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]

Core Viewpoint - BioNexus Gene Lab Corp. has signed a strategic partnership MOU with Shenzhen Rongguang Health Group to enhance cancer screening, precision medicine, and preventative healthcare through its subsidiary MRNA Scientific Sdn Bhd [1][2]. Group 1: Partnership Objectives - The partnership aims to leverage both companies' expertise to tackle critical healthcare challenges and improve patient outcomes [3]. - Key objectives include: - **Expansion of Cancer Screening and Diagnostics**: MRNA Scientific Sdn Bhd will enhance cancer screening capabilities in Southeast Asia and China through advanced genomic testing and molecular diagnostics [3]. - **Research and Development in Regenerative Medicine**: Collaboration will focus on advanced healthcare technologies, including non-cellular exosome therapy and regenerative medicine, for anti-aging therapies and chronic disease management [3]. - **Preventative Healthcare and Chronic Disease Management**: The partnership will improve preventative healthcare services and personalized healthcare plans based on advanced diagnostics [3]. - **Synergy in Technological Innovation**: Combining diagnostic capabilities with established healthcare platforms will create synergies for healthcare innovation, improving disease detection, prevention, and treatment [3]. Group 2: Company Statements - The CEO of BioNexus Gene Lab Corp. emphasized that this partnership is a pivotal moment for the company, advancing efforts in cancer screening and expanding into broader healthcare solutions [4].

Core Viewpoint - BioNexus Gene Lab Corp's subsidiary, Chemrex Corporation, is investing approximately RM 2 million (around USD $450,000) to produce fine-quality color paste for composite industrial customers, marking a significant step in the company's global market expansion strategy [1][2]. Investment and Product Launch - The investment will enable Chemrex to meet the rising demand for high-quality composite materials across various industries, aligning with the company's long-term growth and innovation strategy [2]. Key Benefits of the New Business - **Increased Profit Margins**: In-house production of color paste will enhance profitability by capturing greater margins compared to outsourcing [3]. - **Improved Quality Control**: Internal production allows for strict oversight of product quality, ensuring superior products that meet high standards [3]. - **Timely Delivery of Finished Products**: Producing color paste in-house will facilitate faster turnaround times, improving service and customer satisfaction [3]. - **Competitive Pricing and Market Expansion**: In-house production provides a cost advantage, enabling competitive pricing and market penetration in Southeast Asia, the Middle East, Australia, and New Zealand [3]. Future Expansion Plans - Chemrex plans to establish additional production facilities in the Middle East and Vietnam to enhance responsiveness to regional demand [4]. Synergy Through Bulk Purchasing - Chemrex will leverage bulk purchasing of raw materials to achieve economies of scale, reducing production costs and strengthening its competitive position in the composite materials industry [5]. Company Commitment - The CEO of BioNexus Gene Lab Corp emphasized the company's commitment to quality, innovation, and market leadership through this new business development [6].

Core Insights - BioNexus Gene Lab Corp. has successfully co-invested in Ascension Innovation Sdn Bhd through the Malaysia Co-Investment Fund (MyCIF), indicating strong confidence in AISB's strategic direction and potential [1][3] - AISB is the first recipient of investment under the Environmental & Social Impact (ESI) scheme, which aims to support small and medium enterprises (MSMEs) with impactful healthcare solutions [2] - The co-investment will enhance AISB's efforts in advancing the 'One Patient, One Record' initiative under Malaysia's National Electronic Medical Records (EMR) Plan, modernizing the healthcare infrastructure [3][4] Company Overview - BioNexus Gene Lab Corp. is focused on RNA-based genomic diagnostics and aims to improve global health outcomes through personalized medicine [5] - Ascension Innovation Sdn Bhd specializes in AI-driven healthcare technology solutions, committed to transforming healthcare through innovative practices [5] Financial Details - The total investment in this funding round amounts to RM1.7 million, approximately USD 390,000, highlighting the significance of sustainable healthcare innovations [4]

Core Insights - BioNexus Gene Lab Corp. has successfully closed a RM 1 million (approximately USD 228k) investment in Ascension Innovation Sdn Bhd, enhancing its commitment to AI-driven healthcare solutions [1][4] - The investment provides BioNexus with a significant equity stake in Ascension, facilitating deeper collaboration and integration of advanced AI technologies in healthcare [2][3] Company Overview - BioNexus Gene Lab Corp. is a global leader in RNA-based genomic diagnostics, focused on advancing personalized medicine and improving health outcomes [5] - Ascension Innovation Sdn Bhd specializes in innovative healthcare technologies, particularly through its aiCMS platform, which utilizes predictive analytics and AI tools for clinical management [2][5] Strategic Goals - The investment is part of BioNexus's broader strategy to capitalize on the expanding digital health and AI markets, which are expected to experience significant growth in the coming years [4] - The collaboration aims to create synergies between BioNexus's expertise in genomic screening and Ascension's AI-driven platforms, ultimately improving patient outcomes through more accurate diagnostics and tailored treatments [3][4]

