UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1996
_____________
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to _______________
Commission File Number 0-12459
_______
Biosynergy, Inc.
________________________________________________________________
(Exact name of registrant as specified in its charter)
Illinois 36-2880990
_______________________________________ _________________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1940 East Devon Avenue, Elk Grove Village, Illinois 60007
_________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 956-0471
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 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
_________ _________
Number of shares outstanding of common stock as of the close
of the period covered by this report: 13,806,511
__________
Page 1 of the 17 pages contained in the sequential numbering
system.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
____________________
Board of Directors and Shareholders
Biosynergy, Inc.
Elk Grove Village, Illinois
The accompanying Balance Sheet of BIOSYNERGY, INC. as at
July 31, 1996 and the related Statements of Operations,
Shareholders' Equity (Deficit) and Statements of Cash Flows for
the three month periods ended July 31, 1996 and 1995 were not
audited; however, the financial statements for the three month
periods ending July 31, 1996 and 1995 reflect all adjustments
(consisting only of normal reoccurring adjustments) which are, in
the opinion of management, necessary to provide a fair statement
of the results of operations for the interim periods presented.
The financial statements for the fiscal year ended April 30,
1996, were not audited due to the Company's lack of available
cash to pay for such audit; however, the financial statements for
the fiscal year ending April 30, 1996 reflect all adjustments
(consisting only of normal reoccurring adjustments) which are, in
opinion of management, necessary to provide a fair statement of
the results of operations for the period presented.
BIOSYNERGY, INC.
September 11, 1996
<PAGE>
<TABLE>
BIOSYNERGY, INC.
BALANCE SHEET
<CAPTION>
July 31, 1996 April 30,1996
_____________ _____________
Unaudited Unaudited
_________ _________
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash 19,284 9,733
Accounts Receivable, Trade, Net of
Allowance for Uncollectible Accounts
of $433 at July 31, 1996 and $500 at
April 30, 1996 69,432 56,750
Inventories (Notes 1 and 4) 51,287 47,894
Prepaid Expenses 1,980 2,795
_________ __________
Total Current Assets 141,983 117,172
_________ __________
DUE FROM AFFILIATE (Note 3) 275,727 271,020
_________ ___________
PROPERTY AND EQUIPMENT
Equipment 154,121 154,036
Leasehold Improvements 12,216 12,216
________ __________
166,337 166,252
Less: Accumulated Depreciation and
Amortization ( 162,124) ( 162,063)
__________ ___________
4,213 4,189
__________ ___________
OTHER ASSETS
Patents, Net of Accumulated
Amortization (Note 1) 28,633 29,805
Deposits 6,145 6,145
Investment in Affiliated Company (Note 3) - -
_________ __________
34,778 35,950
_________ __________
456,701 428,331
_________ __________
--------- ----------
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Accounts Payable 39,986 46,422
Accrued Executive Compensation 92,331 99,435
Other Accrued Compensation 5,119 1,102
Accrued Payroll Taxes 1,798 -
Deferred Rent 792 317
Other Accrued Expenses 1,727 1,583
___________ __________
Total Current Liabilities 141,753 148,859
___________ __________
COMMITMENTS AND CONTINGENCIES (Note 7) - -
___________ __________
SHAREHOLDERS' EQUITY (Note 5)
Common Stock, No Par Value; 20,000,000 Shares
Authorized, Issued: 13,806,511 Shares
at July 31, 1996 and at April 30, 1996 632,663 632,663
Additional paid-in capital 100 100
Accumulated Deficit (317,815) (353,291)
___________ __________
314,948 279,472
___________ __________
456,701 428,331
___________ __________
----------- ----------
<FN>
The accompanying notes are an integral part of the financial
statements.
</TABLE>
<PAGE>
<TABLE>
BIOSYNERGY, INC.
