Burzynski Research Institute Reports Significant Decline in Assets and Increase in Liabilities, Operating Losses

As of August 31, 2024, Burzynski Research Institute, Inc. reported total current assets of $1.6 million, a decrease from $2.3 million as of February 29, 2024. Total assets also fell to $1.6 million from $2.3 million during the same period. Current and total liabilities surged to $89.3 million, significantly up from $27.4 million, resulting in total stockholders’ equity reflecting a deficit of $(87.6 million), compared to $(25.1 million) previously.

For the three months ended August 31, 2024, the company experienced total operating expenses of $369.8 million, an increase from $252.1 million in the same period of 2023. Research and development expenses rose to $277.2 million from $214.1 million, while general and administrative expenses jumped to $92.6 million from $38.0 million. The operating loss for this quarter was $(369.8 million), compared to $(252.1 million) in 2023, with a net loss also reported at $(369.8 million), up from $(252.1 million).

For the six months ended August 31, 2024, total operating expenses reached $741.2 million, compared to $539.5 million in 2023. Research and development costs increased to $503.3 million from $396.2 million, and general and administrative expenses rose to $237.9 million from $143.3 million. The operating loss for this period was $(741.2 million), compared to $(539.5 million) in the prior year, with a net loss of $(741.2 million) versus $(539.5 million) in 2023. The basic and diluted loss per share for the six months was $(0.01), compared to $(0.00) in the previous year.

The company remains economically dependent on funding from Dr. S.R. Burzynski, who owns approximately 81% of the outstanding common stock. His contributions have been crucial for covering operational costs, as the company has not generated significant revenue since its inception. A New License Agreement was established on May 22, 2023, granting exclusive rights in the U.S. and Canada for Antineoplaston drugs, although the FDA has placed a full clinical hold on the investigational new drug application (IND) 43742, preventing new patient enrollment in clinical trials.

The company reported a net cash used by operating activities of $(207.6 million) for the six months ended August 31, 2024, compared to $(185.1 million) in 2023. The net cash provided by financing activities was $207.5 million, consistent with the previous year. The cash balance at the end of the period was $1.2 million, down from $1.4 million in 2023. The company anticipates spending approximately $600,000 in the remaining two quarters of the fiscal year ending February 28, 2025, and may need to seek additional capital to cover operating costs.