2024 Q4 Form 10-Q Financial Statement

#000149315224043756 Filed on November 06, 2024

View on sec.gov

Income Statement

Concept 2024 Q4 2024 Q3 2023 Q4
Revenue $64.86K $2.352M
YoY Change -96.85% -6.98%
Cost Of Revenue $60.98K $4.601M
YoY Change -82.75% 366.47%
Gross Profit $3.883K -$2.249M
YoY Change -99.77% -245.77%
Gross Profit Margin 5.99% -95.59%
Selling, General & Admin $3.944M
YoY Change 116.66%
% of Gross Profit
Research & Development $1.254M
YoY Change
% of Gross Profit 32294.18%
Depreciation & Amortization $499.8K
YoY Change 17623.05%
% of Gross Profit
Operating Expenses $3.502M $3.944M
YoY Change 37.34% 116.66%
Operating Profit -$3.498M -$6.193M
YoY Change 313.87% 2128.92%
Interest Expense -$703.4K
YoY Change 284.41%
% of Operating Profit
Other Income/Expense, Net $314.2K $309.4K
YoY Change -53.35% -62.52%
Pretax Income -$11.72M
YoY Change 799.13%
Income Tax
% Of Pretax Income
Net Earnings -$3.184M -$11.72M
YoY Change -9.69% 1166.33%
Net Earnings / Revenue -4908.34% -498.04%
Basic Earnings Per Share -$1.34
Diluted Earnings Per Share -$1.34 -$12.57
COMMON SHARES
Basic Shares Outstanding 8.577M shares 1.459M shares
Diluted Shares Outstanding 2.374M shares

Balance Sheet

Concept 2024 Q4 2024 Q3 2023 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $151.9K
YoY Change -86.6%
Cash & Equivalents $579.1K $151.9K
Short-Term Investments
Other Short-Term Assets $107.8K
YoY Change -2.86%
Inventory $7.884K $968.00
Prepaid Expenses $107.8K
Receivables $10.43K $821.8K
Other Receivables $4.506M $1.671M
Total Short-Term Assets $7.256M $2.753M
YoY Change 30.79% 31.53%
LONG-TERM ASSETS
Property, Plant & Equipment $17.50K $277.0K
YoY Change -93.92% 324.77%
Goodwill $7.849M
YoY Change 53.02%
Intangibles $76.40M $8.963M
YoY Change 708.33%
Long-Term Investments
YoY Change
Other Assets $10.53K
YoY Change -78.52%
Total Long-Term Assets $87.00M $9.780M
YoY Change 440.19% 504.85%
TOTAL ASSETS
Total Short-Term Assets $7.256M $2.753M
Total Long-Term Assets $87.00M $9.780M
Total Assets $94.26M $12.53M
YoY Change 335.3% 237.81%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.904M $2.082M
YoY Change 118.58% 185.54%
Accrued Expenses $1.043M $401.0K
YoY Change 170.16% 38.27%
Deferred Revenue
YoY Change
Short-Term Debt $0.00
YoY Change
Long-Term Debt Due $6.530M
YoY Change 3817.92%
Total Short-Term Liabilities $5.413M $11.56M
YoY Change -40.46% 438.31%
LONG-TERM LIABILITIES
Long-Term Debt $25.00K
YoY Change -92.5%
Other Long-Term Liabilities $409.2K
YoY Change -53.87%
Total Long-Term Liabilities $434.2K
YoY Change -51.05%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.413M $11.56M
Total Long-Term Liabilities $434.2K
Total Liabilities $9.128M $11.99M
YoY Change -9.57% 256.1%
SHAREHOLDERS EQUITY
Retained Earnings -$31.88M -$33.25M
YoY Change 48.06% 68.76%
Common Stock $86.00 $9.00
YoY Change 975.0% -90.91%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $85.13M $542.4K
YoY Change
Total Liabilities & Shareholders Equity $94.26M $12.53M
YoY Change 335.3% 237.81%

Cashflow Statement

Concept 2024 Q4 2024 Q3 2023 Q4
OPERATING ACTIVITIES
Net Income -$3.184M -$11.72M
YoY Change -9.69% 1166.33%
Depreciation, Depletion And Amortization $499.8K
YoY Change 17623.05%
Cash From Operating Activities -$867.5K
YoY Change -170.53%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$350.0K
YoY Change
Cash From Investing Activities -$350.0K
YoY Change 204.48%
FINANCING ACTIVITIES
Cash Dividend Paid $2.188M
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.335M
YoY Change -540.45%
NET CHANGE
Cash From Operating Activities -867.5K
Cash From Investing Activities -350.0K
Cash From Financing Activities 1.335M
Net Change In Cash 117.9K
YoY Change -85.48%
FREE CASH FLOW
Cash From Operating Activities -$867.5K
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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WeightedAverageNumberOfSharesOutstandingBasic
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WeightedAverageNumberOfSharesOutstandingBasic
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CY2024Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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InsurancePremiumFinanced
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Effective June 21, 2023, the Company executed a 1:15 reverse stock split for stockholders of record on that date
CY2023Q2 us-gaap Shares Issued Price Per Share
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CY2023Q3 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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CY2023Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax
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CY2023Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
771192 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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WeightedAverageNumberOfSharesOutstandingBasic
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CY2024Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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2373848 shares
CY2023Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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2363233 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
1889504 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
2300157 shares
CY2024Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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CY2023Q3 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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us-gaap Income Loss From Continuing Operations Per Basic Share
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CY2024Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2023Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2023Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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CY2023Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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CY2023Q3 us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Basic
EarningsPerShareBasic
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us-gaap Earnings Per Share Basic
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CY2023Q3 us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
8.59
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
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RetainedEarningsAccumulatedDeficit
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CY2024Q3 us-gaap Cash
Cash
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us-gaap Business Acquisitions Pro Forma Revenue
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us-gaap Business Acquisitions Pro Forma Income Loss From Continuing Operations Before Changes In Accounting And Extraordinary Items Net Of Tax
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SCNX Business Acquisition Pro Forma Income Loss From Continuing Operations Before Changes In Accounting And Extraordinary Items Net Of Tax Per Share
BusinessAcquisitionProFormaIncomeLossFromContinuingOperationsBeforeChangesInAccountingAndExtraordinaryItemsNetOfTaxPerShare
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SCNX Business Acquisition Pro Forma Income Loss From Continuing Operations Before Changes In Accounting And Extraordinary Items Net Of Tax Per Share
BusinessAcquisitionProFormaIncomeLossFromContinuingOperationsBeforeChangesInAccountingAndExtraordinaryItemsNetOfTaxPerShare
-6.56
CY2023 SCNX Gain Loss On Disposal Of Assets
GainLossOnDisposalOfAssets
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CY2023Q3 us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
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CY2023Q3 us-gaap Disposal Group Including Discontinued Operation Costs Of Goods Sold
DisposalGroupIncludingDiscontinuedOperationCostsOfGoodsSold
128427 usd
CY2023Q3 us-gaap Disposal Group Including Discontinued Operation Gross Profit Loss
DisposalGroupIncludingDiscontinuedOperationGrossProfitLoss
1661553 usd
CY2023Q3 SCNX Disposal Group Including Discontinued Operation Wages And Salary Expense
DisposalGroupIncludingDiscontinuedOperationWagesAndSalaryExpense
849796 usd
CY2023Q3 SCNX Disposal Group Including Discontinued Operation Professional Expense
DisposalGroupIncludingDiscontinuedOperationProfessionalExpense
140875 usd
CY2023Q3 SCNX Disposal Group Including Discontinued Operation Technology Expense
DisposalGroupIncludingDiscontinuedOperationTechnologyExpense
345840 usd
CY2023Q3 us-gaap Disposal Group Including Discontinued Operation General And Administrative Expense
DisposalGroupIncludingDiscontinuedOperationGeneralAndAdministrativeExpense
552244 usd
CY2023Q3 us-gaap Disposal Group Including Discontinued Operation Operating Expense
DisposalGroupIncludingDiscontinuedOperationOperatingExpense
1888755 usd
CY2023Q3 us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
DisposalGroupIncludingDiscontinuedOperationOperatingIncomeLoss
-227202 usd
CY2023Q3 SCNX Disposal Group Including Discontinued Operation Gain Loss On Dispositions
DisposalGroupIncludingDiscontinuedOperationGainLossOnDispositions
-3209776 usd