STATEMENT OF OPERATIONS
Unaudited
<CAPTION>
Three Months Ended July 31,
______________ ______________
1996 1995
______________ ______________
<S> <C> <C>
REVENUES
Sales 132,598 115,873
Computer Rentals and Services 150 150
Interest Income - 54
Other Income 3,986 860
_____________ ______________
136,734 116,937
_____________ ______________
COST AND EXPENSES
Cost of Sales and Other
Operating Charges 45,302 38,275
Research and Development 7,097 7,450
Marketing 14,596 10,982
General and Administrative 34,108 35,347
Interest Expense 155 681
____________ _____________
101,258 92,735
_____________ _____________
NET PROFIT (LOSS) 35,476 24,202
____________ ______________
------------ --------------
NET PROFIT (LOSS) PER COMMON SHARE (Note 6) .003 .002
_____________ _____________
------------ --------------
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING (Note 6) 13,806,511 13,806,511
____________ ______________
------------ --------------
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
BIOSYNERGY, INC.
STATEMENT OF SHAREHOLDERS' EQUITY
THREE MONTHS ENDED JULY 31, 1996
Unaudited
<CAPTION>
Additional
Common Stock Paid-in
Shares Amount Capital Deficit Total
_______ __________ ___________ __________ ________
<S> <C> <C> <C> <C> <C>
Balance, May 1,
1996 13,806,511 632,663 100 (353,291) 279,472
Net Profit (Loss) - - - 35,476 35,476
Sale of Common Stock - - - - -
__________ __________ __________ __________ ________
Balance, July 31,
1996 13,806,511 632,663 100 (317,815) 314,948
__________ __________ __________ __________ _______
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
BIOSYNERGY, INC.
STATEMENTS OF CASH FLOWS
Unaudited
<CAPTION>
THREE MONTHS ENDED JULY 31,
1996 1995
____________ __________
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income (Loss)
Adjustments to Reconcile Net Cash Used for 35,476 24,202
Operating Activities:
Depreciation and Amortization 1,233 3,003
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable ( 12,682) ( 2,717)
(Increase) Decrease in Inventories ( 3,393) ( 5,936)
(Increase) Decrease in Prepaid Expenses 815 ( 236)
Increase (Decrease) in Accounts Payable
and Accrued Expenses ( 7,106) ( 5,516)
_____________ _________
Net Cash Provided (Used) by Operating
Activities 14,343 12,800
_____________ ________
INVESTING ACTIVITIES:
(Increase) Decrease in Due From Affiliate ( 4,707) ( 4,556)
(Increase) Decrease in Equipment ( 85) -
______________ ________
Net Cash Provided (Used) by Investing
Activities ( 4,792) ( 4,556)
______________ ________
FINANCING ACTIVITIES:
Proceeds from Borrowing (Repayments) - ( 1,350)
______________ ________
Net Cash Provided (Used) by Financing
Activities - ( 1,350)
______________ ________
Increase (Decrease) in Cash and Cash
Equivalents 9,551 6,894
_____________ _________
Cash and Cash Equivalents at Beginning
of Period 9,733 4,520
_____________ _________
Cash and Cash Equivalents at End of Period 19,284 11,414
_____________ _________
------------- ---------
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies:
Inventories-Inventories are valued at the lower of cost or
market using the FIFO (first-in, first-out) method.
Equipment and Leasehold Improvements-Equipment and Leasehold
improvements are stated at cost. Depreciation and
amortization are computed primarily on the straight-line
method over the estimated useful lives of the respective
assets. Repairs and maintenance are charged to expense as
incurred; renewals and betterments which significantly
extend the useful lives of existing property and equipment
are capitalized. Significant leasehold improvements are
capitalized and amortized over the term of the lease.
Research and Development, and Patents-Research and
development expenditures are charged to operations as
incurred. The cost of obtaining patents, primarily legal
fees, are capitalized and amortized over seventeen years on
the straight-line method.
2. Company Organization and Description:
The Company was incorporated under the laws of the State of
Illinois on February 9, 1976. It is primarily engaged in
the development and marketing of medical, consumer and
industrial thermometric and thermographic products that
utilize cholesteric liquid crystals.
3. Related Party Transactions:
The Company and its affiliates are related through common
stock ownership as follows as of July 31, 1996:
<TABLE>
S T O C K O F A F F I L I A T E S
_____________________________________
<CAPTION>
F.K. Suzuki
Stevia Biosynergy International Medlab
Stock Owner Company Inc. Inc. Inc.
