Biosynergy (BSYN) 10-Q 17 Mar 14 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Jan. 31, 2014
Document And Entity Information	'
Entity Registrant Name	'BIOSYNERGY INC
Entity Central Index Key	'0000715812
Document Type	'10-Q
Document Period End Date	31-Jan-14
Amendment Flag	'false
Current Fiscal Year End Date	'--04-30
Is Entity a Well-known Seasoned Issuer?	'No
Is Entity a Voluntary Filer?	'No
Is Entity's Reporting Status Current?	'No
Entity Filer Category	'Smaller Reporting Company
Entity Common Stock, Shares Outstanding	14,935,511
Document Fiscal Period Focus	'Q3
Document Fiscal Year Focus	'2013

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Jan. 31, 2014	Apr. 30, 2013
Current assets	'	'
Cash	$847,561	$796,023
Accounts receivable, trade (Net of allowance for doubtful accounts of $500 at October 31, 2013 and April 30, 2013)	135,019	173,583
Inventories	135,437	139,424
Prepaid expenses	26,903	42,463
Total current assets	1,144,920	1,151,493
Equipment and leasehold improvements	'	'
Equipment	208,618	205,093
Leasehold improvements	20,022	20,022
[PropertyPlantAndEquipmentGross]	228,640	225,115
Less accumulated depreciation and amortization	-218,083	-212,978
Total equipment and leasehold improvements, net	10,557	12,137
Other assets	'	'
Patents less accumulated amortization	26,689	28,409
Pending patents	177,711	148,912
Deposits	5,937	5,937
Total other assets	210,337	183,258
[Assets]	1,365,814	1,346,888
Current Liabilities	'	'
Accounts payable	15,176	17,008
Accrued compensation and payroll taxes	10,916	35,875
Medical device excise tax	436	'
Other accrued expenses	'	1,662
Accrued vacation	18,485	22,507
Total current liabilities	45,013	77,052
Deferred income taxes	37,734	37,734
Shareholders equity	'	'
Common stock, no par value: 20,000,000 authorized shares issued: 14,935,511 shares outstanding at July 31, 2013 and April 30, 2013	660,988	660,988
Receivable from Affiliate	-19,699	-19,699
Retained earnings	641,778	590,813
Total Shareholders Equity	1,283,067	1,232,102
[LiabilitiesAndStockholdersEquity]	$1,365,814	$1,346,888

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Jan. 31, 2014	Apr. 30, 2013
Balance Sheets	'	'
Net of allowance for doubtful accounts	$500	$500
Common stock, no par value	20,000,000	20,000,000
Authorized shares issued and outstanding	14,935,511	14,935,511

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Income Statement [Abstract]	'	'	'	'
Net Sales	$273,017	$309,912	$942,491	$951,101
Cost of Sales	100,835	95,642	306,931	273,983
Gross Profit	172,182	214,270	635,560	677,118
Operating Expenses	'	'	'	'
Marketing	46,926	53,614	143,365	155,933
General and administrative	87,561	94,182	307,955	311,167
Research and development	39,896	36,911	109,891	92,710
Total Operating Expenses	174,383	184,707	561,211	559,810
Income from Operations	-2,201	29,563	74,349	117,308
Other Income	'	'	'	'
Interest income	137	229	460	765
Other income	480	480	1,440	1,440
Total Other Income	617	709	1,900	2,205
Net income (loss) before income taxes	-1,584	30,272	76,249	119,513
Provision for income taxes	1,512	10,208	25,284	40,300
Net Income (loss)	($3,096)	$20,064	$50,965	$79,213
Weighted-Average common stock outstanding-basic and diluted	14,935,511	14,935,511	14,935,511	14,935,511

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Statement of Cash Flows [Abstract]	'	'
Net income	$50,965	$79,213
Depreciation and amortization	6,826	5,836
Changes in assets and liabilities	'	'
Accounts receivable	38,564	18,132
Inventories	3,987	-11,443
Prepaid expenses	15,560	2,828
Accounts payable and accrued expenses	-32,040	-9,171
Total Adjustments	32,897	6,182
Net cash provided by operating activities	83,862	85,395
Cash flow from investing activities	'	'
Purchase of equipment	-3,525	-8,848
Patents and patents pending	-28,799	-34,873
Net cash used in investing activities	-32,324	-43,721
Increase in cash and cash equivalents	51,538	41,674
Cash Beginning Period	796,023	786,574
Cash Ending Period	847,561	828,248
Supplemental Cash Flow Information	'	'
Income taxes paid	29,076	40,300
Interest paid	$0	$0