CY2023Q3 SCNX Disposal Group Including Discontinued Operation Other Income Loss From Discontinued Opeations
DisposalGroupIncludingDiscontinuedOperationOtherIncomeLossFromDiscontinuedOpeations
-3436978 usd
us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
970808 usd
us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
5445924 usd
us-gaap Disposal Group Including Discontinued Operation Costs Of Goods Sold
DisposalGroupIncludingDiscontinuedOperationCostsOfGoodsSold
705962 usd
us-gaap Disposal Group Including Discontinued Operation Gross Profit Loss
DisposalGroupIncludingDiscontinuedOperationGrossProfitLoss
970808 usd
us-gaap Disposal Group Including Discontinued Operation Gross Profit Loss
DisposalGroupIncludingDiscontinuedOperationGrossProfitLoss
4739962 usd
SCNX Disposal Group Including Discontinued Operation Wages And Salary Expense
DisposalGroupIncludingDiscontinuedOperationWagesAndSalaryExpense
713599 usd
SCNX Disposal Group Including Discontinued Operation Wages And Salary Expense
DisposalGroupIncludingDiscontinuedOperationWagesAndSalaryExpense
2238759 usd
SCNX Disposal Group Including Discontinued Operation Professional Expense
DisposalGroupIncludingDiscontinuedOperationProfessionalExpense
62160 usd
SCNX Disposal Group Including Discontinued Operation Professional Expense
DisposalGroupIncludingDiscontinuedOperationProfessionalExpense
185863 usd
SCNX Disposal Group Including Discontinued Operation Technology Expense
DisposalGroupIncludingDiscontinuedOperationTechnologyExpense
88904 usd
SCNX Disposal Group Including Discontinued Operation Technology Expense
DisposalGroupIncludingDiscontinuedOperationTechnologyExpense
1036276 usd
us-gaap Disposal Group Including Discontinued Operation General And Administrative Expense
DisposalGroupIncludingDiscontinuedOperationGeneralAndAdministrativeExpense
38055 usd
us-gaap Disposal Group Including Discontinued Operation General And Administrative Expense
DisposalGroupIncludingDiscontinuedOperationGeneralAndAdministrativeExpense
818120 usd
us-gaap Disposal Group Including Discontinued Operation Operating Expense
DisposalGroupIncludingDiscontinuedOperationOperatingExpense
902718 usd
us-gaap Disposal Group Including Discontinued Operation Operating Expense
DisposalGroupIncludingDiscontinuedOperationOperatingExpense
4279019 usd
us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
DisposalGroupIncludingDiscontinuedOperationOperatingIncomeLoss
68090 usd
us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
DisposalGroupIncludingDiscontinuedOperationOperatingIncomeLoss
460943 usd
SCNX Disposal Group Including Discontinued Operation Gain Loss On Dispositions
DisposalGroupIncludingDiscontinuedOperationGainLossOnDispositions
27602204 usd
SCNX Disposal Group Including Discontinued Operation Gain Loss On Dispositions
DisposalGroupIncludingDiscontinuedOperationGainLossOnDispositions
-3209776 usd
SCNX Disposal Group Including Discontinued Operation Other Income Loss From Discontinued Opeations
DisposalGroupIncludingDiscontinuedOperationOtherIncomeLossFromDiscontinuedOpeations
27670294 usd
SCNX Disposal Group Including Discontinued Operation Other Income Loss From Discontinued Opeations
DisposalGroupIncludingDiscontinuedOperationOtherIncomeLossFromDiscontinuedOpeations
-2748833 usd
CY2024Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
64861 usd
CY2023Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
392286 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
83560 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1235168 usd
CY2024Q3 us-gaap Inventory Finished Goods
InventoryFinishedGoods
7884 usd
CY2023Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
968 usd
CY2024Q3 us-gaap Inventory Net
InventoryNet
7884 usd
CY2023Q4 us-gaap Inventory Net
InventoryNet
968 usd
CY2023Q2 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
Effective June 21, 2023, the Company executed a 1:15 reverse stock split for stockholders of record on that date
CY2023Q2 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
1
CY2024Q3 us-gaap Payments For Proceeds From Previous Acquisition
PaymentsForProceedsFromPreviousAcquisition
78646184 usd
CY2024Q1 us-gaap Dividends Payable Amount Per Share
DividendsPayableAmountPerShare
8.00
CY2024Q1 us-gaap Payments Of Dividends
PaymentsOfDividends
12671072 usd
CY2024Q3 us-gaap Dividends Payable Amount Per Share
DividendsPayableAmountPerShare
1.50
CY2024Q3 us-gaap Payments Of Dividends
PaymentsOfDividends
2187759 usd
CY2024Q3 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
1129796 usd
CY2023Q3 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
925320 usd
