**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-Q**

**xQUARTERLY        REPORT PURSUANT TO SECTION 13        OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**July        31, 2005**

**oTRANSITION        REPORT PURSUANT TO SECTION 13        OR 15(d) OF THE OF SECURITIES EXCHANGE ACT OF 1934**

**0-22011        **

**Bionutrics,        Inc. **

*(Exact        name of registrant as specified in its charter*

| **Nevada**                                                                                         | **86-0760991**                                           |
|----------------------------------------------------------------------------------------------------|----------------------------------------------------------|
| (*State                  or other jurisdiction of incorporation or                  organization)* | *I.R.S.                  Employer Identification Number* |

| **2415                  E. Camelback Rd., Suite 700 Phoenix, Arizona** | **85016**                     |
|------------------------------------------------------------------------|-------------------------------|
| (*Address                  of principal executive offices)*            | *(Zip                  code)* |

**602-508-0112**

*(Registrant’s        telephone number, including area code)*

**x**
**o**

**o **
**x**

| CLASS                                            | OUTSTANDING                    AS OF September 12, 2005 |
|--------------------------------------------------|---------------------------------------------------------|
|                                             |                                                    |
| **Common**                                       |                                                    |
| **Par                    value $.001 per share** | **22,601,725**                                          |

----

**BIONUTRICS,        INC.**

**INDEX        TO QUARTERLY REPORT**

**ON        FORM 10-Q**

|                                               |                                                                               | **Page** |
|----------------------------------------------------|------------------------------------------------------------------------------------|----------|
| **Part                  I. Financial Information** |
|                                               |                                                                               |     |
| **ITEM                  I.**                       | Financial                  Statements.                                             |     |
|                                               |                                                                               |     |
|                                               | (*Unaudited*)                                                                      |     |
|                                               | Condensed                  Consolidated Balance Sheets                             | 3        |
|                                               | Condensed                  Consolidated Statements of Operations                   | 4        |
|                                               | Condensed                  Consolidated Statements of Cash Flows                   | 5        |
|                                               | Notes                  to Condensed Consolidated Financial Statements              | 6        |
|                                               |                                                                               |     |
| **ITEM                  2.**                       | Management’s                  Discussion and Analysis of Financial Condition |     |
|                                               | and                  Results of Operations.                                        | 8        |
|                                               |                                                                               |     |
| **ITEM                  3.**                       | Quantitative                  and Qualitative Disclosures About Market Risk.       | 12       |
|                                               |                                                                               |     |
| **ITEM                  4.**                       | Controls                  and Procedures.                                          | 12       |
|                                               |                                                                               |     |
|                                               |                                                                               |     |
| **Part                  II - Other Information**   |
|                                               |                                                                               |     |
| **ITEM                  1.**                       | Legal                  Proceedings.                                                | 13       |
|                                               |                                                                               |     |
| **ITEM                  2.**                       | Unregistered                  Sales of Equity Securities and Use of Proceeds.      | 13       |
|                                               |                                                                               |     |
| **ITEM                  3.**                       | Defaults                  upon Senior Securities.                                  | 13       |
|                                               |                                                                               |     |
| **ITEM                  4.**                       | Submission                  of Matters to a Vote of Security Holders.              | 13       |
|                                               |                                                                               |     |
| **ITEM                  5.**                       | Other                  Information.                                                | 13       |
|                                               |                                                                               |     |
| **ITEM                  6.**                       | Exhibits.                                                                          | 13       |
|                                               |                                                                               |     |
| **SIGNATURES**                                     |                                                                               | 15       |

