 Interest expense	 (   13,700) (    1,600) (  35,900) (    4,300)
                         __________  __________ __________  __________
  Total other income,
  (expense) net		 (   13,200) (    5,100) (  33,200)        700
                         __________  __________ __________  __________
Income (loss) before
 income taxes (benefit)  (   48,300)     31,600  (   3,100)  ( 373,800)
                         __________  __________ __________  __________
Income tax expense (benefit):
  Current		      2,200      34,800     43,100   (  56,200)
  Deferred		 (   13,600) (   22,200) (  43,600)  (  37,300)
                         __________  __________ __________  __________
Total income (loss) tax
  expense (benefit)	 (   11,400)     12,600  (     500)  (  93,500)
                         __________  __________ __________  __________
Net income (loss)        ($  36,900) $   19,000  ($  2,600)  ($280,300)
                         ==========  ========== ==========  ==========

Basic earnings (loss) per common
 share	                 ($  .02)    $  .01	  $  .00      ($  .19)

Diluted earnings (loss) per common
 share  		 ($  .02)    $  .01	  $  .00      ($  .19)

Cash dividends declared
 per common share	  $   -      $   -	  $   -	       $   -

  See notes to unaudited condensed consolidated financial statements



                                    2





































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




		                For the Three Month    For the Nine Month
                                Periods Ended          Periods Ended
                                March 31,              March 31,
                                ___________________   ______________________
                                   2016      2015         2016       2015
                                ___________________   ______________________
Net income (loss)		($ 36,900) $ 19,000   ($   2,600) ($ 280,300)
                                _________  ________   __________  __________
Other comprehensive income (loss):
  Unrealized holding gain (loss)
  arising during period,
  net of tax			    3,000     2,900   (    1,900) (    1,600)
                                _________  ________   __________  __________
Comprehensive income (loss)     ($ 33,900) $ 21,900   ($   4,500) ($ 281,900)
                                =========  ========   ==========  ==========




    See notes to unaudited condensed consolidated financial statements


                               3





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

                                 	      For the Nine Month Periods Ended
                                             March 31, 2016    March 31, 2015
                                             _________________ _______________
Operating activities:
  Net income loss				  ($    2,600)	  ($  280,300)
                                                   __________     ____________
  Adjustments to reconcile net loss
   to net cash used in operating activities:
      Loss on sale of investments                         -             4,400
      Loss on asset disposal				 2,700		 -
      Depreciation and amortization		       319,100	      327,200
      Deferred income tax benefit		    (   43,600)	   (   37,300)
      Stock-based compensation			 	11,200	       10,200
      Income tax benefit of stock options exercised       - 		4,900
      Changes in operating assets and liabilities:
         Accounts receivable			       364,600	   (   72,900)
         Inventories		      	            (1,461,200)	   (  312,100)
         Prepaid expenses and other current assets      13,800	       11,900
         Accounts payable                              194,700	   (   48,600)
         Customer advances		               191,400	      235,400
         Accrued expenses and taxes	               195,000	   (   13,500)
  	 Other assets				  	  - 	   (   24,200)
                                                   ____________   ____________
       Total adjustments	        	    (  212,300)	       85,400
                                                   ____________   ____________
       Net cash used in
         operating activities			    (  214,900)    (  194,900)
                                                   ____________   ____________
Investing activities:
  Redemption of investment securities,
    available-for-sale					  -	      127,000
  Purchase of investment securities,
    available-for-sale				    (    2,700)	   (    3,800)
  Capital expenditures				    (   45,100)	   (   56,500)
  Purchase of intangible assets			    (    7,400)	   (    4,400)
                                                   ____________   ____________
       Net cash provided by
          (used in) investing activities	    (   55,200)	       62,300
                                                   ____________   ____________
Financing activities:
 Line of credit proceeds			       970,000	       250,000
 Line of credit repayments				  -	    (  150,000)
 Payment of contingent consideration		    (  100,900)	    (   98,900)
 Proceeds from exercise of stock options		  - 		18,800
 Principal payments on note payable		          -    	    (   26,700)
                                                   ____________   _____________
        Net cash provided by (used in) financing
          activities				      869,100 	    (    6,800)
                                                   ____________   _____________

 Net increase (decrease) in cash
  and cash equivalents				      599,000	   (   139,400)

Cash and cash equivalents, beginning of year	      482,000          493,700
                                                   __________       __________
Cash and cash equivalents, end of period	   $1,081,000       $  354,300
                                                   __________       __________
Supplemental disclosures:

Cash paid during the period for:
 Income taxes				 	   $   35,500	     $ 3,500
 Interest					       27,200          4,300


  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, 2015.  The results for the three
and nine months ended March 31, 2016, are not necessarily an
indication of the results for the full fiscal year ending
June 30, 2016.

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 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.	Recent Accounting Pronouncements:

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with
Customers amending revenue recognition requirements for multiple-deliverable
revenue arrangements. This update provides guidance on how revenue is
recognized to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to
be entitled in exchange for the goods or services. This determination is
made in five steps: (i) identify the contract with the customer: (ii)
identify the performance obligations in the contract; (iii) determine the
transaction price; (iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when (or as) the
entity satisfies a performance obligation. In July 2015, the FASB deferred
the effective date to fiscal years beginning after December 15, 2018, or the
Company's fiscal year ending June 30, 2020, and early adoption of the
standard is permitted, but not before the original effective date of
December 15, 2017.  The Company is evaluating the effect this guidance will
have on the consolidated financial statements and related disclosures.



                                  5



In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation
(Topic 718): Accounting for Share-Based Payments When the Terms of an Award
Provide that a Performance Target Could be Achieved After the Requisite
Service Period. This update affects reporting entities that grant their
employee's targets that affects vesting could be achieved after the
requisite service period. The new standard requires that a performance
target that affects vesting and that could be achieved after the requisite
services period be treated as a performance condition. The new standard will
be effective for the Company beginning July 1, 2016, and early adoption is
permitted. The Company expects the adoption will not have a material impact
on its financial condition, results of operations or cash flows.
In July 2015, the FASB issued ASU No. 2015-11, "Inventory: Simplifying the
Measurement of Inventory", that requires inventory not measured using
either the last in, first out (LIFO) or the retail inventory method to be
measured at the lower of cost and net realizable value. Net realizable value
is the estimated selling prices in the ordinary course of business, less
reasonably predictable cost of completion, disposal and transportation. The
new standard will be effective for fiscal years beginning after December 15,
2016, including interim periods within those fiscal years, and will be
applied prospectively. Early adoption is permitted. The Company is
evaluating the impact that this standard will have on its consolidated
financial statements.

In November 2015, the FASB issued new guidance simplifying the balance sheet
classification of deferred taxes. The new guidance requires that deferred
tax liabilities and assets be classified as noncurrent in a classified
statement of financial position. The current requirement that deferred tax
liabilities and assets of a tax-paying component of an entity be offset and
presented as a single amount is not affected by the new guidance. The
guidance is effective for public companies for interim and annual reporting
periods beginning after December 15, 2016, with early adoption permitted as
of the beginning of an interim or annual reporting period. The new guidance
may be applied either prospectively to all deferred tax liabilities and
assets or retrospectively to all periods presented. The Company is
evaluating the impact that the new guidance will have on its consolidated
financial statements and related disclosures.

In February 2016, the FASB issued authoritative guidance that requires
lessees to account for most leases on their balance sheets with the
liability being equal to the present value of the lease payments.  The
right-of-use asset will be based on the lease liability adjusted for certain
costs such as direct costs.  Lease expense will be recognized similar to
current accounting guidance with operating leases resulting in a straight-
line expense and financing leases resulting in a front-loaded expense similar
to the current accounting for capital leases.  This guidance becomes
effective for the Company's fiscal 2020 first quarter, with early adoption
permitted.  This guidance must be adopted using a modified retrospective
transition approach for leases that exist or are entered into after the
beginning of the earliest comparative period in the financial statements,
and provides for certain practical expedients.  The Company is currently
evaluating the timing, impact and method of applying this guidance on its
consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09,
"Compensation - Stock Compensation (Topic 718): Improvements to Employee
Share-Based Payment Accounting" (ASU 2016-09). Areas for simplification in
this update involve several aspects of accounting for share-based payment
transactions, including the income tax consequences, classification of
awards as either equity or liabilities, and classification on the statement
of cash flows. ASU 2016-09 is effective for interim and annual reporting
periods beginning after December 15, 2016, with early application permitted.

