Burzynski Research Institute (BZYR) 10-Q16 Jan 242024 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Nov. 30, 2023	Jan. 01, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 2023
Document Transition Report	false
Entity File Number	000-23425
Entity Registrant Name	BURZYNSKI RESEARCH INSTITUTE INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0136810
Entity Address, Address Line One	9432 Katy Freeway
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77055
City Area Code	713
Local Phone Number	335-5697
Title of 12(b) Security	None
Trading Symbol	BZYR
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		131,448,444
Entity Central Index Key	0000724445
Current Fiscal Year End Date	--02-29
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Current assets
Cash and cash equivalents	$ 913	$ 934
Prepaids	100	1,000
Total current assets	1,013	1,934
Total assets	1,013	1,934
Current liabilities
Accounts payable	20,000	12,570
Accrued liabilities	15,847	3,091
CURRENT AND TOTAL LIABILITIES	35,847	15,661
Commitments and contingencies
Stockholders' equity (deficit)
Common stock, $.001 par value; 200,000,000 shares authorized; 131,448,444 shares issued and outstanding as of November 30, 2023 and February 28, 2023	131,449	131,449
Additional paid-in capital	127,561,016	126,609,599
Retained deficit	(127,727,299)	(126,754,775)
Total stockholders' equity (deficit)	(34,834)	(13,727)
Total liabilities and stockholders' equity (deficit)	$ 1,013	$ 1,934

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Nov. 30, 2023	Feb. 28, 2023
BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	131,448,444	131,448,444
Common stock, shares outstanding	131,448,444	131,448,444

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
STATEMENTS OF OPERATIONS - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Operating expenses
Research and development	$ 218,069	$ 207,651	$ 614,240	$ 545,960
General and administrative	214,946	44,988	358,284	154,334
Total operating expenses	433,015	252,639	972,524	700,294
Operating loss	(433,015)	(252,639)	(972,524)	(700,294)
Loss before provision for income tax	(433,015)	(252,639)	(972,524)	(700,294)
Provision for income tax	0	0	0	0
Net loss	$ (433,015)	$ (252,639)	$ (972,524)	$ (700,294)
Earnings per share information:
Loss per common share Basic	$ 0	$ 0	$ (0.01)	$ (0.01)
Loss per common share Diluted	$ 0	$ 0	$ (0.01)	$ (0.01)
Weighted average common shares outstanding:
Weighted average number of common shares outstanding Basic	131,448,444	131,448,444	131,448,444	131,448,444
Weighted average number of common shares outstanding Diluted	131,448,444	131,448,444	131,448,444	131,448,444

