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 January 31, 1998
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 18 pages contained in the sequential numbering system.
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 January 31,
1998 and the related Statements of Operations, Shareholders' Equity
(Deficit) and Statements of Cash Flows for the three and nine month
periods ended January 31, 1998 and 1997 were not audited; however, the
financial statements for the three and nine month periods ending January
31, 1998 and 1997 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, 1997,
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, 1997 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.
March 9, 1998
BIOSYNERGY, INC.
BALANCE SHEET
ASSETS
January 31, 1998 April 30,1997
Unaudited Unaudited
CURRENT ASSETS
Cash 18,746 12,420
Accounts Receivable, Trade, Net of
Allowance for Uncollectible Accounts
of $500 at January 31, 1998 and $500 at
April 30, 1997 78,472 61,030
Inventories (Notes 1 and 4) 49,095 45,956
Prepaid Expenses 5,822 2,268
Total Current Assets 152,135 121,674
DUE FROM AFFILIATE (Note 3) 306,118 291,795
PROPERTY AND EQUIPMENT
Equipment 170,670 161,320
Leasehold Improvements 15,140 12,216
185,810 173,536
Less: Accumulated Depreciation and
Amortization ( 164,783) ( 163,010)
21,027 10,526
OTHER ASSETS
Patents, Net of Accumulated
Amortization (Note 1) 22,704 25,533
Deposits 5,995 6,051
Investment in Affiliated Company (Note 3) - -
28,699 31,584
507,979 455,579
--------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable 10,103 12,873
Accrued Executive Compensation 37,355 67,856
Other Accrued Compensation 6,880 2,137
Accrued Payroll Taxes 559 791
Deferred Rent 1,775 1,751
Other Accrued Expenses 1,887 1,736
Total Current Liabilities 58,559 87,144
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 January 31, 1998 and
at April 30, 1997 632,663 632,663
Additional paid-in capital 100 100
Accumulated Deficit (183,343) (264,328)
449,420 368,435
507,979 455,579
----------- ----------
The accompanying notes are an integral part of the financial statements.
BIOSYNERGY, INC.
STATEMENT OF OPERATIONS
Unaudited
Three Months Ended Nine Months Ended
January 31, January 31,
1998 1997 1998 1997
REVENUES
Sales 129,139 115,625 403,014 380,661
Interest Income - 20 - 54
Computer Rentals
and Services 150 150 450 450
Other Income 762 772 2,192 6,669
130,051 116,567 405,656 387,834
COST AND EXPENSES
Cost of Sales and Other
Operating Charges 47,164 48,176 144,720 138,198
Research and
Development 8,230 7,941 26,364 23,414
Marketing 13,195 12,525 37,477 39,814
General and
Administrative 41,200 35,281 115,868 107,293
Interest Expense -- 39 242 343
109,789 103,962 324,671 309,062
NET INCOME (LOSS) BEFORE INCOME
TAXES AND EXTRAORDINARY
ITEMS 20,262 12,605 80,985 78,772
INCOME TAXES 3,039 1,891 15,246 14,693
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEMS 17,223 10,714 65,739 64,079
EXTRAORDINARY ITEMS
Reduction of Income Taxes
arising from utilization of
prior Years' Net Operating Losses
(Note 8) 3,039 1,891 15,246 14,693
NET INCOME (LOSS) 20,262 12,605 80,985 78,772
NET INCOME (LOSS) PER
COMMON SHARE (Note 6):
Before Extraordinary Items .0012 .0007 .0048 .0046
Extraordinary Items .0002 .0001 .0011 .0011
NET INCOME (LOSS) .0014 .0008 .0059 .0057
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
(Note 6) 13,806,511 13,806,511 13,806,511 13,806,511
------------- -------------- ----------- -----------
The accompanying notes are an integral part of the financial statements.
BIOSYNERGY, INC.
STATEMENT OF SHAREHOLDERS' EQUITY
NINE MONTHS ENDED JANUARY 31, 1998
Unaudited
Additional
Common Stock Paid-in
Shares Amount Capital Deficit Total
Balance, May 1,
1997 13,806,511 632,663 100 (264,328) 368,435
Net Profit (Loss) - - - 80,985 80,985
Balance, January 31,
1998 13,806,511 632,663 100 (183,343) 449,420
The accompanying notes are an integral part of the financial statements.
BIOSYNERGY, INC.
