Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 09, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | BIONEXUS GENE LAB CORP. | |
Entity Central Index Key | 0001737523 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 173,718,152 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-229399 | |
Entity Incorporation State Country Code | WY | |
Entity Tax Identification Number | 35-2604830 | |
Entity Address Address Line 1 | Unit 02, Level 10 Tower B, Avenue 3, The Vertical | |
Entity Address Address Line 2 | Business Suite II Bangsar South | |
Entity Address Address Line 3 | No. 8 Jalan Kerinchi | |
Entity Address City Or Town | Kuala Lumpur | |
Entity Address Country | MY | |
Entity Address Postal Zip Code | 59200 | |
City Area Code | 60 | |
Local Phone Number | 1221-26512 | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and bank balances | $ 406,787 | $ 611,849 |
Fixed deposits placed with financial institutions | 1,566,425 | 1,507,015 |
Trade receivables | 2,528,746 | 2,868,364 |
Other receivables, deposits and prepayments | 29,346 | 25,240 |
Tax recoverable | 27,823 | 31,551 |
Inventories | 899,636 | 977,807 |
Total current assets | 5,458,763 | 6,021,826 |
NON-CURRENT ASSETS | ||
Operating lease right of use assets | 51,436 | 55,730 |
Property, plant and equipment, net | 1,481,767 | 1,511,708 |
Other investments | 1,194,675 | 1,150,898 |
Total non-current assets | 2,727,878 | 2,718,336 |
TOTAL ASSETS | 8,186,641 | 8,740,162 |
CURRENT LIABILITIES | ||
Trade payables | 1,493,774 | 1,861,015 |
Other payables and accrued liabilities | 37,550 | 103,370 |
Current portion of operating lease liabilities | 16,733 | 16,569 |
Advance payment from customer | 15,322 | 23,123 |
Total current liabilities | 1,563,379 | 2,004,077 |
NON-CURRENT LIABILITIES | ||
Non-current portion of operating lease liabilities | 35,676 | 40,206 |
Deferred tax liabilities | 30,678 | 30,866 |
Total non-current liabilities | 66,354 | 71,072 |
TOTAL LIABILITIES | 1,629,733 | 2,075,149 |
STOCKHOLDERS' EQUITY | ||
As at March 31, 2023, common stock, no par value; 300,000,000 shares authorized and 173,718,152 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. As at December 31, 2022, common stock, no par value; 300,000,000 shares authorized and 173,718,152 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. | 10,929,574 | 10,779,574 |
Additional paid in capital | (5,011,891) | (5,011,891) |
Accumulated surplus | 1,087,326 | 1,156,392 |
Accumulated other comprehensive losses | (448,101) | (409,062) |
TOTAL STOCKHOLDERS' EQUITY | 6,556,908 | 6,665,013 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 8,186,641 | $ 8,740,162 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value per share | $ 0 | $ 0 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 173,718,152 | 173,718,152 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||
REVENUE | $ 2,377,205 | $ 3,028,945 |
COST OF REVENUE | (2,008,308) | (2,672,612) |
GROSS PROFIT | 368,897 | 356,333 |
OTHER INCOME | 117,344 | 46,394 |
OPERATING EXPENSES | ||
General and administrative | (536,872) | (368,036) |
(LOSS)/PROFIT FROM OPERATIONS | (50,631) | 34,691 |
FINANCE COSTS | (2,445) | (3,326) |
(LOSS)/PROFIT BEFORE TAX | (53,076) | 31,365 |
Tax expense | (15,990) | (14,299) |
NET (LOSS)/PROFIT | (69,066) | 17,066 |
Other comprehensive income: | ||
Foreign currency translation loss | (39,039) | (68,776) |
COMPREHENSIVE LOSS | $ (108,105) | $ (51,710) |
Earnings per share - Basic and diluted | $ (0.001) | $ 0 |
Weighted average number of common shares outstanding - Basic and diluted | 173,718,152 | 171,218,152 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($) | Total | Common Stock | Additional Paid In Capital | Accumulated Surplus/(Loss) | Accumulated Other Comprehensive Income/(Loss) |
Balance, shares at Dec. 31, 2021 | 171,218,152 | ||||
Balance, amount at Dec. 31, 2021 | $ 7,179,779 | $ 10,779,574 | $ (5,011,891) | $ 1,512,358 | $ (100,262) |
Net profit for the period | 17,066 | 0 | 0 | 17,066 | 0 |
Foreign currency translation loss | (68,776) | $ 0 | 0 | 0 | (68,776) |
Balance, shares at Mar. 31, 2022 | 171,218,152 | ||||
Balance, amount at Mar. 31, 2022 | 7,128,069 | $ 10,779,574 | (5,011,891) | 1,529,424 | (169,038) |
Balance, shares at Dec. 31, 2022 | 173,718,152 | ||||
Balance, amount at Dec. 31, 2022 | 6,665,013 | $ 10,779,574 | (5,011,891) | 1,156,392 | (409,062) |
Net profit for the period | (69,066) | 0 | 0 | (69,066) | 0 |
Foreign currency translation loss | (39,039) | $ 0 | 0 | 0 | (39,039) |
Balance, shares at Mar. 31, 2023 | 173,718,152 | ||||
Balance, amount at Mar. 31, 2023 | $ 6,556,908 | $ 10,779,574 | $ (5,011,891) | $ 1,087,326 | $ (448,101) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net (loss)/profit | $ (69,066) | $ 17,066 |
Adjustments to reconcile net (loss)/profit to net cash (used in)/generated from operating activities: | ||
Amortization of right of use asset | 3,972 | 4,341 |
Depreciation of property, plant and equipment | 20,897 | 22,307 |
Dividend income | (8,692) | (7,230) |
Fair value loss/(gain) on other investments | (37,399) | 3,779 |
Gain on disposal of other investments | (4) | 0 |
Operating (loss)/profit before working capital changes | (90,292) | 40,263 |
Changes in operating assets and liabilities: | ||
Inventories | 78,171 | (126,988) |
Trade and other receivables | 335,512 | 330,316 |
Deferred cost of revenue | 0 | 67,606 |
Trade and other payables | (433,061) | (208,629) |
Advance payment from customer | (7,801) | (30,200) |