                              6





The Company is currently evaluating the timing, impact and method of
applying this guidance on its consolidated financial statements.

3.	Acquisition:

On February 26, 2014, the Company acquired substantially all the assets of a
privately owned company consisting principally of inventory, fixed assets,
and intangible assets related to the production and sale of a variety of
laboratory and pharmacy balances and scales. The acquisition was pursuant to
an asset purchase agreement whereby the Company paid the sellers $700,000 in
cash, 126,449 shares of Common Stock valued at $427,500 and agreed to make
additional cash payment based on a percentage of net sales of the business
acquired equal to 8% for the period ended June 30, 2014 annualized, 9% for
the year ended June 30, 2015, 10% for the year ending June 30, 2016 and 11%
for the year ending June 30, 2017, estimated at a present value of $460,000
on the date of acquisition. Payments related to this contingent consideration
for each period are due in September following the fiscal year. Contingent
consideration payments amounted to $100,900 and $98,900 during the nine month
periods ended March 31, 2016 and 2015, respectively.

The products, which are similar to the Company's other Benchtop Laboratory
Equipment, and in many cases used by the same customers, are marketed under
the Torbal(R) brand. The principal customers are pharmacies, pharmacy
schools, universities, government laboratories, and industries utilizing
precision scales. The products are sold primarily on a direct basis,
including the Company's e-commerce site.

The Company allocated the purchase price based on its valuation of the
assets acquired, as follows:

Current assets		      $	  144,000
Property and equipment	          118,100
Goodwill*		          115,400
Other intangible assets		1,210,000
			      ___________
Total Purchase Price	      $	1,587,500
                              ===========
  *See Note 8, "Goodwill and Other Intangible Assets".

Of the $1,210,000 of the acquired other intangible assets, $570,000 was
assigned to technology and websites with a useful life of 5 years, $120,000
was assigned to customer relationships with an estimated useful life of 9
years, $140,000 was assigned to the trade name with an estimated useful
life of 6 years, $110,000 was assigned to the IPR&D with an estimated
useful life of 3 years, and $270,000 was assigned to non-compete agreements
with an estimated useful life of 5 years.

In connection with the acquisition, the Company entered into a three-year
employment agreement with the previous Chief Operating Officer of the
acquired business as President of the Company's new Torbal Division and
 Director of Marketing for the Company. The agreement may be extended by
mutual consent for an additional two years.


                               7



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").


Segment information is reported as follows (foreign sales
are principally to customers in Europe and Asia):


               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ ___________

Three months ended March 31, 2016:

 Revenues       $1,279,300 $  364,900   $   30,100 $    -     $1,674,300
 Foreign Sales	   597,300     25,900         -	        -	 623,200
 Income(Loss)from
    Operations       2,800      5,500 (    29,600)  ( 13,800) (   35,100)
 Assets     	 4,358,700  2,898,400      746,200   595,000   8,598,300
 Long-Lived Asset
    Expenditures    31,500      3,200        3,700      -         38,400
 Depreciation and
    Amortization    74,800      9,000       24,500      -        108,300



               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ ___________

Three months ended March 31, 2015:

 Revenues       $1,558,000 $  144,600   $   26,600 $    -     $1,729,200
 Foreign Sales	   813,900     81,100         -	        -	 895,000
 Income(Loss)from
    Operations     120,600 (   50,400) (    33,500)     -         36,700
 Assets     	 4,165,700  1,506,700      783,400   555,800   7,011,600
 Long-Lived Asset
    Expenditures       900       -           3,700      -          4,600
 Depreciation and
    Amortization    74,700      7,900       24,500      -        107,100




Approximately 50% and 53% of net sales of benchtop laboratory equipment
for the three month periods ended March 31, 2016 and 2015, respectively,
were derived from the Company's main product, the Vortex-Genie 2 mixer,
excluding accessories.

Approximately 22% and 21% of total benchtop laboratory equipment sales
were derived from the Torbal Scales Division for the three months ended
March 31, 2016 and 2015, respectively.


                                  8



Two benchtop laboratory equipment customers accounted for approximately 19%
and 18% of the segment's net sales for the three month periods ended March
31, 2016 and 2015 (15% and 17% of total revenues, respectively, for the
periods).

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, 2016
and two different customers in the three months ended March 31, 2015,
accounted respectively for 86% and 64% of the segment's net sales for each
of the periods (19% and 5% of total revenues for the respective periods).



               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ __________
Nine months ended March 31, 2016:

 Revenues	$4,125,900  $  932,300  $   88,700 $    -    $5,146,900
 Foreign Sales	 1,960,700     139,200        -         -     2,099,900
 Income(Loss)from
    Operations     245,200  (   86,700) (   92,500) ( 35,900)    30,100
 Assets     	 4,358,700   2,898,400     746,200   595,000  8,598,300
 Long-Lived Asset
    Expenditures    39,900       3,200       9,400      -        52,500
 Depreciation and
    Amortization   222,800      22,900      73,400      -       319,100



               Benchtop    Catalyst     Bio-       Corporate
               Laboratory  Research     processing and       Conso-
               Equipment   Instruments  Systems    Other     lidated
               __________  ___________  __________ _________ __________
Nine months ended March 31, 2015:

 Revenues	$3,891,400  $1,115,300  $   75,700 $   -     $5,082,400
 Foreign Sales	 1,947,400     840,300        -        -      2,787,700
 Loss from
     Operations (   64,700) (  191,200) (  118,600)    -     (  374,500)
 Assets     	 4,165,700   1,506,700     783,400   555,800  7,011,600
 Long-Lived Asset
    Expenditures    52,400         900       7,600      -        60,900
 Depreciation and
    Amortization   227,000      26,900      73,300      -       327,200





Approximately 50% of net sales of benchtop laboratory equipment for both
the nine month periods ended March 31, 2016 and 2015, were derived from
sales of the Company's main product, the Vortex-Genie 2 mixer, excluding
accessories.

Approximately 21% and 20% of total benchtop laboratory equipment sales
for the nine months ended March 31, 2016 and 2015, respectively, were
derived from sales of the Torbal Scales Division.

Two benchtop laboratory equipment customers, accounted for approximately
15% and 17% of the segment's net sales (12% and 13% of total revenues)
for the nine month periods ended March 31, 2016 and 2015, respectively.

Sales of catalyst research instruments to four customers in the nine
months ended March 31, 2016 and to seven other customers in the nine
months ended March 31, 2015 accounted for approximately 87% and 97% of
that segment's net sales (16% and 19% of total revenues) for the
respective nine month periods.

                             9





The Company's foreign sales are principally made to customers in Europe
and Asia. The Company also has an arrangement with a supplier for annual
minimum purchase commitments through February 2020 which the Company has
already met for the current year.

