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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

~~[X]~~☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) ~~OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~For~~OF ~~the~~THE ~~quarterly~~SECURITIES ~~period~~EXCHANGE ~~ended~~ACT ~~January~~OF ~~31, 2021~~1934

[For ~~] TRANSITION REPORT~~the ~~UNDER~~quarterly ~~SECTION~~period 13ended ORJuly ~~15(d)~~31, ~~OF THE EXCHANGE ACT~~2021

☐ TRANSITION REPORT UNDER 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 of other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
1940 East Devon Avenue, Elk Grove Village, Illinois 60007	847-956-0471
(Address of principal executive offices)	(Registrant’s telephone number, including area code)

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 __

1940 East Devon Avenue, Elk Grove Village, Illinois 60007	847-956-0471
(Address of principal executive offices)	(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant ~~has~~ ~~submitted~~(1) ~~electronically~~has ~~and~~filed ~~posted~~all onreports ~~its corporate Web site, if any, every Interactive Data file~~ required to be ~~submitted and~~filed ~~posted~~by ~~pursuant~~Section to13 ~~Rule~~or ~~405~~15(d) of ~~Regulation~~the ~~S-T~~Securities ~~(§232.405~~Exchange Act of ~~this~~1934 ~~chapter)~~ during the preceding 12 months (or for such shorter period that the registrant was required to ~~submit~~file such reports), and ~~post~~(2) has been subject to such ~~files~~filing requirements for the past 90 days. Yes X ☒ No __☐

Indicate by check mark whether the registrant is ahas ~~large~~submitted ~~accelerated~~electronically ~~filing,~~and anposted ~~accelerated~~on ~~filer,~~its acorporate ~~non-accelerated~~Web ~~filer~~site, orif aany, ~~smaller~~every ~~reporting~~Interactive ~~company.~~Data ~~See~~file ~~the~~required ~~definitions of~~to ~~“large~~be ~~accelerated~~submitted ~~filer,”~~and ~~“accelerated~~posted ~~filer”~~pursuant ~~and~~to ~~“smaller~~Rule ~~reporting~~405 ~~company”~~of inRegulation ~~Rule 12b~~S-2 T (§232.405 of this chapter) during the ~~Exchange~~preceding ~~Act~~12 months (or for such shorter period that the registrant was required to submit and post such files. Yes ☒ No ☐

~~Large~~Indicate by check mark whether the registrant is a large accelerated ~~filer~~filing, ~~_____~~an ~~Accelerated~~accelerated filer, ~~_____~~a ~~Non~~non-accelerated filer, ~~(Do~~a ~~not~~smaller ~~check~~reporting ifcompany aor an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” ~~_____~~and ~~Smaller~~“emerging ~~reporting~~growth company” ~~__X__~~in Rule 12b-2 of the Exchange Act.

IfLarge anaccelerated ~~emerging~~filer ~~growth~~☐ ~~company,~~Accelerated ~~indicate~~filer by☐ ~~check mark~~Non-accelerated iffiler ~~the~~(Do ~~registrant has elected~~ not tocheck ~~use~~if ~~the~~a ~~extended~~smaller ~~transition~~reporting ~~period~~company) ~~for~~☐ ~~complying~~Smaller ~~with~~reporting ~~any~~company ~~new~~☒ orEmerging ~~revised~~growth ~~financial~~company ~~accounting standards provided pursuant to Section 13(a) of the Exchange Act.~~ ☐

~~Indicate~~If an emerging growth company, indicated by check mark ~~whether~~if the registrant is ahas ~~shell~~elected ~~company~~not ~~(as~~to ~~defined~~use inthe ~~Rule~~extended ~~12b-2~~transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes __☐ No X☒

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer’s classes of common ~~equity~~stock, as of ~~January~~July 31, 2021: 14,935,511

BIOSYNERGY, INC.

PART 1 –- FINANCIAL INFORMATION

Item 1. - Financial Statements and Supplementary Data

BALANCE SHEETS

Assets

	July 31, 2021			April 30, 2021
	Unaudited			Audited
Assets
Current Assets
Cash	$	1,297,167		$	1,250,581
Accounts receivable. Trade (net of allowance for doubtful accounts of $500 at July 31, 2021 and April 30, 2021		130,515			264,509
Inventories		128,609			145,178
Prepaid expenses		29,620			34,261
Total Current Assets		1,585,911			1,694,529

Property, Plant and Equipment
Equipment		176,812			176,812
Leasehold improvements		25,809			25,809
		202,621			202,621

Less accumulated depreciation and amortization		(200,674	)		(199,558	)
Total Equipment and Leasehold Improvements Net		1,947			3,063

Operating Lease Right of Use
Operating Lease Right of Use Asset		72,428			96,570
Total Operating Lease Right of Use Asset		72,428			96,570

Other Assets
Patents less accumulated amortization		88,004			91,415
Deposits		5,937			5,937
Deferred Tax Asset		10,329			-
Total other assets		104,270			97,352
	$	1,764,556		$	1,891,514

	January 31, 2021 Unaudited			April 30, 2020 Audited
Current Assets
Cash	$	1,283,354		$	1,245,282
Accounts receivable, Trade (net of allowance for doubtful accounts of $500 at January 31, 2021 and April 30, 2020)		228,776			262,939
Inventories		173,616			144,423
Prepaid expenses		24,027			43,480
Total Current Assets		1,709,773			1,696,124
Property, Plant and Equipment
Equipment		176,811			200,590
Leasehold improvements		25,809			25,809
		202,620			226,399
Less accumulated depreciation and amortization		(198,442	)		(218,872	)
Total Equipment and Leasehold Improvements, Net		4,178			7,527
Operating Lease Right of Use
Operating Lease Right of Use Asset		120,713			193,140
Total Operating Lease Right of Use Asset		120,713			193,140
Other Assets
Patents, less accumulated amortization		94,826			105,058
Deposits		5,937			5,937
Total Other Assets		100,763			110,995
	$	1,935,427		$	2,007,786

The accompanying notes are an integral part of the financial statements.

~~The accompanying notes are an integral part~~ ~~of the financial statements.~~ 2

BIOSYNERGY, INC.

PART 1 –- FINANCIAL INFORMATION

BALANCE SHEETS

Liabilities and ~~Stockholders~~Shareholders’ Equity

	January 31, 2021 Unaudited			April 30, 2020 Audited
	July 31, 2021 Unaudited			April 30, 2021 Audited
Current Liabilities
Accounts payable	$	326,~~342~~497		$	233,~~114~~189
Accrued compensation and payroll taxes		249,~~991~~775			1911,~~996~~689
Accrued vacation		251,~~946~~228			2814,~~089~~125
Other accrued liabilities		13,~~677~~186			~~434~~543
Operating lease liability		9773,~~275~~485			9597,~~160~~980
Total Current Liabilities		~~153~~114,~~231~~171			~~166~~127,~~793~~526
Long Term Liabilities
Long term liabilities
Deferred income taxes		~~19,812~~		$	1924,~~812~~992
Operating lease liability – long term		24,495			97,980
Total Long Term Liabilities				$	24,992
Total Long Term Liabilities		44,307			117,792
Stockholders’ Equity
Common stock, no par value: 20,000,000 authorized shares issued: 14,935,511 shares at January 31, 2021 and April 30, 2020		660,988			660,988
Common stock, no par value: 20,000,000 authorized shares Issued: 14,935,511 as of July 31, 2021 and April 30, 2021		660,988			660,988
Receivable from affiliate		(24,862	)		(24,862	)
Retained earnings		1,~~101~~014,~~763~~259			1,~~087~~102,~~075~~870
Total Stockholders' Equity		1,737,889			1,723,201
Total Stockholders’ Equity		1,650,385			1,738,996
	$	1,~~935~~764,~~427~~556		$	21,~~007~~891,~~786~~514

The accompanying notes are an integral part of the financial statements.

~~BIOSYNERGY, INC.~~ 3

~~PART~~BIOSYNERGY, ~~1 – FINANCIAL INFORMATION~~INC.

~~Statement~~STATEMENTS ofOF ~~Operations~~OPERATIONS

(Unaudited)

	Three Months Ended						~~Nine Months Ended~~
	January 31						January 31
	July 31
	2021			2020			~~2021~~		~~2020~~
Net sales	$	~~265~~174,~~098~~838		$	291,~~454~~451		$	~~870,057~~	$	~~920,539~~
Cost of sales		99104,~~318~~913			111,~~362~~883			~~321,136~~		~~327,090~~
Gross profit		~~165~~69,~~780~~925			~~180~~179,~~092~~568			~~548,921~~		~~593,449~~
Operating expenses
Marketing		4234,~~040~~110			45,~~751~~086			~~126,195~~		~~137,318~~
General and administrative		91131,~~090~~794			91113,~~055~~540			~~293,582~~		~~299,249~~
Research and development		4329,~~075~~266			4540,~~935~~053			~~119,915~~		~~125,032~~
Total Operating Expenses		~~176~~195,~~205~~170			~~182~~198,~~741~~679			~~539,692~~		~~561,599~~
Income (Loss) from operations		(10,425	)		(2,649	)		9,229		31,850
Loss from operations		(125,245	)		(19,111	)
Other income
Interest income		~~117~~58			~~149~~142			~~374~~		~~449~~
Other income		91,~~980~~255			480			~~10,940~~		~~1,440~~
Total Other Income		101,~~097~~313			~~629~~622			~~11,314~~		~~1,889~~
Net Income (Loss) before income taxes		(328	)		(2,020	)		20,543		33,739
Net Loss before income taxes		(123,932	)		(18,489	)
Provision for income taxes		(93	)		—			5,855		10,191
Benefit for income taxes		(35,321	)		(5,269	)
Net Income (Loss)	$	(235	)	$	(2,020	)	$	14,688	$	23,548
Net Loss	$	(88,611	)	$	(13,220	)
Net Income per common share - basic and diluted	$	.000		$	.000		$	.001	$	.002
Net Loss per common share - basic and diluted	$	(.0059	)	$	(.0008	)
Weighted-Average Shares of Common Stock Outstanding - Basic and Diluted		14,935,511			14,935,511			~~14,935,511~~		~~14,935,511~~

The accompanying notes are an integral part of the financial statements.