STATEMENTS OF CASH FLOWS
Unaudited
NINE MONTHS ENDED JANUARY 31,
1998 1997
OPERATING ACTIVITIES:
Net Income (Loss) 80,985 78,772
Adjustments to Reconcile Net Cash Used for
Operating Activities:
Depreciation and Amortization 4,602 3,419
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (17,442) (10,750)
(Increase) Decrease in Inventories ( 3,139) 7,191
(Increase) Decrease in Prepaid Expenses ( 3,554) ( 535)
Increase (Decrease) in Accounts Payable
and Accrued Expenses (28,585) (54,316)
Net Cash Provided (Used) by Operating
Activities 32,867 23,781
INVESTING ACTIVITIES:
(Increase) Decrease in Due From Affiliate ( 14,323) ( 15,197)
(Increase) Decrease in Deposits 56 19
(Increase) Decrease Equipment ( 9,350) -
(Increase) Decrease Leasehold Improvements ( 2,924) -
Net Cash Provided (Used) by Investing
Activities (26,541) ( 15,178)
FINANCING ACTIVITIES:
Net Cash Provided (Used) by Financing
Activities - -
Increase (Decrease) in Cash and Cash
Equivalents 6,326 8,603
Cash and Cash Equivalents at Beginning
of Period 12,420 9,733
Cash and Cash Equivalents at End of Period 18,746 18,336
------------ ------------
The accompanying notes are an integral part of the financial statements.
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 January 31, 1998:
S T O C K O F A F F I L I A T E S
F.K. Suzuki
Stevia Biosynergy International Medlab
Stock Owner Company Inc. Inc. Inc.
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
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 common stock of Stevia
Company, Inc. The common stock of Stevia 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 January 31,
1998. 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 January 31, 1998.
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.:
January 31, 1998 - $293,197
April 30, 1997 - $278,874
At April 30, 1997 and January 31, 1998, 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:
January 31, 1998 - $12,921
April 30, 1997 - $12,921
At April 30, 1997 and January 31, 1998, 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:
January 31, 1998 April 30, 1997
Raw Materials $ 33,995 $ 30,583
Work-in process 8,390 10,257
Finished Goods 6,710 5,116
$ 49,095 $ 45,956
---------- ------------
5.Common Stock:
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 60,000 shares of the Company's
common stock were subject to Mr. Suzuki's option at January 31,
1998.
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 January 31, 1998, 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.
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 1997, 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 $51,975
Also included in the lease agreement are escalation clauses for the
lessor's increases in property taxes and other operating expenses.
The lease can be extended for an additional five year term.
8. Income Taxes:
At April 30, 1997, net operating loss carryforwards were available
and expire, if not used, as follows:
Year EndingNet Operating
April 30, Losses
1998$ 193,062
1999 677,671
2000 455,166
2001 449,142
2002 132,470
2003 85,822
2004 41,176
2006 160
2007 28,253
$ 2,062,922
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 27.36% of
sales during the 3rd Quarter of Fiscal 1998 and 31.19% of sales
during the nine month period ending January 31, 1998. The
outstanding receivable from this customer was $27,687 at January 31,
1998.
10. Management's Plans:
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 and to seek out financing opportunities,
if necessary.
Item 2. MANAGEMENT ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
SALES/REVENUES
For the three month period ending January 31, 1998 ("3rd Quarter"), the
net sales increased 11.68% or $13,514, and increased 5.87% or $22,353
during the nine month period ending January 31, 1998, as compared to net
sales for the comparative periods ending in 1997. As of January 31,
1998, the Company had no back orders.
In addition to the above, the Company realized $450 of income as a result
of leasing a portion of its computer time to Stevia Company, Inc., an
affiliate, and $2,192 of miscellaneous income for the nine month period
ending January 31, 1998.
INCOME/LOSS
The Company realized a net profit of $20,262 during the 3rd Quarter as
compared to a net profit of $12,605 for the comparative quarter of the
prior year. The company also realized a net profit of $80,985 for the
nine month period ending January 31, 1998 as compared to a net profit of
$78,772 during the same period in 1997. The overall increase in net
profit is due to an increase in sales.
As of April 30, 1997, the Company has incurred net operating losses
aggregating $2,062,922. As a result of net operating loss carryovers,
no income taxes were due for Fiscal 1997 and will unlikely be due for
Fiscal 1998. 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 3rd Quarter
increased overall by 5.60%, or $5,827, and increased by 5.05%, or $15,609
for the nine month period ending January 31, 1998. An explanation of
each category of expenses is included to assist the reader in reviewing
the operations of the Company during the periods indicated.