5.	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 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, 2016 and June 30, 2015 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, 2016 Level 1   Level 2  Level 3
                            ______________  __________ _______  ________
Cash and cash equivalents   $1,081,000      $1,081,000 $  -     $  -
Restricted cash		       300,000	       300,000    -	   -
Available for sale securities  282,300	       282,300    -        -
                            __________      __________ _______  _________
Total			    $1,663,300	    $1,663,300 $  -     $  -
                            ==========      ========== ======== =========
Liabilities:
 Contingent consideration   $  266,200	    $  	  -    $  -	$266,200
                            ==========      ========== ======== =========


                                    Fair Value Measurements Using Inputs
                                                Considered as

Assets:
                            Fair Value at
                            June 30, 2015   Level 1    Level 2  Level 3
                            ______________  __________ _______  ________


Cash and cash equivalents	$  482,000  $  482,000  $  -    $  -
Restricted cash			   300,000     300,000     -       -
Available for sale securities      281,800     281,800     -       -
                                __________  __________  _______ ________
Total			        $1,063,800  $1,063,800  $  -    $  -
                                ==========  ==========  ======= ========
Liabilities:

Contingent consideration        $  367,100  $    -      $  -   	$367,100
                                ==========  ==========  ======= ========


                                      10




Investments in marketable securities classified as available-for-sale
by security type at March 31, 2016 and June 30, 2015 consisted of
the following:


                                                            Unrealized
                                               	    Fair   Holding Gain
                                        Cost        Value     (Loss)
	                           ____________  _________ ____________
At March 31, 2016:
   Available for sale:
   Equity securities		     $  29,300	 $  39,700  $    10,400
   Mutual funds			       258,200	   242,600	(15,600)
                                     _________   _________  ____________
				     $ 287,500	 $ 282,300  $   ( 5,200)
                                     =========   =========  ============



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

At June 30, 2015:

        Available for sale:
        Equity securities           $   29,300   $  35,800  $   6,500
        Mutual funds                   255,800     246,000    ( 9,800)
                                    __________   _________  __________
                                    $  285,100   $ 281,800  $ ( 3,300)
                                    ==========   =========  ==========
6.	Inventories:

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

			      March 31,  	  June 30,
				2016   		     2015
                            ____________        __________

	Raw Materials         $1,465,500	$1,420,800
	Work in process        1,805,700    	   442,900
	Finished Goods           403,700	   350,000
                              __________        __________
			      $3,674,900	$2,213,700
                              ==========        ==========

7.	Earnings (Loss) per common share:

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




                                         11




       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,
                           _____________________  ____________________
    			      2016        2015     2016        2015
                           _____________________  ____________________

Net income (loss)         ($  36,900)  $  19,000 ($  2,600) ($ 280,300)
                          ===========  ========= ========== ===========
Weighted average common
 shares outstanding        1,489,112   1,479,112  1,489,112  1,477,375
Effect of dilutive
 securities                     -           -          -          -
                           _________   _________  _________  _________
Weighted average dilutive
common shares outstanding  1,489,112   1,479,112  1,489,112  1,477,375
                           =========   =========  =========  =========
Basic earnings (loss) per
common share		  ($   .02)     $   .01   $   .00    ($   .19)
                          =========     =======   =========  =========
Diluted earnings (loss) per
common share 		  ($   .02)	$   .01   $   .00    ($   .19)
                          =========     =======   =========  =========

Approximately 38,500 and 51,000 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
and nine month periods ended March 31, 2016 and 2015, because the effect
would be anti-dilutive.



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
acquisitions.  Goodwill amounted to $705,300 as of March 31, 2016
and June 30, 2015, respectively, all of which is deductible for tax
purposes.

The components of other intangible assets are as follows:

			  Useful                Accumulated
			  Lives       Cost      Amortization      Net
                          ______    __________  ____________  _________
 At March 31, 2016:
 Technology, trademarks  5/10 yrs.  $1,215,800  $   715,900   $ 499,900
 Trade names                6 yrs.     140,000 	     46,700      93,300
 Websites                   5 yrs.     210,000       87,500     122,500
 Customer relationships  9/10 yrs.     357,000      254,100     102,900
 Sublicense agreements    10 yrs.      294,000      128,600	165,400
 Non-compete agreements    5 yrs.      384,000      225,000     159,000
 intellectual property,
  research & development
  (IPR&D)                  3 yrs.      110,000       76,300      33,700
 Other intangible assets   5 yrs.      171,400      152,700      18,700
                                    __________   __________  __________
	  			    $2,882,200   $1,686,800  $1,195,400
                                    ==========   ==========  ==========


                                         12



			  Useful                Accumulated
			  Lives       Cost      Amortization      Net
                          ______    __________  ____________  _________
 At June 30, 2015:
 Technology, trademarks  5/10 yrs.  $1,226,800 $   624,200    $  602,600
 Trade names                6 yrs.     140,000 	    31,100       108,900
 Websites                   5 yrs.     210,000      56,000       154,000
 Customer relationships  9/10 yrs.     357,000     236,200       120,800
 Sublicense agreements    10 yrs.      294,000     106,600	 187,400
 Non-compete agreements    5 yrs.      384,000     182,700       201,300
 Intellectual property,
  research & development
  (IPR&D)                  3 yrs.      110,000      48,900        61,100
 Other intangible assets   5 yrs.      164,000     148,200        15,800
                                    __________  __________    __________
	  			    $2,885,800  $1,433,900    $1,451,900
                                    ==========  ==========    ==========

Total amortization expense was $89,400 and $86,900 for the three months
ended March 31, 2016 and 2015, respectively and $263,200 for both the nine
months ended March 31, 2016 and 2015.  As of March 31, 2016, estimated
future amortization expense related to intangible assets is $71,200 for
the remainder of the fiscal year ending June 30, 2016, $337,000 for fiscal
2017, $324,000 for fiscal 2018, $246,600 for fiscal 2019, $80,400 for
fiscal 2020, and $136,200 thereafter.




                                   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 increased $599,000 to $1,081,000 as of March
31, 2016 from $482,000 as of June 30, 2015.

Operating activities used cash of $214,900 for the nine month period
ended March 31, 2016 as compared to the $194,900 for the nine month
period ended March 31, 2015. The current year period reflected higher
amounts of work-in-progress inventories for the Catalyst Research
Instruments Operations related to a significant impending order to be
shipped overseas, partially offset by lower accounts receivable
balances and increases in accounts payable, customer advances, and
accrued expenses.  Net cash used in investing activities was $55,200
for the nine months ended March 31, 2016 compared to net cash provided
of $62,300 for the comparable period last year primarily due to the
lack of investment securities redemptions in the current year.  Net
cash provided by financing activities was $869,100 for the nine months
ended March 31, 2016 compared to $6,800 used in the comparable prior
year period primarily due to the proceeds from the export-related line
of credit to finance the inventories for a significant catalyst
research instrument order for overseas.

The Company's working capital increased by $99,300 to $3,510,600 as of
March 31, 2016 from $3,411,300 at June 30, 2015.

The Company has two lines of credit with First National Bank of
Pennsylvania - an Export-Related Revolving Line of Credit which is
guaranteed by the Export-Import Bank of the United States which
provides for export-related borrowings of up to $998,500 bearing
interest at prime plus 2% (currently 5.50%) and an annual fee of
1.75%; and a second one-year Demand Line of Credit which provides for
borrowings of up to $300,000 for regular working capital needs,
bearing interest at prime, which is collaterized by a cash collateral
account of $300,000 which will be released upon certain financial
criteria being met or the line being paid and terminated, which ever
comes first.  Advances on both lines are also secured by a pledge of
the Company's assets including inventory, accounts, chattel paper,
equipment and general intangibles of the Company.  As of March 31,

                            14




2016 $970,000 was outstanding under the Export-Related line and no
borrowings were made under the second line.

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

Results of Operations
_____________________

Financial Overview

The Company reported a loss before income tax benefit amounting to
$48,300 and $3,100, respectively, for the three and nine month periods
ended March 31, 2016, compared to $31,600 of income before income tax
expense and a $373,800 loss before income tax benefit for the three
and nine month periods ended March 31, 2015, respectively. The results
reflect non-cash amounts for depreciation and amortization of $108,300
and $319,100 for the three and nine months ended March 31, 2016
compared to $107,100 and $327,200 for the prior periods, respectively.

The loss for the current three month period compared to the prior year
period's income is due primarily to lower sales of benchtop laboratory
equipment compared to the prior year period which benefitted from an
unusual backlog related to the facility move in the prior year, and
lower overseas sales of benchtop laboratory equipment.  The
improvement in the current year nine month period's operating results
is primarily due to higher sales and margins generated by the Benchtop
Laboratory Equipment Operations which benefitted from some large
orders from overseas and the absence of moving expenses incurred in
the prior year period.

