PART I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for the six months ended June 30, 2025, reporting a **net loss of $1.24 million** and a decrease in total assets to **$9.42 million** Condensed Consolidated Balance Sheet Summary | Account | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | **Total Current Assets** | $6,379,326 | $7,430,449 | | **Total Assets** | $9,421,205 | $10,433,848 | | **Total Current Liabilities** | $1,757,821 | $1,951,303 | | **Total Liabilities** | $1,899,168 | $2,111,044 | | **Total Stockholders' Equity** | $7,522,037 | $8,322,804 | Condensed Consolidated Statements of Operations Summary | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $4,397,328 | $4,356,415 | | **Gross Profit** | $711,515 | $653,751 | | **(Loss)/Profit from Operations** | $(1,229,711) | $180,140 | | **Net (Loss)/Profit** | $(1,239,499) | $95,347 | | **EPS (Basic and Diluted)** | $(0.690) | $0.054 | Condensed Consolidated Statements of Cash Flows Summary | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | $(1,561,979) | $(709,428) | | **Net Cash (Used in)/Generated from Investing Activities** | $(44,178) | $66,960 | | **Net Cash (Used in)/Generated from Financing Activities** | $(1,890) | $202,344 | | **Net Change in Cash and Cash Equivalents** | $(1,349,777) | $(555,503) | | **Cash and Cash Equivalents, End of Period** | $1,537,189 | $3,962,207 | [Note 2: Summary of Significant Accounting Policies](index=8&type=section&id=NOTE%202%20-%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Management concluded prior substantial doubt about going concern is alleviated, with key policies including point-in-time revenue recognition and FIFO inventory - Management has concluded that the conditions that previously raised **substantial doubt** about the Company's ability to continue as a going concern are **alleviated** based on its evaluation of liquidity, capital actions, and planned operating initiatives[39](index=39&type=chunk) - Revenue is recognized at a **point in time** when control of promised goods or services is transferred to the customer[56](index=56&type=chunk)[57](index=57&type=chunk) [Note 9: Revenue](index=18&type=section&id=NOTE%209%20%E2%80%93%20REVENUE) Total revenue for the six months ended June 30, 2025, was **$4.40 million**, primarily from industrial chemicals trading, with Malaysia as the largest market Revenue by Product Line (Six Months Ended June 30) | Product/Service Line | 2025 | 2024 | | :--- | :--- | :--- | | Trading of industrial chemicals | $4,390,794 | $4,347,754 | | Screening services and related sales | $6,534 | $8,661 | | **Net revenue** | **$4,397,328** | **$4,356,415** | - Revenue is recognized at a **point in time** when control of goods is transferred or when a final report for services is delivered to the customer[110](index=110&type=chunk)[111](index=111&type=chunk) [Note 12: Stockholders' Equity](index=20&type=section&id=NOTE%2012%20%E2%80%93%20STOCKHOLDERS%27%20EQUITY) A **1-for-10 reverse stock split** effective April 7, 2025, reduced outstanding shares to **1,796,597** to regain Nasdaq compliance - On April 1, 2025, the company filed to effect a **1-for-10 reverse stock split** of its common stock, which became effective on April 7, 2025[133](index=133&type=chunk)[200](index=200&type=chunk) - Post-split, the number of issued and outstanding shares was reduced to **1,796,597** from 17,967,663[133](index=133&type=chunk) [Note 13: Segment Information](index=22&type=section&id=NOTE%2013%20%E2%80%93%20SEGMENT%20INFORMATION) The company operates three segments, with industrial chemicals generating most revenue but reporting an operating loss of **$(557,349)** for the six months ended June 30, 2025 Segment Performance (Six Months Ended June 30, 2025) | Segment | Revenue | (Loss)/Profit from Operations | | :--- | :--- | :--- | | Trading of industrial chemicals | $4,390,794 | $(557,349) | | Provision for genomic screening services | $6,534 | $(231,063) | | Investment holding | $ - | $(441,299) | | **Total** | **$4,397,328** | **$(1,229,711)** | - The company expects the **MRNA Scientific (genomic screening)** segment to benefit from new technology integration, while the **Chemrex (industrial chemicals)** segment's relative contribution is expected to decrease as it transitions to a **CDMO model**[136](index=136&type=chunk) [Note 15: Subsequent Events](index=27&type=section&id=NOTE%2015%20%E2%80%93%20SUBSEQUENT%20EVENTS) Post-quarter, the company entered a non-binding term sheet with Fidelion Diagnostics and approved Chemrex's strategic repositioning into a biotechnology-focused CDMO - On July 30, 2025, the company entered a **non-binding term sheet** with **Fidelion Diagnostics** for a proposed cross-equity investment and exclusive commercialization rights for Fidelion's **VitaGuard™ MRD platform** in Southeast Asia[158](index=158&type=chunk) - On July 31, 2025, the Board approved the **strategic repositioning of Chemrex Corporation into a biotechnology-focused CDMO** and authorized up to **MYR 10 million** for its development[159](index=159&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2025 saw **14.5% YoY revenue growth** but an operating loss of **$(611,293)** due to higher expenses, alongside strategic shifts to biotech and a new Ethereum treasury strategy Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenue** | $2,260,253 | $1,974,564 | | **Gross Profit** | $368,022 | $288,720 | | **(Loss)/Profit from Operations** | $(611,293) | $259,168 | | **Net (Loss)/Profit** | $(616,172) | $199,104 | - The increase in operating loss was primarily driven by a **345.8% surge** in Sales and Marketing expenses to **$608,427** in Q2 2025, mainly due to higher compensation at the Chemrex subsidiary[220](index=220&type=chunk) - The company **regained full Nasdaq compliance** in April 2025 after implementing a **1-for-10 reverse stock split** to address the minimum bid price requirement[182](index=182&type=chunk)[188](index=188&type=chunk) - Key strategic initiatives include a potential alliance with **Fidelion Diagnostics**, the transition of **Chemrex into a biotech CDMO**, and a new **Ethereum-focused treasury strategy**, although no digital assets were held as of June 30, 2025[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "smaller reporting company," the company is exempt from providing quantitative and qualitative disclosures about market risk - The Company is **not required** to provide information for this item as it qualifies as a "**smaller reporting company**" under Regulation S-K[266](index=266&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were **not effective** as of June 30, 2025, due to significant deficiencies at Chemrex, prompting a remediation plan - The CEO and CFO concluded that the Company's disclosure controls and procedures were **not effective** as of June 30, 2025[268](index=268&type=chunk) - A **significant deficiency** was identified in the internal financial controls at the **Chemrex subsidiary**, concerning documentation, transaction approval, and reporting[274](index=274&type=chunk)[275](index=275&type=chunk) - A **remediation plan is underway**, including appointing the company's CFO to the Chemrex board, updating policies, and enhancing reporting from the subsidiary to the parent company[276](index=276&type=chunk)[281](index=281&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending or threatened material legal proceedings against it, its property, or its directors and officers - There are presently **no pending material legal proceedings** to which the Company or its property is subject[279](index=279&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) New material risks include execution risk for the Fidelion Diagnostics transaction, market volatility from the Ethereum treasury strategy, and operational risks in Chemrex's CDMO transition - **Fidelion Transaction Risk:** There is **no guarantee** that the **non-binding term sheet** with **Fidelion Diagnostics** will lead to a definitive agreement or that the transaction will close, and integration presents further challenges[282](index=282&type=chunk) - **Ethereum Treasury Risk:** The company's Ethereum-focused treasury strategy exposes it to **high price volatility**, **evolving regulations**, and **cybersecurity risks**, which could materially impact financial results[283](index=283&type=chunk) - **Chemrex