$SCIA

SCI Engineered Materials, Inc.

CIK:0000830616|SEC Filings

STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
STATEMENTS OF INCOME - USD ($)	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
STATEMENTS OF INCOME
Revenue	$ 9,485,119	$ 3,609,304	$ 17,645,481	$ 7,109,536
Revenue, Product and Service [Extensible Enumeration]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Cost of revenue	$ 7,208,664	$ 2,451,147	$ 13,333,906	$ 4,878,565
Cost, Product and Service [Extensible Enumeration]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Gross profit	$ 2,276,455	$ 1,158,157	$ 4,311,575	$ 2,230,971
General and administrative expense	512,090	549,540	1,154,133	1,097,361
Fraud expense			562,026
Research and development expense	147,433	107,374	290,043	209,641
Marketing and sales expense	217,466	145,436	416,983	265,623
Income from operations	1,399,466	355,807	1,888,390	658,346
Interest income, net	110,359	115,680	219,445	213,810
Income before provision for income taxes	1,509,825	471,487	2,107,835	872,156
Income tax expense	339,549	107,028	475,297	197,980
NET INCOME	$ 1,170,276	$ 364,459	$ 1,632,538	$ 674,176
Income per common share
Basic (In dollars per share)	$ 0.26	$ 0.08	$ 0.37	$ 0.15
Diluted (In dollars per share)	$ 0.26	$ 0.08	$ 0.37	$ 0.15
Weighted average shares outstanding
Basic (In shares)	4,450,003	4,574,686	4,460,059	4,571,425
Diluted (In shares)	4,450,003	4,578,926	4,460,059	4,575,729

STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,632,538	$ 674,176
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and accretion	251,138	211,740
Amortization of patents	2,467	2,466
Stock based compensation	87,129	47,206
(Gain) on disposal of equipment	(16,667)	497
Deferred taxes	374,411	878
Inventory reserve	4,669	680
Changes in operating assets and liabilities:
Accounts receivable	(321,286)	148,122
Inventories	(2,537,618)	354,512
Prepaid purchase orders	(203,704)	(58,633)
Prepaid expenses	20,375	88,933
Accounts payable	231,757	117,705
Customer deposits	3,716,965	520,251
Accrued liabilities	(153,188)	(185,292)
Net cash provided by operating activities	3,088,986	1,923,241
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of equipment	18,000
Purchases of marketable securities	(1,125)	(2,000,000)
Proceeds from maturities of marketable securities		1,509,478
Purchases of property and equipment	(887,608)	(215,454)
Net cash used in investing activities	(870,733)	(705,976)
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of treasury stock	(267,500)
Net cash used in financing activities	(267,500)
NET INCREASE IN CASH	1,950,753	1,217,265
CASH - Beginning of year	7,939,000	6,753,403
CASH - End of period	9,889,753	7,970,668
Cash paid during the year for:
Income taxes	339,549	194,228
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
Increase in asset retirement obligation	$ 3,450	$ 3,450

BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash and cash equivalents	$ 9,889,753	$ 7,939,000
Investments - marketable securities, short term	799,250	298,125
Trade, less allowance for doubtful accounts of $15,000	1,006,578	694,864
Other	35,072	25,500
Inventories, net	3,624,420	1,091,471
Prepaid purchase orders	248,493	44,789
Prepaid expenses	131,327	151,702
Total current assets	15,734,893	10,245,451
Property and Equipment, at cost
Machinery and equipment	9,694,462	9,314,408
Furniture and fixtures	180,364	180,364
Leasehold improvements	732,711	732,711
Construction in progress	883,802	627,503
Property and equipment, gross	11,491,339	10,854,986
Less accumulated depreciation and amortization	(8,018,015)	(8,020,249)
Property and equipment, net	3,473,324	2,834,737
Investments, net - marketable securities, long term	2,569,000	3,069,000
Right of use asset, net	959,224	1,061,709
Other assets	58,993	61,461
Total other assets	3,587,217	4,192,170
TOTAL ASSETS	22,795,434	17,272,358
Current Liabilities
Operating lease obligations, current portion	232,011	212,561
Accounts payable	477,280	245,523
Customer deposits	4,546,123	829,158
Accrued compensation	343,462	403,281
Accrued expenses and other	75,303	165,222
Total current liabilities	5,674,179	1,855,745
Deferred tax liability	763,983	389,572
Operating lease obligations, net of current portion	727,212	849,148
Total liabilities	7,165,374	3,094,465
Shareholders' Equity
Common stock, no par value, authorized 15,000,000 shares; 4,600,003 and 4,583,407 shares issued, respectively	10,840,658	10,753,529
Additional paid-in capital	2,233,384	2,233,384
Retained earnings	3,323,518	1,690,980
Less: Treasury stock, at cost (150,000 and 100,000 common shares, respectively)	(767,500)	(500,000)
Total shareholders' equity	15,630,060	14,177,893
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 22,795,434	$ 17,272,358