The Three Months Ended March 31, 2016 Compared With the Three Months
Ended March 31, 2015
____________________________________________________________________

Net revenues for the three months ended March 31, 2016 decreased by
$54,900 (3.2%) to $1,674,300 from $1,729,200 for the three months
ended March 31, 2015 as a result of a $278,700 decrease in benchtop
laboratory equipment sales, partially offset by increases of $220,300
and $3,500 in catalyst research instrument sales and bioprocessing
systems revenues, respectively. 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 backlog of orders for catalyst
research instruments was $3,027,000 as of March 31, 2016, most of
which is expected to be delivered by fiscal year end, as compared to
the backlog of $1,154,000 as of March 31, 2015.  The Benchtop
Laboratory Equipment Operations sales included $248,300 and $287,500
of Torbal brand product sales for the three months ended March 31,
2016 and  2015, respectively.

The gross profit for the three months ended March 31, 2016 was 40.7%
compared to 44.4% for the three months ended March 31, 2015, due
primarily to sales mix, partially offset by lower overhead costs of
the Benchtop Laboratory Equipment Operations.

General and administrative expenses for the three months ended March
31, 2016 decreased $7,200 (1.7%) to $426,700 compared to $433,900 for
the three months ended March 31, 2015, primarily due to decreased
travel expenses for the Bioprocessing Systems Operations.

                             15




Selling expenses for the three months ended March 31, 2016 decreased
$6,000 (3.0%) to $196,200 from $202,200 for the three months ended
March 31, 2015, primarily due to decreased sales commissions for
catalyst research instruments due to sales mix.

Research and development expenses for the three months ended March 31,
2016 decreased slightly to $93,400 from $94,500 for the three months
ended March 31, 2015.

Total other expense amounted to $13,200 for the three months ended
March 31, 2016 compared to expense of $5,100 for the three months
ended March 31, 2015 due primarily to increased interest expense.

The Company recorded an income tax benefit of $11,400 for the three
months ended March 31, 2016 compared to income tax expense of $12,600
for the three months ended March 31, 2015 due to the loss for the
current period.

As a result of the foregoing, the net loss was $36,900 for the three
months ended March 31, 2016, compared to net income of $19,000 for the
three months ended March 31, 2015.


Nine Months Ended March 31, 2016 Compared With the Nine Months Ended
March 31, 2015
____________________________________________________________________

Net revenues increased by $64,500 (1.3%) to $5,146,900 for the nine
months ended March 31, 2016 compared to $5,082,400 for the nine months
ended March 31, 2015, due to increases of $234,500 in benchtop
laboratory equipment and $13,000 in bioprocessing revenues; partially
offset by decreases of $183,000 in catalyst research instrument sales.
The 2016 benchtop laboratory equipment sales included $850,500 of
Torbal brand product sales compared to $797,300 in the prior year
period.

The gross profit percentage for the nine months ended March 31, 2016
increased to 41.1% compared to 38.5% for the nine months ended March
31, 2015, due principally to product mix and lower overhead costs of
the Benchtop Laboratory Equipment Operations.

General and administrative expenses decreased by $56,000 (4.4%) to
$1,230,500 for the nine months ended March 31, 2016 from $1,286,500
for the comparable period of the prior year, due primarily to the
absence of the costs associated with the move of the Company's
principal facility in the prior year.

Selling expenses for the nine months ended March 31, 2016 decreased by
$136,500 (18.8%) to $590,400 from $726,900 for the nine months ended
March 31, 2015, primarily the result of decreased commissions due to
sales mix and exhibitions expense for the Catalyst Research
Instruments Operations.

Research and development expenses for the nine months ended March 31,
2016 decreased by $54,700 (17.2%) to $263,000 from $317,700 for the
nine months ended March 31, 2015, primarily due to decreased new
product development expenses by the Company's Benchtop Laboratory
Equipment Operations as new products were completed and are being
launched.



                                16




Total other expense was $33,200 for the nine month period ended March
31, 2016 compared to income of $700 for the nine month period ended
March 31, 2015 due to the increased interest expense.

Income tax benefit for the nine months ended March 31, 2016 was $500
compared to $93,500 for the nine months ended March 31, 2015.

As a result of the foregoing, the net loss for the nine months ended
March 31, 2016 was $2,600 compared to $280,300 for the nine months
ended March 31, 2015.



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.





                           17





Part II - OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibit Number:	Description



4(c)		Amendment to the Company's 2012 Stock
                Option Plan.

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:

               Filed on January 12, 2016 reporting under
               Items 1.01 and 5.07.






                           18








            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 12, 2016




	                             19

EX-31

					Exhibit 31.1

          					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, 2016 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 12, 2016


/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 March 31, 2016:

	(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 12, 2016


/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-4

                                AMENDMENT
                                   TO
                      SCIENTIFIC INDUSTRIES, INC.
                        2012 STOCK OPTION PLAN

(Effective as of February 12, 2016)

The Scientific Industries, Inc. 2012 Stock Option Plan (as may be amended
from time to time, the "Plan") is hereby amended as follows:

   1.	Section 5 of the Plan is hereby amended and restated in its entirety
to read as follows:

	"5.	Option Terms.  The terms of each Option shall be
fixed by the Administrator and specified in the applicable Option Certificate.
Option Certificates may vary from one another.  Each Option Certificate shall
specify (i) the number of Option Shares to be covered by the Option, (ii) the
exercise price per Option Share covered by the Option; provided, however, that
the initial per share option price of any Option which is an incentive stock
option shall not be less than the market value of a share of the Common Stock
on the date of grant, determined pursuant to Section 422(c)(7) of the Code,
unless the Participant owns more than 10% of the total combined voting power
of the Common Stock at the time an option is granted, the initial per share
option price shall not be less than 110% of the fair market value of a  share
of the Common Stock on the date of grant, or in the case of an non-incentive
stock option, shall not be less than fair market value determined pursuant to
Section 409A of the Code and Treasury Regulation Section 1.409A-1(b)(5)(iv)
or corresponding provisions of future regulations, (iii) the conditions and
restrictions, if any, applicable to the exercise of the Option, including
any applicable vesting schedule, (iv) that in no event shall an Option be
exercisable more than ten years from the relevant date of grant, or in the
case of a Participant who owns more than 10% of the total combined voting
power of the Common Stock, five years from the relevant date of grant, and
that the Option cannot be transferred other than by will or the laws of
descent and distribution."

   2.	All capitalized terms used but not otherwise defined herein shall
have the meanings assigned to them in the Plan.  Except as expressly amended
hereby, the terms and conditions of the Plan shall remain in full force and
effect.  This amendment shall be governed by the laws of the State of New York
without giving effect to the conflicts of law principles thereof.  This
amendment shall be effective as of the date first set forth above.

[END OF DOCUMENT]

XML

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2016	May. 01, 2016
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, 2016
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		1,489,112
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2016

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Current Assets:
Cash and cash equivalents	$ 1,081,000	$ 482,000
Restricted cash	300,000	300,000
Investment securities	282,300	281,800
Trade accounts receivable, net	717,100	1,081,700
Inventories	3,674,900	2,213,700
Prepaid expenses and other current assets	54,800	68,600
Deferred taxes	104,400	114,200
Total current assets	6,214,500	4,542,000
Property and equipment, net	222,300	235,200
Intangible assets, net	1,195,400	1,451,900
Goodwill	705,300	705,300
Other assets	52,500	52,500
Deferred taxes	208,300	154,500
Total assets	8,598,300	7,141,400
Current Liabilities:
Accounts payable	422,300	227,600
Customer advances	267,800	76,400
Bank line of credit	970,000	0
Notes payable	200,000	200,000
Accrued expenses and taxes	714,900	519,900
Contingent consideration, less current portion	128,900	106,800
Total current liabilities	2,703,900	1,130,700
Contingent consideration payable, less current portion	137,300	260,300
Total liabilities	2,841,200	1,391,000
Shareholders' equity:
Common stock, $.05 par value; authorized 7,000,000 shares; 1,508,914 issued and outstanding at March 31, 2016 and June 30, 2015	75,400	75,400
Additional paid-in capital	2,497,900	2,486,700
Accumulated other comprehensive loss	(5,200)	(3,300)
Retained earnings	3,241,400	3,244,000
Total	5,809,500	5,802,800
Less common stock held in treasury, at cost, 19,802 shares	52,400	52,400
Total shareholders' equity	5,757,100	5,750,400
Total liabilities and shareholders' equity	$ 8,598,300	$ 7,141,400