----

| **BIONUTRICS,                      INC.**                                              |   |                              |        |                                 |   |
|----------------------------------------------------------------------------------------|--------|-----------------------------------|-------------|--------------------------------------|--------|
|                                                                                   |   |                              |        |                                 |   |
| **CONDENSED                      CONSOLIDATED BALANCE SHEETS**                         |   |                              |        |                                 |   |
|                                                                                   |   |                              |        |                                 |   |
|                                                                                   |   |                              |        |                                 |   |
|                                                                                   |   |                              |        |                                 |   |
|                                                                                   |   | **July                      31,** |        | **October                      31,** |   |
|                                                                                   |   | **2005**                          |        | **2004**                             |   |
|                                                                                   |   | **(Unaudited)**                   |        | **(Audited)**                        |   |
| **ASSETS**                                                                             |   |                              |        |                                 |   |
|                                                                                   |   |                              |        |                                 |   |
| CURRENT                      ASSETS:                                                   |   |                              |        |                                 |   |
| Cash                      and cash equivalents                                         |   | $                                 | 62,126      |                                 | $      | 629,257 |   |
| Inventory                                                                              |   |                              | 48,079      |                                 |   | 49,321 |   |
| Prepaid                      expenses and other current assets                         |   |                              | 162,231     |                                 |   | 22,034 |   |
| Total                      Current Assets                                              |   |                              | 272,436     |                                 |   | 700,612 |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
| PROPERTY                      - Net of accumulated depreciation of $70,001             |   |                              |        |                                 |   |   |   |
| and                      $68,971, respectively                                         |   |                              | 3,525       |                                 |   | 2,916 |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
| OTHER                      ASSETS:                                                     |   |                              |        |                                 |   |   |   |
| Deposit                      on equipment                                              |   |                              | 225,000     |                                 |   | - |   |
| Patents                      - net of accumulated amortization of                      |   |                              |        |                                 |   |   |   |
| $305,242                      and $282,520, respectively                               |   |                              | 14,491,723  |                                 |   | 724,445 |   |
| Investment                      in joint venture                                       |   |                              | 1,230,157   |                                 |   | 1,447,333 |   |
| Total                      Other Assets                                                |   |                              | 15,946,880  |                                 |   | 2,171,778 |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
| **TOTAL**                                                                              |   | $                                 | 16,222,841  |                                 | $      | 2,875,306 |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
| **LIABILITIES                      AND STOCKHOLDERS' EQUITY (DEFICIT)**                |   |                              |        |                                 |   |   |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
| CURRENT                      LIABILITIES:                                              |   |                              |        |                                 |   |   |   |
| Accounts                      payable                                                  |   | $                                 | 1,626,604   |                                 | $      | 1,575,934 |   |
| Notes                      payable - shareholders and others                           |   |                              | 1,434,500   |                                 |   | 1,484,000 |   |
| Other                      accrued liabilities                                         |   |                              | 638,788     |                                 |   | 720,005 |   |
| Total                      current liabilities                                         |   |                              | 3,699,892   |                                 |   | 3,779,939 |   |
|                                                                                   |   |                              |        |                                 |   |   |   |
| STOCKHOLDERS'                      EQUITY (DEFICIT)                                    |   |                              |        |                                 |   |   |   |
| Common                      stock - $.001 par value - authorized, 45,000,000 shares;   |   |                              |        |                                 |   |   |   |
| 22,436,725                      and 16,002,600 issued and outstanding, respectively    |   |                              | 22,436      |                                 |   | 16,002 |   |
| Preferred                      stock - $.001 par value - authorized, 5,000,000 shares; |   |                              |        |                                 |   |   |   |
| 591,850                      and 591,850 issued and outstanding, respectively          |   |                              |        |                                 |   |   |   |
| (liquidation                      preference of $798,998)                              |   |                              | 798,998     |                                 |   | 798,998 |   |
| Additional                      paid-in capital                                        |   |                              | 54,495,629  |                                 |   | 39,800,127 |   |
| Warrants                                                                               |   |                              | 50,405      |                                 |   | 401,191 |   |
| Accumulated                      deficit                                               |   |                              | (42,844,519 | )                                    |   | (41,920,951 | ) |
| Total                      stockholders' equity (deficit)                              |   |                              | 12,522,949  |                                 |   | (904,633 | ) |
|                                                                                   |   |                              |        |                                 |   |   |   |
| **TOTAL**                                                                              |   | $                                 | 16,222,841  |                                 | $      | 2,875,306 |   |

