BIONEXUS GENE LAB CORP. Description of Business
As used herein, unless the context otherwise indicates, references to the
"Company," "we," "our," "us," "BioNexus" refer to
BGLC is an emerging molecular diagnostics company focused on the application of
functional genomics to enable early diagnosis and personalized health
management. On
The corporate and principal office address of the Company and BioNexus Malaysia
is Unit 02, Level 10, Tower B, Avenue 3, The Vertical Business Suite II, Bangsar
South, No. 8 Jalan Kerinchi,
Chemrex is a wholesaler of industrial chemicals for the manufacture of
industrial, medical, appliance, aero, automotive, mechanical and electronic
industries in
Chemrex's corporate offices and distribution and storage center is located at 4
Jalan CJ 1/6 Kawasan Perusahaan Cheras Jaya,
Forward-Looking Statements
Certain statements made in this quarterly report on Form 10-Q are "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) in regard to the plans and objectives of management for future operations. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the registrant to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. The Company's plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this quarterly report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the registrant or any other person that the objectives and plans of the registrant will be achieved.
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Substantial risks exist with respect to an investment in the Company. These
risks include but are not limited to, those factors discussed in our Annual
Report on Form 10-K filed with the
• We have limited operating history and limited business growth;
• The efficacy of our blood screening process;
• We may face product liability claims and we have no insurance to cover
such claims; and
• There are risks associated with our business operations in Malaysia ,
including enforcing judgements against our operating subsidiary and
management.
The results of operations of our subsidiary, BioNexus-Malaysia, with respect to
its RNA screening process have been adversely impacted by the onset of the
Covid-19 pandemic, which commenced in late
The results of operations for Chremrex were adversely impacted during the May to
Recent Developments. As previously reported, we submitted to the
Translation of amounts from MYR into
September 30, December 31,
2021 2020
Period ended September 30, 2021 /Year-ended
December 31, 2020 US$1: MYR exchange rate 4.1870 4.0170
September 30, September 30,
2021 2020
9 months average US$1: MYR exchange rate 4.1315 4.2386
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Results of Operations
Three Months Ended
The following table sets forth key selected financial data for the three months
ended
Consolidated
Three months ended
September 30,
2021 2020
REVENUE $ 3,575,966 $ 3,091,012
COST OF REVENUE (2,887,867 ) (2,568,790 )
GROSS PROFIT 688,099 522,222
OTHER INCOME 46,848 9,089
OPERATING EXPENSES
General and administrative (362,306 ) (294,005 )
PROFIT FROM OPERATIONS 372,641 237,306
FINANCE COSTS (2,150 ) (2,356 )
PROFIT BEFORE TAX 370,491 234,950
Tax expense (75,169 ) (492 )
NET PROFIT $ 295,322 $ 234,458
Other comprehensive income:
Foreign currency (loss)/gain (56,940 ) 248,070
COMPREHENSIVE INCOME $ 238,382 $ 482,528
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BioNexus-Malaysia and Chemrex
BioNexus BioNexus
Malaysia Chemrex Malaysia Chemrex
Three months ended Three months ended
September 30, 2021 September 30, 2020
REVENUE $ 1,038,594 $ 2,537,372 $ 23,471 $ 3,067,541
COST OF REVENUE (750,289 ) (2,137,578 ) (15,253 ) (2,553,537 )
GROSS PROFIT 288,305 399,794 8,218 514,004
OTHER INCOME 1,488 45,360 2,895 6,192
OPERATING EXPENSES
General and administrative (20,127 ) (287,002 ) (20,598 ) (223,469 )
FINANCE COSTS (962 ) (1,188 ) (119 ) (2,237 )
PROFIT/(LOSS) BEFORE TAX 268,704 156,964 (9,604 ) 294,490
Tax expense (37,414 ) (37,755 ) (492 ) 0
NET PROFIT/(LOSS) $ 231,290 $ 119,209 $ (10,096 ) $ 294,490 Revenue. For the quarterly period ended
Chemrex contributed
BioNexus-Malaysia contributed
Cost of Revenue. For the quarterly period ended
Chemrex had incurred
BioNexus had incurred
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Gross Profit. For the quarterly period ended
Chemrex contributed
BioNexus-Malaysia contributed
Other Income. For the quarterly period ended
Operating Expenses. For the quarterly period ended
Chemrex had incurred