~~BIOSYNERGY, INC.~~ 4

~~STATEMENT~~BIOSYNERGY, ~~OF STOCKHOLDERS’ EQUITY~~INC.

~~Nine Months~~STATEMENT ~~Ended~~OF ~~January~~SHAREHOLDERS' ~~31, 2021~~EQUITY

~~(Unaudited)~~THREE MONTHS ENDED JULY 31, 2021

~~Common Stock~~ (Unaudited)

		Shares		Amount		Other and Related Receivable			Retained Earnings			Total
	Common Stock
Balance, May 1, 2020		14,935,511	$	660,988	$	(24,862	)	$	1,087,075		$	1,723,201
	Shares		Amounts		Receivable from Affiliate			Retained Earnings			Total
Net Income		—		—		—			14,688			14,688
Balance, May 1, 2021		14,935,511	$	660,988	$	(24,862	)	$	1,102,870		$	1,738,996
Balance, January 31, 2021		14,935,511	$	660,988	$	(24,862	)	$	1,101,763		$	1,737,889
Net Loss		-		-		-		$	(88,611	)	$	(88,611	)
Balance, July 31, 2021		14,935,511	$	660,988	$	(24,862	)	$	1,014,259		$	1,650,385

The accompanying notes are an integral part of the financial statements.

~~BIOSYNERGY, INC.~~ 5

~~STATEMENT~~BIOSYNERGY, ~~OF CASH FLOWS~~INC.

~~(Unaudited)~~STATEMENTS OF CASH FLOWS

	Nine Months Ended January 31
	2021			2020
Cash flows from operating activities
Net income	$	14,688		$	23,548
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization		13,581			14,530
Noncash lease expense		72,427			66,825
Gain on Sale of Equipment		(9,500	)		—
Changes in assets and liabilities
Accounts receivable		34,163			27,924
Inventories		(29,193	)		16,566
Prepaid expenses		19,453			387
Accounts payable and accrued expenses		(15,677	)		(14,777	)
Building lease liability for right of use asset		(71,370	)		(67,650	)
Total adjustments		13,884			43,805
Net cash provided by operating activities		28,572			67,353
Cash flows from investing activities
Sale (Purchase) of equipment		9,500			(962	)
Net cash provided by (used in) investing activities		9,500			(962	)
Increase in cash and cash equivalents		38,072			66,391
Cash and cash equivalents beginning period		1,245,282			1,180,125
Cash and cash equivalents ending period	$	1,283,354		$	1,246,516
Supplemental Cash Flow Information
Interest paid	$	—		$	—
Income taxes paid	$	—		$	—

(Unaudited)

The accompanying notes are an integral part of the financial statements.

	Three Months Ended July 31
Cash flows from operating activities	2021			2020
Net loss	$	(88,611	)	$	(13,220	)
Adjustments to reconcile net loss to cash provided by operating activities

Deferred Taxes		(35,321	)		-
Depreciation and amortization		4,526			4,526
Noncash lease expense		24,143			24,143

Changes in assets and liabilities
Accounts receivable		133,994			36,414
Inventories		16,569			77
Prepaid expenses		4,641			(1,368	)
Accounts payable and accrued expenses		11,140			(17,328	)
Building lease liability for right of use asset		(24,495	)		(23,790	)
Total adjustments		135,197			22,674

Net cash provided by operating activities		46,586			9,454

Increase in cash and cash equivalents		46,586			9,454
Cash and cash equivalents beginning period		1,250,581			1,245,282
Cash and cash equivalents ending period	$	1,297,167		$	1,254,736

Supplemental cash flow information

Interest paid	$	-		$	-
Income taxes paid	$	-		$	-

~~BIOSYNERGY,~~The ~~INC~~accompanying notes are an integral part of the financial statements.

~~Notes to Financial Statements~~ 6

~~Nine Months Ended January 31~~BIOSYNERGY, ~~2021~~ ~~and 2020~~INC.

~~Note 1~~Notes -to ~~Company~~Financial ~~Organization and Description~~ Statements

InThree ~~the~~Months ~~opinion~~Ended ofJuly 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, 2020 Annual Report on Form 10-K. The results of operations for the nine months ended January 31, 2021 ~~are~~and ~~not necessarily indicative of the operating results for the full year.~~2020

~~Biosynergy,~~Note ~~Inc.~~1 ~~(the~~- Company~~) was~~ ~~incorporated~~Organization ~~under the laws of the State of Illinois on February 9, 1976. It is primarily engaged in the development~~ and ~~marketing of~~Description 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 89.74% of the sales during the nine months ending January 31, 2021 and 92.49% during the nine months ending January 31, 2020. The products are sold to hospitals, clinical end-users, laboratories and product dealers located throughout the United States.

~~Note~~In 2the –opinion ~~Summary~~of management, the accompanying unaudited condensed financial statements contain all adjustments, consisting of ~~Significant~~normal ~~Accounting Policies~~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, 2021 Annual Report on Form 10-K. The results of operations for the three months ended July 31, 2021 are not necessarily indicative of the operating results for the full year.

~~Cash~~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 87.52% of the sales during the quarter ending July 31, 2021 and 86.4% during the quarter ending July 31, 2020. The products are sold to hospitals, clinical end-users, laboratories and product dealers located throughout the United States.

~~The~~Note ~~Company~~2 ~~maintains~~- ~~all~~Summary of ~~its~~Significant ~~cash in~~Accounting ~~various~~Policies ~~bank deposit accounts, which at times may exceed federally insured limits. No losses have been experienced on such accounts.~~

~~Receivables~~Cash

~~Receivables~~The ~~are~~Company ~~carried~~maintains atall ~~original invoice~~of ~~less~~its ~~estimates~~cash ~~made~~in ~~for~~various ~~doubtful~~bank ~~receivables.~~deposit ~~Management determines the allowances for doubtful~~ accounts, bywhich ~~reviewing~~at ~~and identifying~~times may ~~troubled~~exceed ~~accounts~~federally oninsured alimits. ~~periodic~~No ~~basis~~losses ~~and~~have bybeen ~~using~~experienced ~~historical~~on ~~experience~~such ~~applied to an aging of~~ accounts. A receivable is considered to be past due if any portion of the receivable balance is outstanding beyond the stipulated due date. Receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.

~~Inventories~~Receivables

~~Inventories~~Receivables are ~~valued~~carried at original invoice less estimates made for doubtful receivables. Management determines the ~~lower~~ ofallowances ~~cost~~for ordoubtful ~~market~~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 ~~FIFO~~receivable ~~(first-in,~~balance ~~first-out)~~is ~~method~~outstanding beyond the stipulated due date. Receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received.

~~Depreciation~~ Inventories

~~Equipment~~Inventories ~~and leasehold improvements~~ are ~~stated~~valued at ~~cost. Depreciation is computed using~~ the ~~straight-line~~lower ~~method over the estimated useful lives~~ of ~~the~~cost ~~respective~~or ~~assets. Repairs~~market ~~and~~using ~~maintenance are charged to expense as incurred; renewals and betterments which significantly extend~~ the ~~useful~~FIFO lives of existing equipment are capitalized. Significant leasehold improvements are capitalized and amortized over the term of the lease; equipment is depreciated over three to ten years. Depreciation expense was $3(first-in,~~348~~ ~~and~~first-out) ~~$4,298 for the nine month periods ending January 31, 2021 and 2020, respectively~~method.

~~Prepaid Expenses~~ 7

~~Certain expenses~~BIOSYNERGY, ~~primarily insurance and income taxes, have been prepaid and will be used within one year~~INC.