Deferred revenue | 0 | (77,276) |
Operating lease liabilities | (4,366) | (5,007) |
Tax recoverable | 3,540 | (27,924) |
Net cash used in operating activities | (118,297) | (37,839) |
Cash flows from investing activities: | ||
Acquisition of other investment | (13,646) | (172,172) |
Dividend income | 8,692 | 7,230 |
Purchase of plant and equipment | (102) | (32,191) |
Net cash used in investing activities | (5,056) | (197,133) |
Foreign currency translation adjustment | (22,299) | (44,625) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (145,652) | (279,597) |
CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR | 2,118,864 | 2,123,919 |
CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR | 1,973,212 | 1,844,322 |
CASH AND CASH EQUIVALENTS INFORMATION: | ||
Fixed deposits placed with financial institutions | 1,566,425 | 1,237,472 |
Cash at bank | 406,787 | 606,850 |
Cash and cash equivalents, end of financial year | 1,973,212 | 1,844,322 |
Supplementary cash flow information: | ||
Interest paid | (2,445) | (3,326) |
Income taxes paid | $ (12,438) | $ (41,946) |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 3 Months Ended |
Mar. 31, 2023 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE 1 – ORGANIZATION AND BUSINESS BACKGROUND BioNexus Gene Lab Corp. (the “Company”) was incorporated in the State of Wyoming on May 12, 2017. On August 23, 2017, the Company acquired all the outstanding capital stock of BGS Lab Sdn. Bhd., a Malaysian corporation (“BioNexus Malaysia”). BioNexus Malaysia was incorporated in Malaysia on April 7, 2015 which it then subsequently changed its name to Bionexus Gene Lab Sdn. Bhd. The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. We also have a blood collection center located at 1st floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia. On December 31, 2020, the Company consummated its acquisition of Chemrex Corporation Sdn. Bhd. (“Chemrex”), pursuant to a Share Exchange Agreement by and among the Company, Chemrex and the Chemrex shareholders wherein the Company acquired all the issued and outstanding shares of capital stock of Chemrex from the Chemrex shareholders in exchange for 68,487,261 shares of common stock of the Company. The acquisition of Chemrex has been accounted for as a common control transaction as there is no change in the control over the assets acquired and liabilities assumed. The net assets are derecognized by the transferring entity (i.e. Chemrex) and recognized by the receiving entity (i.e. the Company). The difference between the consideration transferred and the carrying amounts of the net assets is recognized in equity. The financial statements of the receiving entity report the results of operations for the period in which the transfer occurs as though the transfer of net assets or exchange of equity interests had occurred at the beginning of the period. Results of operations for that period will thus comprise those of the previously separate entities combined from the beginning of the period to the date the transfer is completed and those of the combined operations from that date to the end of the period. The comparative financial statements were not adjusted retrospectively as Chemrex was not under common control during the comparative period. The corporate structure as at March 31, 2023 is depicted below: BioNexus Gene Lab Corp. (a Wyoming company) 100% 100% Bionexus Gene Lab Sdn Bhd (a Malaysia company) Chemrex Corporation Sdn Bhd (a Malaysia Company) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. · Basis of presentation The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). · Basis of consolidation The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. · Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. · Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of Three months or less as of the purchase date of such investments. · Trade receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for impairment on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to adjust in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. · Inventories Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Statement of Operations and Comprehensive Income. · Leases Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. · Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis to write off the cost over the following expected useful lives of the assets concerned. The principal annual rates used are as follows: Categories Principal Annual Rates Air conditioner 20 % Buildings 2 % Computer and software 33 % Equipment 20 % Furniture and fittings 10% to 20 % Lab Equipment 10 % Motor vehicle 10% to 20 % Office equipment 20 % Renovation 10% to 20 % Signboard 10 % Leasehold lands are depreciated over the period of lease term. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place. Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use. · Impairment of long-lived assets Long-lived assets primarily include goodwill, intangible assets and property, plant and equipment. In accordance with the provision of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, the Company generally conducts its annual impairment evaluation to its long-lived assets, usually in the fourth quarter of each fiscal year, or more frequently if indicators of impairment exist, such as a significant sustained change in the business climate. The recoverability of long-lived assets is measured at the lowest level group. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There has been no impairment charge for the years presented. · Revenue recognition Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company records revenue at point in time which is recognized upon goods delivered or services rendered. · Shipping and handling fees Shipping and handling fees, if billed to customers, are included in revenue. Shipping and handling fees associated with inbound and outbound freight are expensed as incurred and included in selling and distribution expenses. · Comprehensive income ASC Topic 220, “ Comprehensive Income · Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclosed in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in Malaysia and is subject to tax in their own jurisdictions. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. · Net earnings or loss per share The Company calculates net earnings or loss per share in accordance with ASC Topic 260 “Earnings per share” · Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the subsidiaries maintain its books and record in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the subsidiaries operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” 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, December 31, 2023 2022 Period ended March 31, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate 4.4170 4.3900 January 1, 2023 to March 31, 2023 January 1, 2022 to March 31, 2022 3 months average US$1: MYR exchange rate 4.3968 4.1938 · Related parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. · Fair value of financial instruments The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures · Level 1 · Level 2 · Level 3 As of March 31, 2023, and December 31, 2022, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis. · Recent accounting pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its consolidated financial statements. FASB issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June 10, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915) Elimination of Certain Financial Reporting Requirements, including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, which eliminates the concept of a development stage entity (DSE) entirely from current accounting guidance. The Company has elected adoption of this standard, which eliminates the designation of DSEs and the requirement to disclose results of operations and cash flows since inception. |
TRADE RECEIVABLES
TRADE RECEIVABLES | 3 Months Ended |
Mar. 31, 2023 | |
TRADE RECEIVABLES | |
TRADE RECEIVABLES | NOTE 3 - TRADE RECEIVABLES The Company has performed an analysis on all its trade receivables and determined that all amounts are collectible by the Company. As such, trade receivables are reflected as a current asset and no allowance for impairment has been recorded as of March 31, 2023 and December, 31, 2022. The Company’s trade receivables consist of receivable from customers which are unrelated to the Company. The account receivables are interest bearing at a rate of 6% per annum on a case to case basis for customers that exceeded credit term. The normal trade credit term is generally on 30 days to 90 days term. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 4 - INCOME TAXES The Company provides for income taxes under ASC 740, “Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statements and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. It also requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Provision for income taxes consisted of the following: United States of America The Company is registered in the State of Wyoming and is subject to the tax laws of the United States of America. Malaysia BioNexus Malaysia and Chemrex are both subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range is 24% on its assessable income. Under the amendment of Income Tax Act 1967 by the Finance Act 2020 and with effect from year of assessment 2020, companies with paid-up capital of RM2.5 million or less, and with annual business income of not more than RM50 million are subject to Small and Medium Enterprise Corporate Tax at 17% on chargeable income up to RM600,000 (2021: RM600,000) except for companies with investment holding nature or companies does not have gross income from business sources are subject to corporate tax at 24% on chargeable income. As of March 31, December 31, 2023 2022 Tax Recoverable Local $ - $ - Foreign, representing Malaysia (27,823 ) (31,551 ) Tax Recoverable (27,823 ) (31,551 ) Income tax liabilities: Local $ - $ - Foreign, representing Malaysia - - Income tax payables - - Deferred tax liabilities: Local $ - $ - Foreign, representing Malaysia 30,678 30,866 Deferred tax liabilities 30,678 30,866 Total 2,855 (685 ) |
OPERATING LEASE RIGHT OF USE AS