BioNexus-Malaysia had incurred
BGLC had incurred
Profit/Loss from Operations. We had a profit from operations of
Income tax expense. For the three-month period ended
Foreign currency exchange gain/(loss). We are exposed to fluctuations in foreign
exchange rates on the revaluation of monetary assets and liabilities denominated
in currencies other than the US Dollar. Therefore, any change in the relevant
exchange rate would require us to recognize a transaction gain or loss on
revaluation. For the three-month period ended
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Nine Months Ended
The following table sets forth key selected financial data for the nine months
ended
Consolidated
Nine months ended
September 30,
2021 2020
REVENUE $ 10,117,296 $ 7,264,554
COST OF REVENUE (8,379,025 ) (5,927,735 )
GROSS PROFIT 1,738,271 1,336,819
OTHER INCOME 159,764 779,458
OPERATING EXPENSES
General and administrative (1,043,271 ) (839,415 )
PROFIT FROM OPERATIONS 854,764 1,276,862
FINANCE COSTS (8,987 ) (6,762 )
PROFIT BEFORE TAX 845,777 1,270,100
Tax expense (183,449 ) (1,839 )
NET PROFIT $ 662,328 $ 1,268,261
Other comprehensive income:
Foreign currency loss (272,876 ) (3,068 )
COMPREHENSIVE INCOME $ 389,452 $ 1,265,193
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BioNexus-Malaysia and Chemrex
BioNexus BioNexus
Malaysia Chemrex Malaysia Chemrex
Nine months ended Nine months ended
September 30, 2021 September 30, 2020
REVENUE $ 1,504,064 $ 8,613,232 $ 30,012 $ 7,234,542
COST OF REVENUE (1,108,817 ) (7,270,208 ) (45,561 ) (5,882,174 )
GROSS PROFIT 395,247 1,343,024 (15,549 ) 1,352,368
OTHER INCOME/(LOSS) 5,335 154,429 10,540 768,910
OPERATING EXPENSES
General and administrative (64,255 ) (843,620 ) (67,852 ) (673,211 )
FINANCE COSTS (3,265 ) (5,722 ) (1,480 ) (5,282 )
PROFIT/(LOSS) BEFORE TAX 333,062 648,111 (74,341 ) 1,442,785
Tax expense (38,068 ) (145,381 ) (1,839 ) 0
NET PROFIT/(LOSS) $ 294,994 $ 502,730 $ (76,180 ) $ 1,442,785 Revenue. For the nine-month period ended
For the current quarterly period, Chemrex contributed
the material selling prices have been increased since January, 2021.
BioNexus had a revenue of
Cost of revenues. For the nine-month period ended
Chemrex had incurred
BioNexus had incurred
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Other Income. For the nine-month period ended
Operating Expenses. For the nine-month period ended
Chemrex had incurred
BioNexus Malaysia had incurred
BGLC had incurred
Profit from Operations. We had a profit from operations of
Income tax expense. For the quarterly period ended
Foreign currency exchange gain/(loss). We are exposed to fluctuations in foreign
exchange rates on the revaluation of monetary assets and liabilities denominated
in currencies other than the US Dollar. Therefore, any change in the relevant
exchange rate will require us to recognize a transaction gain or loss on
revaluation. For the nine-month period ended
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LIQUIDITY AND CAPITAL RESOURCES
As of
Our primary uses of cash have been for operations. The main sources of cash have been from operational revenues and the private placement of our common stock. The following trends are reasonably likely to result in a material decrease in our liquidity over the near to long term:
· Addition of administrative and marketing personnel as the business grows,
· Development of a Company website,
· Increases in advertising and marketing in order to attempt to generate
more revenues, and
· The cost of being a public company.
The Company believes that cash flow from operations together will be sufficient to sustain its current level of operations for at least the next 12 months of operations.
The following is a summary of the Company's cash flows provided by (used in) /
generated from operating, investing, and financing activities for the nine
months ended
Nine months ended
September 30,
2021 2020
Net Cash Used in Operating Activities $ (473,846 ) $ (379,802 ) Net cash (used in) /generated from investing activities (414,285 ) 1,736,495 Net cash used in generated from financing activities
(23,263 ) (7,203 )
Foreign currency translation adjustment (175,902 ) (18,494 )
Net Change in Cash and Cash Equivalents $ (1,087,296 ) $ 1,330,996
Operating Activities
During the nine months ended
Investing Activities
During the nine months ended
Financing Activities
During the nine months ended
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