Shareholders_Equity_Unaudited

Shareholders Equity (Unaudited) (USD $)	Common Stock	Retained Earnings	Receivable From Affiliate	Total
Beginning Balance at Apr. 30, 2013	'	$590,813	($19,699)	$1,232,102
Comon Stock Outstanding at Apr. 30, 2013	14,935,511	'	'	14,935,511
Net Income	'	50,965	'	50,965
Ending Balance at Jan. 31, 2014	'	'	'	1,283,067
Common Stock Value at Jan. 31, 2014	$660,988	'	'	$660,988

Company_Organization_and_Descr

Company Organization and Description	9 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
Company Organization and Description	'
	In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, consisting of normal recurring adjustments which are necessary for a fair presentation of the financial position and results of operations for the periods presented. The unaudited condensed financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America. These condensed financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s April 30, 2013 Annual Report on Form 10-K. The results of operations for the three and nine months ended January 31, 2014 are not necessarily indicative of the operating results for the full year.
	Biosynergy, Inc. (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. The Company’s primary product, the HemoTemp II Blood Monitoring Device, accounted for approximately 87.68% of the sales during the quarter ending January 31, 2014 and approximately 90.98 of the sales during the nine month period ending January 31, 2014. The products are sold to hospitals, clinical end-users, laboratories and product dealers located throughout the United States.

Common_Stock

Common Stock	9 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
Common Stock	'
	The Company’s common stock is traded in the over-the-counter market. However, there is no established public trading market due to limited and sporadic trades. The Company’s common stock is not listed on a recognized market or stock exchange.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
Summary of Significant Accounting Policies	'
	Cash
	The Company maintains all of its cash in bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts.
	Receivables
	Receivables are carried at original invoice less estimates made for doubtful receivables. Management determines the allowances for doubtful accounts by reviewing and identifying troubled accounts on a periodic basis and by using historical experience applied to an aging of accounts. A receivable is considered to be past due if any portion of the receivable balance is outstanding for more than 30 days. Receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.
	Inventories
	Inventories are valued at the lower of cost or market using the FIFO (first-in, first-out) method.
	Depreciation and Amortization
	Equipment and leasehold improvements are stated at cost. Depreciation is 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 equipment are capitalized. Significant leasehold improvements are capitalized and amortized over the term of the lease; equipment is depreciated over 3 to 10 years.
	Prepaid Expenses
	Certain expenses, primarily insurance and income taxes, have been prepaid and will be used within one year.
	Revenue Recognition
	The Company recognizes net sales revenue upon the shipment of product to customers.
	Research and Development and Patents
	Research and development expenditures are charged to operations as incurred. The costs of obtaining patents, primarily legal fees, are capitalized and once obtained, amortized over the life of the respective patent on the straight-line method. Patents relate to products that have been developed and are being marketed by the Company. Patents pending relate to products under development.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Income (Loss) Per Common Share
	Income (loss) per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. When dilutive, stock options are included as share equivalents using the treasury stock method in the calculation of diluted earnings per share. The Company has no outstanding options or other rights to acquire its unissued common shares.
	Comprehensive Income
	Components of comprehensive income include amounts that are included in the comprehensive income but are excluded from net income. During the quarter and nine months ending January 31, 2014 there were no differences between the Company’s net income and comprehensive income.
	Income Taxes
	Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due and deferred taxes related primarily to differences in the methods of accounting for patents, inventories, certain accrued expenses and bad debt expenses for financial and income tax purposes. The deferred income taxes represent the future tax consequences of those differences, which will be taxable in the future.
	The Company files tax returns in the U.S. federal jurisdiction and with the state of Illinois. Various tax years remain open to examinations although there are currently no ongoing tax examinations. Management’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expenses.
	The provision for income taxes consists of the following components as of January 31:
			2014			2013
	Current
	Federal	$	18,193		$	29,185
	State		7,091			11,115
	Provision for Income Taxes	$	25,284		$	40,300
	The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate are as follows:
		Nine Months ended January 31,
		2014			2013
	U.S. federal statutory tax rate		34	%		34	%
	State income tax expense, net of		5			5
	Federal tax benefit
	Adjustment for prior year estimates		(5.0	)		—
	Effect of graduated federal tax rates		(0.8	)		(5.3	)
	and other
	Effective Tax Rate		33.2	%		33.7	%
	Recent Accounting Pronouncements
	The FASB issues ASUs to amend the authoritative literature in Accounting Standards Certification (ASC). There have been a number of ASUs to date that amend the original text of ASCs. Those ASUs recently issued either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Jan. 31, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	The Company and its affiliates are related through common stock ownership as follows as of January 31, 2014:
			Stock of Affiliates
						F.K. Suzuki International, Inc.
				Biosynergy, Inc.
								Medlab, Inc.
	F.K. Suzuki International, Inc			30	%	- %		100	%
	Fred K. Suzuki, Officer			4.1		30		—
	Lauane C. Addis, Officer			—		—		—
	Jeanne S. Addis, Trustee			—		28.1		—
	James F. Schembri, Director			8.6		—		—
	Mary K. Friske, Officer			0.3		0.7		—
	Laurence C. Mead, Officer			0.4		10	-1	—
	Beverly K. Suzuki, Officer			2.7		—		—
	_________________
		-1	Effective December 13, 2013, Fred K. Suzuki and Jeanne S. Addis, Trustee, gifted 3,051 shares each of F.K. Suzuki International, Inc. (“FKSI”) common stock to Laurence C. Mead. As a result of these gifts, Laurence C. Mead currently owns 10,102 shares, or approximately 10% of the outstanding common stock of FKSI.
	As of January 31, 2014, $19,699 was due from F. K. Suzuki International, Inc. These balances result from an allocation of common expenses charged to FKSI prior to April 30, 2006 offset by advances received from time to time. No interest income is received or accrued by the Company. The financial condition of FKSI is such that it will unlikely be able to repay the Company during the next year without liquidating a portion of its assets, including a portion of its ownership in the Company. As a result, the receivable balance has been reclassified as a contra equity account since April 30, 2006.

