**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-Q**

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

**TRANSITION        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 of                  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)*

| CLASS                                                   |   | OUTSTANDING                  AS OF JUNE 15, 2005 |           |
|---------------------------------------------------------|--------|--------------------------------------------------|----------------|
|                                                    |   |                                             |           |
| **Common                    Par value $.001 per share** |   |                                             | **22,436,725** |   |

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**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. | 7      |
|                                                                                                                                                                   |   |
| **ITEM                  3.  **Quantitative                  and Qualitative Disclosures About Market Risk.                                                   | 10     |
|                                                                                                                                                                   |   |
| **ITEM                  4.  **Controls                  and Procedures.                                                                                      | 10     |
|                                                                                                                                                                   |   |
| **Part                  II.  - Other Information**                                                                                                                |
|                                                                                                                                                                   |   |
| **ITEM                  1.  **Legal                  Proceedings.                                                                                            | 11     |
|                                                                                                                                                                   |   |
| **ITEM                  2.  **Unregistered                  Sales of Equity Securities and Use of Proceeds.                                                  | 11     |
|                                                                                                                                                                   |   |
| **ITEM                  3.  **Defaults                  upon Senior Securities.                                                                              | 11     |
|                                                                                                                                                                   |   |
| **ITEM                  4.  **Submission                  of Matters to a Vote of Security Holders.                                                          | 11     |
|                                                                                                                                                                   |   |
| **ITEM                  5.  **Other                  Information.                                                                                            | 11     |
|                                                                                                                                                                   |   |
| **ITEM                  6.  **Exhibits.                                                                                                                      | 11     |
|                                                                                                                                                                   |   |
| **SIGNATURES**                                                                                                                                                         | 12     |

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| **BIONUTRICS,                      INC.**                                                       |
|-------------------------------------------------------------------------------------------------|
|                                                                                            |   |   |   |   |   |   |   |
| **CONDENSED                      CONSOLIDATED BALANCE SHEETS                      (UNAUDITED)** |

|                                                                                                                                                                                                                                                                                         |   | **April                      30,** |        | **October                      31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-------------|--------------------------------------|--------|
|                                                                                                                                                                                                                                                                                         |   | **2005**                           |        | **2004**                             |   |
| **ASSETS**                                                                                                                                                                                                                                                                                   |   |                               |        |                                 |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |
| CURRENT                      ASSETS:                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |
| Cash                      and cash equivalents                                                                                                                                                                                                                                               |   | $                                  | 147,688     |                                 | $      | 629,257 |   |
| Inventory                                                                                                                                                                                                                                                                                    |   |                               | 48,464      |                                 |   | 49,321 |   |
| Prepaid                      expenses and other current assets                                                                                                                                                                                                                               |   |                               | 237,843     |                                 |   | 22,034 |   |
| Total                      Current Assets                                                                                                                                                                                                                                                    |   |                               | 433,995     |                                 |   | 700,612 |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
| PROPERTY                        - Net of accumulated depreciation of $69,592 and                        $68,971, respectively                                                                                                                                                                |   |                               | 3,934       |                                 |   | 2,916 |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
| OTHER                      ASSETS:                                                                                                                                                                                                                                                           |   |                               |        |                                 |   |   |   |
| Patents                        - net of accumulated amortization of $297,668                        and $282,520, respectively                                                                                                                                                               |   |                               | 14,499,297  |                                 |   | 724,445 |   |
| Investment                      in InCon Processing, LLC                                                                                                                                                                                                                                     |   |                               | 1,217,597   |                                 |   | 1,447,333 |   |
| Total                      Other Assets                                                                                                                                                                                                                                                      |   |                               | 15,716,894  |                                 |   | 2,171,778 |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
| **TOTAL**                                                                                                                                                                                                                                                                                    |   | $                                  | 16,154,823  |                                 | $      | 2,875,306 |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
| **LIABILITIES                      AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                |   |                               |        |                                 |   |   |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
| CURRENT                      LIABILITIES:                                                                                                                                                                                                                                                    |   |                               |        |                                 |   |   |   |
| Accounts                      payable                                                                                                                                                                                                                                                        |   | $                                  | 1,678,224   |                                 | $      | 1,575,934 |   |
| Notes                      payable - shareholders and others                                                                                                                                                                                                                                 |   |                               | 1,434,500   |                                 |   | 1,484,000 |   |
| Other                      accrued liabilities                                                                                                                                                                                                                                               |   |                               | 629,655     |                                 |   | 720,005 |   |
| Total                      current liabilities                                                                                                                                                                                                                                               |   |                               | 3,742,379   |                                 |   | 3,779,939 |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |
| STOCKHOLDERS'                      EQUITY                                                                                                                                                                                                                                                    |   |                               |        |                                 |   |   |   |
| Common                          stock - $.001 par value - authorized, 45,000,000 shares;                          22,277,100 and                          16,002,600 issued and outstanding,                          respectively                                                           |   |                               | 22,277      |                                 |   | 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                                                                                                                                                                                                                                              |   |                               | 54,240,388  |                                 |   | 39,800,127 |   |
| Warrants                                                                                                                                                                                                                                                                                     |   |                               | 50,405      |                                 |   | 401,191 |   |
| Accumulated                      deficit                                                                                                                                                                                                                                                     |   |                               | (42,699,624 | )                                    |   | (41,920,951 | ) |
| Total                      stockholders' equity (deficit)                                                                                                                                                                                                                                    |   |                               | 12,412,444  |                                 |   | (904,633 | ) |
| **TOTAL**                                                                                                                                                                                                                                                                                    |   | $                                  | 16,154,823  |                                 | $      | 2,875,306 |   |
|                                                                                                                                                                                                                                                                                         |   |                               |        |                                 |   |   |   |