CDMO Transition Risk:** The transition of Chemrex to a CDMO model involves **significant execution risk**, including potential **revenue shortfalls**, delays in obtaining **GMP certification**, and uncertainty regarding market demand[284](index=284&type=chunk) [Other Required Disclosures](index=41&type=section&id=Item%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities, no defaults on senior securities, and confirmed mine safety disclosures are not applicable - The company reported **no unregistered sales of equity securities**, **no defaults upon senior securities**, and that mine safety disclosures are **not applicable**[286](index=286&type=chunk)[287](index=287&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) On August 15, 2025, the Board approved new equity compensation, including non-qualified stock options for executives and directors, with CEO awards tied to stock price targets - On August 15, 2025, the Board approved **new stock option awards** for executives, directors, and key employees[288](index=288&type=chunk) - The CEO's award includes **four tranches of 300,000 options** each, with vesting tied to service and achieving **20-day VWAP hurdles of $8.00, $12.00, $20.00, and $30.00 per share**[289](index=289&type=chunk) - The CFO, independent directors, and key employees will receive **annual grants of options** with vesting based on continued service[290](index=290&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including officer certifications, a Non-Qualified Stock Option Agreement, and Inline XBRL data files - Filed exhibits include **officer certifications** (31.1, 31.2, 32.1, 32.2), a **Form of Non-Qualified Stock Option Agreement** (10.8), and various **Inline XBRL documents**[294](index=294&type=chunk)

KUALA LUMPUR, Malaysia, July 30, 2025 (GLOBE NEWSWIRE) -- BioNexus Gene Lab Corp. ("BGLC", Nasdaq:BGLC) and FidelionDiagnosticsPteLtd, a Singaporean company ("Fidelion") today announced the signing of a term sheet for a strategic, cross-equity partnership that the parties are calling a "DeepSeek-class leap" for liquid biopsy cancer monitoring and AI-driven biotechnology. This builds on BGLC's mission to be a global leader in liquid biopsies, and tumor naïve oncology solutions. Under the term sheet, BGLC wil ...

Financial Position - As of March 31, 2025, the company had cash and cash equivalents of $3.6 million and total liquidity exceeding $6 million, providing a solid foundation for operational continuity and strategic investments [173]. - The company maintains a clean capital structure, free of preferred stock and convertible debt, positioning it favorably for growth initiatives [173]. - As of March 31, 2025, working capital decreased to $4,982,026 from $6,415,877 as of December 31, 2024, primarily due to operational losses and strategic investments [223]. - Net cash used in operating activities for Q1 2025 was $(824,072), compared to $(37,153) in Q1 2024 [225]. - Net cash used in investing activities for Q1 2025 was $(15,646), primarily due to the purchase of plant and equipment totaling $(9,052) [228]. - Net cash used in financing activities for Q1 2025 was $(860) due to a loan repayment, compared to a net cash generation of $26,930 in Q1 2024 [230]. - The company believes cash flow from operations will be sufficient to sustain its current level of operations for at least the next 12 months [224]. Revenue and Expenses - For the quarter ended March 31, 2025, total revenue was $2,137,075, a decrease of 10.3% from $2,381,851 in the same quarter of 2024 [200]. - Chemrex contributed $2,134,007 (99.9%) of total revenue, reflecting a decline of 10.29% due to a slowdown in market demand and disruptions from Malaysian e-Invoicing requirements [201]. - MRNA Scientific's revenue was $3,068 (0.1%), down approximately 3.1% from $3,165, primarily due to fewer client referrals and a key RNA machine being under repair [202]. - Total cost of revenue for the quarter was $1,793,582, a decrease of 11.1% from $2,016,820 in the prior year [203]. - Gross profit for the quarter was $343,493, down approximately 5.9% from $365,031 in the same quarter of 2024 [206]. - Total other income decreased by approximately 