us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
443308 usd
CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
218729 shares
CY2023Q4 SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice
19.62
CY2023 SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageRemainingContractualTerm
P3Y11M12D
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted
76923 shares
SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantsInPeriodWeightedAverageExercisePrice
9.36
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Exercised
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised
57058 shares
SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisesInPeriodWeightedAverageExercisePrice
8.25
CY2024Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
238594 shares
CY2024Q3 SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice
19.02
SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageRemainingContractualTerm
P3Y5M12D
CY2024Q3 SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Options Equity Instrument Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentOutstandingIntrinsicValue
96311 usd
SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Exercisable
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisable
238594 shares
CY2024Q3 SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityExercisableWeightedAverageExercisePrice
19.02
SCNX Sharebased Compensation Arrangement By Sharebased Payment Award Non Option Equity Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionEquityExercisableWeightedAverageRemainingContractualTerm1
P3Y5M12D
CY2024Q3 SCNX Share Based Compensation Arrangement By Share Based Payment Award Non Options Equity Instrument Exercisable Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentExercisableIntrinsicValue
96311 usd
CY2024Q3 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
437 usd
CY2023Q3 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
3761 usd
us-gaap Stock Option Plan Expense
StockOptionPlanExpense
25147 usd
us-gaap Stock Option Plan Expense
StockOptionPlanExpense
25978 usd
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<p id="xdx_80E_eus-gaap--LossContingencyDisclosures_zWAYxS5Lbtki" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 15 – <span id="xdx_828_zMmrzrY6KkKk">CONTINGENCIES</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Studebaker Defense Group, LLC</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In July 2020, the Company’s wholly-owned subsidiary, IPS, entered into an agreement with Studebaker Defense Group, LLC (“Studebaker”) wherein IPS would pay Studebaker a down payment of $<span id="xdx_905_ecustom--DownPayment_c20200701__20200731__dei--LegalEntityAxis__custom--IPSMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StudebakerDefenseGroupLLCMember_zVtwVO4nNHv" title="Down payment">550,000</span> and Studebaker would deliver <span id="xdx_902_ecustom--NumberOfNitrileGlovesDelivered_uInteger_c20200813__20200814__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StudebakerDefenseGroupLLCMember__dei--LegalEntityAxis__custom--IPSMember_zXyRC0K4nvBl" title="Number of nitrile gloves delivered">180,000</span> boxes of nitrile gloves by August 14, 2020. IPS wired the $<span id="xdx_907_eus-gaap--ProceedsFromSaleOfOtherProductiveAssets_c20200701__20200731__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StudebakerDefenseGroupLLCMember__dei--LegalEntityAxis__custom--IPSMember_z25B9yP0Eh9l" title="Proceeds from sale of other productive assets">550,000</span> to Studebaker, but to date, Studebaker has not delivered the gloves or provided a refund of the deposit. In December 2020, the Company filed a complaint against Studebaker in Florida state court, Case No. 20-CA-010118 in the Circuit Court for the Thirteenth Judicial Circuit in Hillsborough County, for among other things, breach of contract. Studebaker did not answer the complaint, nor did counsel for Studebaker file an appearance. Accordingly, in February 2021, the Company filed for a default judgment; however, on March 22, 2021, counsel for Studebaker filed an appearance and shortly thereafter filed a motion to vacate the default judgment and dismiss the complaint on jurisdictional grounds. The court granted Studebaker’s motion to set aside the default judgment but denied the motion to dismiss. At June 30, 2021, the $<span id="xdx_907_ecustom--LossOnInventoryInvestment_c20210101__20210630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StudebakerDefenseGroupLLCMember__dei--LegalEntityAxis__custom--IPSMember_zfpqKIJhLWEh" title="Loss on inventory investment">500,000</span> was recorded as Loss on Inventory Investment. The Company won this case but has not collected any settlement yet, another lawsuit was filed to collect.