----

| **BIONUTRICS,                      INC.**                                                                 |
|-----------------------------------------------------------------------------------------------------------|
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
| **CONDENSED                      CONSOLIDATED STATEMENTS OF OPERATIONS                      (UNAUDITED)** |

|                                                                        |   | THREE                      MONTHS    |       | SIX                      MONTHS      |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------|------------|--------------------------------------|--------|
|                                                                        |   | ENDED                      APRIL 30, |       | ENDED                      APRIL 30, |   |
|                                                                        |   | 2005                                 |       | 2004                                 |   | 2005 |   | 2004 |   |
| REVENUES:                                                                   |   |                                 |       |                                 |   |   |   |   |   |
| Revenue                      from services                                  |   | $                                    | --         |                                 | $      | -- |   | $ | -- |   | $ | 85,564 |   |
| Revenue                      from product sales                             |   |                                 | 2,107      |                                 |   | 837 |   |   | 5,092 |   |   | 5,824 |   |
| Net                      Revenues                                           |   |                                 | 2,107      |                                 |   | 837 |   |   | 5,092 |   |   | 91,388 |   |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| COST                      OF REVENUES                                       |   |                                 | 346        |                                 |   | 1,278 |   |   | 839 |   |   | 2,171 |   |
| Gross                      profit                                           |   |                                 | 1,761      |                                 |   | (441 | ) |   | 4,253 |   |   | 89,217 |   |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| OPERATING                      EXPENSES:                                    |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| Selling,                      general and administrative                    |   |                                 | 249,337    |                                 |   | 129,479 |   |   | 554,046 |   |   | 275,082 |   |
| Total                      operating expenses                               |   |                                 | 249,337    |                                 |   | 129,479 |   |   | 554,046 |   |   | 275,082 |   |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| OPERATING                      LOSS                                         |   |                                 | (247,575   | )                                    |   | (129,919 | ) |   | (549,793 | ) |   | (185,865 | ) |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| OTHER                      INCOME (EXPENSES):                               |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| Equity                      in the income (loss) of InCon Processing, LLC   |   |                                 | (17,075    | )                                    |   | 6,255 |   |   | (229,737 | ) |   | (144,499 | ) |
| Other                      income                                           |   |                                 | 2,959      |                                 |   | -- |   |   | 3,402 |   |   | 9,400 |   |
| Interest                      expense, net                                  |   |                                 | (2,101     | )                                    |   | (4,968 | ) |   | (2,545 | ) |   | (9,627 | ) |
| Total                      other (expenses) income                          |   |                                 | (16,217    | )                                    |   | 1,287 |   |   | (228,880 | ) |   | (144,726 | ) |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| NET                      LOSS                                               |   | $                                    | (263,792   | )                                    | $      | (128,632 | ) | $ | (778,673 | ) | $ | (330,591 | ) |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| BASIC                      AND DILUTED NET LOSS PER COMMON SHARE            |   | $                                    | (0.01      | )                                    | $      | (0.03 | ) | $ | (0.04 | ) | $ | (0.07 | ) |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |
| WEIGHTED                        AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |   |                                 | 19,158,842 |                                 |   | 4,482,600 |   |   | 17,565,503 |   |   | 4,417,241 |   |
|                                                                        |   |                                 |       |                                 |   |   |   |   |   |   |   |   |   |

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| **BIONUTRICS,                      INC.**                                                                 |
|-----------------------------------------------------------------------------------------------------------|
|                                                                                                      |   |   |   |   |   |   |   |
| **CONDENSED                      CONSOLIDATED STATEMENTS OF CASH FLOWS                      (UNAUDITED)** |