___________ _________ __________ ______________ ______
<S> <C> <C> <C> <C>
Stevia Company, Inc. - 13.8% - -
Biosynergy, Inc. .4% - - -
F.K. Suzuki
International, Inc. 55.8% 18.8% - 100.0%
Fred K. Suzuki, - - 35.6% -
Officer and Director
Lauane C. Addis, .1% .1% 32.7% -
Officer and Director
James F. Schembri, - 12.9% - -
Director
</TABLE>
Upon the completion of the Company's public offering on July
7, 1983, the Company issued 2,000,000 shares of its no par
value common stock in exchange for 1,058,181 shares of
commonstock of Stevia Company, Inc. The common stockof Stevia
<PAGE>
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
Company, Inc. had no book value at the time of the exchange
and, as a consequence, the Company recorded the exchange at
zero dollar value. The Company owned 130,403 shares of
Stevia Company, Inc. Common Stock at July 31, 1996.
Although the Common Stock of Stevia Company, Inc. can be
traded in the over-the-counter market, there is no
established public trading market for such common stock due
to limited and sporadic trades. Stevia Company, Inc. Common
Stock had an estimated market price of less than $.01 as of
July 31, 1996.
Common offices are shared with Stevia Company, Inc.
Intercompany charges for shared expenses are made by
whichever company incurs such charges. Such intercompany
charges, together with funds advanced in prior years, have
resulted in the following balances due from Stevia Company,
Inc.:
July 31, 1996 - $263,067
April 30, 1996 - $258,360
At April 30, 1996 and July 31, 1996, the financial condition
of Stevia Company, Inc. was such that it is unlikely to be
able to repay the Company during the current year without
liquidating a portion of its assets.
The following balances were due from F.K. Suzuki
International, Inc. at the dates indicated based on the
allocation of common expenses offset by advances received
from time to time:
July 31, 1996 - $12,660
April 30, 1996 - $12,660
At April 30, 1996 and July 31, 1996, the financial condition
of F.K. Suzuki International, Inc. was such that it is
unlikely to be able to repay the Company during the current
year without liquidating a portion of its assets.
See also Note 5.
4. Inventories:
Components of inventories are as follows:
<PAGE>
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 July 31, 1996
______________ _____________
Raw Materials $ 30,015 $ 32,480
Work-in process 16,161 16,712
Finished Goods 1,718 2,095
______________ _____________
$ 47,894 $ 51,287
______________ _____________
-------------- -------------
5. Common Stock:
As of July 31, 1996, under an employee stock incentive plan
adopted in 1983, stock options and stock appreciation rights
for 131,500 shares of stock were granted to four advisors,
directors, officers, consultants, and/or employees of the
Company. The exercise price is $.05 per share. The Company
reserved 350,000 shares of its common stock for this plan.
Under the plan, stock options may be granted with respect to
shares subject to expired stock options. As permitted in
the plan, the directors of the Company extended the
termination date of the plan from May 19, 1986 to December
31, 1989. No further action has been taken to extend the
term of the plan.
Effective January 31, 1990, the Company entered into an
agreement with its President, Fred K. Suzuki, pursuant to
which the Company granted an option to convert all or a
portion of his accrued but unpaid compensation into shares
of the Company's no par value common stock at a conversion
rate of $.05 per share. The option is conditioned upon the
Company having sufficient liquid assets to pay all employee
taxes due at the time of the conversion. The option may be
exercised until Mr. Suzuki is no longer owed accrued but
unpaid salary. The accrued but unpaid salary arose as a
result of Mr. Suzuki agreeing to defer his salary when the
Company was not financially able to pay salaries on a
regular basis. The option contains anti-dilutive provisions
in the event of corporate capital reorganizations. An
aggregate of 1,122,263 shares of the Company's common stock
were subject to Mr. Suzuki's option at July 31, 1996.
On August 1, 1993, the Company entered into a Stock Option
Agreement with Fred K. Suzuki, President, granting Mr.
Suzuki an option to purchase 3,000,000 shares of the
Company's common stock at an option price of $0.025 per
share. This Stock Option Agreement was granted to Mr.