~~Revenue~~Notes ~~Recognition~~to Financial Statements

~~The~~Three ~~Company~~Months ~~accounts~~Ended July ~~for revenue in accordance with Accounting Standards Update (ASU) 2014-09~~31, ~~"Revenue~~2021 from Contracts with Customers (Topic 606)". The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle and ~~to determine when and how revenue is recognized.~~2020

~~The components as it relates to the Company are as follows:~~Depreciation

•Equipment ~~The~~and ~~Company’s~~leasehold ~~revenue~~improvements isare ~~primarily~~stated ~~generated~~at ~~from~~cost. ~~the~~Depreciation ~~sales~~is ofcomputed ~~products~~using ~~directly~~the tostraight-line ~~customers~~method orover ~~through~~the ~~distribution~~estimated ~~channels,~~useful ~~based~~lives onof ~~purchase~~the ~~orders~~respective ~~and~~assets. ~~not~~Repairs ~~supply~~and ~~contracts~~maintenance ~~providing~~are ~~for~~charged ~~additional~~to ~~goods~~expense oras ~~services~~incurred; ~~once~~renewals ~~the~~and ~~products~~betterments ~~are~~which ~~transferred~~significantly toextend the ~~customer.~~useful ~~The~~lives ~~Company~~of ~~believes~~existing ~~its~~equipment ~~performance obligations~~ are ~~satisfied~~capitalized. ~~upon~~Significant ~~shipment~~leasehold ofimprovements ~~goods~~are tocapitalized ~~customers.~~and ~~The~~amortized ~~customers~~over ~~are~~the ~~billed~~term atof ~~shipment,~~the ~~and~~lease; ~~revenue~~equipment is ~~recognized~~depreciated byover ~~the~~three ~~Company~~to atten ~~that time~~years.

•Depreciation ~~ASU~~expense ~~No.~~was ~~2014-09 requires that the Company recognize its sales return allowance on a gross basis rather than as a net liability. As such~~$1,116 ~~the Company now recognizes a return asset~~ for ~~the~~each ~~right~~of ~~to recover~~ the ~~goods~~three ~~returned~~month byperiods ~~the~~ending July ~~customer~~31, ~~measured~~2021 ~~at the former carrying amount of the products, less any expected recovery costs (recorded as an increase to prepaid expenses~~ and ~~other current assets)~~2020, ~~and a return liability for the amount of expected returns (recorded as an increase to other current liabilities)~~respectively. ~~The Company’s analysis of sales returns over the past several years noted that sales returns are nominal and therefore no sales return allowance is deemed necessary.~~

~~Shipping~~Prepaid ~~and Handling~~Expenses

~~Shipping~~Certain ~~and~~expenses, ~~handling~~primarily ~~fees~~insurance ~~billed~~and ~~to customer,~~income ~~if any~~taxes, ~~are~~have ~~netted~~been ~~against~~prepaid ~~the~~and ~~related~~will ~~costs~~be ~~which~~used ~~are~~within ~~included~~one ~~in cost of sales~~year. ~~The net cost is not material.~~

~~Income~~Revenue ~~Taxes~~ Recognition

~~Income~~The ~~taxes~~Company ~~are~~accounts ~~provided~~ for ~~the~~ ~~tax~~revenue ~~effects~~in ofaccordance ~~transactions~~with ~~reported~~ASU in2014-09, ~~the~~"Revenue ~~financial~~from ~~statements~~Contracts ~~and~~with ~~consist~~Customers (Topic 606)". The core principle of ~~taxes~~ASU ~~currently~~2014-09 ~~due~~is ~~and~~that ~~deferred~~an ~~taxes~~entity ~~related primarily~~should torecognize ~~differences~~revenue into depict the ~~methods~~transfer of ~~accounting~~promised ~~for~~goods ~~patents,~~or ~~inventories,~~services ~~certain~~to ~~accrued~~customers ~~expenses~~in ~~and~~an ~~bad~~amount ~~debt~~that ~~expenses for~~reflects ~~financial~~the ~~and~~consideration ~~income~~to ~~tax~~which ~~reporting~~the ~~purposes~~entity expects to be entitled in exchange for those goods or services. The ~~deferred~~guidance ~~income~~provides ~~taxes~~a ~~represent~~five-step ~~the~~process ~~future~~to ~~tax~~achieve ~~consequences~~that ofcore ~~those~~principle ~~differences, which~~and ~~will~~to bedetermine ~~taxable~~when inand ~~the~~how ~~future~~revenue is recognized.

The ~~Company~~components ~~files~~as ~~tax~~it ~~returns~~relates ~~in the~~to ~~U.S. federal jurisdiction and with~~ the ~~state~~Company ~~of Illinois. Various tax years remain open to examinations, generally for three years after filing, although there~~ are ~~currently~~as ~~no ongoing tax examinations. Management’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense.~~follows:

• The ~~provision~~Company’s ~~for~~revenue ~~income~~is ~~taxes consists~~primarily ofgenerated from the ~~following~~sales ~~components~~of products directly to customers or through distribution channels, based on purchase orders and not supply contracts providing for additional goods or services once the ~~nine~~products ~~month~~are ~~periods~~transferred ~~ended~~to ~~January~~the ~~31:~~customer. The Company believes its performance obligations are satisfied upon shipment of goods to customers. The customers are billed at shipment, and revenue is recognized by the Company at that time.

	2021		2020
Current
Federal	$	3,903	$	6,986
State		1,952		3,205
Provision for Income Taxes	$	5,855	$	10,191

•

ASU No. 2014-09 requires that the Company recognize its sales return allowance on a gross basis rather than as a net liability. As such, the Company now recognizes a return asset for the right to recover the goods returned by the customer, measured at the former carrying amount of the products, less any expected recovery costs (recorded as an increase to prepaid expenses and other current assets), and a return liability for the amount of expected returns (recorded as an increase to other current liabilities). The Company’s analysis of sales returns over the past several years noted that sales returns are nominal and therefore no sales return allowance is deemed necessary.

~~The~~Shipping ~~differences between the U.S. federal statutory tax rate~~ and ~~the Company’s effective tax rate are as follows:~~ Handling

	Period Ended January 31,
	2021			2020
U.S. federal statutory tax rate		21.0	%		21.0	%
State Income Tax Expense, net of		7.5			7.5
Federal tax benefit		_______			______
Effective Tax Rate		28.5	%		28.5	%

Shipping and handling fees billed to customer, if any, are netted against the related costs which are included in cost of sales. The net cost is not material.

~~Research and Development and~~ ~~Patents~~ 8

~~Research and development expenditures are charged to operations as incurred. The costs of obtaining patents~~BIOSYNERGY, ~~primarily legal fees, are capitalized and, once obtained, are amortized over the life of the respective patent on the straight-line method~~INC.

~~Patent~~Notes ~~amortization~~to ~~expense~~Financial ~~for the nine months ended January 31, 2021 and 2020 were $10,233 and $10,232 respectively.~~Statements

~~Patents~~Three ~~relate~~Months toEnded July ~~products~~31, ~~that~~2021 ~~have been developed~~ and ~~are being marketed by the Company.~~2020

~~Use~~Income ~~of Estimates~~ Taxes

~~The~~Income ~~preparation~~taxes ofare ~~financial~~provided ~~statements in~~for ~~conformity~~the ~~with~~tax ~~accounting~~effects ~~principles~~of ~~generally~~transactions ~~accepted~~reported in the ~~United~~financial ~~States~~statements ofand ~~America~~consist ~~requires~~of ~~management~~taxes tocurrently ~~make~~due ~~estimates~~ and ~~assumptions~~deferred ~~that~~taxes ~~affect~~related ~~the~~primarily ~~reported~~to ~~amounts~~differences ofin ~~assets~~the ~~and~~methods ~~liabilities~~of ~~and~~accounting ~~disclosure~~for ofpatents, ~~contingent~~inventories, ~~assets~~certain ~~and~~accrued ~~liabilities as~~expenses ofand ~~the~~bad ~~date~~debt ofexpenses ~~the~~for financial ~~statements~~ and ~~the~~income ~~reported~~tax ~~amounts~~reporting ofpurposes. ~~revenues~~The ~~and~~deferred ~~expenses~~income ~~during~~taxes represent the ~~reporting~~future ~~period.~~tax ~~Actual results~~consequences ~~could~~of ~~differ~~those ~~from~~differences, ~~those~~which ~~estimates~~will be taxable in the future.

~~Income~~The ~~Per~~Company ~~Common~~files ~~Share~~tax returns in the U.S. federal jurisdiction and with the state of Illinois. Various tax years remain open to examinations, generally for three years after filing, 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 expense.