Major_Customers

Major Customers	9 Months Ended
	Jan. 31, 2014
Accounting Policies [Abstract]	'
Major Customers	'
	Shipments to one customer amounted to 34.87% of sales during the first nine months of Fiscal 2014 compared to 34.40% during the comparative Fiscal 2013 period. As of January 31, 2014, there were outstanding accounts receivable from this customer of $69,534 compared to $68,200 at January 31, 2013. Shipments to another customer amounted to 28.65% of sales during the first nine months of Fiscal 2014 and 29.14% of sales during the first nine months of Fiscal 2013. As of January 31, 2014, there were outstanding accounts receivable from this customer of $26,835 compared to $28,655 at January 31, 2013.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
Cash	'
	The Company maintains all of its cash in bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts.
Receivables	'
	Receivables are carried at original invoice less estimates made for doubtful receivables. Management determines the allowances for doubtful accounts by reviewing and identifying troubled accounts on a periodic basis and by using historical experience applied to an aging of accounts. A receivable is considered to be past due if any portion of the receivable balance is outstanding for more than 30 days. Receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.
Inventories	'
	Inventories are valued at the lower of cost or market using the FIFO (first-in, first-out) method.
Depreciation and Amortization	'
	Equipment and leasehold improvements are stated at cost. Depreciation is 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 equipment are capitalized. Significant leasehold improvements are capitalized and amortized over the term of the lease; equipment is depreciated over 3 to 10 years.
Prepaid Expenses	'
	Certain expenses, primarily insurance and income taxes, have been prepaid and will be used within one year.
Revenue Recognition	'
	The Company recognizes net sales revenue upon the shipment of product to customers.
Research and Development and Patents	'
	Research and development expenditures are charged to operations as incurred. The costs of obtaining patents, primarily legal fees, are capitalized and once obtained, amortized over the life of the respective patent on the straight-line method. Patents relate to products that have been developed and are being marketed by the Company. Patents pending relate to products under development.
Use of Estimates	'
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Income Per Comon Share	'
	Income (loss) per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. When dilutive, stock options are included as share equivalents using the treasury stock method in the calculation of diluted earnings per share. The Company has no outstanding options or other rights to acquire its unissued common shares.
Comprehensive Income	'
	Components of comprehensive income include amounts that are included in the comprehensive income but are excluded from net income. During the quarter and nine months ending January 31, 2014 there were no differences between the Company’s net income and comprehensive income.
Income Taxes	'
	Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due and deferred taxes related primarily to differences in the methods of accounting for patents, inventories, certain accrued expenses and bad debt expenses for financial and income tax purposes. The deferred income taxes represent the future tax consequences of those differences, which will be taxable in the future.
	The Company files tax returns in the U.S. federal jurisdiction and with the state of Illinois. Various tax years remain open to examinations although there are currently no ongoing tax examinations. Management’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expenses.
	The provision for income taxes consists of the following components as of January 31:
			2014			2013
	Current
	Federal	$	18,193		$	29,185
	State		7,091			11,115
	Provision for Income Taxes	$	25,284		$	40,300
	The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate are as follows:
		Nine Months ended January 31,
		2014			2013
	U.S. federal statutory tax rate		34	%		34	%
	State income tax expense, net of		5			5
	Federal tax benefit
	Adjustment for prior year estimates		(5.0	)		—
	Effect of graduated federal tax rates		(0.8	)		(5.3	)
	and other
	Effective Tax Rate		33.2	%		33.7	%
Recent Accounting Pronouncements	'
	The FASB issues ASUs to amend the authoritative literature in Accounting Standards Certification (ASC). There have been a number of ASUs to date that amend the original text of ASCs. Those ASUs recently issued either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Jan. 31, 2014
Notes to Financial Statements	'
Provision for Income Taxes	'
	The provision for income taxes consists of the following components as of January 31:
			2014		2013
	Current
	Federal	$	18,193	$	29,185
	State		7,091		11,115
	Provision for Income Taxes	$	25,284	$	40,300
Income Tax Rate	'
	The provision for income taxes consists of the following components as of January 31:
			2014		2013
	Current
	Federal	$	18,193	$	29,185
	State		7,091		11,115
	Provision for Income Taxes	$	25,284	$	40,300