Suzuki in consideration of his loaning money to the company
on an unsecured basis from time to time. The option
contains anti-dilutive provisions in the event of corporate
capital reorganizations. As of July 31, 1996, no portion of
this Option has been exercised.
The Company's common stock is traded in the over-the-counter
market. However, there is no established public trading
market for such common stock due to limited and sporadic
trades. The Company's common stock is not listed on a
recognized market or stock exchange.
<PAGE>
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
6. Income (Loss) Per Share:
Net income or (loss) per common share is computed using the
weighted average number of common shares outstanding during
the period, after giving effect to stock splits. Fully
diluted earnings per share, assuming exercise of outstanding
options, is not presented since exercise of the options
would be anti-dilutive.
7. Lease Commitments:
In 1996, the Company entered into a new lease agreement for
its current facilities which expires January 31, 2001. The
base rent under the lease, of which 15% is allocated to
Stevia Company, Inc., escalates over the life of the lease.
Total rent payments for each fiscal year are as follows:
Year ending April 30 Total Base Rent
____________________ _______________
1996 $11,000
1997 $66,733
1998 $68,200
1999 $68,567
2000 $69,300
2001 $51,975
Also included in the lease agreement are escalation clauses
for the lessor's increases in property taxes and other
operating expenses. The lease can be extended for an
additional five year term.
<PAGE>
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
8. Income Taxes:
At April 30, 1996, net operating loss carryforwards were
available and expire, if not used, as follows:
Year Ending Net Operating
April 30, Losses
__________ _____________
1998 $ 281,470
1999 677,671
2000 455,166
2001 449,142
2002 132,470
2003 85,822
2004 41,176
2006 160
2007 28,253
___________
$ 2,151,330
-----------
The Company adopted Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes" for
the fiscal year ending April 30, 1994 as required by SFAS
No. 109. The effect, if any, of adopting Statement No. 109
on pre-tax income from continuing operations is not
material. The company has elected not to retroactively
adopt the provisions allowed in SFAS No. 109; however, all
provisions of the document have been applied since the
beginning of fiscal year 1994.
9. Major Customers:
Shipments to one customer accounted for approximately 31.24%
of sales during the first quarter of Fiscal 1997. The
outstanding receivable from this customer was $27,892 at
July 31, 1996.
10. Management's Plans:
In view of the fact the Company has incurred substantial
losses in prior years, management of the Company recognizes
the Company's ability to continue as a going concern is
subject to continued sales performance and the ability of
the Company to raise money, when needed. Therefore,
management intends to continue expanding the Company's
marketing efforts.
<PAGE>
ITEM 2. MANAGEMENT ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
SALES/REVENUES
--------------
For the three month period ending July 31, 1996 ("1st Quarter"),
the net sales increased 14.43%, or $16,725, as compared to net
sales for the comparative quarter ending in 1995. This increase
in sales is the result of a 16% increase in sales of HemoTempR II
along with a slight increase in other product sales as compared
to the same quarter in 1995. As of July 31, 1996, the Company
had no back orders.
In addition to the above, during the 1st Quarter the Company
realized $150 of income as a result of leasing a portion of its
computer time to Stevia Company, Inc., an affiliate, and $3,986
of miscellaneous revenues, primarily related to specialized
printing services provided on an "as needed" basis.
INCOME/LOSS
-----------
The Company realized a net profit of $35,476 during the 1st
Quarter as compared to a net profit of $24,202 for the
comparative quarter of the prior year. The increase in income is
a result of improved sales. There can be no assurance however,
that the Company's sales will improve or stay at their present
level on which the profitability of the Company is dependent.
As of April 30, 1996, the Company has incurred net operating
losses aggregating $2,151,330. As a result of net operating loss
carryovers, no income taxes were due for Fiscal 1996 and will
unlikely be due for Fiscal 1997. See "FINANCIAL STATEMENTS" for
the effect of the net operating loss carryforwards on the
Company's income tax position. The Tax Reform Act of 1986 will
not alter the Company's net operating loss carryforward position,
and the net operating loss carryforwards will be available and
expire, if not used, as set forth in Footnote 8 of the "FINANCIAL
STATEMENTS."