~~Income~~The ~~per~~benefit ~~common~~for ~~share is computed by dividing net~~ income bytaxes ~~the~~consists ~~weighted-average number~~ of ~~common shares outstanding during~~ the ~~period.~~following ~~Basic~~components ~~and diluted net income per common share is the same~~ for the ~~nine~~three ~~months~~month periods ended July ~~January~~ 31~~, 2021 and 2020 as there are no common stock equivalents.~~:

Comprehensive Income

	2021			2020
Current
Federal	$	-		$	(3,513	)
State		-			(1,756	)
Deferred		(35,321	)		-
Provision for Income Taxes	$	(35,321	)	$	(5,269	)

~~Components~~The ofdifferences ~~comprehensive~~between ~~income include amounts that are included in~~ the ~~comprehensive income but are excluded from net income~~U.S. ~~During~~federal ~~the~~statutory ~~nine~~tax ~~month~~rate ~~periods ending January 31, 2021~~ and ~~2020, there were no differences between~~ the Company’s ~~net~~effective ~~income~~tax ~~and~~rate ~~comprehensive~~are ~~income.~~as follows:

Fair Value of Financial Instruments

	Period ended July 31,
	2021			2020
U.S. federal statutory tax rate		(21.0	%)		(21.0	%)
State income tax expense, net of Federal tax benefit		(7.5	)		(7 .5	)
Effective Tax Rate		(28.5	%)		(28.5	%)

~~The~~Research ~~Company~~and ~~evaluates~~Development ~~its~~and ~~financial instruments based on current market interest rates relative to stated~~Patents

~~interest~~Research ~~rates, length to maturity~~ and ~~the~~development ~~existence~~expenditures ofare ~~readily~~charged ~~determinable~~to ~~market~~operations ~~prices~~as incurred. ~~Based~~The oncosts ~~the~~of ~~Company’s~~obtaining ~~analysis~~patents, ~~the~~primarily ~~fair~~legal ~~value~~fees, ofare ~~financial~~capitalized ~~instruments recorded~~and, ononce ~~the~~obtained, ~~balances~~are ~~sheets~~amortized asover ofthe ~~January~~life ~~31,~~of ~~2021~~the ~~and~~respective ~~April~~patent ~~30,~~on ~~2020,~~the ~~approximates~~straight-line ~~their carrying value~~method.

~~Segments~~Patent amortization expense for each of the three months ended July 31, 2021 and 2020 were $3,411.

~~Accounting~~Patents ~~standards~~relate ~~have~~to ~~established annual~~products ~~reporting~~that ~~standards~~have ~~for~~been andeveloped ~~enterprise’s operating segments~~ and ~~related~~are ~~disclosures~~being ~~about~~marketed ~~its~~by ~~products,~~the ~~services, geographic areas and major customers. The~~ Company~~’s operations were a single reportable segment and an international segment~~. ~~The international segment operations are immaterial. See Note 7.~~

~~Recent Accounting Pronouncements~~ 9

The Financial Accounting Standards Board (FASB) issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASCs. Those issued to date either (i) provide supplemental guidanceBIOSYNERGY, ~~(ii) are technical corrections, (iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company~~INC.

~~Note~~Notes 3to –Financial ~~Inventories~~ Statements

~~Components~~Three ofMonths ~~inventories~~Ended July ~~are as~~31, ~~follows:~~2021 and 2020

	January 31, 2021		April 30, 2020
Raw Materials	$	123,891	$	106,284
Work-in-Process		28,216		26,919
Finished Goods		21,509		11,220
	$	173,616	$	144,423

Use of Estimates

~~Note~~The 4preparation –of ~~Common~~financial ~~Stock~~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.

~~The~~Income ~~Company’s common~~Per ~~stock~~Common 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.Share

~~Note 5~~Income per common share is computed by dividing net income by the weighted-average ~~Related~~number ~~Party~~of ~~Transactions~~common shares outstanding during the period. Basic and diluted net income per common share is the same for the 1st quarter ended July 31, 2021 and 2020 as there are no common stock equivalents.

~~The~~Comprehensive ~~Company and its affiliates are related through common stock ownership as follows as of January 31, 2021:~~ Income

			Stock of Affiliates
	Biosynergy, Inc.			F.K. Suzuk International, Inc.		Medlab, Inc.
F.K. Suzuki International, Inc	30.0	%		—	%	100.0	%
Fred K. Suzuki, Officer	4.1			30.0		—
Jeanne S. Addis, Trustee	—			28.1		—
Mary K. Friske, Officer	0.3			0.7		—
Laurence C. Mead, Officer	0.4			10.0		—
Beverly R. Suzuki	2.7			—		—
Lauane C. Addis, Officer	—			—		—
Malcolm MacCoun, Director	—			—		—

Components of comprehensive income include amounts that are included in the comprehensive income but are excluded from net income. During the three month periods ending July 31, 2021 and 2020, there were no differences between the Company’s net income and comprehensive income.

AsFair ofValue ~~January 31, 2021 and April 30, 2020, $24,862 was due from F. K. Suzuki International, Inc. (FKSI). These balances result from an allocation~~ of ~~common~~Financial expenses charged to FKSI prior to April 30, 2006 offset by advances received from time to time, and an advance of $5,163 in Fiscal 2020 for corporate compliance costs. 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.Instruments

AThe ~~board~~Company ~~member~~evaluates ~~provided~~its afinancial ~~variety of~~instruments ~~legal~~based ~~services~~on current market interest rates relative to ~~the~~stated ~~Company~~interest inrates, ~~his~~length ~~capacity~~to asmaturity aand ~~partner~~the inexistence aof ~~law~~readily ~~firm~~determinable market prices. ~~Fees~~Based ~~for~~on ~~such~~the ~~legal~~Company’s ~~services~~analysis, ~~were~~the ~~approximately~~fair ~~$7,982 and~~value ~~$9,216~~of ~~for~~financial instruments recorded on the ~~nine~~balances ~~months~~sheets ~~ended~~as ~~January~~of July 31, 2021 and April ~~2020~~30, ~~respectively~~2021, approximates their carrying value.

~~On December 1, 2020 the Company sold an automobile to Fred K. Suzuki and Beverly R. Suzuki resulting in other income of $9,500.~~ Segments

~~Note 6~~Accounting –standards ~~Lease~~have ~~Commitments~~established annual reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. The Company’s operations were a single reportable segment and an international segment. The international segment operations are immaterial. See Note 7.

OnRecent ~~February~~Accounting 25, 2016, the FASB issued Topic 842, Leases. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. GAAP. At inception, a lessee must classify all leases as either finance or operating. In February 2020, the Company entered into a two-year lease agreement for its current facilities, which started May 1, 2020 and expires on April 30, 2022. Under the new lease standard, the Company’s lease was accounted for as an operating lease. As a result, the Company measured the lease liability using the two year term and rates per the lease agreement and recognized a lease liability, with a corresponding right-of-use asset. A discount was not calculated due to the lease agreement only having a two year term.Pronouncements

The ~~operating~~FASB ~~lease~~issues ~~expense~~ASUs ~~for~~ to amend the ~~nine~~authoritative ~~months~~literature ~~ending~~in ~~January~~Accounting ~~31,~~Standards ~~2021~~Certification ~~and~~(ASC). ~~2020~~There ~~was~~have ~~$72~~been a number of ASUs to date that amend the original text of ASCs. Those issued to date either (i) provide supplemental guidance,~~427~~ ~~and~~(ii) ~~$66~~are technical corrections,~~825,~~ ~~respectively~~(iii) are not applicable to the Company or (iv) are not expected to have a significant impact on the Company.

~~Maturities of lease liabilities~~ ~~as of January 31, 2021 are presented in the following table:~~ 10

Year Ending April 30:
	2021	$	24,143
	2022	$	96,570

BIOSYNERGY, INC.

~~Note 7~~Notes –to ~~Customer~~Financial ~~Concentrations~~ Statements

~~Shipments~~Three toMonths ~~one~~Ended July ~~customer amounted to 32.28% of sales during the first nine months of Fiscal 2021 compared to 28.43% during the comparative Fiscal 2020 period. As of January~~ 31, 2021, there were outstanding accounts receivable from this customer of $77,358 compared to $64,554 at January 31, 2020. Shipments to another customer amounted to 37.46% of sales during the first nine months of Fiscal 2021 and ~~37.70% of sales during the first nine months of Fiscal~~ 2020~~. As of January 31, 2021, there were outstanding accounts receivable from this customer of $121,915 compared to $120,626 at January 31, 2020.~~

~~The~~Note ~~Company~~3 ~~had~~– ~~export~~Inventories sales of $11,935 during the 3rd Quarter of Fiscal 2021, and export sales of $4,750 during the 3rd Quarter of Fiscal 2020. For the nine months ending January 31, 2021 export sales were $33,505 and $27,355 for the same period ending January 31, 2020. The Company also believes that some of its medical devices were sold to distributors within the United States who resold the devices in foreign markets. However, the Company does not have any information regarding such sales.

~~Note~~Components 8of –inventories ~~COVID-19~~are ~~Pandemic~~as follows:

The Company will face challenges in 2021 as a result of the COVID-19 pandemic. Such challenges will include (among other things) decreases or significant decreases in demand for certain products that has resulted in a decrease in sales for the nine months ending January 31, 2021, and increases in demand for others, collectability of customer accounts receivable from customers negatively impacted by shelter in place requirements, managing the health and productivity of our employees working in our facility or working remotely, managing our information technology (IT) infrastructure and security for our employees working remotely, and procuring adequate raw materials and packaging, as well as managing our supply chain. We have also worked closely with our domestic suppliers to source and maintain a consistent supply of raw material, ingredients and packaging to provide a steady supply of our products to our customers. We are fortunate that to date our manufacturing facility has not been significantly impacted by this pandemic.

		July 31, 2021		April 30, 2021

Raw materials	$	116,854	$	108,604
Work-in-process		5,715		25,371
Finished goods		6,040		11,203
	$	128,609	$	145,178

~~BIOSYNERGY,~~Note ~~INC.~~4 – Common Stock

~~Nine~~The ~~Months~~Company’s ~~Ended~~common ~~January 31~~stock is traded in the over-the-counter market. However, ~~2021~~there is no established public trading market due to limited and ~~2020~~sporadic trades. The Company’s common stock is not listed on a recognized market or stock exchange.