|                                                                                                                  |   | **SIX                      MONTHS**      |       |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|------------|
|                                                                                                                  |   | **ENDED                      APRIL 30,** |       |
|                                                                                                                  |   | **2005**                                 |       | **2004** |   |
| OPERATING                      ACTIVITIES:                                                                            |   |                                     |       |   |   |
| Net                      loss                                                                                         |   | $                                        | (778,673   | ) | $ | (330,591 | ) |
| Adjustments                      to reconcile net loss to cash used in operating                      activities:     |   |                                     |       |   |   |   |   |
| Depreciation                      and amortization                                                                    |   |                                     | 15,770     |   |   | 15,149 |   |
| Equity                      in the loss of joint venture                                                              |   |                                     | 229,737    |   |   | 144,499 |   |
| Stock                      based compensation                                                                         |   |                                     | 43,750     |   |   | -- |   |
| Changes                      in operating assets and liabilities:                                                     |   |                                     |       |   |   |   |   |
| Inventory                                                                                                             |   |                                     | 857        |   |   | (37,829 | ) |
| Prepaids                      and other current assets                                                                |   |                                     | (207,450   | ) |   | 5,133 |   |
| Accounts                      payable                                                                                 |   |                                     | 102,290    |   |   | (10,169 | ) |
| Accrued                      liabilities                                                                              |   |                                     | (90,350    | ) |   | 93,157 |   |
| Net                      cash used in operating activities                                                            |   |                                     | (684,069   | ) |   | (120,651 | ) |
|                                                                                                                  |   |                                     |       |   |   |   |   |
| INVESTING                      ACTIVITIES:                                                                            |   |                                     |       |   |   |   |   |
| Patent                      acquisition cost                                                                          |   |                                     | --         |   |   | (10,000 | ) |
| Net                      cash used in investing activities                                                            |   |                                     | --         |   |   | (10,000 | ) |
|                                                                                                                  |   |                                     |       |   |   |   |   |
| FINANCING                      ACTIVITIES:                                                                            |   |                                     |       |   |   |   |   |
| Proceeds                      from sale of common stock                                                               |   |                                     | 202,500    |   |   | 100,500 |   |
| Proceeds                      from debt                                                                               |   |                                     | --         |   |   | 62,000 |   |
| Net                      cash provided by financing activities                                                        |   |                                     | 202,500    |   |   | 62,000 |   |
|                                                                                                                  |   |                                     |       |   |   |   |   |
| NET                        INCREASE (DECREASE) IN CASH AND CASH                        EQUIVALENTS                    |   |                                     | (481,569   | ) |   | 31,849 |   |
|                                                                                                                  |   |                                     |       |   |   |   |   |
| CASH                      AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                   |   |                                     | 629,257    |   |   | 3,153 |   |
| CASH                      AND CASH EQUIVALENTS, END OF PERIOD                                                         |   | $                                        | 147,688    |   | $ | 35,002 |   |
|                                                                                                                  |   |                                     |       |   |   |   |   |
| 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 |   | $ | -- |   |

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**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 six-month periods                    ended                    April 30, 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 $42,699,624 through                    April 30,                    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 may indicate that the                    Company will                    be unable 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. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| NOTE C - | Subsequent                    or Significant Events - In May 2005, the Company issued 159,625                    shares of                    common stock at a per share price of $1.60 in a private placement                    issuance. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| NOTE D -   | During                    the six months ended April 30, 2005, the Company issued 6 million                    common                    shares in conjunction with the licensing of certain drug compounds                    under                    development. As a result, an event defined as a change of control                    under                    Internal Revenue Code Section 382 may have occurred. Consequently,                    the                    future utilization of net operating loss carry-forwards maybe                    severely                    limited. |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**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 “Business-Special Considerations” in the Company’s Form        10-K.**

**Results        of Operations**

*Three        months ended April 30, 2005 compared with three months ended April 30,        2004.*

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* *

*Six        months ended April 30, 2005 compared with six months ended April 30,        2004.*

**Results        of Operations**

** **

**Liquidity        and Capital Resources**

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| **ITEM                3.** | Quantitative                  and Qualitative Disclosures About Market                  Risk. |
|----------------------------|-----------------------------------------------------------------------------------------------|

| **ITEM                4.** | Controls                  and Procedures. |
|----------------------------|-------------------------------------------|

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**BONUTRICS,        INC.**

**PART        II - OTHER INFORMATION**

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

|   |   |
|--------|--------|

|   | NONE. |
|--------|-------|

|   |  |
|--------|--|

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

|   |   |
|--------|--------|

|   | In                    February, 2005, Landmark Financial Corporation exercised 200,000                    warrants                    at an exercise price of $1.00 per share of common                    stock. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | In                  May 2005, the Company issued 159,625 shares of common stock at                  $1.60 per                  share in a private placement offering. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | Both                  of the above transactions were affected in an effort to raise cash                  to fund                  general operating expenses. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

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

|   |  |
|--------|--|

|   | NONE. |
|--------|-------|

|   |   |
|--------|--------|

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

|   |   |
|--------|--------|

|   | NONE. |
|--------|-------|

|   |   |
|--------|--------|

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

|   |   |
|--------|--------|

|   | NONE. |
|--------|-------|

|   |   |
|--------|--------|

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

|  | (a) | Exhibits                  - NONE |
|--|-----|----------------------------------|

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

|   |   | Form 8-K filed on March 18,                    2005 regarding                    the Company’s revised Technology License Agreement with Nostrum                    Pharmaceuticals. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**BIONUTRICS,        INC.**

**SIGNATURE**

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