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 13, 2023, a settlement was reached in the Studebaker and IPS legal case. The court found in favor of IPS and ordered Studebaker to pay $<span id="xdx_90F_eus-gaap--LitigationSettlementAmountAwardedToOtherParty_c20230412__20230413_zJixmB8bGf8b">550,000</span> to IPS. The payments were to commence on May 1, 2023 and continue monthly in 17 instalments until the full amount is paid in full but as of the filing date, no payment has been received by IPS.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>GSG PPE, LLC</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On November 19, 2021, IPS filed a complaint against GSG PPE, LLC (“GSG”) and Gary Waxman (“Waxman”), the owner, alleging three counts of breach of contract for a purchase agreement, a promissory note, and a personal guaranty. Collectively, the company alleges that GSG and Waxman have materially breached all three contracts. In late 2020, GSG and IPS executed a valid initial contract setting the terms of a business transaction. GSG failed to pay IPS approximately 75% of the amount owed to IPS. GSG acknowledged it owed the money and executed a promissory note in favor of IPS in the amount of $<span id="xdx_900_eus-gaap--DebtInstrumentFaceAmount_iI_c20211119__dei--LegalEntityAxis__custom--IPSMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GSGPPELLCMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember_zjI15oe2Lnii" title="Principal amount">630,000</span> which matured on <span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20211119__20211119__dei--LegalEntityAxis__custom--IPSMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GSGPPELLCMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember_zEyQly21T3w2" title="Maturity date">September 30, 2021</span>. The note provides for attorney fees and interest in addition to the $<span id="xdx_90F_eus-gaap--DebtInstrumentFaceAmount_iI_c20211119__dei--LegalEntityAxis__custom--IPSMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GSGPPELLCMember__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember_zoMcKXGfjvzg" title="Note principal amount">630,000</span>. Waxman’s personal guaranty confirmed that GSG owed IPS $<span id="xdx_903_eus-gaap--OtherReceivables_iI_c20211119__dei--LegalEntityAxis__custom--IPSMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GSGPPELLCMember__srt--TitleOfIndividualAxis__custom--WaxmanMember_zmKzX0p3pvh2" title="Due from related party">630,000</span>. On September 30, 2021, the $<span id="xdx_906_eus-gaap--ProvisionForDoubtfulAccounts_c20210930__20210930__dei--LegalEntityAxis__custom--IPSMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GSGPPELLCMember_zYbzPqEhem6d" title="Bad debt expenses">630,000</span> was recorded as Bad Debt Expense. A settlement was entered into between the parties in June 2022, whereby GSG and Waxman agreed to pay $<span id="xdx_906_eus-gaap--LitigationSettlementAmountAwardedToOtherParty_c20220601__20220630__dei--LegalEntityAxis__custom--IPSMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--GSGPPELLCMember__srt--TitleOfIndividualAxis__custom--WaxmanMember_zoKvnydYAXj1" title="Litigation settlement amount">743,000</span> which included attorney fees and interest, which is required to be paid to the Company in monthly instalments over 17 months. The Company received additional monthly instalment payments as part of the agreement through January 2023. As of September 30, 2024, and through the date of this filing, the Company has not received the monthly installment payments due to the Company from GSG since January of 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Exclusive License and Commercial Agreements</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scienture entered into an exclusive license and commercial agreement with Kesin Pharma Corporation (“Kesin”) whereby Scienture granted the exclusive license rights to commercialize SCN-102 in 2022 and SCN-104 in 2023 to Kesin (SCN-102 and SCN-104 are together referred to as “the Products”) for use in the United States of America.