~~Item~~Note 2.5 ~~Management’s~~- ~~Discussion~~Related ofParty ~~Financial~~Transactions ~~Condition and Results of Operations~~

~~Net~~The ~~Sales/Revenues~~Company and its affiliates are related through common stock ownership as follows as of July 31, 2021:

For the three month period ending January 31, 2021 (“3rd Quarter”), the net sales decreased 9.04%, or $26,356, and decreased 5.48%, or $50,482, during the nine month period ending January 31, 2021, as compared to net sales for the comparative periods ending in 2020. The decrease in sales during the three and nine month periods ending January 31, 2021 is primarily the result of lower HemoTemp® II sales. At January 31, 2021 there were no back orders.

	Stock of Affiliates

	Biosynergy, Inc.		F.K. Suzuki International, Inc.		Medlab, Inc.
F.K. Suzuki International, Inc		30.0%		-%		100.0%
Fred K. Suzuki, Officer		4.1		30.0		-
Jeanne S. Addis, Trustee		-		28.1		-
Mary K. Friske		0.3		0.7		-
Laurence C. Mead		0.4		10.0		-
Beverly R. Suzuki		2.7		-		-
Lauane C. Addis, Director		-		-		-
Malcolm MacCoun, Director		-		-		-

~~In addition, during the 3rd Quarter~~ ~~the Company had $10,097 of miscellaneous revenues and $~~ 11~~,314 for the nine month period ending January 31, 2021, primarily from~~ ~~the sale of the Company car to related parties, and interest income and leasing a portion of its storage space to an unrelated party.~~

~~Costs~~BIOSYNERGY, ~~and Expenses~~INC.

~~General~~Notes to Financial Statements

~~The~~Three ~~operating~~Months ~~expenses~~Ended July of the Company during the 3rd Quarter decreased overall by 3.57%, or $6,536, as compared to the 3rd quarter in 2020. The operating expenses of the Company decreased by 3.9% or $21,907 for the nine month period ending January 31, 2021, asand ~~compared to the nine month period ending January 31,~~ 2020~~, primarily due to a decrease in employee costs.~~

~~Cost~~Note of5 ~~Sales~~- Related Party Transactions (Cont’d)

~~The~~As ~~cost~~ of July ~~sales~~31, ~~during~~2021 ~~the~~and April ~~3rd Quarter~~30, ~~decreased by $12~~2021,~~044,~~ ~~and decreased by~~ $524,~~954~~862 ~~during~~was ~~the~~due ~~nine~~from ~~month~~F. ~~period~~K. ~~ending~~Suzuki ~~January 31~~International, ~~2021~~Inc. as(FKSI). ~~compared~~This tobalance ~~these expenses~~resulted ~~during~~from ~~the~~an ~~same~~allocation ~~periods~~of ~~ending~~common inoperating ~~2020.~~expenses ~~The~~charged ~~decrease~~to inFKSI ~~the~~offset ~~cost~~by ofadvances ~~sales~~received ~~during~~from ~~the~~time ~~3rd~~to ~~Quarter~~time. ~~was~~No ~~primarily due~~interest toincome ~~lower~~is ~~health~~received ~~care~~or ~~expenses~~accrued ~~and~~by ~~less~~the ~~raw materials used~~Company. The ~~decrease~~financial ~~for~~condition ~~the~~of ~~nine~~FKSI ~~month~~is ~~period~~such ~~ending~~that ~~January~~it ~~31,~~will ~~2021~~unlikely ~~was due~~be able to arepay ~~decrease~~the inCompany during the ~~cost~~next ofyear ~~health~~without ~~insurance.~~liquidating As a ~~percentage~~portion of ~~sales~~its assets, ~~the~~including ~~cost~~a portion of ~~sales~~its ~~were~~ownership ~~37.5%~~in ~~during~~ the ~~3rd Quarter, 38~~Company.2% ~~for~~As ~~the~~a ~~comparative quarter ending in 2020~~result, ~~and 36.9% during~~ the ~~nine~~total ~~month~~receivable ~~period~~balance ~~ending~~has ~~January~~been ~~31,~~reclassified ~~2021 compared to 35.5% in 2020. It is not anticipated that the cost of sales~~ as a ~~percentage~~contra ofequity ~~sales will materially change in the near future~~account.

~~Research~~A board member provided a variety of legal services to the Company in his capacity as a partner in a law firm. Fees for such legal services were approximately $29,549 and ~~Development~~$4,832 ~~Expenses~~for the three months ended July 31, 2021 and 2020, respectively.

~~Research~~Note ~~and Development costs decreased $2,860, or~~ 6~~.2%,~~ ~~during~~– ~~the~~Lease ~~3rd~~Commitments Quarter as compared to the same quarter in 2020. These costs decreased by $5,117, or 4.1%, during the nine month period ending January 31, 2021 as compared to the same period in 2020. The overall cost in research and development expense decreased during the nine months due to lower employee costs.

~~Marketing~~On February ~~Expenses~~25, 2016, the FASB issued Topic 842, Leases. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. GAAP. At inception, a lessee must classify all leases as either finance or operating. In February 2020, the Company entered into a two-year lease agreement for its current facilities, which started May 1, 2020 and expires on April 30, 2022. Under the new lease standard, the Company’s lease was accounted for as an operating lease. As a result, the Company measured the lease liability using the two year term and rates per the lease agreement and recognized a lease liability, with a corresponding right-of-use asset. A discount was not calculated due to the lease agreement only having a two-year term.

~~Marketing~~The ~~expenses~~operating ~~for~~lease ~~the~~expense ~~3rd~~for ~~Quarter decreased by $3,711, or 8.1%, as compared to~~ the ~~quarter~~three months ending July ~~January~~ 31, ~~2020.~~2021 ~~These~~and ~~costs~~2020 ~~decreased~~was by $1124,~~123,~~143 orand ~~8.1%~~$24, ~~during the nine month period ending January 31~~143, ~~2021 as compared to the same period in 2020~~respectively. ~~The decrease is primarily due to lower employee costs and no travel this year.~~

~~General~~Maturities ~~and~~of ~~Administrative~~lease ~~Expenses~~liabilities as of July 31, 2021 are presented in the following table:

General and administrative costs for the 3rd Quarter increased by $35, or .03%, as compared to the 3rd quarter ending January 31, 2020, primarily due to higher legal fees, offset by lower auto expenses and employee costs. General and administrative costs have decreased overall by $5,667, or 1.9%, during the nine month period ending January 31, 2021, as compared to the same periods in 2020, primarily due to lower accounting fees, auto expenses and employee costs.

Year Ending April 30:
2022		$	73,485

~~Net~~Note ~~Income~~7 – Customer Concentrations

~~The~~Shipments ~~Company~~to ~~realized~~one acustomer ~~net~~amounted ~~loss~~to 33.17% of ~~$235~~sales during the ~~3rd~~first ~~Quarter~~three asmonths ~~compared~~of toFiscal a2022 ~~net~~compared ~~loss~~to of33.29% ~~$2,020~~during ~~for~~ the comparative ~~quarter~~Fiscal in2021 ~~the~~period. ~~prior~~As ~~year~~of July ~~primarily~~31, ~~due~~2021, tothere ~~lower sales~~were ~~offset~~outstanding byaccounts ~~the~~receivable ~~sale~~from ofthis ~~the~~customer ~~Company~~of ~~car~~$61,999 ~~for~~compared to $982,~~500~~460 ~~during~~at July ~~the~~31, ~~3rd quarter~~2020. ~~The~~Shipments ~~Company~~to ~~also~~another ~~realized~~customer aamounted ~~net~~to ~~income~~ 39.98% of ~~$14,688~~sales ~~for~~during the ~~nine~~first ~~month~~three ~~period~~months ~~ending~~of ~~January~~Fiscal ~~31,~~2022 ~~2021~~and as34.66% ~~compared to a net income~~ of ~~$23,548~~sales during the ~~same~~first ~~period~~three inmonths ~~2020. This~~of ~~decrease~~Fiscal in2021. ~~net~~As ~~income~~of July is31, ~~due~~2021, tothere anwere ~~overall~~outstanding ~~decrease~~accounts inreceivable ~~sales,~~from ~~while~~this ~~the~~customer ~~operating~~of ~~expenses~~$59,176 ofcompared ~~the~~to ~~Company~~$107,544 ~~have~~at July ~~not~~31, ~~materially changed~~2020.

~~Assets/Liabilities~~ 12

~~General~~BIOSYNERGY, INC.

~~Since~~Notes ~~April 30, 2020, the Company's assets have decreased by $72,359 and liabilities have decreased by $87,047. The overall decrease in assets and liabilities is primarily due~~ to ~~the~~Financial ~~changes in the accounting treatment for leases, which include amortization of the right of use asset and payments against the lease liability.~~Statements

~~Related~~Three ~~Party~~Months ~~Transactions~~Ended July 31, 2021 and 2020

AsNote of7 ~~January~~– ~~31,~~Customer ~~2021~~Concentrations ~~and April 30, 2020, $24,862 was due from F.K. Suzuki International, Inc.~~ (~~"FKSI"~~cont’d). 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, and an advance of $5,163 in Fiscal 2020 for corporate compliance costs. 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 contra equity account.

