Bionexus Gene Lab (US:BGLC)2025-04-15 15:00Financial 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].