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | NOTE 5 – OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES Lease liabilities are measured at present value of the sum of remaining rental payment as of recognition with discount rate of 6.40% per annum adopted from Malayan Banking (Maybank) Berhad's base rate as a reference for discount rate, as this bank is the largest bank and national bank of Malaysia. A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease cost are classified within operating activities in the statement of cash flows. Operating lease right of use assets as follows: As of March 31, December 31, 2023 2022 Balance as of beginning of the year $ 55,730 $ 41,090 Add: Addition of lease liabilities - 32,281 Less: Amortization (3,954 ) (15,534 ) Foreign translation differences (341 ) (2,106 ) Balance $ 51,436 $ 55,730 Operating lease liabilities as follows: March 31, December 31, 2023 2022 Balance as of beginning of the year $ 56,775 $ 42,909 Add: Addition of lease liabilities - 30,770 Less: gross repayment (4,875 ) (19,618 ) Add: imputed interest 855 4,913 Foreign translation differences (346 ) (2,199 ) Balance as of end of the year 52,409 56,775 Less: lease liability current portion (16,733 ) (16,569 ) Lease liability non-current portion $ 35,676 $ 40,206 The amortization of the right of use asset for the three months’ period ended March 31, 2023 and the three months’ period ended March 31, 2022 were $3,972 and $4,341 respectively. Other information: As of March 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ (4,366 ) $ (126,686 ) Right of use assets obtained in exchange for operating lease liabilities 51,436 55,730 Remaining lease term for operating lease (years) 3.75 4 Weighted average discount rate for operating lease $ 6.40 % $ 6.40 % Lease expenses for the three months’ period ended March 31, 2023 and the year ended December 31, 2022 were $855 and $4,913, respectively. |
PROPERTY PLANT AND EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
PROPERTY PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 6 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: As of March 31, December 31, 2023 2022 Air conditioner $ 1,124 $ 1,124 Computer and software 2,516 2,516 Equipment 60,525 60,525 Furniture and fittings 87,122 87,122 Lab equipment 320,102 320,102 Land and buildings 1,506,969 1,506,969 Motor vehicle 137,914 137,914 Office equipment 38,213 38,213 Renovation 107,414 107,414 Signboard 806 704 2,262,705 2,262,603 (Less): Accumulated depreciation (611,214 ) (590,317 ) Add: Foreign translation differences (169,724 ) (133,982 ) Property, plant and equipment, net $ 1,481,767 $ 1,511,708 Depreciation expense for the three months’ period ended March 31, 2023 and 2022 were $20,897 and $22,307 respectively. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 3 Months Ended |
Mar. 31, 2023 | |
OTHER INVESTMENTS | |
OTHER INVESTMENTS | NOTE 7 - OTHER INVESTMENTS As of March 31, December 31, 2023 2022 As of beginning of the year $ 1,150,898 $ 749,027 Addition during the year 13,646 511,706 Disposal during the year - (1,776 ) Fair value loss 37,399 (70,628 ) Foreign exchange translation (7,268 ) (37,431 ) As of end of the year $ 1,194,675 $ 1,150,898 The other investments consist of the following shares: As of March 31, December 31, 2023 2022 Investment in quoted shares: Malaysia 689,531 659,970 Singapore 94,757 101,426 Hong Kong 410,387 389,502 $ 1,194,675 $ 1,150,898 |
TRADE PAYABLES
TRADE PAYABLES | 3 Months Ended |
Mar. 31, 2023 | |
TRADE PAYABLES | |
TRADE PAYABLES | NOTE 8 - TRADE PAYABLES Trade payables are amounts billed to the Company by suppliers for goods and services in the ordinary course of business. All amounts have short-term repayment terms and vary by supplier. |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 3 Months Ended |
Mar. 31, 2023 | |
CONCENTRATION OF RISKS | |
CONCENTRATION OF RISKS | NOTE 9 - CONCENTRATION OF RISKS a) Major customers During the period, the Company did not have any material recognizable major customers accounted for 10% or more of the Company’s revenue for the financial period ended March 31, 2023 and 2022. b) Major suppliers For month ended March 31, 2023 and 2022, the suppliers who accounted for 10% or more of the Company’s cost of sales and their balances at year ended are presented as follows: 2023 2022 2023 2022 2023 2022 Purchase Percentage of purchases Accounts payable trade Vendor A $ 410,208 $ 504,906 20.43 % 18.89 % $ 408,334 $ 502,559 Vendor B $ 314,739 $ 333,751 15.67 % 12.49 % $ 313,300 $ 332,200 Vendor C $ 213,965 $ 449,494 10.65 % 16.82 % $ 199,312 $ 178,749 $ 938,912 $ 1,288,151 46.75 % 48.20 % $ 920,946 $ 1,013,508 |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
STOCKHOLDERS EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 10 - STOCK HOLDERS’ EQUITY As at March 31, 2023 and 2022, the Company issued and outstanding common stock is 173,718,152 and 171,218,152 shares respectively. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
SEGMENTED INFORMATION | |
SEGMENTED INFORMATION | NOTE 11 - SEGMENTED INFORMATION At March 31, 2023, the Company (“BGLC”) operates in the biochemical industry segment through its two Malaysian subsidiaries, BioNexus Malaysia and Chemrex. BioNexus Gene Lab Corp. (a Wyoming company) 100% 100% Bionexus Gene Lab Sdn Bhd (a Malaysia company) Chemrex Corporation Sdn Bhd (a Malaysia Company) For the quarter ended March 31, 2023, segmented (unaudited) revenue and net profit/(loss) (Currency expressed in United States Dollars (“US$”) are as follows: BioNexus Malaysia Chemrex BGLC Total Three months ended March 31, 2023 REVENUE $ 7,436 $ 2,369,769 $ - $ 2,377,205 COST OF REVENUE (5,347 ) (2,002,961 ) - (2,008,308 ) GROSS /PROFIT 2,089 366,808 - 368,897 OTHER INCOME 1,126 116,218 - 117,344 OPERATING EXPENSES General and administrative (46,255 ) (383,177 ) (107,440 ) (536,872 ) (LOSS)/PROFIT FROM OPERATIONS (43,040 ) 99,849 (107,440 ) (50,631 ) FINANCE COSTS (666 ) (1,779 ) - (2,445 ) (LOSS)/PROFIT BEFORE TAX (43,706 ) 98,070 (107,440 ) (53,076 ) Tax expense - (15,990 ) - (15,990 ) NET (LOSS)/PROFIT $ (43,706 ) $ 82,080 $ (107,440 ) $ (69,066 ) BioNexus Malaysia Chemrex BGLC Total Three months ended March 31, 2022 REVENUE $ 24,269 $ 3,004,676 $ - $ 3,028,945 COST OF