AThe ~~board~~Company ~~member~~had ~~provides~~export asales ~~variety~~ of ~~legal services~~$3,750 toduring the ~~company~~first inthree ~~his~~months ~~capacity~~of asFiscal a2022, ~~partner~~and inexport asales ~~law~~of ~~firm~~$11,640 during the first three months of Fiscal 2021. ~~Fees~~The ~~for~~Company ~~such~~also ~~legal~~believes ~~services~~that some of its medical devices were ~~approximately~~sold ~~$7,982~~to ~~and $9,216~~distributors ~~for~~within the ~~nine~~United ~~months~~States ~~ending~~who ~~January~~resold 31the devices in foreign markets. However, ~~2021~~the Company does not have any information regarding such sales and ~~2020~~such ~~respectively~~sales are not considered to be material.

OnNote ~~December~~8 1,– ~~2020~~COVID-19 ~~the~~Pandemic ~~Company sold an automobile to Fred K. Suzuki~~ and ~~Beverly~~Other ~~R. Suzuki for $9,500.~~Risks

~~Current~~The ~~Assets/Liabilities~~Company ~~Ratio~~will face challenges in 2021 and 2022 as a result of the COVID-19 pandemic and the resignation of three employees since April 30, 2021. Such challenges will include (among other things) decreases or significant decreases in demand for certain products that is partially responsible for a decrease in sales for the quarter ending July 31, 2021, and increases in demand for others, collectability of customer accounts receivable from customers negatively impacted by the epidemic, managing the health and productivity of our employees working in our facility or working remotely, managing our information technology (IT) infrastructure and security for our employees working remotely, procuring adequate raw materials and packaging, as well as managing our supply chain and producing the Company’s products. We have worked closely with our domestic suppliers to source and maintain a consistent supply of raw material, ingredients and packaging to provide a steady supply of our products to our customers, and have entered into a contract manufacturing agreement with a third party to manufacture our liquid crystal temperature indicators. We are fortunate that to date that we have not been significantly impacted by the pandemic. However, the resignation of the employees since April 30, 2021 has impacted the short-term manufacturing capability and workflow resulting in backorders at July 31, 2021. We believe with the third party manufacturing arrangement and temporary packaging and shipping personnel, the Company will be able to continue supplying its customers with products.

~~The ratio of current assets to current liabilities,~~ ~~11.2 to 1, has increased compared to 10.2 to 1 at April 30, 2020 primarily due to higher cash balances and lower accrued liabilities.~~ 13 The Company anticipates the ratio of current assets to current liabilities will remain substantially at its current level as a result of the change in accounting methods, subject to other normal fluctuations. In order to maintain or improve the Company’s asset/liabilities ratio, the Company’s operations must remain profitable.

~~Liquidity~~BIOSYNERGY, ~~and Capital Resources~~INC.

~~During~~Three ~~the~~Months ~~nine~~Ended July ~~month period ending January~~ 31, 2021, ~~the Company experienced an increase in working capital of $27,211. This is primarily due to the Company’s increase in cash,~~ and ~~lower accrued liabilities and lower operating lease liability.~~2020

~~The~~Item ~~Company has attempted to conserve working capital whenever possible~~2. ToMANAGEMENT’S ~~this~~DISCUSSION ~~end,~~AND ~~the~~ANALYSIS ~~Company~~OF ~~attempts~~FINANCIAL toCONDITION ~~keep~~AND ~~inventory~~RESULTS atOF minimum levels. The Company believes that it will be able to maintain adequate inventory to supply its customers on a timely basis by careful planning and forecasting demand for its products. However, the Company is nevertheless required to carry a minimum amount of finished inventory and raw materials to meet the delivery requirements of customers and thus, inventory represents a material portion of the Company’s investment in current assets.OPERATIONS

~~The~~Net Company presently grants payment terms to customers and dealers. Although the Company experiences varying collection periods of its accounts receivable, based on past experiences, the Company believes that uncollectable accounts receivable will not have a significant effect on future liquidity.Sales/Revenues

~~Cash~~For ~~provided~~the bythree ~~operating~~month ~~activities~~period ~~was~~ending July 31, 2021 (“1st Quarter”), the net sales decreased 40%, or $28116,~~572 during~~613, as compared to net sales for the ~~nine~~comparative three month period ending ~~January~~in ~~31, 2021~~2020. The ~~Cash~~decrease ~~provided~~in bynet ~~investing~~sales ~~activities~~during the 1st Quarter was ~~$9,500~~primarily ~~during~~due ~~this~~to ~~same~~the ~~period. Except~~resignation ~~for~~of ~~its~~certain ~~operating~~production ~~working~~employees ~~capital~~which resulted in production delays. As of July 31, ~~limited~~2021, ~~equipment~~the ~~purchases~~Company ~~and~~had ~~patent~~back ~~expenses~~orders totaling $149,968. Effective ~~management~~August is6, ~~not~~2021, ~~aware~~the ofCompany ~~any~~entered ~~other material~~into ~~capital~~a ~~requirements~~Contract orManufacturing ~~material~~Agreement ~~contingencies~~with LCR Hallcrest, LLC for ~~which~~the itmanufacture ~~must~~of ~~provide.~~the ~~There~~Company’s ~~were~~liquid nocrystal ~~cash~~products, ~~flows~~such ~~from~~as ~~financing~~HemoTemp ~~activities during~~II. As a result, the ~~nine~~Company ~~month~~was ~~periods~~able ~~ending~~to ~~January~~ship all of the back orders at July 31, 2021 oras ~~2020~~of September 14, 2021.

AsIn ofaddition ~~January~~to ~~31, 2021,~~ the ~~Company had $1~~above,~~709,773 of~~ ~~current~~during assets available. Of this amount, $24,027 was prepaid expenses, $173,616 was inventory, $228,776 was net trade receivables and $1,283,354 was cash. The Company’s available cash and cash flow from operations is considered adequate to fund the ~~short-term operating~~1st ~~capital~~Quarter ~~needs of~~ the Company. ~~The~~had ~~Company~~$480 ~~does not have a working line~~ of ~~credit~~other ~~and~~miscellaneous ~~does~~revenues ~~not~~primarily ~~anticipate~~from ~~obtaining~~leasing a ~~working~~ ~~line~~portion of ~~credit~~its instorage ~~the~~space ~~near~~to ~~future. Thus there is~~ a ~~risk~~third ~~additional~~party ~~financing~~and ~~may~~interest beincome ~~necessary to fund long-term capital needs~~ of ~~the Company, although there is no such currently known long-term capital needs other than operations~~$58.

~~Effects~~Costs ~~of Inflation. With the exception of inventory, labor costs~~ and product sales costs increasing with inflation, inflation has not had a material effect on the Company’s revenues and income from continuing operations in the past three years. Inflation is not expected to have a material effect in the foreseeable future.Expenses

~~uncertainties~~The ~~affecting~~operating expenses of the ~~application~~Company ~~of those~~during ~~policies~~the ~~and~~1st Quarter decreased overall by 1.97%, or $3,509, as compared to the ~~likelihood~~three ~~that~~month ~~materially~~period ~~different~~ending ~~amounts~~July ~~would~~31, be2020, ~~reported~~primarily ~~under~~due ~~different~~to ~~conditions~~a ordecrease ~~using~~in ~~different assumptions~~production, marketing and research and development expenses offset by an increase in general and administrative expenses.

~~The~~Cost Company’s significant accounting policies are disclosed in Note 2 to the Financial Statements for the 3rd Quarter. See “Financial Statements.” Except as noted below, the impact on the Company’s financial position or results of operation would not have been materially different had the Company reported under different conditions or used different assumptions. The policies which may have materially affected the financial position and results of operations of the Company if such information had been reported under different circumstances or assumptions are:Sales

~~Lease~~The ~~Commitments~~cost -of Onsales ~~February~~during 25the 1st Quarter decreased by $6, ~~2016,~~970 as compared to these expenses during the ~~FASB~~three ~~issued~~month ~~Topic~~period ~~842~~ending July 31, ~~Leases~~2020. This ~~Under~~decrease ~~its~~was ~~core~~due ~~principle,~~primarily due to reduced salaries and related employee expenses in July as a ~~lessee~~result ~~will~~of ~~recognize~~the ~~lease~~resignation ~~assets~~of ~~and~~production ~~liabilities~~employees onduring the ~~balance~~ ~~sheet~~1st ~~for~~Quarter. As ~~all~~a ~~arrangements~~percentage ~~with~~of ~~terms~~sales, ~~longer~~the ~~than~~cost 12of ~~months.~~sales ~~Lessor~~was ~~accounting~~60% ~~remains~~during ~~largely~~the ~~consistent~~1st ~~with~~Quarter ~~existing U.S.~~compared ~~GAAP~~to 38.39% Atfor ~~inception~~the three-month period ending July 31, 2020, due primarily to a ~~lessee~~decrease ~~must~~in ~~classify~~sales, ~~all~~but ~~leases~~with asongoing ~~either~~fixed ~~finance~~costs. Subject to unanticipated increases in raw materials or ~~operating.~~extraordinary ~~The~~occurrences, ~~Company~~it ~~classifies~~is not anticipated that the ~~lease~~cost ~~for its~~of ~~facility~~sales inas ~~Elk~~a ~~Grove~~percentage ~~Village~~of assales anwill ~~operating~~materially ~~lease~~change in the near future.