Revenue Performance - For the quarter ended June 30, 2024, total revenue was $1,974,564, a decrease of 23.1% compared to $2,566,848 for the same quarter in 2023[72]. - Chemrex contributed $1,969,068 (99.7%) of total revenue for the current quarter, down 23.2% from $2,562,352 (99.8%) in the prior year[77]. - MRNA Scientific's revenue increased by 22.2% to $5,496, compared to $4,496 in the same quarter last year[77]. - Total revenue for the six months ended June 30, 2024, decreased by approximately 11.9% to $4,356,415 from $4,944,053 in the same period of 2023[86]. - Chemrex's revenue for the six months ended June 30, 2024, decreased by approximately 11.85% to $4,347,754 from $4,932,121 in the same period of 2023[86]. Profitability - Gross profit for the quarter was $288,720, down approximately 15% from $339,714 in the same quarter of 2023[79]. - Profit from operations for the quarter ended June 30, 2024, was $259,168, a 195.2% increase from a loss of $272,199 in the same quarter of 2023[82]. - The company reported a net profit of $199,104 for the quarter, compared to a net loss of $259,251 in the same quarter last year[73]. - The company incurred a net profit of $95,347 for the six months ended June 30, 2024, compared to a net loss of $328,317 for the same period in 2023[96][97]. Expenses - Cost of revenue for the quarter was $1,685,844, a decrease of 24.3% from $2,227,134 in the prior year[78]. - Total operating expenses decreased by approximately 5.9% to $759,657 for the quarter ended June 30, 2024, down from $807,077 in the same quarter of 2023[81]. - MRNA Scientific's operating expenses increased by approximately 87.6% to $185,218 for the six months ended June 30, 2024, compared to $98,720 in the same period of 2023[91]. Other Income - Other income increased significantly to $730,105, compared to $195,164 in the prior year, marking an increase of approximately 274.1%[79]. - Chemrex's other income increased by 256.9% to $692,741 for the quarter ended June 30, 2024, compared to $194,125 for the same quarter in 2023[80]. - Other income for the six months ended June 30, 2024, was $931,952, an increase of approximately 198.2% from $312,508 in the same period of 2023[89]. Cash Flow and Working Capital - Net cash used in operating activities for the six months ended June 30, 2024, was $704,982, compared to $140,341 used in the same period of 2023[95]. - The company generated net cash of $107,160 from investing activities during the six months ended June 30, 2024, compared to a cash outflow of $8,114 in the same period of 2023[98]. - Net cash generated from financing activities was $197,799 for the six months ended June 30, 2024, compared to a cash outflow of $4,212 in the same period of 2023[99]. - The company reported a net change in cash and cash equivalents of $(515,303) for the six months ended June 30, 2024, compared to $(360,184) for the same period in 2023[95]. - As of June 30, 2024, the company had working capital of $6,443,511, up from $6,415,877 as of December 31, 2023, primarily due to profits incurred during the quarter[93]. Compliance and Strategic Initiatives - The company received an additional 180 days from Nasdaq to regain compliance with the minimum bid price requirement, extending the deadline to November 4, 2024[71]. - A strategic investment was made in Ascension Innovation Sdn Bhd by MRNA Scientific Sdn. Bhd., details of which can be found in a Form 8-K filed on April 18, 2024[70]. - The company entered into an advisory service agreement with Maxim Group LLC for M&A services, issuing 300,000 shares for these services[69]. Foreign Currency Impact - Foreign currency translation gain for the quarter ended June 30, 2024, was $2,463, compared to a loss of $333,891 in the same quarter of 2023[83]. - For the six-month period ended June 30, 2024, the company experienced a foreign currency loss of $207,445, an improvement from a loss of $372,930 in the same period of 2023[93]. - The company had a foreign currency translation adjustment of $(115,280) for the six months ended June 30, 2024, compared to $(207,517) in the same period of 2023[95]. Internal Control - The management assessed that internal control over financial reporting had improved, although further improvements are required[103].

Translation of amounts from MYR into US$1.00 has been made at the following exchange rates for the respective period and year: | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------|---------------------------------------|---------------------------------------| | | March 31, 2024 | December 31, 2023 | | Period ended March 31, 2024 /Year-ended December 31, 2023 US$1: MYR exchange rate | 4.7205 | 4.5900 | | | January 1, 2024 to March 3 ...