EXPENSES
--------
GENERAL
--------
The operating expenses incurred by the Company during the 1st
Quarter increased overall by 9.19%, or $8,523, as compared to the
1st Quarter in 1995, primarily due to an increase in the cost of
sales and marketing expenses.
COST OF SALES AND OTHER OPERATING CHARGES
-----------------------------------------
The cost of sales and other operating charges during the 1st
Quarter increased by $7,027 as compared to these expenses during
the same quarter ending in 1995. As a percentage of sales, the
cost of sales and other operating charges were 34.16% during the
1st Quarter and 33.03% for the comparative quarter ending in
1995, which did not materially affect the results of operations
of the Company. The overall increase in cost of sales and
operating charges was due primarily to an increase in sales on a
unit basis.
<PAGE>
RESEARCH AND DEVELOPMENT
________________________
Research and Development costs decreased $353, or 4.74%, as
compared to the same quarter in 1995. This decrease was not
material to the operations of the Company. The Company intends
to direct future research and development to the improvement of
its current product line and to those new products, the
development of which has already commenced, or those products
which are natural expansions of the current product line. The
Company may also increase its research and development activities
to fulfill research and development contracts for the development
of products for customers, which will be offset by research
revenues.
MARKETING
_________
Marketing costs for the 1st Quarter increased by $3,614 or
32.91%, as compared to the quarter ending July 31, 1995. This
increase is a result of increased marketing activity such as
advertising, and an increase in commissioned sales. As financial
resources become available, the Company intends to further expand
its marketing budget.
GENERAL AND ADMINISTRATIVE
__________________________
General and administrative costs decreased by $1,239, or 3.5%, as
compared to the 1st quarter ending in 1995. This decrease was
not indicative of any material changes in general and
administrative expenses.
ASSETS/LIABILITIES
__________________
GENERAL
_______
Since April 30, 1996, the Company's assets and liabilities have
not materially changed.
DUE FROM AFFILIATES
___________________
The Company was owed $263,067 by Stevia Company, Inc. ("Stevia"),
an affiliate, and $12,660 by F.K. Suzuki International, Inc.
("FKSI"), an affiliate, at July 31, 1996. These affiliates owed
$258,360 and $12,660 at April 30, 1996, respectively. These
accounts primarily represent common expenses which are charged by
one company to the other for reimbursement. These expenses
include certain rent, salaries for common employees, insurance
and employee benefits, and legal fees. Beginning May 1, 1994, a
greater portion of these common expenses were allocated to the
Company to reflect the decreasing activity of Stevia Company,
Inc. and the increased activity of the Company. These expenses
are reviewed from time to time to determine if reallocation is
appropriate. See "Financial Statements." These expenses are
incurred in the ordinary course of business. As a result of the
<PAGE>
increase in amounts due from affiliates, the Company has reduced
its own liquid resources. The Company intends to reverse this
trend by restricting the advances to and common expenses incurred
on behalf of Stevia and FSKI until these affiliates are in a
position to reimburse the Company.
CURRENT ASSETS/CURRENT LIABILITY RATIO
______________________________________
The ratio of current assets to current liabilities, 1 to 1, has
improved compared to .79 to 1 at April 30, 1996. In view of the
Company's operating expenses, there is a risk that the Company's
current asset/current liability ratio may not be adequate for the
Company's current or future operating needs unless the Company's
sales remain at the present level or improve.
WORKING CAPITAL/LIQUIDITY
_________________________
During the 1st Quarter, the Company experienced an increase in
working capital of $31,917. This is due to the increase in
profit of the Company during the 1st Quarter and a corresponding
decrease in liabilities.
In view of the fact that the Company has incurred substantial
losses in prior years, Management of the Company recognizes the
Company's ability to continue as a going concern is subject to
maintaining and improving sales, profitable operations,
collection of accounts receivable, and the ability of the Company
to obtain capital, when needed, of which there is no assurance.