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2024, the parties terminated the agreement, and the parties agreed that Scienture shall pay Kesin a total gross amount of $<span id="xdx_909_eus-gaap--LossOnContractTerminationForDefault_c20240301__20240331__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zXF5lGH6UpDh" title="Total gross amount">1,285,000</span> upon commercialization of product via a royalty arrangement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This agreement also requires that if <span id="xdx_902_eus-gaap--ContractTerminationClaimsDescription_c20240301__20240331__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zl2R4jDmXXy3" title="Contract termination claims, description">the full $1,285,900 has not been repaid within two years of the early of i) commercial launch or ii) 120 from FDA approval, then interest will accrue prospectively at a rate of 8% annually on unpaid balance. Accordingly, Scienture recorded a $1,285,000 termination fee liability</span>. As of September 30, 2024, the entire amount is outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2024, Kesin demanded immediate payment of the full amount under the Kesin Termination Agreement, alleging the full amount is payable in connection with the consummation Scienture’s business combination with the Company. Scienture has disputed that the amount is now payable, and the parties are in discussions to resolve the issue. There can be no assurance that an amicable resolution will be obtained. If Kesin brings a legal action, Scienture will vigorously defend it.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q2 us-gaap Litigation Settlement Amount Awarded To Other Party
LitigationSettlementAmountAwardedToOtherParty
550000 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
20633 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
83538 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
73084 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
56919 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
48612 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
282786 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
48538 usd
CY2024Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
234248 usd
CY2024Q3 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
60882 usd
CY2024Q3 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
173366 usd
CY2024Q3 us-gaap Disposal Group Including Discontinued Operation Other Expense
DisposalGroupIncludingDiscontinuedOperationOtherExpense
62656 usd
us-gaap Disposal Group Including Discontinued Operation Other Expense
DisposalGroupIncludingDiscontinuedOperationOtherExpense
187968 usd
CY2024Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
64861 usd
CY2024Q3 us-gaap Gross Profit
GrossProfit
3883 usd
CY2024Q3 us-gaap Assets
Assets
94259693 usd
CY2024Q3 us-gaap Profit Loss
ProfitLoss
-3183601 usd
CY2024Q3 us-gaap Cost Of Revenue
CostOfRevenue
60978 usd
CY2023Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
392286 usd
CY2023Q3 us-gaap Gross Profit
GrossProfit
39592 usd
CY2023Q3 us-gaap Assets
Assets
21653843 usd
CY2023Q3 us-gaap Profit Loss
ProfitLoss
-3525114 usd
CY2023Q3 us-gaap Cost Of Revenue
CostOfRevenue
352694 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
83560 usd
us-gaap Gross Profit
GrossProfit
3180 usd
CY2024Q3 us-gaap Assets
Assets
94259693 usd
us-gaap Profit Loss
ProfitLoss
16228530 usd
us-gaap Cost Of Revenue
CostOfRevenue
80380 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1235168 usd
us-gaap Gross Profit
GrossProfit
162990 usd
CY2023Q3 us-gaap Assets
Assets
21653843 usd
us-gaap Profit Loss
ProfitLoss
-6177945 usd
us-gaap Cost Of Revenue
CostOfRevenue
1072178 usd
CY2024Q3 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2024Q3 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q3 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false
CY2024Q3 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false

Files In Submission

Name View Source Status
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0001493152-24-043756-index.html Edgar Link pending
0001493152-24-043756.txt Edgar Link pending
0001493152-24-043756-xbrl.zip Edgar Link pending
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ex31-1.htm Edgar Link pending
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Financial_Report.xlsx Edgar Link pending
form10-q.htm Edgar Link pending
form10-q_001.jpg Edgar Link pending
MetaLinks.json Edgar Link pending
R1.htm Edgar Link pending
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form10-q_htm.xml Edgar Link completed
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report.css Edgar Link pending
scnx-20240930.xsd Edgar Link pending
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scnx-20240930_def.xml Edgar Link unprocessable
scnx-20240930_lab.xml Edgar Link unprocessable
scnx-20240930_pre.xml Edgar Link unprocessable
FilingSummary.xml Edgar Link unprocessable