STATEMENT OF STOCKHOLDERS' EQUI

STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock	Additional Paid-in Capital	Retained Deficit	Total
Balance at Feb. 28, 2022	$ 131,449	$ 125,708,240	$ (125,838,483)	$ 1,206
Balance (in shares) at Feb. 28, 2022	131,448,444
Increase (Decrease) in Stockholders' Equity
Cash contributed by S.R. Burzynski M.D., Ph.D.		40,517		40,517
FDA clinical trial expenses paid directly by S.R. Burzynski M.D., Ph.D.		151,334		151,334
Net Income (Loss)			(231,737)	(231,737)
Balance at May. 31, 2022	$ 131,449	125,900,091	(126,070,220)	(38,680)
Balance (in shares) at May. 31, 2022	131,448,444
Balance at Feb. 28, 2022	$ 131,449	125,708,240	(125,838,483)	1,206
Balance (in shares) at Feb. 28, 2022	131,448,444
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				(700,294)
Balance at Nov. 30, 2022	$ 131,449	(126,380,700)	(126,538,777)	(26,628)
Balance (in shares) at Nov. 30, 2022	131,448,444
Balance at May. 31, 2022	$ 131,449	125,900,091	(126,070,220)	(38,680)
Balance (in shares) at May. 31, 2022	131,448,444
Increase (Decrease) in Stockholders' Equity
Cash contributed by S.R. Burzynski M.D., Ph.D.		86,017		86,017
FDA clinical trial expenses paid directly by S.R. Burzynski M.D., Ph.D.		154,943		154,943
Net Income (Loss)			(215,918)	(215,918)
Balance at Aug. 31, 2022	$ 131,449	126,141,051	(126,286,138)	(13,638)
Balance (in shares) at Aug. 31, 2022	131,448,444
Increase (Decrease) in Stockholders' Equity
Cash contributed by S.R. Burzynski M.D., Ph.D.		48,017		48,017
FDA clinical trial expenses paid directly by S.R. Burzynski M.D., Ph.D.		191,632		191,632
Net Income (Loss)			(252,639)	(252,639)
Balance at Nov. 30, 2022	$ 131,449	(126,380,700)	(126,538,777)	(26,628)
Balance (in shares) at Nov. 30, 2022	131,448,444
Balance at Feb. 28, 2023	$ 131,449	126,609,599	(126,754,775)	(13,727)
Balance (in shares) at Feb. 28, 2023	131,448,444
Increase (Decrease) in Stockholders' Equity
Cash contributed by S.R. Burzynski M.D., Ph.D.		64,517		64,517
FDA clinical trial expenses paid directly by S.R. Burzynski M.D., Ph.D.		166,097		166,097
Net Income (Loss)			(287,405)	(287,405)
Balance at May. 31, 2023	$ 131,449	126,840,213	(127,042,180)	(70,518)
Balance (in shares) at May. 31, 2023	131,448,444
Balance at Feb. 28, 2023	$ 131,449	126,609,599	(126,754,775)	(13,727)
Balance (in shares) at Feb. 28, 2023	131,448,444
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				(972,524)
Balance at Nov. 30, 2023	$ 131,449	127,561,016	(127,727,299)	(34,834)
Balance (in shares) at Nov. 30, 2023	131,448,444
Balance at May. 31, 2023	$ 131,449	126,840,213	(127,042,180)	(70,518)
Balance (in shares) at May. 31, 2023	131,448,444
Increase (Decrease) in Stockholders' Equity
Cash contributed by S.R. Burzynski M.D., Ph.D.		121,017		121,017
FDA clinical trial expenses paid directly by S.R. Burzynski M.D., Ph.D.		197,129		197,129
Net Income (Loss)			(252,104)	(252,104)
Balance at Aug. 31, 2023	$ 131,449	127,158,359	(127,294,284)	(4,476)
Balance (in shares) at Aug. 31, 2023	131,448,444
Increase (Decrease) in Stockholders' Equity
Cash contributed by S.R. Burzynski M.D., Ph.D.		200,605		200,605
FDA clinical trial expenses paid directly by S.R. Burzynski M.D., Ph.D.		202,052		202,052
Net Income (Loss)			(433,015)	(433,015)
Balance at Nov. 30, 2023	$ 131,449	$ 127,561,016	$ (127,727,299)	$ (34,834)
Balance (in shares) at Nov. 30, 2023	131,448,444

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
STATEMENTS OF CASH FLOWS - USD ($)	Nov. 30, 2023	Nov. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (972,524)	$ (700,294)
Adjustments to reconcile net loss to net cash used by operating activities:
FDA clinical trial expenses paid directly by S.R. Burzynski M.D., Ph.D.	565,278	497,909
Changes in operating assets and liabilities
Prepaids	900	1,179
Accounts payable	7,430	16,650
Accrued liabilities	12,756	8,315
NET CASH USED BY OPERATING ACTIVITIES	(386,160)	(176,241)
CASH FLOWS FROM FINANCING ACTIVITIES
Contribution of capital	386,139	174,551
NET CASH PROVIDED BY FINANCING ACTIVITIES	386,139	174,551
NET INCREASE (DECREASE) IN CASH	(21)	(1,690)
CASH AT BEGINNING OF PERIOD	934	3,382
CASH AT END OF PERIOD	$ 913	$ 1,692