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Jun. 30, 2015
Shareholders' equity:
Common stock,par value	$ 0.05	$ 0.05
Common stock, authorized shares	7,000,000	7,000,000
Common stock, issued shares	1,508,914	1,508,914
Common stock, outstanding shares	1,508,914	1,508,914
Stock held in treasury, shares	19,802	19,802

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues	$ 1,674,300	$ 1,729,200	$ 5,146,900	$ 5,082,400
Cost of sales	993,100	961,900	3,032,900	3,125,800
Gross profit	681,200	767,300	2,114,000	1,956,600
Operating expenses:
General & administrative	426,700	433,900	1,230,500	1,286,500
Selling	196,200	202,200	590,400	726,900
Research & development	93,400	94,500	263,000	317,700
Total operating expenses	716,300	730,600	2,083,900	2,331,100
Income (loss) from operations	(35,100)	36,700	30,100	(374,500)
Other income (expense):
Investment income	300	1,100	5,700	10,700
Other	200	(4,600)	(3,000)	(5,700)
Interest expense	(13,700)	(1,600)	(35,900)	(4,300)
Total other income, (expense) net	(13,200)	(5,100)	(33,200)	700
Income (loss) before income taxes (benefit)	(48,300)	31,600	(3,100)	(373,800)
Income tax expense (benefit):
Current	2,200	34,800	43,100	(56,200)
Deferred	(13,600)	(22,200)	(43,600)	(37,300)
Total income (loss) tax expense (benefit)	(11,400)	12,600	(500)	(93,500)
Net income (loss)	$ (36,900)	$ 19,000	$ (2,600)	$ (280,300)
Basic earnings (loss) per common share	$ (0.02)	$ 0.01	$ 0.00	$ (0.19)
Diluted earnings (loss) per common share	(0.02)	0.01	0.00	(0.19)
Cash dividends declared per common share	$ 0.00	$ 0.00	$ 0.00	$ 0.00

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Condensed Consolidated Statements Of Comprehensive Income Lossunaudited
Net income (loss)	$ (36,900)	$ 19,000	$ (2,600)	$ (280,300)
Other comprehensive income (loss):
Unrealized holding gain (loss) arising during period, net of tax	3,000	2,900	(1,900)	(1,600)
Comprehensive income (loss)	$ (33,900)	$ 21,900	$ (4,500)	$ (281,900)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net loss	$ (2,600)	$ (280,300)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on sale of investments	0	4,400
Loss on asset disposal	2,700	0
Depreciation and amortization	319,100	327,200
Deferred income tax benefit	(43,600)	(37,300)
Stock-based compensation	11,200	10,200
Income tax benefit of stock options exercised	0	4,900
Changes in operating assets and liabilities:
Accounts receivable	364,600	(72,900)
Inventories	(1,461,200)	(312,100)
Prepaid expenses and other current assets	13,800	11,900
Accounts payable	194,700	(48,600)
Customer advances	191,400	235,400
Accrued expenses and taxes	195,000	(13,500)
Other assets	0	(24,200)
Total adjustments	(212,300)	85,400
Net cash used in operating activities	(214,900)	(194,900)
Investing activities:
Redemption of investment securities, available-for-sale	0	127,000
Purchase of investment securities, available-for-sale	(2,700)	(3,800)
Capital expenditures	(45,100)	(56,500)
Purchase of intangible assets	(7,400)	(4,400)
Net cash provided by (used in) investing activities	(55,200)	62,300
Financing activities:
Line of credit proceeds	970,000	250,000
Line of credit repayments	0	(150,000)
Payments of contingent consideration	(100,900)	(98,900)
Proceeds from exercise of stock options	0	18,800
Principal payments on note payable	0	(26,700)
Net cash provided by (used in) financing activities	869,100	(6,800)
Net increase (decrease) in cash and cash equivalents	599,000	(139,400)
Cash and cash equivalents, beginning of year	482,000	493,700
Cash and cash equivalents, end of period	1,081,000	354,300
Cash paid during the period for:
Income Taxes	35,500	3,500
Interest	$ 27,200	$ 4,300

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1. Summary of significant accounting policies

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

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 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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2. Recent Accounting Pronouncements

9 Months Ended

Mar. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers amending revenue recognition requirements for multiple-deliverable revenue arrangements. This update provides guidance on how revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. This determination is made in five steps: (i) identify the contract with the customer: (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2018, or the Company's fiscal year ending June 30, 2020, and early adoption of the standard is permitted, but not before the original effective date of December 15, 2017. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved After the Requisite Service Period. This update affects reporting entities that grant their employee’s targets that affects vesting could be achieved after the requisite service period. The new standard requires that a performance target that affects vesting and that could be achieved after the requisite services period be treated as a performance condition. The new standard will be effective for the Company beginning July 1, 2016, and early adoption is permitted. The Company expects the adoption will not have a material impact on its financial condition, results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, "Inventory: Simplifying the Measurement of Inventory", that requires inventory not measured using either the last in, first out (LIFO) or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and will be applied prospectively. Early adoption is permitted. The Company is evaluating the impact that this standard will have on its consolidated financial statements.

In November 2015, the FASB issued new guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the new guidance. The guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted as of the beginning of an interim or annual reporting period. The new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is evaluating the impact that the new guidance will have on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight- line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Company’s fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early application permitted.

The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements.

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3. Acquisition

9 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Acquisition

On February 26, 2014, the Company acquired substantially all the assets of a privately owned company consisting principally of inventory, fixed assets, and intangible assets related to the production and sale of a variety of laboratory and pharmacy balances and scales. The acquisition was pursuant to an asset purchase agreement whereby the Company paid the sellers $700,000 in cash, 126,449 shares of Common Stock valued at $427,500 and agreed to make additional cash payment based on a percentage of net sales of the business acquired equal to 8% for the period ended June 30, 2014 annualized, 9% for the year ended June 30, 2015, 10% for the year ending June 30, 2016 and 11% for the year ending June 30, 2017, estimated at a present value of $460,000 on the date of acquisition. Payments related to this contingent consideration for each period are due in September following the fiscal year. Contingent consideration payments amounted to $100,900 and $98,900 during the nine month periods ended March 31, 2016 and 2015, respectively.

The products, which are similar to the Company’s other Benchtop Laboratory Equipment, and in many cases used by the same customers, are marketed under the Torbal® brand. The principal customers are pharmacies, pharmacy schools, universities, government laboratories, and industries utilizing precision scales. The products are sold primarily on a direct basis, including the Company’s e-commerce site.

The Company allocated the purchase price based on its valuation of the assets acquired, as follows:

Current assets	$ 144,000
Property and equipment	118,100
Goodwill*	115,400
Other intangible assets	1,210,000
Total Purchase Price	$ 1,587,500

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

Of the $1,210,000 of the acquired other intangible assets, $570,000 was assigned to technology and websites with a useful life of 5 years, $120,000 was assigned to customer relationships with an estimated useful life of 9 years, $140,000 was assigned to the trade name with an estimated useful life of 6 years, $110,000 was assigned to the IPR&D with an estimated useful life of 3 years, and $270,000 was assigned to non-compete agreements with an estimated useful life of 5 years.

In connection with the acquisition, the Company entered into a three-year employment agreement with the previous Chief Operating Officer of the acquired business as President of the Company’s new Torbal Division and Director of Marketing for the Company. The agreement may be extended by mutual consent for an additional two years.

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4. Segment Information and Concentrations

9 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

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”).

Segment information is reported as follows (foreign sales are principally to customers in Europe and Asia):

	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Three months ended March 31, 2016:
Revenues	$    1,279,300	$     364,900	$     30,100	$             -	$  1,674,300
Foreign Sales	597,300	25,900	-	-	623,200
Income (Loss) from Operations	2,800	5,500	(29,600)	(13,800)	(35,100)
Assets	4,358,700	2,898,400	746,200	595,000	8,598,300
Long-Lived Asset Expenditures	31,500	3,200	3,700	-	38,400
Depreciation and Amortization	74,800	9,000	24,500	-	108,300

	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Three months ended March 31, 2015:
Revenues	$   1,558,000	$   144,600	$    26,600	$             -	$  1,729,200
Foreign Sales	813,900	81,100	-	-	895,000
Income (Loss) from Operations	120,600	(50,400)	(33,500)	-	36,700
Assets	4,165,700	1,506,700	783,400	555,800	7,011,600
Long-Lived Asset Expenditures	900	-	3,700	-	4,600
Depreciation and Amortization	74,700	7,900	24,500	-	107,100

Approximately 50% and 53% of net sales of benchtop laboratory equipment for the three month periods ended March 31, 2016 and 2015, respectively, were derived from the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories.