REVENUE (8,038 ) (2,664,574 ) - (2,672,612 ) GROSS PROFIT 16,231 340,102 - 356,333 OTHER INCOME 2,076 44,306 12 46,394 OPERATING EXPENSES General and administrative (44,042 ) (297,769 ) (26,225 ) (368,036 ) (LOSS)/PROFIT FROM OPERATIONS (25,735 ) 86,639 (26,213 ) 34,691 FINANCE COSTS (799 ) (2,527 ) - (3,326 ) PROFIT/(LOSS) BEFORE TAX (52,269 ) 170,751 (52,426 ) 31,365 Tax expense - (14,299 ) - (14,299 ) NET PROFIT/(LOSS) $ (52,269 ) $ 502,730 $ (52,426 ) $ 17,066 As of March 31, 2023 and December 31, 2022 Total Assets Total Liabilities 2023 2022 2023 2022 BGLC & Bionexus $ 509,574 $ 677,477 $ 93,034 $ 108,390 Chemrex 7,677,067 8,062,685 1,536,699 1,966,759 TOTAL 8,186,641 8,740,162 1,629,733 2,075,149 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after March 31, 2023 up through May 7, 2023 of these consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Basis of consolidation | The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Use of estimates | In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of Three months or less as of the purchase date of such investments. |
Trade receivables | Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for impairment on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to adjust in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Statement of Operations and Comprehensive Income. |
Leases | Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. |
Property, plant and equipment | Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis to write off the cost over the following expected useful lives of the assets concerned. The principal annual rates used are as follows: Categories Principal Annual Rates Air conditioner 20 % Buildings 2 % Computer and software 33 % Equipment 20 % Furniture and fittings 10% to 20 % Lab Equipment 10 % Motor vehicle 10% to 20 % Office equipment 20 % Renovation 10% to 20 % Signboard 10 % Leasehold lands are depreciated over the period of lease term. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place. Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use. |
Impairment of long-lived assets | Long-lived assets primarily include goodwill, intangible assets and property, plant and equipment. In accordance with the provision of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, the Company generally conducts its annual impairment evaluation to its long-lived assets, usually in the fourth quarter of each fiscal year, or more frequently if indicators of impairment exist, such as a significant sustained change in the business climate. The recoverability of long-lived assets is measured at the lowest level group. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There has been no impairment charge for the years presented. |
Revenue recognition | Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company records revenue at point in time which is recognized upon goods delivered or services rendered. |
Shipping and handling fees | Shipping and handling fees, if billed to customers, are included in revenue. Shipping and handling fees associated with inbound and outbound freight are expensed as incurred and included in selling and distribution expenses. |
Comprehensive income | ASC Topic 220, “ Comprehensive Income |
Income taxes | Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclosed in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in Malaysia and is subject to tax in their own jurisdictions. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. |
Net earnings or loss per share | The Company calculates net earnings or loss per share in accordance with ASC Topic 260 “Earnings per share” |
Foreign currencies translation | Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the subsidiaries maintain its books and record in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the subsidiaries operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “ Translation of Financial Statement” 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, December 31, 2023 2022 Period ended March 31, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate 4.4170 4.3900 January 1, 2023 to March 31, 2023 January 1, 2022 to March 31, 2022 3 months average US$1: MYR exchange rate 4.3968 4.1938 |
Related parties | Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
Fair value of financial instruments | The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments. The Company also follows the guidance of the ASC Topic 820-10, “ Fair Value Measurements and Disclosures · Level 1 · Level 2 · Level 3 As of March 31, 2023, and December 31, 2022, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis. |
Recent accounting pronouncements | The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. In May 2019, the FASB issued ASU 2019-05, which is an update to ASU Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. The amendments in this Update address those stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. In November 2019, the FASB issued ASU No. 2019-10, which to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses, leases, and hedging standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022. ASU 2019-05 is effective for the Company for annual and interim reporting periods beginning January 1, 2023 as the Company is qualified as a smaller reporting company. The Company is currently evaluating the impact ASU 2019-05 may have on its consolidated financial statements. FASB issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. On June 10, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915) Elimination of Certain Financial Reporting Requirements, including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, which eliminates the concept of a development stage entity (DSE) entirely from current accounting guidance. The Company has elected adoption of this standard, which eliminates the designation of DSEs and the requirement to disclose results of operations and cash flows since inception. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Principal Annual Rates | Categories Principal Annual Rates Air conditioner 20 % Buildings 2 % Computer and software 33 % Equipment 20 % Furniture and fittings 10% to 20 % Lab Equipment 10 % Motor vehicle 10% to 20 % Office equipment 20 % Renovation 10% to 20 % Signboard 10 % |