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Nov. 30, 2023
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE A. BASIS OF PRESENTATION The financial statements of Burzynski Research Institute, Inc. (the “Company”), a Delaware corporation, include expenses incurred related to clinical trials, which were sanctioned by the U.S. Food and Drug Administration (FDA) in 1993, for Antineoplaston drugs used in the treatment of cancer. These expenses are incurred directly by S.R. Burzynski, M.D., Ph.D. (Dr. Burzynski or “SRB”) on behalf of the Company and have been reported as research and development costs and as additional paid-in capital. Other funds received from Dr. Burzynski have also been reported as additional paid-in capital. Expenses related to Dr. Burzynski’s medical practice (unrelated to the clinical trials) have not been included in these financial statements. Dr. Burzynski is the President, Chairman of the Board and owner of approximately The Company and Dr. Burzynski have entered into various agreements, as further described in Note B. The Original License Agreement between the Company and Dr. Burzynski provided the Company the exclusive right in the United States, Canada, and Mexico to use, manufacture, develop, sell, distribute, sublicense and otherwise exploit all the rights, titles and interest in Antineoplaston drugs used in the treatment of cancer, once the drug is approved for sale by the FDA. On July 2, 2019, the Original License Agreement between the Company and Dr. Burzynski terminated upon the expiration of the last patent licensed to the Company under such agreement. On May 22, 2023, the Company entered into the New License Agreement with Dr. Burzynski, pursuant to which Dr. Burzynski licensed to the Company the exclusive rights in the territory (composed of the United States and Canada) to make, have made, use, sell, offer for sale, and distribute or otherwise exploit the licensed products and services relating to Antineoplastons, including but not limited to any patent rights which may be granted in these countries. The Company is primarily engaged as a research and development facility for Antineoplaston drugs being tested for the use in the treatment of cancer. The Company’s investigational new drug application (“IND”) 43742 is currently under full clinical hold and the Company cannot enroll new patients into any clinical trials until the full clinical hold is removed by the FDA. At this time, however, none of the Antineoplaston drugs have received FDA approval; further, there can be no assurance that FDA approval will be granted. The Company’s administrative offices are located in Houston, Texas; its research and production facilities are in Stafford, Texas. The Company operates primarily as a research and development facility of Antineoplaston drugs. Segment information is not presented since all of the Company’s operations are attributed to a single reportable segment. The Company has had no significant revenue from external sources. The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Certain disclosures and information normally included in financial statements have been condensed or omitted. In the opinion of management of the Company, these financial statements contain all adjustments necessary for a fair presentation of financial position as of November 30, 2023 and February 28, 2023, results of operations for the three and nine months ended November 30, 2023 and 2022, and cash flows for the nine months ended November 30, 2023 and 2022. All adjustments are of a normal recurring nature. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year. These statements should be read in conjunction with the financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2023.

ECONOMIC DEPENDENCY

ECONOMIC DEPENDENCY	9 Months Ended
ECONOMIC DEPENDENCY	Nov. 30, 2023
ECONOMIC DEPENDENCY
ECONOMIC DEPENDENCY	NOTE B. ECONOMIC DEPENDENCY The Company has not generated significant revenues since its inception and has suffered losses from operations, has a working capital deficit and has an accumulated deficit. Dr. Burzynski has funded the capital and operational needs of the Company through his medical practice since inception, and has entered into various agreements to continue such funding. the Company’s research. In such event, the Company would be required to find immediate funding which may not be available on acceptable terms or at all. If this were to occur and the Company were not able to find adequate sources of funding, the Company would be required to cease operations. Even with Dr. Burzynski’s continued contributions under a research funding agreement, the Company may be required to seek additional capital through equity or debt financing or the sale of assets until the Company’s operating revenues are sufficient to cover operating costs and provide positive cash flow; however, there can be no assurance that the Company will be able to raise such additional capital on acceptable terms to the Company. In addition, there can be no assurance that the Company will ever achieve positive operating cash flow. The Company is economically dependent on its funding through Dr. Burzynski’s medical practice. In the past, a portion of Dr. Burzynski’s patients have been admitted and treated as part of the clinical trial programs. The Company’s IND 43742 is currently under full clinical hold and the Company cannot enroll new patients into any clinical trials until the full clinical hold is removed by the FDA. The FDA imposes numerous regulations and requirements regarding these patients, and the Company is subject to inspection at any time by the FDA. These regulations are complex and subject to interpretation and though it is management’s intention to comply fully with all such regulations, there is the risk that the Company is not in compliance and is thus subject to sanctions imposed by the FDA. In addition, as with any medical practice, Dr. Burzynski is subject to potential claims by patients and other potential claimants commonly arising out of the operation of a medical practice. The risks associated with Dr. Burzynski’s medical practice directly affect his ability to fund the operations of the Company.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	9 Months Ended
STOCK OPTIONS AND WARRANTS	Nov. 30, 2023
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS	NOTE C. STOCK OPTIONS AND WARRANTS At November 30, 2023, the Company had one stock-based employee compensation plan, which is described below. On September 14, 1996, the Company granted 600,000 stock options, with an exercise price of $0.35 per share, to an officer who is no longer with the Company. Vesting Date 400,000 options September 14, 1996 100,000 options June 1, 1997 100,000 options June 1, 1998 The options are valid in perpetuity. The Company accounts for share-based payments to non-employees in accordance with the guidance provided by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, Compensation – Stock Compensation

