Bionexus Gene Lab (US:BGLC)2025-05-15 20:30Financial 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].