General. Scientific Industries, Inc., a Delaware corporation, formed in 1954, designs, manufactures, and markets a variety of laboratory equipment. The Company's products are generally used for research purposes in laboratories of universities, hospitals, pharmaceutical companies, clinics, medical device manufacturers and other related industries.
Recent Developments. During the last quarter of the year ended June 30, 2006 ("fiscal 2006"), the Company was advised by Fisher Scientific International ("Fisher"), its principal distributor and customer (sales to Fisher represented 20% and 23% of the Company's net sales for the fiscal years ended June 30, 2006 and June 30, 2005, respectively) that it would no longer purchase for distribution the Company's products which the Company believes is a result of a change of focus to sales of Fisher's private label products. The Company has increased its efforts to increase sales to its other distributors, and directly to additional customers, and to appoint other distributors to mitigate the adverse effect the discontinuance has raised. No assurance can be given that such efforts will be successful.
Recent Developments. During the last quarter of the year ended June 30, 2006 ("fiscal 2006"), the Company was advised by Fisher Scientific International ("Fisher"), its principal distributor and customer (sales to Fisher represented 20% and 23% of the Company's net sales for the fiscal years ended June 30, 2006 and June 30, 2005, respectively) that it would no longer purchase for distribution the Company's products which the Company believes is a result of a change of focus to sales of Fisher's private label products. The Company has increased its efforts to increase sales to its other distributors, and directly to additional customers, and to appoint other distributors to mitigate the adverse effect the discontinuance has raised. No assurance can be given that such efforts will be successful.