54.7% to $91,420 from $201,847 in the prior year [209]. - Total operating expenses increased by approximately 63.3% to $1,053,331 from $645,906 in the same quarter of 2024 [212]. - Sales and marketing expenses surged by 251.4% to $540,695, primarily due to increased spending at Chemrex [212]. - General and administrative expenses rose to $391,876, an increase of 24.09% from $315,794 in the prior year [217]. - MRNA Scientific's research and development expenses slightly increased by 5.8% to $12,139 from $11,475 in the same quarter of 2024 [216]. - MRNA incurred $56,006 (14.29%) of total general and administrative expenses of $391,876 for Q1 2025, up from $38,275 (12.12%) in Q1 2024, representing a 46.3% increase [218]. - BGLC's general and administrative expenses were $210,737 (53.78%) of total expenses for Q1 2025, compared to $147,098 (46.58%) in Q1 2024, an increase of approximately 43.3% [219]. Operational Performance - Chemrex reported a loss from operations of $618,418 for Q1 2025, a significant increase of approximately 682.5% from a loss of $79,028 in Q1 2024 [219]. - Chemrex experienced a foreign currency gain of $72,159 in Q1 2025, compared to a loss of $209,908 in Q1 2024 [221]. Strategic Initiatives - The company is actively exploring additional capital-raising mechanisms, including at-the-market offerings and private placements, to support growth initiatives in digital health and decentralized financial infrastructure [174]. - The company reported a strategic investment in Ascension Innovation Sdn Bhd, enhancing its portfolio in the healthcare diagnostics sector [179]. - The company’s strategic focus includes expansion into digital healthcare, sustainable materials, and blockchain-based treasury solutions [175]. - The company’s leadership team is committed to maintaining robust compliance with Nasdaq listing standards as part of its growth strategy [177]. - The company has implemented additional protocols to strengthen compliance with corporate policies and regulatory requirements, particularly concerning related-party transactions at its Chemrex subsidiary [193]. - The company is focused on enhancing its internal control environment and improving governance procedures within its Chemrex subsidiary following recent transactions [194]. - The company successfully completed a reverse stock split at a ratio of 1-for-10, effective April 7, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2) [195]. - The company achieved full compliance with Nasdaq Listing Rule 5550(a)(2) on April 30, 2025, after successfully maintaining a minimum bid price of $1.00 per share [187]. - The company plans to add administrative and marketing personnel and increase advertising to generate more revenues [231].

Core Points - BioNexus Gene Lab Corp. has regained full compliance with Nasdaq Listing Rule 5550(a)(2), confirming a minimum bid price of $1.00 per share [1] - This milestone signifies the company's commitment to growth and compliance, allowing it to pursue innovation, capital market engagement, and international expansion [2] - The CEO emphasized that this achievement reflects the company's strategic alignment and financial resilience, positioning it for future growth opportunities [3] Corporate Strategy - The company is implementing a multi-pronged strategy focused on reinforcing corporate governance, enhancing internal controls, and preparing for strategic partnerships and capital raising [4] - New independent board members have been appointed, and a dedicated internal audit function has been established to support long-term value creation initiatives [4] - The continued Nasdaq listing is seen as a foundation for scaling the company into a regionally integrated, innovation-driven enterprise [5] Business Operations - BioNexus Gene Lab Corp. specializes in RNA-based blood diagnostics and is a leading supplier of industrial chemical raw materials in Southeast Asia [5] - The company is expanding its RNA-based genomic diagnostics business, MRNA Scientific, and driving the adoption of non-invasive blood tests for major diseases [6] - The specialty materials subsidiary, Chemrex, aims to meet the growing demand for high-performance chemical raw materials while focusing on sustainable development [6]

