Burzynski Research Institute Reports Q3 Net Loss of $352,000, Faces Financial Challenges

Burzynski Research Institute, Inc. reported its financial results for the three and nine months ended November 30, 2024, revealing a net loss of approximately $352,000 for the third quarter, a decrease from a loss of $433,000 in the same period the previous year. For the nine-month period, the net loss increased to about $1.093 million compared to $973,000 in the prior year. The company's total operating expenses for the third quarter were approximately $352,000, down from $433,000 a year earlier, while for the nine months, expenses rose to $1.093 million from $973,000. The increase in expenses was primarily driven by higher research and development costs, which rose by 38% in the third quarter and 31% over the nine-month period, attributed to increased personnel and facility costs.

The company's financial position showed a significant decline in total assets, which decreased to $713,000 as of November 30, 2024, from $2.31 million at the end of February 2024. Current liabilities also increased to $22.04 million from $27.43 million during the same period. The stockholders' equity deficit improved slightly to $(21,326) from $(25,123), reflecting ongoing financial challenges. The company continues to rely heavily on funding from Dr. S.R. Burzynski, who has provided substantial financial support through his medical practice, covering operational and research expenses.

Operationally, Burzynski Research Institute remains focused on the development of Antineoplaston drugs for cancer treatment, although its investigational new drug application (IND 43742) is currently under full clinical hold by the FDA, preventing the enrollment of new patients in clinical trials. The company has not generated significant revenue from external sources and is economically dependent on Dr. Burzynski's contributions. The recent financial statements indicate that the company has incurred substantial costs related to FDA clinical trials, which are funded directly by Dr. Burzynski.

Looking ahead, the company estimates it will spend approximately $300,000 in the remaining quarter of the fiscal year ending February 28, 2025. While it anticipates continued funding from Dr. Burzynski, there is no guarantee that this support will persist, which raises concerns about the company's ability to sustain its operations. The management has indicated that if funding ceases, the company may need to seek additional capital through equity or debt financing, but there is no assurance that such funding will be available on acceptable terms. The ongoing clinical hold and the dependency on a single source of funding present significant risks to the company's future operations and viability.