Approximately 22% and 21% of total benchtop laboratory equipment sales were derived from the Torbal Scales Division for the three months ended March 31, 2016 and 2015, respectively.

Two benchtop laboratory equipment customers accounted for approximately 19% and 18% of the segment’s net sales for the three month periods ended March 31, 2016 and 2015 (15% and 17% of total revenues, respectively, for the periods).

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, 2016 and two different customers in the three months ended March 31, 2015, accounted respectively for 86% and 64% of the segment’s net sales for each of the periods (19% and 5% of total revenues for the respective periods).

	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Nine months ended March 31, 2016:
Revenues	$ 4,125,900	$ 932,300	$    88,700	$             -	$ 5,146,900
Foreign Sales	1,960,700	139,200	-	-	2,099,900
Income (Loss) from Operations	245,200	(86,700)	(92,500)	(35,900)	30,100
Assets	4,358,700	2,898,400	746,200	595,000	8,598,300
Long-Lived Asset Expenditures	39,900	3,200	9,400	-	52,500
Depreciation and Amortization	222,800	22,900	73,400	-	319,100
	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Nine months ended March 31, 2015:
Revenues	$ 3,891,400	$ 1,115,300	$    75,700	$             -	$5,082,400
Foreign Sales	1,947,400	840,300	-	-	2,787,700
Loss from Operations	(64,700)	(191,200)	(118,600)	-	(374,500)
Assets	4,165,700	1,506,700	783,400	555,800	7,011,600
Long-Lived Asset Expenditures	52,400	900	7,600	-	60,900
Depreciation and Amortization	227,000	26,900	73,300	-	327,200

Approximately 50% of net sales of benchtop laboratory equipment for both the nine month periods ended March 31, 2016 and 2015, were derived from sales of the Company’s main product, the Vortex-Genie 2 mixer, excluding accessories.

Approximately 21% and 20% of total benchtop laboratory equipment sales for the nine months ended March 31, 2016 and 2015, respectively, were derived from sales of the Torbal Scales Division.

Two benchtop laboratory equipment customers, accounted for approximately 15% and 17% of the segment’s net sales (12% and 13% of total revenues) for the nine month periods ended March 31, 2016 and 2015, respectively.

Sales of catalyst research instruments to four customers in the nine months ended March 31, 2016 and to seven other customers in the nine months ended March 31, 2015 accounted for approximately 87% and 97% of that segment’s net sales (16% and 19% of total revenues) for the respective nine month periods.

The Company’s foreign sales are principally made to customers in Europe and Asia. The Company also has an arrangement with a supplier for annual minimum purchase commitments through February 2020 which the Company has already met for the current year.

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5. Fair Value of Financial Instruments

9 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

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 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, 2016 and June 30, 2015 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, 2016	Level 1	Level 2	Level 3
Cash and cash equivalents	$ 1,081,000	$1,081,000	$ -	$ -
Restricted Cash	300,000	$ 300,000	-	-
Available for sale securities	282,300	282,300	-	-
Total	$ 1,663,300	$1,663,300	$ -	$ -
Liabilities:
Contingent consideration	$ 266,200	$ -	$ -	$266,200

	Fair Value Measurements Using Inputs Considered as
Assets:
	Fair Value at June 30, 2015	Level 1	Level 2	Level 3
Cash and cash equivalents	$ 482,000	$ 482,000	$ -	$ -
Restricted Cash	$ 300,000	$ 300,000	-	-
Available for sale securities	281,800	281,800	-	-
Total	$ 1,063,800	$1,063,800	$ -	$ -
Liabilities:
Contingent consideration	$ 367,100	$ -	$ -	$367,100

Investments in marketable securities classified as available-for-sale by security type at March 31, 2016 and June 30, 2015 consisted of the following:

	Cost	Fair Value	Unrealized Holding Gain (Loss)
At March 31, 2016:
Available for sale:
Equity securities	$ 29,300	$ 39,700	$ 10,400
Mutual funds	258,200	242,600	(15,600)
	$ 287,500	$ 282,300	$ (5,200)

	Cost	Fair Value	Unrealized Holding Gain (Loss)
At June 30, 2015:
Available for sale:
Equity securities	$ 29,300	$ 35,800	$ 6,500
Mutual funds	255,800	246,000	(9,800)
	$ 285,100	$ 281,800	$ (3,300)

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6. Inventories

9 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories

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

	March 31, 2016	June 30, 2015
Raw Materials	$ 1,465,500	$ 1,420,800
Work in process	1,805,700	442,900
Finished Goods	403,700	350,000
	$ 3,674,900	$ 2,213,700

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7. Earnings (Loss) per common share

9 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings (Loss) per common share

Basic earnings (loss) per common share are computed by dividing net income (loss) by the weighted-average number of shares outstanding. Diluted earnings (loss) 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,
	2016	2015	2016	2015
Net income (loss)	$ (36,900)	$ 19,000	$ (2,600)	$(280,300)
Weighted average common shares outstanding	1,489,112	1,479,112	1,489,112	1,477,375
Effect of dilutive securities	-	-	-	-
Weighted average dilutive common shares outstanding	1,489,112	1,479,112	1,489,112	1,477,375
Basic earnings (loss) per common share	$ (0.02)	$ 0.01	$ 0.00	$ (0.19)
Diluted earnings (loss) per common share	$ (0.02)	$ 0.01	$ 0.00	$ (0.19)

Approximately 38,500 and 51,000 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 and nine month periods ended March 31, 2016 and 2015, because the effect would be anti-dilutive.

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8. Goodwill and Other Intangible Assets

9 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

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 acquisitions. Goodwill amounted to $705,300 as of March 31, 2016 and June 30, 2015, respectively, all of which is deductible for tax purposes.

The components of other intangible assets are as follows:

	Useful Lives	Cost	Accumulated Amortization	Net
At March 31, 2016:
Technology, trademarks	5/10 yrs.	$1,215,800	$ 715,900	$ 499,900
Trade names	6 yrs.	140,000	46,700	93,300
Websites	5 yrs.	210,000	87,500	122,500
Customer relationships	9/10 yrs.	357,000	254,100	102,900
Sublicense agreements	10 yrs.	294,000	128,600	165,400
Non-compete agreements	5 yrs.	384,000	225,000	159,000
Intellectual property, research and development (IPR&D)	3 yrs.	110,000	76,300	33,700
Other intangible assets	5 yrs.	171,400	152,700	18,700
		$2,882,200	$1,686,800	$1,195,400

	Useful Lives	Cost	Accumulated Amortization	Net
At June 30, 2015:
Technology, trademarks	5/10 yrs.	$1,226,800	$ 624,200	$ 602,600
Trade names	6 yrs.	140,000	31,100	108,900
Websites	5 yrs.	210,000	56,000	154,000
Customer relationships	9/10 yrs.	357,000	236,200	120,800
Sublicense agreements	10 yrs.	294,000	106,600	187,400
Non-compete agreements	5 yrs.	384,000	182,700	201,300
Intellectual property, research and development (IPR&D)	3 yrs.	110,000	48,900	61,100
Other intangible assets	5 yrs.	164,000	148,200	15,800
		$2,885,800	$1,433,900	$1,451,900

Total amortization expense was $89,400 and $86,900 for the three months ended March 31, 2016 and 2015, respectively and $263,200 for both the nine months ended March 31, 2016 and 2015. As of March 31, 2016, estimated future amortization expense related to intangible assets is $71,200 for the remainder of the fiscal year ending June 30, 2016, $337,000 for fiscal 2017, $324,000 for fiscal 2018, $246,600 for fiscal 2019, $80,400 for fiscal 2020, and $136,200 thereafter.