Financial Performance - For the year ended December 31, 2024, total revenue was $9,510,646, a decrease of approximately 2.7% from $9,770,806 in 2023 due to increased competition and reduced selling prices[309]. - Cost of revenues for 2024 was $8,221,125, down 2.6% from $8,441,308 in 2023, reflecting lower sales[310]. - Gross profit for 2024 was $1,289,521, compared to $1,329,498 in 2023, indicating a decline in profitability[308]. - Other income surged to $2,072,473 in 2024, an increase of 326.4% from $486,036 in 2023, primarily due to a reversal of expected credit losses[311]. - Total operating expenses rose to $4,935,696 in 2024, an increase of approximately 11.9% from $4,409,122 in 2023[312]. - Sales and marketing expenses increased significantly by 240.4% to $2,030,684 in 2024, driven by higher directors' remuneration and travel expenses[313]. - Research and development expenses decreased by 13.6% to $47,511 in 2024, primarily due to a lab equipment malfunction affecting the IJN project[314]. - General and administrative expenses decreased by 19.2% to $1,973,968 in 2024, mainly due to lower professional fees related to the Nasdaq listing[315]. - The provision for expected credit losses decreased by 32.8% to $883,533 in 2024, reflecting improved credit conditions[316]. - The net loss attributable to common shareholders was $1,598,342 in 2024, a reduction of 39.3% from a loss of $2,629,043 in 2023[308]. Chemrex Financials - Chemrex's general and administrative expenses increased by 404.4% to $679,321 (34.4%) in 2024 from $134,678 (5.5%) in 2023[331]. - Chemrex's provision for expected credit losses decreased by 32.8% to $883,533 in 2024 from $1,314,427 in 2023, due to reduced provisions for doubtful debts and losses allowance[332]. - Chemrex reported a loss before tax of $203,092 (12.7%) in 2024, a decrease of 14.07% from a loss of $236,341 (9.1%) in 2023[334]. - As of December 31, 2024, Chemrex's working capital decreased to $5,479,146 from $6,415,877 in 2023, primarily due to operational losses and strategic investments[336]. - Net cash used in operating activities for Chemrex was $(2,234,260) in 2024, compared to $(1,822,212) in 2023[338]. - Chemrex generated net cash of $418,202 from investing activities in 2024, a significant improvement from $(1,794,202) used in 2023[341]. - Financing activities generated net cash of $144,975 in 2024, a sharp decline from $6,274,939 in 2023 due to the absence of IPO proceeds[344]. - Chemrex's total tax expense for 2024 was $3,494, compared to $31,182 in 2023, reflecting a significant reduction in tax provisions[335]. Strategic Initiatives - The company is actively exploring additional capital-raising mechanisms, including at-the-market offerings and private placements, to support growth initiatives in digital health and decentralized financial infrastructure[276]. - The company intends to pursue selective mergers, acquisitions, and joint ventures, leveraging its clean balance sheet and low compliance cost profile[277]. - A strategic investment was made in Ascension Innovation Sdn Bhd by the company's subsidiary, MRNA Scientific Sdn. Bhd.[283]. - The company announced a new Ethereum-focused treasury strategy, becoming the first Nasdaq-listed company to prioritize Ethereum as a strategic treasury asset[301]. - The company is expanding into digital healthcare markets and evaluating cryptocurrency and blockchain-based financial infrastructure as a treasury diversification tool[303]. - The company anticipates continued revenue acceleration through strategic alliances, mergers, or acquisitions facilitated by its investment banking advisor[303]. Compliance and Governance - The company received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, leading to a request for a hearing to appeal the delisting determination[288]. - A reverse stock split was approved with a ratio of 1-for-10, effective April 7, 2025, to help regain compliance with Nasdaq listing standards[299]. - The company has implemented enhanced governance controls and internal control improvements following concerns raised about its Chemrex subsidiary[300].