~~Revenue~~Research Recognition – The Company accounts for revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance provides a five-step process to achieve that core principle and toDevelopment ~~determine when and how revenue is recognized.~~Expenses

~~Use~~Research ~~of Estimates - Preparation of financial statements~~ and ~~conformity~~Development ~~with~~costs ~~accounting~~for ~~principles~~the ~~generally~~1st ~~accepted~~Quarter indecreased ~~the~~by ~~United~~$10,787, ~~States~~or of26.9%, ~~America~~as ~~requires~~compared ~~management~~ to ~~make~~ ~~estimates~~the ~~and~~same ~~assumptions~~quarter ~~that~~in ~~affect~~fiscal ~~the~~2020. The ~~reported~~decrease ~~amounts~~was ofmainly ~~assets~~due ~~and~~to ~~liabilities~~a ~~and~~reduction ~~disclosure~~in ofstaff ~~contingent~~as ~~assets~~a ~~and liabilities~~result as of the ~~date~~resignation of certain employees during the ~~Financial~~1st ~~Statements~~Quarter. The ~~and~~Company ~~the~~is ~~reported~~continuing ~~amounts~~research ofintended ~~revenues~~to improve and ~~expenses~~expand ~~during~~ the ~~reporting~~Company’s ~~period~~current product line. The ~~financial~~Company ~~condition~~does ofnot ~~the~~have ~~Company~~sufficient ~~and~~information ~~results~~to ofdetermine ~~operations~~the ~~may~~extent ~~differ~~to ~~from~~which the ~~estimates~~Company ~~and~~will ~~assumptions~~be ~~made~~required byto ~~management in~~allocate ~~preparation~~its ofresources to the ~~Financial~~continued ~~Statements~~development ~~accompanying~~of ~~this~~these ~~report~~products.

~~Allowance for Bad Debts - The Company~~ ~~periodically performs credit evaluations of its customers and generally does not require collateral to support amounts due from~~ 14 ~~the sale of its products. The Company maintains an allowance for doubtful accounts based on its best estimate of accounts receivable.~~

~~Forward-Looking~~Marketing ~~Statements~~Expenses

~~This~~Marketing ~~report~~expenses ~~may~~for ~~contain statements which, to~~ the ~~extent~~1st ~~they~~Quarter ~~are~~decreased ~~not~~by ~~recitations of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act")~~24. ~~Such forward-looking statements involve risks and uncertainties. Actual results may differ materially from such forward-looking statements for reasons including~~3%, ~~but~~or ~~not limited to~~$10, ~~changes to and developments in the legislative and regulatory environments effecting the Company’s business~~976, ~~the impact of competitive products and services, changes in the medical and laboratory industries caused by various factors, risks inherit in marketing new products,~~ as ~~well~~compared ~~as other factors as set forth in this report. Thus, such forward-looking statements should not be relied upon~~ to ~~indicate~~ the ~~actual~~quarter ~~results~~ending ~~which~~July ~~might~~31, ~~be obtained by the Company~~2020. The Nodecrease ~~representation~~was ordue ~~warranty of any kind is given with respect~~ to the ~~accuracy~~resignation of ~~such~~certain ~~forward-looking~~employees ~~information.~~during ~~The forward-looking information has been prepared by~~ the ~~management~~1st ~~of the Company and has not been reviewed or compiled by independent public accountants~~Quarter.

~~Item~~General ~~3. Quantitative~~ and ~~Qualitative~~Administrative ~~Disclosures~~Expenses ~~About Market Risk.~~

~~Market~~General ~~risk~~and isadministrative ~~the~~costs ~~risk~~for ofthe ~~loss~~1st ~~arising from~~Quarter ~~adverse~~increased ~~changes~~by ~~in market rates and prices~~$18, ~~such as interest rates~~254, ~~foreign~~or ~~currency exchange rates and commodity prices~~16. ~~Historically~~1%, ~~the~~as ~~Company’s~~compared ~~primary exposure~~ to ~~market~~the ~~risk~~3 ~~has~~month ~~been~~period ~~interest~~ending ~~rate~~July ~~risk~~31, ~~associated~~2020. ~~with~~This ~~its short~~increase ~~term~~was ~~money~~primarily ~~market~~the ~~investments.~~result ~~The~~of ~~Company~~an ~~currently~~increase ~~does~~in ~~not~~professional ~~have~~services ~~any~~provided ~~money~~to ~~market~~the ~~investments. The~~ Company ~~does~~due ~~not have~~to ~~any~~the ~~financial~~resignation ~~instruments~~of ~~held~~certain ~~for~~employees ~~trading~~during orthe ~~other~~1st ~~speculative~~Quarter ~~purposes~~who ~~and~~previously ~~does~~provided ~~not~~such ~~invest~~services. inAs ~~derivative~~a ~~financial instruments,~~result ~~interest~~of ~~rate~~such ~~swaps~~employee ~~or other investments that alter interest rate exposure. Thus~~resignations, ~~the~~it ~~Company~~is ~~does~~likely ~~not~~general ~~have~~and ~~any credit~~administrative ~~facilities~~expenses ~~with~~will ~~variable~~continue ~~interest rates. The Company’s operations are not exposed~~ to ~~financial~~be ~~risk~~higher ~~that~~in ~~will have~~Fiscal a2022 ~~material~~than ~~impact~~Fiscal ~~on its financial position and results of operation~~2021.

~~Item~~Net 4.Income ~~controls and procedures.~~(Loss)

~~Disclosure~~The ~~Controls~~Company ~~and~~realized ~~Procedures~~a net loss of $88,611 during the 1st Quarter as compared to a net loss of $13,220 for the comparative quarter of the prior year. The net loss during the first quarter was primarily due to lower sales due to the inability of the Company to produce its liquid crystal products during July, 2021.

The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) which are controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.Assets/Liabilities

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Accounting Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company’s Chief Executive Officer and Chief Accounting Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s Chief Executive Officer and its Chief Accounting Officer have concluded that the Company’s disclosure controls and procedures are effective.General

~~There~~Since ~~have~~April ~~been~~30, no2021, ~~changes in~~ the Company’s ~~internal~~ ~~control~~assets ~~over~~have ~~financial~~decreased ~~reporting~~by ~~during~~$126,958 ~~the~~and ~~Company’s~~liabilities ~~Fiscal~~have ~~Quarter~~decreased ~~ending~~by ~~January 31~~$38,347. The ~~2021~~decrease ~~that~~in ~~have~~assets ~~materially affected~~and orliabilities ~~are~~is ~~likely~~due to ~~materially~~lower ~~affect~~sales ~~the~~discussed ~~Company’s~~above ~~internal~~and ~~control~~a ~~over~~corresponding ~~financial~~decrease ~~reporting~~in accounts receivable during the 1st Quarter.

~~PART~~Related IIParty ~~– OTHER INFORMATION~~Transactions

~~Item~~The 1Company was owed $24,862 by F.K. ~~Legal~~Suzuki ~~Proceedings~~International, Inc. ("FKSI"), an affiliate, at July 31, 2021 and April 30, 2021. This account primarily represents common expenses which were previously charged by the Company to FKSI for reimbursement. No interest is received or accrued by the Company. Collectability of the amounts due from FKSI cannot be assured without the liquidation of all or a portion of its assets, including a portion of its common stock of the Company. As a result, the total amount owed by FKSI to the Company was reclassified as a reduction of FKSI’s capital in the Company.

AsA ofboard ~~the~~member ~~end~~provides a variety of legal services to the Company’s ~~Fiscal Quarter~~in ~~ending~~his ~~January~~capacity ~~31,~~as ~~2021,~~a ~~there~~partner ~~are~~in noa ~~material~~law ~~pending~~firm. ~~legal~~Fees ~~proceedings~~for tosuch ~~which~~legal ~~the~~services ~~Company~~were orapproximately ~~any~~$29,549 ofand ~~its~~$4,832 ~~subsidiaries is~~for athe ~~party~~three tomonth ofperiods ~~which~~ending ~~any~~July of31, ~~their~~2021 ~~property~~and is2020, ~~the subject~~respectively.

Current Assets/Liabilities Ratio

The ratio of current assets to current liabilities, 13.9 to 1 at July 31, 2021, has increased compared to 13.3 to 1 at April 30, 2021, primarily due to lower accounts payables. The Company anticipates the ratio of current assets to current liabilities will remain substantially at its current level , subject to other normal fluctuations. In order to maintain or improve the Company’s asset/liabilities ratio, the Company’s operations must return to profitability.

BIOSYNERGY, INC.

Three Months Ended July 31, 2021 and 2020

Liquidity and Capital Resources

During the 1^st Quarter, the Company experienced a decrease in working capital of $95,261. This was primarily due to lower sales due to the Company’s inability to produce liquid crystal products to fulfill customer orders which resulted in lower accounts receivable.