LOSS PER COMMON SHARE

LOSS PER COMMON SHARE	9 Months Ended
LOSS PER COMMON SHARE	Nov. 30, 2023
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE	NOTE D. LOSS PER COMMON SHARE The Company accounts for loss per share in accordance with FASB ASC 260, Earnings per Share

INCOME TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Nov. 30, 2023
INCOME TAXES
INCOME TAXES	NOTE E. INCOME TAXES The Company follows the provisions of FASB ASC 740, Income Taxes . The Company is not aware of any material unrecognized tax uncertainties as a result of tax positions previously taken. The Company recognizes interest and penalties as interest expense when they are accrued or assessed. The federal income tax returns of the Company for 2022, 2021, and 2020 are subject to examination by the IRS, generally for three years after they are filed. The actual provision for income tax for the three and nine months ended November 30, 2023 and 2022 differ from the amounts computed by applying the U.S. federal income tax rate of 21% to the pretax loss as a result of the following: Three Months Ended November 30, 2023 2022 Expected expense (benefit) $ (90,933) $ (53,054) Taxed directly to Dr. Burzynski 90,933 53,054 Nondeductible expenses and other adjustments (6,375) 2,728 Change in valuation allowance 6,375 (2,728) State taxes — — Provision for income tax $ — $ — Nine Months Ended November 30, 2023 2022 Expected expense (benefit) $ (204,230) $ (147,062) Taxed directly to Dr. Burzynski 204,230 147,062 Nondeductible expenses and other adjustments 4,433 5,845 Change in valuation allowance (4,433) (5,845) State taxes — — Provision for income tax $ — $ — At November 30, 2023, the Company had a net deferred tax asset of $0, which includes a valuation allowance of $166,270 . The Company’s ability to utilize net operating loss ("NOL") carryforwards and alternative minimum tax credit carryforwards will depend on its ability to generate adequate future taxable income. The Company has historical earnings on which to base an expectation of future taxable income. Accordingly, a full valuation allowance for deferred tax assets has been provided. As a result of the Tax Cuts and Jobs Act of 2017 (the "Act"), NOL carryforwards generated in years beginning after December 31, 2017, would carryforward indefinitely, and would apply to 80% of future taxable income. Under the Act, carrybacks of NOLs were disallowed. In March 2020, the Coronavirus Aid, Relief, and Economic Security ("CARES") Act was enacted providing a five-year carryback for losses incurred in 2018, 2019, or 2020, which allows companies to modify tax returns up to five years prior to offset taxable income from those tax years. The CARES Act also temporarily suspended the NOL limit of 80% of taxable income. As of November 30, 2023, the Company has net operating loss carryforwards in the amount of $473,902 that will expire between 2026 and 2038, and $114,988 that will carryforward indefinitely.