Schedule of Exchange Rates | March 31, December 31, 2023 2022 Period ended March 31, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate 4.4170 4.3900 January 1, 2023 to March 31, 2023 January 1, 2022 to March 31, 2022 3 months average US$1: MYR exchange rate 4.3968 4.1938 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
INCOME TAXES | |
Schedule of Deferred Tax Assets and Liabilities | As of March 31, December 31, 2023 2022 Tax Recoverable Local $ - $ - Foreign, representing Malaysia (27,823 ) (31,551 ) Tax Recoverable (27,823 ) (31,551 ) Income tax liabilities: Local $ - $ - Foreign, representing Malaysia - - Income tax payables - - Deferred tax liabilities: Local $ - $ - Foreign, representing Malaysia 30,678 30,866 Deferred tax liabilities 30,678 30,866 Total 2,855 (685 ) |
OPERATING LEASE RIGHT OF USE _2
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | |
Schedule of operating lease right of use assets | Operating lease right of use assets as follows: As of March 31, December 31, 2023 2022 Balance as of beginning of the year $ 55,730 $ 41,090 Add: Addition of lease liabilities - 32,281 Less: Amortization (3,954 ) (15,534 ) Foreign translation differences (341 ) (2,106 ) Balance $ 51,436 $ 55,730 |
Schedule of the operating lease liability | Operating lease liabilities as follows: March 31, December 31, 2023 2022 Balance as of beginning of the year $ 56,775 $ 42,909 Add: Addition of lease liabilities - 30,770 Less: gross repayment (4,875 ) (19,618 ) Add: imputed interest 855 4,913 Foreign translation differences (346 ) (2,199 ) Balance as of end of the year 52,409 56,775 Less: lease liability current portion (16,733 ) (16,569 ) Lease liability non-current portion $ 35,676 $ 40,206 |
Schedule of Amortization of Right of Use | Other information: As of March 31, 2023 December 31, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ (4,366 ) $ (126,686 ) Right of use assets obtained in exchange for operating lease liabilities 51,436 55,730 Remaining lease term for operating lease (years) 3.75 4 Weighted average discount rate for operating lease $ 6.40 % $ 6.40 % |
PROPERTY PLANT AND EQUIPMENT (T
PROPERTY PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
PROPERTY PLANT AND EQUIPMENT | |
Schedule of Plant and Equipment | As of March 31, December 31, 2023 2022 Air conditioner $ 1,124 $ 1,124 Computer and software 2,516 2,516 Equipment 60,525 60,525 Furniture and fittings 87,122 87,122 Lab equipment 320,102 320,102 Land and buildings 1,506,969 1,506,969 Motor vehicle 137,914 137,914 Office equipment 38,213 38,213 Renovation 107,414 107,414 Signboard 806 704 2,262,705 2,262,603 (Less): Accumulated depreciation (611,214 ) (590,317 ) Add: Foreign translation differences (169,724 ) (133,982 ) Property, plant and equipment, net $ 1,481,767 $ 1,511,708 |
OTHER INVESTMENTS (Tables)
OTHER INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
OTHER INVESTMENTS | |
Schedule of Other Investments | As of March 31, December 31, 2023 2022 As of beginning of the year $ 1,150,898 $ 749,027 Addition during the year 13,646 511,706 Disposal during the year - (1,776 ) Fair value loss 37,399 (70,628 ) Foreign exchange translation (7,268 ) (37,431 ) As of end of the year $ 1,194,675 $ 1,150,898 As of March 31, December 31, 2023 2022 Investment in quoted shares: Malaysia 689,531 659,970 Singapore 94,757 101,426 Hong Kong 410,387 389,502 $ 1,194,675 $ 1,150,898 |
CONCENTRATION OF RISKS (Tables)
CONCENTRATION OF RISKS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
CONCENTRATION OF RISKS | |
Schedule of Major suppliers Cost Of Sales | 2023 2022 2023 2022 2023 2022 Purchase Percentage of purchases Accounts payable trade Vendor A $ 410,208 $ 504,906 20.43 % 18.89 % $ 408,334 $ 502,559 Vendor B $ 314,739 $ 333,751 15.67 % 12.49 % $ 313,300 $ 332,200 Vendor C $ 213,965 $ 449,494 10.65 % 16.82 % $ 199,312 $ 178,749 $ 938,912 $ 1,288,151 46.75 % 48.20 % $ 920,946 $ 1,013,508 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SEGMENTED INFORMATION | |