----

| **BIONUTRICS,                    INC.**                                            |   |                                  |       |                                  |   |       |   |   |       |
|------------------------------------------------------------------------------------|--------|---------------------------------------|------------|---------------------------------------|--------|------------|--------|--------|------------|
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |
| **CONDENSED                    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)** |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |
|                                                                               |   | **THREE                    MONTHS**   |       | **NINE                    MONTHS**    |   |
|                                                                               |   | **ENDED                    JULY 31,** |       | **ENDED                    JULY 31,** |   |
|                                                                               |   | 2005                                  |       | 2004                                  |   | 2005       |   | 2004   |       |
| REVENUES:                                                                          |   |                                  |       |                                  |   |       |   |   |       |
| Revenue                    from services                                           |   | $                                     | -          |                                  | $      | -          |   | $      | -          |   | $ | 85,564 |   |
| Revenue                    from product sales                                      |   |                                  | 2,564      |                                  |   | 458        |   |   | 7,656      |   |   | 6,282 |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| Net                    Revenues                                                    |   |                                  | 2,564      |                                  |   | 458        |   |   | 7,656      |   |   | 91,846 |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| COST                    OF REVENUES                                                |   |                                  | 382        |                                  |   | 518        |   |   | 1,221      |   |   | 2,689 |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| Gross                    profit                                                    |   |                                  | 2,182      |                                  |   | (60        | )      |   | 6,435      |   |   | 89,157 |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| OPERATING                    EXPENSES:                                             |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| Selling,                    general and administrative                             |   |                                  | 167,465    |                                  |   | 271,512    |   |   | 721,511    |   |   | 546,594 |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| Total                    operating expenses                                        |   |                                  | 167,465    |                                  |   | 271,512    |   |   | 721,511    |   |   | 546,594 |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| OPERATING                    LOSS                                                  |   |                                  | (165,283   | )                                     |   | (271,571   | )      |   | (715,076   | ) |   | (457,437 | ) |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| OTHER                    INCOME (EXPENSES):                                        |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| Equity                    in the income (loss) of joint venture                    |   |                                  | 12,561     |                                  |   | (129,949   | )      |   | (217,176   | ) |   | (274,448 | ) |
| Other                    income                                                    |   |                                  | 10,293     |                                  |   | -          |   |   | 13,695     |   |   | 9,400 |   |
| Interest                    expense, net                                           |   |                                  | (2,466     | )                                     |   | (5,114     | )      |   | (5,011     | ) |   | (14,741 | ) |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| Total                    other (expenses) income                                   |   |                                  | 20,388     |                                  |   | (135,063   | )      |   | (208,492   | ) |   | (279,789 | ) |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| NET                    LOSS                                                        |   | $                                     | (144,895   | )                                     | $      | (406,634   | )      | $      | (923,568   | ) | $ | (737,226 | ) |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| BASIC                    AND DILUTED NET LOSS PER COMMON SHARE                     |   | $                                     | (0.01      | )                                     | $      | (0.03      | )      | $      | (0.05      | ) | $ | (0.12 | ) |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
|                                                                               |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| WEIGHTED                    AVERAGE NUMBER OF COMMON SHARES                        |   |                                  |       |                                  |   |       |   |   |       |   |   |   |   |
| OUTSTANDING                                                                        |   |                                  | 21,671,424 |                                  |   | 12,510,209 |   |   | 19,195,741 |   |   | 6,292,893 |   |

----

| **BIONUTRICS,                    INC.**                                                                       |   |                                  |       |     |   |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|----------|--------|
|                                                                                                          |   |                                  |       |     |   |
| **CONDENSED                    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**                            |   |                                  |       |     |   |
|                                                                                                          |   |                                  |       |     |   |
|                                                                                                          |   | **NINE                    MONTHS**    |       |
|                                                                                                          |   | **ENDED                    JULY 31,** |       |
|                                                                                                          |   |                                  |       |     |   |
|                                                                                                          |   | **2005**                              |       | **2004** |   |
| OPERATING                    ACTIVITIES:                                                                      |   |                                  |       |     |   |
| Net                    loss                                                                                   |   | $                                     | (923,568   | )        | $      | (737,226 | ) |
| Adjustments                    to reconcile net loss to cash used in operating                    activities: |   |                                  |       |     |   |   |   |
| Depreciation                    and amortization                                                              |   |                                  | 23,753     |     |   | 22,955 |   |
| Equity                    in the loss of joint venture                                                        |   |                                  | 217,176    |     |   | 274,448 |   |
| Stock                    based compensation                                                                   |   |                                  | 43,750     |     |   | 150,000 |   |
| Changes                    in operating assets and liabilities:                                               |   |                                  |       |     |   |   |   |
| Inventory                                                                                                     |   |                                  | 1,242      |     |   | (37,310 | ) |
| Prepaids                    and other current assets                                                          |   |                                  | (130,197   | )        |   | (5,793 | ) |
| Accounts                    payable                                                                           |   |                                  | 50,670     |     |   | (1,699 | ) |
| Accrued                    liabilities                                                                        |   |                                  | (81,217    | )        |   | 61,789 |   |
| Net                    cash used in operating activities                                                      |   |                                  | (798,391   | )        |   | (272,836 | ) |
|                                                                                                          |   |                                  |       |     |   |   |   |
| INVESTING                    ACTIVITIES:                                                                      |   |                                  |       |     |   |   |   |
| Purchase                    of equipment                                                                      |   |                                  | (226,640   | )        |   | (3,499 | ) |
| Patent                    acquisition cost                                                                    |   |                                  | -          |     |   | (10,000 | ) |
| Net                    cash used in investing activities                                                      |   |                                  | (226,640   | )        |   | (13,499 | ) |
|                                                                                                          |   |                                  |       |     |   |   |   |
| FINANCING                    ACTIVITIES:                                                                      |   |                                  |       |     |   |   |   |
| Proceeds                    from sale of common stock                                                         |   |                                  | 457,900    |     |   | 200,500 |   |
| Proceeds                    from debt                                                                         |   |                                  | -          |     |   | 104,500 |   |
| Net                    cash provided by financing activities                                                  |   |                                  | 457,900    |     |   | 305,000 |   |
|                                                                                                          |   |                                  |       |     |   |   |   |
|                                                                                                          |   |                                  |       |     |   |   |   |
| NET                    INCREASE (DECREASE) IN CASH AND                                                        |   |                                  |       |     |   |   |   |
| CASH                    EQUIVALENTS                                                                           |   |                                  | (567,131   | )        |   | 18,665 |   |
|                                                                                                          |   |                                  |       |     |   |   |   |
| CASH                    AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                             |   |                                  | 629,257    |     |   | 3,153 |   |
|                                                                                                          |   |                                  |       |     |   |   |   |
| CASH                    AND CASH EQUIVALENTS, END OF PERIOD                                                   |   | $                                     | 62,126     |     | $      | 21,818 |   |
|                                                                                                          |   |                                  |       |     |   |   |   |
|                                                                                                          |   |                                  |       |     |   |   |   |
| SUPPLEMENTAL                    DISCLOSURES OF NONCASH FINANCING                                              |   |                                  |       |     |   |   |   |
| AND                    INVESTING ACTIVITIES:                                                                  |   |                                  |       |     |   |   |   |
| Settlement                    of debt through issuance of common stock                                        |   | $                                     | 49,500     |     | $      | - |   |
|                                                                                                          |   |                                  |       |     |   |   |   |
| Rights                    to technology acquired through issuance of common stock                             |   | $                                     | 13,800,000 |     | $      | - |   |