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1. Summary of significant accounting policies (Policies)

9 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

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 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.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers amending revenue recognition requirements for multiple-deliverable revenue arrangements. This update provides guidance on how revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. This determination is made in five steps: (i) identify the contract with the customer: (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2018, or the Company's fiscal year ending June 30, 2020, and early adoption of the standard is permitted, but not before the original effective date of December 15, 2017. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved After the Requisite Service Period. This update affects reporting entities that grant their employee’s targets that affects vesting could be achieved after the requisite service period. The new standard requires that a performance target that affects vesting and that could be achieved after the requisite services period be treated as a performance condition. The new standard will be effective for the Company beginning July 1, 2016, and early adoption is permitted. The Company expects the adoption will not have a material impact on its financial condition, results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, "Inventory: Simplifying the Measurement of Inventory", that requires inventory not measured using either the last in, first out (LIFO) or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, and will be applied prospectively. Early adoption is permitted. The Company is evaluating the impact that this standard will have on its consolidated financial statements.

In November 2015, the FASB issued new guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the new guidance. The guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted as of the beginning of an interim or annual reporting period. The new guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is evaluating the impact that the new guidance will have on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight- line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Company’s fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements.

In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). Areas for simplification in this update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016, with early application permitted.

The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements.

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3. Acquisition (Tables)

9 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Purchase Price Allocation

The Company allocated the purchase price based on its valuation of the assets acquired, as follows:

Current assets	$ 144,000
Property and equipment	118,100
Goodwill*	115,400
Other intangible assets	1,210,000
Total Purchase Price	$ 1,587,500

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

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4. Segment Information and Concentrations (Tables)

9 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Three months ended March 31, 2016:
Revenues	$    1,279,300	$     364,900	$     30,100	$             -	$  1,674,300
Foreign Sales	597,300	25,900	-	-	623,200
Income (Loss) from Operations	2,800	5,500	(29,600)	(13,800)	(35,100)
Assets	4,358,700	2,898,400	746,200	595,000	8,598,300
Long-Lived Asset Expenditures	31,500	3,200	3,700	-	38,400
Depreciation and Amortization	74,800	9,000	24,500	-	108,300

	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Three months ended March 31, 2015:
Revenues	$   1,558,000	$   144,600	$    26,600	$             -	$  1,729,200
Foreign Sales	813,900	81,100	-	-	895,000
Income (Loss) from Operations	120,600	(50,400)	(33,500)	-	36,700
Assets	4,165,700	1,506,700	783,400	555,800	7,011,600
Long-Lived Asset Expenditures	900	-	3,700	-	4,600
Depreciation and Amortization	74,700	7,900	24,500	-	107,100

	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Nine months ended March 31, 2016:
Revenues	$ 4,125,900	$ 932,300	$    88,700	$             -	$ 5,146,900
Foreign Sales	1,960,700	139,200	-	-	2,099,900
Income (Loss) from Operations	245,200	(86,700)	(92,500)	(35,900)	30,100
Assets	4,358,700	2,898,400	746,200	595,000	8,598,300
Long-Lived Asset Expenditures	39,900	3,200	9,400	-	52,500
Depreciation and Amortization	222,800	22,900	73,400	-	319,100
	Benchtop Laboratory Equipment	Catalyst Research Instruments	Bioprocessing Systems	Corporate and Other	Consolidated
Nine months ended March 31, 2015:
Revenues	$ 3,891,400	$ 1,115,300	$    75,700	$             -	$5,082,400
Foreign Sales	1,947,400	840,300	-	-	2,787,700
Loss from Operations	(64,700)	(191,200)	(118,600)	-	(374,500)
Assets	4,165,700	1,506,700	783,400	555,800	7,011,600
Long-Lived Asset Expenditures	52,400	900	7,600	-	60,900
Depreciation and Amortization	227,000	26,900	73,300	-	327,200

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5. Fair Value of Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Inputs

	Fair Value Measurements Using Inputs Considered as
Assets:
	Fair Value at March 31, 2016	Level 1	Level 2	Level 3
Cash and cash equivalents	$ 1,081,000	$1,081,000	$ -	$ -
Restricted Cash	300,000	$ 300,000	-	-
Available for sale securities	282,300	282,300	-	-
Total	$ 1,663,300	$1,663,300	$ -	$ -
Liabilities:
Contingent consideration	$ 266,200	$ -	$ -	$266,200

	Fair Value Measurements Using Inputs Considered as
Assets:
	Fair Value at June 30, 2015	Level 1	Level 2	Level 3
Cash and cash equivalents	$ 482,000	$ 482,000	$ -	$ -
Restricted Cash	$ 300,000	$ 300,000	-	-
Available for sale securities	281,800	281,800	-	-
Total	$ 1,063,800	$1,063,800	$ -	$ -
Liabilities:
Contingent consideration	$ 367,100	$ -	$ -	$367,100

Investments in Marketable Securitites

	Cost	Fair Value	Unrealized Holding Gain (Loss)
At March 31, 2016:
Available for sale:
Equity securities	$ 29,300	$ 39,700	$ 10,400
Mutual funds	258,200	242,600	(15,600)
	$ 287,500	$ 282,300	$ (5,200)

	Cost	Fair Value	Unrealized Holding Gain (Loss)
At June 30, 2015:
Available for sale:
Equity securities	$ 29,300	$ 35,800	$ 6,500
Mutual funds	255,800	246,000	(9,800)
	$ 285,100	$ 281,800	$ (3,300)

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6. Inventories (Tables)

9 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories

	March 31, 2016	June 30, 2015
Raw Materials	$ 1,465,500	$ 1,420,800
Work in process	1,805,700	442,900
Finished Goods	403,700	350,000
	$ 3,674,900	$ 2,213,700

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7. Earnings (Loss) per common share (Tables)

9 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings per common share

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,
	2016	2015	2016	2015
Net income (loss)	$ (36,900)	$ 19,000	$ (2,600)	$(280,300)
Weighted average common shares outstanding	1,489,112	1,479,112	1,489,112	1,477,375
Effect of dilutive securities	-	-	-	-
Weighted average dilutive common shares outstanding	1,489,112	1,479,112	1,489,112	1,477,375
Basic earnings (loss) per common share	$ (0.02)	$ 0.01	$ 0.00	$ (0.19)
Diluted earnings (loss) per common share	$ (0.02)	$ 0.01	$ 0.00	$ (0.19)

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8. Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The components of other intangible assets are as follows:

	Useful Lives	Cost	Accumulated Amortization	Net
At March 31, 2016:
Technology, trademarks	5/10 yrs.	$1,215,800	$ 715,900	$ 499,900
Trade names	6 yrs.	140,000	46,700	93,300
Websites	5 yrs.	210,000	87,500	122,500
Customer relationships	9/10 yrs.	357,000	254,100	102,900
Sublicense agreements	10 yrs.	294,000	128,600	165,400
Non-compete agreements	5 yrs.	384,000	225,000	159,000
Intellectual property, research and development (IPR&D)	3 yrs.	110,000	76,300	33,700
Other intangible assets	5 yrs.	171,400	152,700	18,700
		$2,882,200	$1,686,800	$1,195,400

	Useful Lives	Cost	Accumulated Amortization	Net
At June 30, 2015:
Technology, trademarks	5/10 yrs.	$1,226,800	$ 624,200	$ 602,600
Trade names	6 yrs.	140,000	31,100	108,900
Websites	5 yrs.	210,000	56,000	154,000
Customer relationships	9/10 yrs.	357,000	236,200	120,800
Sublicense agreements	10 yrs.	294,000	106,600	187,400
Non-compete agreements	5 yrs.	384,000	182,700	201,300
Intellectual property, research and development (IPR&D)	3 yrs.	110,000	48,900	61,100
Other intangible assets	5 yrs.	164,000	148,200	15,800
		$2,885,800	$1,433,900	$1,451,900