Core Insights - BioNexus Gene Lab Corp. filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] Financial Performance - The company ended 2024 with a strong cash position of over $4 million and total liquidity exceeding $6 million, demonstrating prudent capital management [3] - BioNexus reduced its year-over-year net loss by over 39%, indicating improved operational efficiency and cost discipline across its healthcare diagnostics and specialty chemicals divisions [3] Strategic Initiatives - The company approved a blockchain-native treasury strategy, becoming the first Nasdaq-listed issuer to prioritize Ethereum (ETH) as a core strategic reserve asset, aimed at enhancing capital efficiency [4] - BioNexus expanded its genomic diagnostics offerings under its MRNA Scientific division and entered into strategic partnerships to scale its molecular screening platform and AI-based health diagnostics initiatives [5] Compliance and Governance - To maintain its Nasdaq listing, the company executed a 1-for-10 reverse stock split on April 7, 2025, and expects to regain full compliance with the Nasdaq minimum bid price rule by or before May 1, 2025 [6] Leadership Perspective - The CEO highlighted 2024 as a foundational year for BioNexus, emphasizing the company's renewed strategic focus and commitment to leading in healthcare technology and decentralized finance [7]

Core Insights - BioNexus Gene Lab Corp. has announced a strategic partnership with ML Tech to enhance its Ethereum-based growth strategies, indicating a commitment to technological and financial innovation [1][2][4] - The collaboration aims to leverage ML Tech's advanced digital asset trading infrastructure to optimize BGLC's Ethereum holdings while ensuring stringent risk management [2][3] - This partnership aligns with BGLC's vision of integrating blockchain technologies into its financial operations, potentially leading to innovative financial structures in the open market [3][4] Company Overview - BioNexus Gene Lab Corp. is focused on pioneering advancements in the digital and healthcare sectors, aiming for sustainable growth and shareholder value [5] - ML Tech is an institutional digital asset platform that offers optimized portfolios and bespoke trading strategies, catering to institutional investors [6]

Core Insights - BioNexus Gene Lab Corp. (BGLC) has become the first Nasdaq-listed company to prioritize Ethereum (ETH) as a strategic treasury asset, aligning with Ethereum's inclusion in the US "Crypto Strategic Reserve" [1][2] - The company has released an Ethereum Strategy Whitepaper that outlines the rationale for this decision and Ethereum's significance as a financial infrastructure asset [2][4] Group 1: Board Approval and Strategic Direction - The Board of Directors has approved the new Ethereum-focused treasury strategy after extensive analysis, recognizing Ethereum as a strategic treasury management solution [3] - Wyoming's blockchain-friendly laws have influenced BGLC's strategic direction, providing a pro-business regulatory environment that supports blockchain innovation [3] Group 2: Ethereum Strategy Whitepaper - The Ethereum Strategy Whitepaper details Ethereum's institutional adoption, staking capabilities, and upcoming protocol upgrades, emphasizing its long-term value and corporate utility [2][4] - The whitepaper distinguishes Ethereum as a programmable financial platform, contrasting it with Bitcoin's store-of-value approach [4] Group 3: Future Commitments and Innovations - BGLC plans to explore Ethereum-based financial applications and innovative treasury management practices, while also assessing the impact of Wyoming's stablecoin issuance framework [5] - The company aims to enhance its financial resilience and attract forward-thinking investors by integrating Ethereum into its corporate treasury [8] Group 4: Ethereum's Financial Attributes - Ethereum is recognized for its institutional credibility, yield-generation capabilities through its Proof-of-Stake (PoS) system, and dominance in financial infrastructure, underpinning trillions of dollars in stablecoin transactions annually [6] - Upcoming upgrades, such as the major Pectra upgrade, are expected to enhance Ethereum's efficiency and scalability [6][7]