----

**BIONUTRICS,        INC.**

**Notes        to Condensed Consolidated Financial Statements**

*(Unaudited)*

| Note                  A - |   | The                  accompanying unaudited Condensed Consolidated Financial Statements                  of                  Bionutrics, Inc. (“the Company”) have been prepared in accordance with                  accounting principles generally accepted in the United States of                  America                  for interim financial information and the instructions to Form                  10-Q.                  Accordingly, they do not include all the information and footnotes                  required by accounting principles generally accepted in the United                  States                  of America for complete financial statements. In the opinion of                  management, all adjustments (which include only normal recurring                  adjustments) necessary to present fairly the financial position,                  results                  of operations and cash flows for all periods presented have been                  made. The                  results of operations for the three-month and nine-month periods                  ended                  July 31, 2005 are not necessarily indicative of the operating results                  that                  may be expected for the entire year ending October 31, 2005. These                  unaudited condensed consolidated financial statements should be                  read in                  conjunction with the Company’s financial statements and accompanying notes                  thereto as of and for the year ended October 31, 2004. The accompanying                  condensed consolidated financial statements have been prepared                  on a going                  concern basis, which contemplates the realization of assets and                  the                  satisfaction of liabilities in the normal course of business. The                  Company                  has incurred accumulated operating losses of $42,844,519 through                  July 31,                  2005 which have been funded through the issuance of stock and debt.                  The                  losses incurred to date, the uncertainty regarding the ability                  to raise                  additional capital and the Company’s inability to generate gross profits                  and positive cash flows from operations indicate that the Company may                  not be able to continue as a going concern for a reasonable                  period of                  time. |
|---------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE                  B - |   | Basic                  and diluted net loss per share is computed by dividing the net                  loss by the                  weighted average number of common shares outstanding during the                  presented                  periods. Options and warrants are excluded from the diluted net                  loss per                  share calculation, as they are                  anti-dilutive. |
|---------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | In                  accordance with SFAS No. 128 “Earnings Per Share”, basic earnings per                  common share (“Basic EPS”) is computed by dividing the net income (loss)                  by the weighted -average number of common shares outstanding. Diluted                  earnings per common share (“Diluted EPS”) is computed by dividing the net                  income by the weighted-average number of common shares and dilutive                  common                  share equivalents and convertible securities then outstanding.                  SFAS No.                  128 requires the presentation of both Basic EPS and Diluted EPS                  on the                  face of the Company’s Consolidated Condensed Statements of Operations.                  Common share equivalents totaling 299,000 were excluded from the                  computation for the three and nine months ended July 31, 2005,                  and common                  share equivalents totaling 873,000 were excluded from the computation                  for                  the three and nine months ended July 31, 2004, as their impact                  would have                  been anti-dilutive. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE                  C - |   | The                  Technology License Agreement (the “Agreement”) dated March 16, 2005                  entered into with Nostrum Pharmaceuticals, Inc (“Nostrum”) and the                  Company, replaces in its entirety the Product Development and License                  Agreement dated as of June 16, 2004. Under the revised Agreement,                  the                  Company receives an exclusive license to develop and commercialize                  ten                  505(b)(2) products (brandable pharmaceutical products that qualify                  for                  filing with the FDA under a “505(b)(2)” application) and ten generic                  products (generic bio-equivalents of branded products which qualify                  for                  filing with FDA pursuant to an Abbreviated New Drug Application)                  under the                  Nostrum Technology within a three year period. As consideration                  for the                  Agreement, the Company issued 12 million shares of its common stock,                  and                  agrees to pay Nostrum royalties on net sales of generic products                  equal to                  50% of gross profit. In further consideration for the Agreement,                  the                  Company agreed to include one nominee of Nostrum to the Board of                  Directors. |
|---------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| NOTE                  D - |   | Subsequent                  or Significant Events - In July, 2005 the Company entered into                  a Purchase                  Agreement (the “Agreement”) to acquire Kirk Pharmaceuticals, LLC and its                  affiliate Andapharm, LLC (“collectively Kirk”) for $12,000,000 in cash and                  a promissory note. The closing is scheduled for the fourth quarter,                  subject to the satisfaction of the conditions of the Agreement                  and                  government approvals, and is dependent on the Company obtaining                  the                  necessary financing. There can be no assurance that the Company                  will be                  able to obtain financing for or to consummate the Kirk acquisition. |
|---------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**BIONUTRICS,        INC.**