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3. Acquisition (Details)	Mar. 31, 2016 USD ($)
Business Combinations [Abstract]
Current assets	$ 144,000
Property and equipment	118,100
Goodwill	115,400
Other intangible assets	1,210,000
Total Purchase Price	$ 1,587,500

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3. Acquisition (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Combinations [Abstract]
Contingent consideration payments amounted	$ 100,900	$ 98,900

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4. Segment Information and Concentrations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Depreciation and Amortization			$ 319,100	$ 327,200
Benchtop Laboratory Equipment [Member]
Revenues	$ 1,279,300	$ 1,558,000	4,125,900	3,891,400
Foreign Sales	597,300	813,900	1,960,700	1,947,400
Income (Loss) from Operations	2,800	120,600	245,200	(64,700)
Assets	4,358,700	4,165,700	4,358,700	4,165,700
Long-lived Asset Expenditures	31,500	900	39,900	52,400
Depreciation and Amortization	74,800	74,700	222,800	227,000
Catalyst Research Instruments [Member]
Revenues	364,900	144,600	932,300	1,115,300
Foreign Sales	25,900	81,100	139,200	840,300
Income (Loss) from Operations	5,500	(50,400)	(86,700)	(191,200)
Assets	2,898,400	1,506,700	2,898,400	1,506,700
Long-lived Asset Expenditures	3,200	0	3,200	900
Depreciation and Amortization	9,000	7,900	22,900	26,900
Bioprocessing Systems [Member]
Revenues	30,100	26,600	88,700	75,700
Foreign Sales	0	0	0	0
Income (Loss) from Operations	(29,600)	(33,500)	(92,500)	(118,600)
Assets	746,200	783,400	746,200	783,400
Long-lived Asset Expenditures	3,700	3,700	9,400	7,600
Depreciation and Amortization	24,500	24,500	73,400	73,300
Corporate and Other [Member]
Revenues	0	0	0	0
Foreign Sales	0	0	0	0
Income (Loss) from Operations	(13,800)	0	(35,900)	0
Assets	595,000	555,800	595,000	555,800
Long-lived Asset Expenditures	0	0	0	0
Depreciation and Amortization	0	0	0	0
Consolidated [Member]
Revenues	1,674,300	1,729,200	5,146,900	5,082,400
Foreign Sales	623,200	895,000	2,099,900	2,787,700
Income (Loss) from Operations	(35,100)	36,700	30,100	(374,500)
Assets	8,598,300	7,011,600	8,598,300	7,011,600
Long-lived Asset Expenditures	38,400	4,600	52,500	60,900
Depreciation and Amortization	$ 108,300	$ 107,100	$ 319,100	$ 327,200

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4. Segment Information and Concentrations (Details Narrative)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Benchtop Laboratory Equipment [Member]
Net sales	50.00%	53.00%	50.00%	50.00%
Consolidated sales	22.00%	21.00%	21.00%	20.00%
Two Customers [Member] | Catalyst Research Instruments [Member]
Net sales	86.00%	64.00%
Consolidated sales	19.00%	5.00%
Two Customers [Member] | Benchtop Laboratory Equipment [Member]
Net sales	19.00%	18.00%	15.00%	17.00%
Consolidated sales	15.00%	17.00%	12.00%	13.00%
Four Customer [Member] | Catalyst Research Instruments [Member]
Net sales			87.00%
Consolidated sales			16.00%
Seven Other Customer [Member] | Catalyst Research Instruments [Member]
Net sales			97.00%
Consolidated sales			19.00%

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5. Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014
Assets
Cash and cash equivalents	$ 1,081,000	$ 482,000	$ 354,300	$ 493,700
Restricted cash	300,000	300,000
Available for sale securities	282,300	281,800
Total	1,663,300	1,063,800
Liabilities:
Contingent consideration	266,200	367,100
Level 1
Assets
Cash and cash equivalents	1,081,000	482,000
Restricted cash	300,000	300,000
Available for sale securities	282,300	281,800
Total	1,663,300	1,063,800
Liabilities:
Contingent consideration	0	0
Level 2
Assets
Cash and cash equivalents	0	0
Available for sale securities	0	0
Total	0	0
Liabilities:
Contingent consideration	0	0
Level 3
Assets
Cash and cash equivalents	0	0
Available for sale securities	0	0
Total	0	0
Liabilities:
Contingent consideration	$ 266,200	$ 367,100

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5. Fair Value of Financial Instruments (Details 1) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Cost	$ 287,500	$ 285,100
Fair Value	282,300	281,800
Unrealized Holding Gain (Loss)	(5,200)	(3,300)
Equity Securities
Cost	29,300	29,300
Fair Value	39,700	35,800
Unrealized Holding Gain (Loss)	10,400	6,500
Mutual Funds
Cost	258,200	255,800
Fair Value	242,600	246,000
Unrealized Holding Gain (Loss)	$ (15,600)	$ (9,800)

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6. Inventories (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Inventory Disclosure [Abstract]
Raw Materials	$ 1,465,500	$ 1,420,800
Work in process	1,805,700	442,900
Finished Goods	403,700	350,000
Inventory	$ 3,674,900	$ 2,213,700

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7. Earnings (Loss) per common share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ (36,900)	$ 19,000	$ (2,600)	$ (280,300)
Weighted average common shares outstanding	1,489,112	1,479,112	1,489,112	1,477,375
Effect of dilutive securities	0	0	0	0
Weighted average dilutive common shares outstanding	1,489,112	1,479,112	1,489,112	1,477,375
Basic earnings (loss) per common share	$ (0.02)	$ 0.01	$ 0.00	$ (0.19)
Diluted earnings (loss) per common share	$ (0.02)	$ 0.01	$ 0.00	$ (0.19)

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7. Earnings (Loss) per common share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Common stock issuable upon the exercise of outstanding stock options	38,500	38,500	51,000	51,000

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8. Goodwill and Other Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Cost	$ 2,882,200	$ 2,885,800
Accumulated Amortization	1,686,800	1,433,900
Net	$ 1,195,400	$ 1,451,900
Technology, trademarks [Member]
Useful Lives Minimum	5 years	5 years
Useful Lives Maximum	10 years	10 years
Cost	$ 1,215,800	$ 1,226,800
Accumulated Amortization	715,900	624,200
Net	$ 499,900	$ 602,600
Trade names [Member]
Useful Lives	6 years	6 years
Cost	$ 140,000	$ 140,000
Accumulated Amortization	46,700	31,100
Net	$ 93,300	$ 108,900
Websites [Member]
Useful Lives	5 years	5 years
Cost	$ 210,000	$ 210,000
Accumulated Amortization	87,500	56,000
Net	$ 122,500	$ 154,000
Customer relationships [Member]
Useful Lives		10 years
Useful Lives Minimum	9 years
Useful Lives Maximum	10 years
Cost	$ 357,000	$ 357,000
Accumulated Amortization	254,100	236,200
Net	$ 102,900	$ 120,800
Sublicense agreements [Member]
Useful Lives	10 years	10 years
Cost	$ 294,000	$ 294,000
Accumulated Amortization	128,600	106,600
Net	$ 165,400	$ 187,400
Non-compete agreements [Member]
Useful Lives	5 years	5 years
Cost	$ 384,000	$ 384,000
Accumulated Amortization	225,000	182,700
Net	$ 159,000	$ 201,300
Intellectual property, research & development (IPR&D) [Member]
Useful Lives	3 years	3 years
Cost	$ 110,000	$ 110,000
Accumulated Amortization	76,300	48,900
Net	$ 33,700	$ 61,100
Other intangible assets [Member]
Useful Lives	5 years	5 years
Cost	$ 171,400	$ 164,000
Accumulated Amortization	152,700	148,200
Net	$ 18,700	$ 15,800

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8. Goodwill and Other Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Estimated future amortization expense 2016	$ 71,200		$ 71,200
Estimated future amortization expense 2017	337,000		337,000
Estimated future amortization expense 2018	324,000		324,000
Estimated future amortization expense 2019	246,600		246,600
Estimated future amortization expense 2020	80,400		80,400
Estimated future amortization expense thereafter	136,200		136,200
Total amortization expense	89,400	$ 86,900	263,200	$ 263,200
Goodwill	$ 705,300		$ 705,300		$ 705,300