In this regard, the Company intends to continue expanding its
marketing efforts. The Company does not have a working line of
credit, and there can be no assurance, nor is it anticipated,
that the Company will be able to obtain a working line of credit
on acceptable terms in the near future. Management will seek out
financing opportunities, if necessary. Irrespective of the
Company's past financial condition, the Company has not been
refused goods or services from any of its vendors.
Except for its operating working capital needs, the Company has
no material contingencies for which it must provide.
PART II - OTHER INFORMATION
___________________________
Item 6. Exhibits and Reports on Form 8K.
________________________________
(a) The following exhibits are filed as a part of this report:
(2) Plan of Acquisition, reorganization, arrangement,
liquidation or succession - none
(3) Articles of Incorporation and By-laws (i)
(4) Instruments defining rights of security holders,
including indentures - none.
(10) Material Contracts
(a) Deferred Compensation Option Agreement, dated
January 31, 1990, between the Company and Fred K.
Suzuki (ii)
(b) Stock Option Agreement, dated August 1, 1993,
between the Company and Fred K. Suzuki (iii)
<PAGE>
(11) Statement regarding computation of per share earnings-
none.
(15) Letter dated September 11, 1996, regarding interim
financial information. (iv)
(18) Letter regarding change in accounting principals -
none.
(19) Reports furnished to security holders - none.
(22) Published report regarding matters submitted to vote of
security holders - none.
(23) Consents of experts and counsel - none.
(24) Power of Attorney - none.
(27) Financial Data Schedule - P. E-1
(b) No Current Reports on Form 8K were filed during the period
covered by this Report.
_____________________
[FN]
(i) Incorporated by reference to a Registration Statement
filed on Form S-18 with the Securities and Exchange
Commission, 1933 Act Registration Number 2-38015C,
under the Securities Act of 1933, as amended, and
Incorporated by reference, with regard to Amended By-
Laws, to the Company's Annual Report on Form 10K for
fiscal year ending April 30, 1986 filed with the
Securities and Exchange Commission.
(ii) Incorporated by reference to the Company's Annual
Report on Form 10K for fiscal year ending April 30,
1990 filed with the Securities and Exchange Commission.
(iii) Incorporated by reference to the Company's Annual
Report on Form 10K for fiscal year ending April 30,
1994 filed with the Securities and Exchange Commission.
(iv) This exhibit is included in this report as a part of
the Financial Statements, and is incorporated by
reference herein.
<PAGE>
SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Biosynergy, Inc.
Date ___________________ ______________________________
Fred K. Suzuki
President, Chairman of the
Board, Chief Accounting
Officer and Treasurer
Date ___________________ ______________________________
Lauane C. Addis
Secretary, Corporate Counsel
and Director
<PAGE>
SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Biosynergy, Inc.
Date September 13, 1996 /s/ FRED K. SUZUKI /s/
__________________ ___________________________________
Fred K. Suzuki
President, Chairman of the Board,
Chief Accounting Officer and
Treasurer
Date September 13, 1996 /s/ LAUANE C. ADDIS /s/
__________________ ___________________________________
Lauane C. Addis
Secretary, Corporate Counsel and
Director
<PAGE>
_________________________________________________________________
_________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
Quarterly Report Pursuant to Section 13 or 15 (d)
of
THE SECURITIES AND EXCHANGE ACT OF 1934
For the period ending July 31, 1996
Commission File Number: 0-12459
BIOSYNERGY, INC.
_________________________________________________________________
(Exact name of registrant as specified in charter)
1940 East Devon Avenue
Elk Grove Village, IL 60007
(847) 956-0471
(Address and telephone number of registrant's principal
executive office on a principal place of business)
__________________________________
EXHIBITS
_________________________________________________________________
_________________________________________________________________
<PAGE>
EXHIBIT INDEX
_____________
Page Number
Pursuant to
Sequential
Exhibit Numbering
Number Exhibit System
___________ _______ __________
27 Financial Data Schedule E-1
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM FINANCIAL STATEMENTS OF THE REGISTRANT FOR THE THREE MONTH
PERIOD ENDING JULY 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> JUL-31-1996
<CASH> 19,284
<SECURITIES> 0
<RECEIVABLES> 69,432
<ALLOWANCES> 500
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0
0
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