Inventories

Inventories	9 Months Ended
	Jan. 31, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Components of inventories are as follows:
		January 31,		April 30,
		2014		2013
	Raw materials	$	101,906	$	114,081
	Work-in-process		21,957		18,638
	Finished goods		11,574		6,705
		$	135,437	$	139,424

Related_Party_Transactions_Tab

Related Party Transactions (Tables)	9 Months Ended
	Jan. 31, 2014
Related Party Transactions [Abstract]	'
Stock of Affiliates	'
		Stock of Affiliates
			F.K. Suzuki International, Inc.
		Biosynergy, Inc.
				Medlab, Inc.
	F.K. Suzuki International, Inc	30.00%	- %	100.00%
	Fred K. Suzuki, Officer	4.1	30	-
	Lauane C. Addis, Officer	-	-	-
	Jeanne S. Addis, Trustee	-	28.1	-
	James F. Schembri, Director	8.6	-	-
	Mary K. Friske, Officer	.3	.7	-
	Laurence C. Mead, Officer	.4	10.0(1)	-
	Beverly K. Suzuki, Officer	2.7	-	-
	_________________
		-1	Effective December 13, 2013, Fred K. Suzuki and Jeanne S. Addis, Trustee, gifted 3,051 shares each of F.K. Suzuki International, Inc. (“FKSI”) common stock to Laurence C. Mead. As a result of these gifts, Laurence C. Mead currently owns 10,102 shares, or approximately 10% of the outstanding common stock of FKSI.

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Jan. 31, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
		January 31,		April 30,
		2014		2013
	Raw materials	$	101,906	$	114,081
	Work-in-process		21,957		18,638
	Finished goods		11,574		6,705
		$	135,437	$	139,424

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Tables) - Income Tax Rate (Details)	9 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Notes to Financial Statements	'	'
U.S. federal statutory tax rate	34.00%	34.00%
State income tax expense, net of Federal tax benefit	5.00%	5.00%
Adjustment for prior year estimates	-5.00%	0.00%
Effect of graduated federal tax rates	-0.80%	-5.30%
Effective Tax Rate	33.20%	33.70%

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Tables) - Provision for Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Notes to Financial Statements	'	'	'	'
Federal	'	'	$18,193	$29,185
State	'	'	7,091	11,115
Provision (benefit) for Income Taxes	$1,512	$10,208	$25,284	$40,300

Inventories_Inventories_Detail

Inventories - Inventories (Details) (USD $)	Jan. 31, 2014	Apr. 30, 2013
Inventory Disclosure [Abstract]	'	'
Raw materials	$101,906	$114,081
Work-in-process	21,957	18,638
Finished goods	11,574	6,705
[us-gaap:InventoryGross]	$135,437	$139,424

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	Jan. 31, 2014	Apr. 30, 2013
Related Party Transactions [Abstract]	'	'
Due from affiliate	$19,699	$19,699

Major_Customers_Details_Narrat

Major Customers (Details Narrative) (USD $)	9 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Customer Two	'	'
Sales	28.65%	29.14%
Accounts Receivable	$26,835	$28,655
Customer One	'	'
Sales	34.87%	34.40%
Accounts Receivable	$69,534	$68,200