Bionexus Gene Lab (US:BGLC)2025-11-14 22:21Financial Performance - As of September 30, 2025, the Company recorded a net loss of $1,948,490 and negative cash flows from operating activities of $2,799,444, with an accumulated deficit of $5,391,110[38]. - For the nine months ended September 30, 2025, net revenue was $6,941,151, a slight decrease from $6,986,791 in the same period of 2024, representing a decline of approximately 0.65%[109]. - The net loss attributable to common shareholders for the nine months ended September 30, 2025, was $708,991, compared to a net loss of $1,345,370 for the same period in 2024, indicating an improvement of approximately 47%[135]. - The net loss attributable to common shareholders for the nine months ended September 30, 2025, was $1,948,490, compared to a net loss of $1,250,023 in 2024, representing an increase in loss of approximately 55.9%[140]. - For the three months ended September 30, 2025, the Company reported revenue of $2,543,823, a decrease of 3.3% compared to $2,630,376 for the same period in 2024[212]. - The gross profit for the three months ended September 30, 2025, was $377,685, representing an increase of 15.6% from $326,536 in the prior year[212]. - The Company experienced total other income of $107,760 for the three months ended September 30, 2025, significantly lower than $465,527 in the same period of 2024[212]. - Total operating expenses for the nine months ended September 30, 2025, were $1,187,954, compared to $2,129,685 in the same period of 2024, reflecting a decrease of approximately 44%[135]. Revenue and Segments - Revenue from the trading of industrial chemicals was $6,929,849 for the nine months ended September 30, 2025, compared to $6,975,567 in 2024, indicating a decrease of about 0.66%[109]. - The genomic screening services segment generated revenue of $4,768, while the trading of industrial chemicals segment contributed $2,539,055 for the three months ended September 30, 2025[135]. - Chemrex accounted for $2,539,055 (99.8%) of total revenue, a decrease of 3.4% from $2,627,813 (99.9%) in the previous year, primarily due to lower sales volume[218]. Assets and Liabilities - As of September 30, 2025, the Company's trade receivables amounted to $2,193,935, an increase from $1,894,448 as of December 31, 2024, representing a growth of approximately 15.9%[84]. - The total net trade receivables stood at $1,522,158 as of September 30, 2025, up from $1,376,571 as of December 31, 2024, indicating an increase of 10.6%[84]. - The Company has operating lease right-of-use assets of $186,082 as of September 30, 2025, down from $215,243 as of December 31, 2024, a decrease of 13.5%[95]. - Operating lease liabilities decreased to $183,746 as of September 30, 2025, from $210,557 as of December 31, 2024, representing a decline of 12.7%[96]. - As of September 30, 2025, total segment assets amounted to $7,621,228, down from $10,433,848 as of December 31, 2024, indicating a decrease of approximately 26.9%[142]. Cash and Liquidity - The Company maintains cash balances with multiple financial institutions in Malaysia, with deposits insured up to RM250,000 (approximately USD 55,000) per depositor[39]. - As of September 30, 2025, the Company had cash and cash equivalents of $1.36 million and total liquidity exceeding $5 million, providing a solid foundation for operational continuity and strategic investments[173]. - The Company is actively exploring additional capital-raising mechanisms, including at-the-market offerings and private placements, subject to Nasdaq and SEC compliance[174]. Credit and Allowances - The allowance for expected credit losses increased to $671,777 as of September 30, 2025, compared to $517,877 as of December 31, 2024, reflecting a rise of 29.6%[84]. - The Company applies a historical loss rate matrix for trade receivables, adjusted for forward-looking information and macroeconomic trends relevant to the industries in which customers operate[40]. - The allowance for credit losses is based on historical collection experience, aging of receivables, and current economic conditions, with specific allowances for customers with known financial difficulties[40]. Strategic Initiatives - The Company announced a strategic partnership with ML Tech to optimize Ethereum-based growth strategies, enhancing its position in digital asset management[146]. - A non-binding term sheet was entered into with Fidelion Diagnostics for exclusive commercialization rights of the VitaGuard™ MRD platform in Southeast Asia, with regulatory submissions planned for 2026[150]. - The Company plans to lead regulatory submissions for the VitaGuard™ MRD platform, capable of detecting cancer recurrence at variant allele frequencies as low as 0.02%, with a cost per test expected to be under $300[190]. - The Board of Directors authorized the strategic repositioning of Chemrex Corporation into a biotechnology-focused contract development and manufacturing organization, reallocating up to MYR 10 million for operational development[151]. Accounting and Compliance - The Company is evaluating the impact of ASU 2023-09 on its consolidated financial statements, which expands income tax disclosure requirements and is effective for annual reporting periods beginning after December 15, 2024[74]. - The Company does not expect any other recently issued accounting pronouncements to have a significant effect on its consolidated financial statements[75]. - The Company successfully achieved full Nasdaq compliance in April 2025, reinforcing market stability and investor confidence[187]. Stock and Shareholder Information - The company executed a one-for-ten reverse stock split on April 1, 2025, reducing the number of outstanding shares from 17,967,663 to 1,796,597[125]. - The Series Z Preferred Stock was created to facilitate a reverse stock split proposal, which was approved by shareholders on March 19, 2025[123]. - The Company filed a registration statement to register up to $100 million of securities and entered into an Equity Distribution Agreement for an aggregate offering price of up to $20 million[159].