Revenue Performance - Revenue for the three months ended September 30, 2024, was $2,630,376, an increase of 3.0% compared to $2,553,686 for the same period in 2023[124] - Total revenue for the quarter ended September 30, 2024, was $2,630,376, representing a 3% increase from $2,553,686 in the same quarter of 2023[126] - For the nine months ended September 30, 2024, total revenue was $6,986,791, a 6.8% decrease from $7,497,739 in the same period of 2023[146] - Chemrex's revenue for the nine-month period decreased by $493,704, representing a decline of 6.61% from the previous year[147] - MRNA Scientific's revenue decreased by 84.5% to $2,563, reflecting a decline from $16,536 in the same quarter of 2023 due to fewer client referrals[128] Profitability - Gross profit for the three months ended September 30, 2024, was $326,536, a decrease of 7.8% from $354,332 in the prior year[124] - Gross profit for the quarter was $326,536, down 7.8% from $354,332 in the same quarter of 2023[131] - Total gross profit for the nine months ended September 30, 2024, was $980,287, reflecting a decrease of approximately 7.8% from $1,062,943 in 2023[152] - Chemrex contributed $975,786 (99.5%) to the total gross profit, down from $1,049,324 (98.7%) in the prior year, marking a 7.01% decrease[153] - MRNA Scientific's gross profit decreased by 67% to $4,501, contributing 0.5% to the total gross profit, down from $13,619 (1.3%) in the previous year[154] Expenses and Losses - Cost of revenue for the quarter was $2,303,840, a 4.8% increase from $2,199,354 in the prior year[129] - Total operating expenses decreased by approximately 30.9% to $2,129,685 from $3,082,128 in the same quarter of 2023[137] - Loss from operations was $1,337,622, reflecting a reduction of approximately 47.1% from a loss of $2,528,512 in the same quarter of 2023[141] - Operating expenses totaled $3,535,248, a decrease of 20.1% from $4,426,077 in the same period last year[158] - The company reported a loss from operations of $1,157,482, a significant improvement from a loss of $2,851,342 in the prior year, representing a 59.4% decrease[162] Other Income and Gains - The company reported other income of $465,527 for the three months ended September 30, 2024, significantly higher than $199,284 in the prior year[124] - Other income increased by approximately 133.6% to $465,527 compared to $199,284 in the same quarter of 2023[134] - Other income increased to $1,397,479 for the nine months ended September 30, 2024, up 173.1% from $511,792 in 2023[155] - The company experienced a foreign currency gain of $839,344 for the nine months ended September 30, 2024, compared to a loss of $391,533 in the prior year[164] Corporate Governance and Compliance - The company entered into an advisory service agreement with Maxim Group LLC for M&A services, issuing 300,000 shares of common stock as compensation[109] - The company received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement of $1.00 per share, with a compliance period extended to November 4, 2024[113] - The company has implemented additional protocols to enhance internal controls and governance procedures at its Chemrex subsidiary following recent transactions[120] - The company appointed Ms. Jook Yuen Low as an independent director, enhancing the board's expertise in corporate governance and compliance[116] Strategic Investments - A strategic investment was made into Ascension Innovation Sdn Bhd by MRNA Scientific Sdn. Bhd., aimed at expanding the company's capabilities[111] Working Capital - As of September 30, 2024, working capital was $5,635,310, down from $6,415,877 as of December 31, 2023, primarily due to investments and operational expansion[165] Cash Flow - Net cash used in operating activities was $2,164,489 for the nine months ended September 30, 2024, compared to $1,039,686 in the same period last year[167]

Core Insights - MRNA Scientific Sdn. Bhd. and Protech Builders Sdn. Bhd. have signed a strategic teaming agreement to develop and operate biogas plants in Malaysia, focusing on renewable energy generation from plantation wastewater [1][2][5] Group 1: Agreement Details - The three-year agreement involves pooling resources to identify, market, and execute biogas projects, with an initial financial contribution of up to RM1,000,000 (approximately USD 235,000) for feasibility studies and project development [2][4] - The partnership aims to leverage MRNA's market knowledge and chemical raw material expertise alongside Protech's mechanical and electrical engineering capabilities [3][5] Group 2: Market Potential - The biogas market in Malaysia presents significant growth opportunities, with expectations to secure multiple projects ranging from small to large-scale installations over the next three years [4][5] - The collaboration is positioned to meet the increasing demand for biogas solutions, contributing to both environmental sustainability and economic benefits in Malaysia [5] Group 3: Company Backgrounds - BioNexus Gene Lab Corp. is an emerging biotech company and a leading supplier of chemical raw materials in Southeast Asia, operating in the biotech and chemical supply industries [6] - Protech Builders Sdn. Bhd. is a renowned mechanical and electrical engineering firm in Malaysia, specializing in complex engineering systems, holding a G7 construction license that allows for projects of any size [7]