Schedule of Segmented Revenue and Net Profit/(Loss) | BioNexus Malaysia Chemrex BGLC Total Three months ended March 31, 2023 REVENUE $ 7,436 $ 2,369,769 $ - $ 2,377,205 COST OF REVENUE (5,347 ) (2,002,961 ) - (2,008,308 ) GROSS /PROFIT 2,089 366,808 - 368,897 OTHER INCOME 1,126 116,218 - 117,344 OPERATING EXPENSES General and administrative (46,255 ) (383,177 ) (107,440 ) (536,872 ) (LOSS)/PROFIT FROM OPERATIONS (43,040 ) 99,849 (107,440 ) (50,631 ) FINANCE COSTS (666 ) (1,779 ) - (2,445 ) (LOSS)/PROFIT BEFORE TAX (43,706 ) 98,070 (107,440 ) (53,076 ) Tax expense - (15,990 ) - (15,990 ) NET (LOSS)/PROFIT $ (43,706 ) $ 82,080 $ (107,440 ) $ (69,066 ) BioNexus Malaysia Chemrex BGLC Total Three months ended March 31, 2022 REVENUE $ 24,269 $ 3,004,676 $ - $ 3,028,945 COST OF REVENUE (8,038 ) (2,664,574 ) - (2,672,612 ) GROSS PROFIT 16,231 340,102 - 356,333 OTHER INCOME 2,076 44,306 12 46,394 OPERATING EXPENSES General and administrative (44,042 ) (297,769 ) (26,225 ) (368,036 ) (LOSS)/PROFIT FROM OPERATIONS (25,735 ) 86,639 (26,213 ) 34,691 FINANCE COSTS (799 ) (2,527 ) - (3,326 ) PROFIT/(LOSS) BEFORE TAX (52,269 ) 170,751 (52,426 ) 31,365 Tax expense - (14,299 ) - (14,299 ) NET PROFIT/(LOSS) $ (52,269 ) $ 502,730 $ (52,426 ) $ 17,066 As of March 31, 2023 and December 31, 2022 Total Assets Total Liabilities 2023 2022 2023 2022 BGLC & Bionexus $ 509,574 $ 677,477 $ 93,034 $ 108,390 Chemrex 7,677,067 8,062,685 1,536,699 1,966,759 TOTAL 8,186,641 8,740,162 1,629,733 2,075,149 |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) | 3 Months Ended |
Mar. 31, 2023 shares | |
BGS Lab Sdn. Bhd [Member] | |
Business acquisition, business operation description | The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. We also have a blood collection center located at 1st floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia. |
Business Acquisition, Effective Date of Acquisition | Aug. 23, 2017 |
Chemrex Corporation Sdn. Bhd. [Member] | |
Business aquisition, shares converted | 68,487,261 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Mar. 31, 2023 |
Equipment [Member] | |
Principal Annual Rates | 20% |
Air Conditioner [Member] | |
Principal Annual Rates | 20% |
Buildings [Member] | |
Principal Annual Rates | 2% |
Computer and Software [Member] | |
Principal Annual Rates | 33% |
Furniture and Fittings [Member] | Maximum [Member] | |
Principal Annual Rates | 20% |
Furniture and Fittings [Member] | Minimum [Member] | |
Principal Annual Rates | 10% |
Lab Equipment [Member] | |
Principal Annual Rates | 10% |
Motor Vehicle [Member] | Maximum [Member] | |
Principal Annual Rates | 20% |
Motor Vehicle [Member] | Minimum [Member] | |
Principal Annual Rates | 10% |
Office Equipment [Member] | |
Principal Annual Rates | 20% |
Renovation [Member] | Maximum [Member] | |
Principal Annual Rates | 20% |
Renovation [Member] | Minimum [Member] | |
Principal Annual Rates | 10% |
Signboard [Member] | |
Principal Annual Rates | 10% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Period ended March 31, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate | 4.4170 | 4.3900 | |
3 months average US$1: MYR exchange rate | 4.3968 | 4.1938 |
TRADE RECEIVABLES (Details Narr
TRADE RECEIVABLES (Details Narrative) | 3 Months Ended |
Mar. 31, 2023 | |
TRADE RECEIVABLES | |
Non-interest bearing | The normal trade credit term is generally on 30 days to 90 days term. |
Interest rate | 6% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Tax Recoverable | $ (27,823) | $ (31,551) |
Income tax liabilities | 0 | 0 |
Deferred tax liabilities | 30,678 | 30,866 |
Total | 2,855 | (685) |
Malaysia [Member] | ||
Tax Recoverable | (27,823) | (31,551) |
Income tax liabilities | 0 | 0 |
Deferred tax liabilities | 30,678 | 30,866 |
Local [Member] | ||
Tax Recoverable | 0 | 0 |
Income tax liabilities | 0 | 0 |
Deferred tax liabilities | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - Malaysia [Member] | 3 Months Ended |
Mar. 31, 2023 | |
Statutory income tax rate | 24% |
Statutory income tax rate, description | Under the amendment of Income Tax Act 1967 by the Finance Act 2020 and with effect from year of assessment 2020, companies with paid-up capital of RM2.5 million or less, and with annual business income of not more than RM50 million are subject to Small and Medium Enterprise Corporate Tax at 17% on chargeable income up to RM600,000 (2021: RM600,000) except for companies with investment holding nature or companies does not have gross income from business sources are subject to corporate tax at 24% on chargeable income. |
OPERATING LEASE RIGHT OF USE _3
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | ||
Beginning Balance | $ 55,730 | $ 41,090 |
Add;Addition of lease liabilities | 0 | 32,281 |
Less: Amortization | (3,954) | (15,534) |
Foreign translation differences | (341) | (2,106) |
Ending Balance | $ 51,436 | $ 55,730 |
OPERATING LEASE RIGHT OF USE _4
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Foreign translation differences | $ (341) | $ (2,106) |
Lease liabilities non-current portion | 35,676 | 40,206 |
Operating lease liability [Member] | ||
Beginning Balance | 56,775 | 42,909 |
Add: Addition of lease liabilities | 0 | 30,770 |
Less: gross repayment | (4,875) | (19,618) |
Add: imputed interest | 855 | 4,913 |
Foreign translation differences | (346) | (2,199) |
Ending Balance | 52,409 | 56,775 |
Less: lease liabilities current portion | (16,733) | (16,569) |
Lease liabilities non-current portion | $ 35,676 | $ 40,206 |
OPERATING LEASE RIGHT OF USE _5
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 3) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating lease | $ (4,366) | $ (126,686) |
Right of use assets obtained in exchange for operating lease liabilities | $ 51,436 | $ 55,730 |
Remaining lease term for operating lease (years) | 3 years 9 months | 4 years |
Weighted average discount rate for operating lease | 6.40% | 6.40% |
OPERATING LEASE RIGHT OF USE _6
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Amortization of right of use asset | $ 3,972 | $ 4,341 | |
Lease expenses | $ 855 | $ 4,913 | |
Malayan Banking [Member] | |||
Rental payment discount rate | 6.40% |
PROPERTY PLANT AND EQUIPMENT (D
PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Total Plant and equipment | $ 2,262,705 | $ 2,262,603 |
Less: Accumulated amortization | (611,214) | (590,317) |
Add: Foreign translation differences | (169,724) | (133,982) |
Property, plant and equipment, net | 1,481,767 | 1,511,708 |
Equipment [Member] | ||
Total Plant and equipment | 60,525 | 60,525 |
Air Conditioner [Member] | ||
Total Plant and equipment | 1,124 | 1,124 |
Computer and Software [Member] | ||
Total Plant and equipment | 2,516 | 2,516 |
Lab Equipment [Member] | ||
Total Plant and equipment | 320,102 | 320,102 |
Office Equipment [Member] | ||
Total Plant and equipment | 38,213 | 38,213 |
Signboard [Member] | ||
Total Plant and equipment | 806 | 704 |
Furniture and fittings [Member] | ||
Total Plant and equipment | 87,122 | 87,122 |
Land and buildings [Member] | ||
Total Plant and equipment | 1,506,969 | 1,506,969 |
Motor Vehicle [Member] | ||
Total Plant and equipment | 137,914 | 137,914 |
Renovation [Member] | ||
Total Plant and equipment | $ 107,414 | $ 107,414 |
PROPERTY PLANT AND EQUIPMENT _2
PROPERTY PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
PROPERTY PLANT AND EQUIPMENT | ||
Depreciation expense | $ 20,897 | $ 22,307 |
OTHER INVESTMENTS (Details)
OTHER INVESTMENTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
OTHER INVESTMENTS | ||
As of beginning of the year | $ 1,150,898 | $ 749,027 |
Addition during the year | 13,646 | 511,706 |
Disposal during the year | 0 | (1,776) |
Fair value loss | 37,399 | (70,628) |
Foreign exchange translation | (7,268) | (37,431) |
As of end of the year | $ 1,194,675 | $ 1,150,898 |
OTHER INVESTMENTS (Details 1)
OTHER INVESTMENTS (Details 1) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Other investment | $ 1,194,675 | $ 1,150,898 |
Malaysia [Member] | ||
Other investment | 689,531 | 659,970 |
Singapore [Member] | ||
Other investment | 94,757 | 101,426 |
Hong Kong [Member] | ||
Other investment | $ 410,387 | $ 389,502 |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Concentration of risk purchase | $ 938,912 | $ 1,288,151 |
Percentage of purchases | 46.75% | 48.20% |
Accounts payable trade | $ 920,946 | $ 1,013,508 |
Vendor A [Member] | ||
Concentration of risk purchase | $ 410,208 | $ 504,906 |
Percentage of purchases | 20.43% | 18.89% |
Accounts payable trade | $ 408,334 | $ 502,559 |
Vendor B [Member] | ||
Concentration of risk purchase | $ 314,739 | $ 333,751 |
Percentage of purchases | 15.67% | 12.49% |
Accounts payable trade | $ 313,300 | $ 332,200 |
Vendor C [Member] | ||
Concentration of risk purchase | $ 213,965 | $ 449,494 |
Percentage of purchases | 10.65% | 16.82% |
Accounts payable trade | $ 199,312 | $ 178,749 |
CONCENTRATION OF RISKS (Detai_2
CONCENTRATION OF RISKS (Details Narrative) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Concentration of risk of credit risk | 46.75% | 48.20% |
Major Customer [Member] | ||
Concentration of risk of credit risk | 10% | 10% |
Major Suppliers [Member] | ||
Concentration of risk of credit risk | 10% | 10% |
STOCK HOLDERS EQUITY (Details N
STOCK HOLDERS EQUITY (Details Narrative) - shares | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
STOCKHOLDERS EQUITY | |||
Common stock, shares issued | 173,718,152 | 171,218,152 | |
Common stock, shares outstanding | 173,718,152 | 173,718,152 | 171,218,152 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUE | $ 2,377,205 | $ 3,028,945 |
COST OF REVENUE | (2,008,308) | (2,672,612) |
GROSS PROFIT | 368,897 | 356,333 |
OTHER INCOME | 117,344 | 46,394 |
General and administrative | (536,872) | (368,036) |
(LOSS)/PROFIT FROM OPERATIONS | (50,631) | 34,691 |
FINANCE COSTS | (2,445) | (3,326) |
(LOSS)/PROFIT BEFORE TAX | (53,076) | 31,365 |
Tax expense | (15,990) | (14,299) |
Net (loss)/profit | (69,066) | 17,066 |
FINANCE COSTS | 2,445 | 3,326 |
BioNexus Malaysia [Member] | ||
REVENUE | 7,436 | 24,269 |
COST OF REVENUE | (5,347) | (8,038) |
GROSS PROFIT | 2,089 | 16,231 |
OTHER INCOME | 1,126 | 2,076 |
General and administrative | (46,255) | (44,042) |
(LOSS)/PROFIT FROM OPERATIONS | (43,040) | (25,735) |
FINANCE COSTS | (666) | (799) |
(LOSS)/PROFIT BEFORE TAX | (43,706) | (52,269) |
Tax expense | 0 | 0 |
Net (loss)/profit | (43,706) | (52,269) |
FINANCE COSTS | 666 | 799 |
Chemrex [Member] | ||
REVENUE | 2,369,769 | 3,004,676 |
COST OF REVENUE | (2,002,961) | (2,664,574) |
GROSS PROFIT | 366,808 | 340,102 |
OTHER INCOME | 116,218 | 44,306 |
General and administrative | (383,177) | (297,769) |
(LOSS)/PROFIT FROM OPERATIONS | 99,849 | 86,639 |
FINANCE COSTS | (1,779) | (2,527) |
(LOSS)/PROFIT BEFORE TAX | 98,070 | 170,751 |
Tax expense | (15,990) | (14,299) |
Net (loss)/profit | 82,080 | 502,730 |
FINANCE COSTS | 1,779 | 2,527 |
BGLC [Member] | ||
REVENUE | 0 | 0 |
COST OF REVENUE | 0 | 0 |
GROSS PROFIT | 0 | 0 |
OTHER INCOME | 0 | 12 |
General and administrative | (107,440) | (26,225) |
(LOSS)/PROFIT FROM OPERATIONS | (107,440) | (26,213) |
FINANCE COSTS | 0 | 0 |
(LOSS)/PROFIT BEFORE TAX | (107,440) | (52,426) |
Tax expense | 0 | 0 |
Net (loss)/profit | (107,440) | (52,426) |
FINANCE COSTS | $ 0 | $ 0 |
SEGMENTED INFORMATION (Details
SEGMENTED INFORMATION (Details 1) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Total assets | $ 8,186,641 | $ 8,740,162 |
Total Liabilities | 1,629,733 | 2,075,149 |
Chemrex [Member] | ||
Total assets | 7,677,067 | 8,062,685 |
Total Liabilities | 1,536,699 | 1,966,759 |
BGLC & Bionexus [Member] | ||
Total assets | 509,574 | 677,477 |
Total Liabilities | $ 93,034 | $ 108,390 |