**Management’s        Discussion and Analysis **

**of        Financial Condition and Results of Operations**

**The        following discussion of the Company’s financial condition and results of        operations includes certain forward-looking statements. When used in this        report, the words “expects,”“intends,”“plans” and “anticipate” and similar terms        are intended to identify forward-looking statements that relate to the Company’s        future performance. Such statements involve risks and uncertainties. The        Company’s actual results may differ materially from the results discussed here.        Factors that might cause such a difference include, but are not limited to,        those discussed under “RISK FACTORS” in the Company’s Form        10-K.**

**Results        of Operations**

*Three        months ended July 31, 2005 compared with three months ended July 31,        2004.*

----

----

----

**Results        of Operations**

*Nine        months ended July 31, 2005 compared with nine months ended July 31,        2004.*

**Liquidity        and Capital Resources**

----

**ITEM        3.**

**ITEM        4.**

----

**BIONUTRICS,        INC.**

**PART        II - OTHER INFORMATION**

| **ITEM                  1.** | Legal                    Proceedings. |
|------------------------------|---------------------------------------|

| **ITEM                2** | Unregistered                  Sales of Equity Securities and Use of                  Proceeds. |
|---------------------------|------------------------------------------------------------------------------------------------|

| **ITEM                  3.** | Defaults                    upon Senior Securities. |
|------------------------------|-----------------------------------------------------|

| **ITEM                4.** | Submission                  of Matters to a Vote of Security                  Holders. |
|----------------------------|----------------------------------------------------------------------------------------|

| **ITEM                5.** | Other                  Information. |
|----------------------------|-------------------------------------|

| **ITEM                6** | Exhibits. |
|---------------------------|-----------|

| (a)   | Exhibits                  - |
|-----------------|-----------------------------|

|  | 31.1 | Certification                  of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a)                  of                  the Securities Exchange Act |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                  of Chief Executive Officer and Chief Financial Officer pursuant                  to 18                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the                  Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (b)   | Reports                  on Form 8-K |
|-----------------|--------------------------------------|

| (1)   | Form                  8-K filed on July 5, 2005 regarding the Company’s revised Technology                  License Agreement with Nostrum                  Pharmaceuticals. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Form                  8-K filed on July 22, 2005 regarding the Company entering into                  a Purchase                  Agreement with Kirk                  Pharmaceuticals. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**BIONUTRICS,        INC.**

**SIGNATURE**

|                                          |                                                                                                                 |                             |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------|
|                                          | **Bionutrics,                  Inc.**(Registrant)                                                                    |
|                                     |                                                                                                            |                        |
| Dated: September                12, 2005 | By:                                                                                                        | /s/Ronald                H. Lane |
|                                          |                                                                                                                      |
|                                          | Its:                  Chairman                  of the Board, Chief                  Executive Officer and President |

----