The Company has attempted to conserve working capital whenever possible. To this end, the Company attempts to keep inventory at minimum levels. During July of the 1^st Quarter, the Company was unable to produce its liquid crystal products due to the resignation of certain employees, causing a shortage of finished goods. This resulted in the Company having back orders of liquid crystal products of $149,968 at July 31, 2021. The Company entered into a Contract Manufacturing Agreement with LCR Hallcrest, LLC on August 6, 2021. Pursuant to this Agreement, LCA Hallcrest, LLC will manufacture the Company’s liquid crystal products using raw materials supplied by the Company. The Company will continue to ship and sell the liquid crystal products manufactured by LCR Hallcrest, LLC. The Company believes that it will be able to maintain adequate finished goods inventory to supply its customers on a timely basis with LCR Hallcrest, LLC producing its liquid crystal products. The Company is required to carry sufficient finished inventory and raw materials to meet the delivery requirements of customers and thus, inventory will continue to represent a substantial portion of the Company’s current assets.

The Company presently grants payment terms to customers and dealers. Although the Company experiences varying collection periods of its accounts receivable, the Company believes that uncollectable accounts receivable will not have a significant effect on future liquidity.

Cash provided by operating activities was $46,586 during the three month period ending July 31, 2021. There was no cash used in investing activities. Except for operating expenses, management is not aware of any other material capital requirements or material contingencies for which it must provide. There were no cash flows from financing activities during the three month period ending July 31, 2021 or 2020.

As of July 31, 2021, the Company had $1,585,911 of current assets available. Of this amount, $29,620 was prepaid expenses, $128,069 was inventory, $130,515 was net trade receivables and $1,297,167 was cash. The Company’s available cash and cash flow are considered adequate to fund the short-term capital needs of the Company. The Company does not have a working line of credit, and does not anticipate obtaining a working line of credit in the near future. Thus there is a risk additional financing may be necessary to fund long-term capital needs of the Company, although there is no such currently known long-term capital needs other than operations.

Effects of Inflation. With the exception of inventory, labor costs and product sales prices increasing with inflation, inflation has not had a material effect on the Company’s revenues and income from continuing operations in the past three years. Inflation is not expected to have a material effect on the Company’s revenues or income in the foreseeable future.

Critical Accounting Policies and Estimates. On December 12, 2001, the SEC issued FR-60 “Cautionary Advice Regarding Disclosure About Critical Accounting Policies.” FR-60 is an intermediate step to alert companies to the need for greater investor awareness of the sensitivity of financial statements to the methods, assumptions, and estimates underlying their preparation, including the judgments and uncertainties affecting the application of those policies and the likelihood that materially different amounts would be reported under different conditions or using different assumptions.

The Company’s significant accounting policies are disclosed in Note 2 to the Financial Statements for the 1^st Quarter. See “Financial Statements.” Except as noted below, the impact on the Company’s financial position or results of operation would not have been materially different had the Company reported under different conditions or using different assumptions. The policies which may have materially affected the financial position and results of operations of the Company if such information had been reported under different circumstances or assumptions are:

Lease Commitments - On February 25, 2016, the FASB issued Topic 842, Leases. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. GAAP. At inception, a lessee must classify all leases as either finance or operating. The Company classifies the lease for its facility in Elk Grove Village as an operating lease.

Revenue Recognition - In May 2014, the Financial Accounting Standard Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance provides a five-step process to achieve that core principle and to determine when and how revenue is recognized.

Use of Estimates. Preparation of financial statements and 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. The financial condition of the Company and results of operations may differ from the estimates and assumptions made by management in preparation of the Financial Statements accompanying this report.

Allowance for Bad Debts. The Company periodically performs credit evaluations of its customers and generally does not require collateral to support amounts due from the sale of its products. The Company maintains an allowance for doubtful accounts based on its best estimate of the collectability accounts receivable.

Forward-Looking Statements

This report may contain statements which, to the extent they are not recitations of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve risks and uncertainties. Actual results may differ materially from such forward-looking statements for reasons including, but not limited to, changes to and developments in the legislative and regulatory environments effecting the Company’s business, the impact of competitive products and services, changes in the medical and laboratory industries caused by various factors, risks inherit in marketing new products, as well as other factors as set forth in this report. Thus, such forward-looking statements should not be relied upon to indicate the actual results which might be obtained by the Company. No representation or warranty of any kind is given with respect to the accuracy of such forward-looking information. The forward-looking information has been prepared by the management of the Company and has not been reviewed or compiled by independent public accountants.

BIOSYNERGY, INC.

Three Months Ended July 31, 2021 and 2020

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and commodity prices. The Company’s primary exposure to market risk is the interest rate risk associated with its short term money market investments. The Company does not have any financial instruments held for trading or other speculative purposes and does not invest in derivative financial instruments, interest rate swaps or other investments that alter interest rate exposure. The Company does not have any credit facilities with variable interest rates. Thus, the Company’s operations are not exposed to financial risk that will have a material impact on its financial position and results of operation.

Item 4. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Company has established and maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d15(e) of the Exchange Act) which are controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Accounting Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company’s Chief Executive Officer and Chief Accounting Officer has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s Chief Executive Officer and Chief Accounting Officer has concluded that the Company’s disclosure controls and procedures are effective.

On July 2, 2021, Laurence Mead, the Company’s Chief Financial Officer, Chief Accounting Officer and Treasurer, resigned. The Board of Directors elected Fred Suzuki as the Interim Chief Financial Officer, Chief Accounting Officer and Treasurer to serve until the Company is able to find replacements. The Audit Committee adopted new accounting and financial internal controls over financial reporting procedures to reflect changes in office and accounting personnel and ensure that proper controls remain in place.

BIOSYNERGY, INC.

Three Months Ended July 31, 2021 and 2020

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

As of the end of the Company’s Fiscal Quarter ending July 31, 2021, there are no material pending legal proceedings to which the Company or any of its subsidiaries is a party to of which any of their property is the subject.

Item 1A. Risk Factors.

In addition to the other information set forth in this report on Form 10-Q, you should also consider the factors, risks and uncertainties which could materially affect the Company’s business, financial condition or future results as discussed in Part I, Item 1A – “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended April 30, ~~2020. There were no significant changes to the risk factors identified on the Form 10-K for the fiscal year ended April 30, 2020 or during the third quarter of Fiscal~~ 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the past three years, the Company has not sold securities which were not registered under the Securities Act.

Item 3. Defaults Upon Senior Securities.

(a) As of the end of the Company’s Fiscal Quarter ending ~~January~~July 31, 2021, there have been no material defaults in the payment of principal, interest, a sinking or purchase fund installment, or any other material default not cured within 30 days, with respect to any indebtedness of the registrant or any of its significant subsidiaries exceeding 5 percent of the total assets of the Company and its consolidated subsidiaries.

(b) As of the end of the Company’s Fiscal Quarter ending ~~January~~July 31, 2021, there have been no material arrearages in the payment of dividends and there has been no other material delinquency not cured within 30 days, with respect to any class of preferred stock of the Company which is registered or which ranks prior to any class of registered securities, or with respect to any class of preferred stock of any significant subsidiary of the Company.

Item 4. Mine Safety Disclosures.

The disclosures required by this Item are not applicable to the Company.

Item 5. Other Information.

(a) The Company is not required to disclose any information in this Form 10-Q otherwise required to be disclosed in a report on Form 8-K during the period covered by this Form 10-Q.

(b) During the Fiscal Quarter ending ~~January~~July 31, 2021, there have been no material changes to the procedures by which the security holders may recommend nominees to the Company’s board of directors, where such changes were implemented after the Company last provided disclosure in response to the requirements of Regulation S-K.

BIOSYNERGY, INC.

Three Months Ended July 31, 2021 and 2020

Item 6. Exhibits.

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 – none.

(11)	Statement regarding computation of per share earnings- none.

(15)	Letter regarding unaudited interim financial information - none.

(18)	Letter regarding change in accounting principles - 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.

(31.1) Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. Filed herewith.

(31.2) Certification of the Chief Accounting Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. Filed herewith.

(32.1) Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Sect. 1350. Filed herewith.

(32.2) Certification of the Chief Accounting Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Sect. 1350. Filed herewith.

~~____________________~~101.INS Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH Inline XBRL Taxonomy Extension Schema Document

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document

104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(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 and Restated By-Laws, to the Company’s Current Statement on Form 8-K dated as of July 2, 2009 filed with the Securities and Exchange Commission.

~~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.~~ 20

BIOSYNERGY, INC.

Date: March 17, 2021	/s/ Fred K. Suzuki Fred K. Suzuki Chief Executive Officer, Chairman of the Board, and President
Date: March 17, 2021	/s/ Laurence C. Mead Laurence C. Mead Chief Operating Officer, Chief Financial Officer, Chief Accounting Officer and Treasurer

Three Months Ended July 31, 2021 and 2020

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 14, 2021

/s/ Fred K. Suzuki

Fred K. Suzuki

Chief Executive Officer, Chairman of the Board, President, Chief

Financial Officer, Chief Accounting Officer and Treasurer

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