COST OF SALES AND OTHER OPERATING CHARGES
The cost of sales and other operating charges during the 3rd Quarter
decreased by $1,012 and increased by $6,522 during the nine month period
ending January 31, 1998 as compared to the same periods in 1997. As a
percentage of sales, the cost of sales and other operating charges were
36.52% during the 3rd Quarter and 41.66% for the same quarter ending in
1997. For the nine month period, cost of sales and other operating
charges were 35.91% in 1998 compared to 36.30% during the nine month
period ending January 31, 1998. The increase in cost of sales and
operating charges was due to an increase in salaries and related employee
expenses. Otherwise, the cost of sales and operating charges, as a
percentage of sales, has not materially changed during the last year, and
is not expected to materially change in the foreseeable future.
RESEARCH AND DEVELOPMENT
Research and development costs increased $289 or 3.64% during the 3rd
Quarter, as compared to the same quarter in 1997. These costs increased
by $2,950 or 12.60% during the nine month period ending January 31, 1998
as compared to the same period in 1997. These increased costs do not
reflect changes in the Company's development policies. The Company
intends to continue to direct research and development to the improvement
of its current product line and to those new products which are natural
expansions of the current product line. The Company may also increase
its research and development activities to fulfill contracts for the
development of products specifically designed for a customer, which will
generally be offset by research revenues.
MARKETING
Marketing costs for the 3rd Quarter increased by $670 or 5.35%, as
compared to the quarter ending January 31, 1997, and decreased $2,337 or
5.87% during the nine month period ending January 31, 1998 as compared
to the same period in 1997. The Company intends to expend its marketing
budget as resources become available.
GENERAL AND ADMINISTRATIVE
General and administrative costs increased by $5,919, or 16.78%, during
the 3rd Quarter and increased by $8,575 or 7.99% during the nine month
period ending January 31, 1998, as compared to the same periods in 1997.
The overall increase is due primarily to an increase in salaries and
related employee expenses and writeoff of non-collectable receivables.
These changes are not indicative of any trend, but only representative
of normal fluctuations in general and administrative expenses.
ASSETS/LIABILITIES
GENERAL
In the 3rd Quarter, the Company invested $9,350 on die Cutting Equipment.
All manufacturing of the Company's cholesteric liquid crystal products
are now done at the Company's facilities in Elk Grove Village, Illinois.
The Company also invested $2,924 in leasehold improvements for the new
equipment. The Company also experienced an increase in current assets
and a decrease in liabilities due to improved cash flow.
DUE FROM AFFILIATES
The Company was owed $293,197 by Stevia Company, Inc. ("Stevia"), an
affiliate, and $12,921 by F.K. Suzuki International, Inc. ("FKSI"), an
affiliate, at January 31, 1998. These affiliates owed $278,874 and
$12,921 at April 30, 1997, respectively. These accounts primarily
represent common expenses which are charged by one company to the other
for reimbursement. These expenses include rent, salaries and benefits
for common employees, insurance and legal fees. 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 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, 2.60 to 1, has
improved compared to 1.40 to 1 at April 30, 1997. Management believes
the Company's current asset/current liability ratio will be adequate for
the Company's current and foreseeable future operating needs provided
sales remain at the present level or improve.
WORKING CAPITAL/LIQUIDITY
During the nine month period ending January 31, 1998, the Company
experienced an increase in working capital of $59,046. This is due to
the continuing profits of the Company during the nine month period ending
January 31, 1998 and the use of the cash flow from operations to reduce
liabilities.
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. The Company intends to continue expanding its marketing
efforts in the medical market and new markets. If necessary, Management
will seek out financing opportunities, including selling its common stock
to private investors. 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. 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 included herein pursuant to Section 601:
(3) Articles of Incorporation and By-laws (i)
(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)
(11) Statement regarding computation of per share earnings - none.
(15) Letter dated March 9, 1998, regarding interim financial
information. (iv)
(18) Letter regarding change in accounting principles - none.
(19) Report furnished to securityholders - none.
(22) Published report regarding matters submitted to vote of
securityholders - 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.
(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.
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 March 9, 1998 Fred K. Suzuki
President, Chairman of the Board,
Chief Accounting Officer and Treasurer
Date March 9, 1998 Lauane C. Addis
Secretary, Corporate Counsel and
Director
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 March 9, 1998 /s/ FRED K. SUZUKI /s/
Fred K. Suzuki
President, Chairman of the Board,
Chief Accounting Officer and Treasurer
Date March 9, 1998 /s/ LAUANE C. ADDIS /s/
Lauane C. Addis
Secretary, Corporate Counsel and
Director
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 January 31, 1998
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
or principal place of business)
EXHIBITS
BIOSYNERGY, INC.
EXHIBIT INDEX
Page Number
Pursuant to
Sequential
Exhibit Numbering
Number Exhibit System
27 Financial Data Schedule E-1
BIOSYNERGY, INC.