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	9 Months Ended
STOCK OPTIONS AND WARRANTS (Tables)	Nov. 30, 2023
STOCK OPTIONS AND WARRANTS
Schedule of options vested	Vesting Date 400,000 options September 14, 1996 100,000 options June 1, 1997 100,000 options June 1, 1998

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
INCOME TAXES (Tables)	Nov. 30, 2023
INCOME TAXES
Schedule of actual provision for income tax that differs from the amounts computed by applying the U.S. federal income tax rate to the pretax loss	Three Months Ended November 30, 2023 2022 Expected expense (benefit) $ (90,933) $ (53,054) Taxed directly to Dr. Burzynski 90,933 53,054 Nondeductible expenses and other adjustments (6,375) 2,728 Change in valuation allowance 6,375 (2,728) State taxes — — Provision for income tax $ — $ — Nine Months Ended November 30, 2023 2022 Expected expense (benefit) $ (204,230) $ (147,062) Taxed directly to Dr. Burzynski 204,230 147,062 Nondeductible expenses and other adjustments 4,433 5,845 Change in valuation allowance (4,433) (5,845) State taxes — — Provision for income tax $ — $ —

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)	9 Months Ended
BASIS OF PRESENTATION (Details)	Nov. 30, 2023 item
BASIS OF PRESENTATION
Percentage of outstanding stock owned by the President and Chairman of the Board	81%
Number of antineoplaston drugs that have received FDA approval	0

STOCK OPTIONS AND WARRANTS (Det

STOCK OPTIONS AND WARRANTS (Details)				9 Months Ended
STOCK OPTIONS AND WARRANTS (Details)	Jun. 01, 1998 shares	Jun. 01, 1997 shares	Sep. 14, 1996 $ / shares shares	Nov. 30, 2023 item shares
STOCK OPTIONS AND WARRANTS
Number of stock-based employee compensation plan \| item				1
Employee Stock Option [Member]
STOCK OPTIONS AND WARRANTS
Granted (in shares)			600,000
Exercise price (in dollars per share) \| $ / shares			$ 0.35
Vested (in shares)	100,000	100,000	400,000
Exercised (in shares)				0

LOSS PER COMMON SHARE (Details)

LOSS PER COMMON SHARE (Details) - shares	9 Months Ended
LOSS PER COMMON SHARE (Details) - shares	Nov. 30, 2023	Nov. 30, 2022
Employee Stock Option [Member]
Shares excluded from calculation of diluted loss per share (in shares)	600,000	600,000
Warrants and stock options
Shares excluded from calculation of diluted loss per share (in shares)	1,600,000	1,600,000

INCOME TAXES - Income Tax Expen

INCOME TAXES - Income Tax Expenses and Deferred Tax Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Income Taxes
U.S. federal income tax rate (as a percent)	21%	21%	21%	21%
Actual income tax benefit
Expected expense (benefit)	$ (90,933)	$ (53,054)	$ (204,230)	$ (147,062)
Taxed directly to Dr. Burzynski	90,933	53,054	204,230	147,062
Nondeductible expenses and other adjustments	(6,375)	2,728	4,433	5,845
Change in valuation allowance	6,375	(2,728)	(4,433)	(5,845)
Provision for income tax	0	$ 0	0	$ 0
Deferred tax assets:
Valuation allowance	166,270		166,270
Net deferred tax asset	$ 0		0
Historical earnings			$ 0
IRS
Income Taxes
Period after filing income tax returns subject to examination			3 years

INCOME TAXES - Operating Loss C

INCOME TAXES - Operating Loss Carryforwards (Details)	9 Months Ended
INCOME TAXES - Operating Loss Carryforwards (Details)	Nov. 30, 2023 USD ($)
Net operating loss carryforwards
Future taxable income (in Percent)	80%
Percentage of NOL limit on taxable income under the CARES act	80%
Net operating loss carryforward indefinite period	$ 114,988
2026 to 2038
Net operating loss carryforwards
Net operating loss carryforward in accordance with the Act	$ 473,902

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($)	Nov. 30, 2023	Aug. 31, 2023	May 31, 2023	Nov. 30, 2022	Aug. 31, 2022	May 31, 2022	Nov. 30, 2023	Nov. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (433,015)	$ (252,104)	$ (287,405)	$ (252,639)	$ (215,918)	$ (231,737)	$ (972,524)	$ (700,294)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Nov. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false