BioNexus Gene Lab Corp
For the period ended Sep 30, 2024. Filed Nov 15, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 15, 2024
BGLC$0.83-3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001477932-24-004792
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-15.
0001477932-24-007332
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 78 previous paragraphs and 80 current paragraphs.
19 unchanged; 27 reworded; 34 added; 32 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
(b) Notification of delisting and stay of suspension
Current report
On November 5, 2024, BioNexus Gene Lab Corp (the "Company") received a notification from the Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company’s common stock will be delisted from the Nasdaq Capital Market due to its failure to comply with Nasdaq Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum bid price of $1 per share. The Company had been provided two consecutive 180-day grace periods, ending on November 4, 2024, to regain compliance but was unable to meet the requirement within the designated period.
Current report
In response, on November 8, 2024, the Company submitted a formal request for a hearing before a Nasdaq Hearings Panel to appeal the delisting determination. The Nasdaq Hearings Department has acknowledged receipt of the Company’s hearing request, which stays the suspension of trading of the Company’s common stock pending a decision by the Panel. The Company intends to present a compliance plan at the hearing, including potential corrective actions such as a reverse stock split, among other strategic initiatives, to regain compliance with Nasdaq’s listing standards.
Current report
(c) Appointment of director, committee appointments, and appointment of officers
Current report
On November 5, 2024, the Board of Directors of the Company appointed Ms. Jook Yuen Low as an independent director to the Board, effective immediately. Ms. Low has also been assigned to serve as a member of the Audit Committee and the Nomination & Corporate Governance Committee, bringing her expertise in corporate governance, legal compliance, and audit oversight. Ms. Low will serve in her capacity until the next annual meeting of shareholders.
Current report
Ms. Low (Age 46) holds a Bachelor of Laws (LL.B) and a Master of Business in Public Relations from the Queensland University of Technology, Australia. She was called to the Bar as an Advocate & Solicitor of the High Court of Malaya in 2004. Currently, Ms. Low is a partner at the law firm Azura Mokhtar & Low. Her legal career spans over 20 years, during which she has gained substantial experience in conveyancing, corporate law, and wealth management consulting. Her expertise includes advising on property, real estate, banking transactions, and corporate agreements such as shareholders’ agreements, joint ventures, and power of attorney.
Current report
There is no arrangement or understanding between the new director and any other person pursuant to which the new director was selected to be a director of the Company.
Current report
Ms. Low will receive the standard independent director compensation set by the Compensation Committee of the Company, which is $1,000 USD per month.
Current report
Except as stated above, there is no material plan, contract or arrangement (whether or not written) to which the new director is a party or in which each party participates that is entered into or a material amendment in connection with the triggering event or any grant or award to any such covered person or modification thereto, under any such plan, contract or arrangement in connection with any such event.
Current report
Additionally, the Board has re-appointed Mr. Su-Leng Tan Lee as Secretary of the Company and has appointed him as President, effective immediately. No change has been made to his compensation package as a result of his appointments.
Current report
(d) Internal Controls Enhancement
Current report
During and subsequent to the reporting period ending September 30, 2024, as a result of recent transactions occurring at its Chemrex subsidiary (See Note 14 to Unaudited financial statements included in this 10-Q filing), the Company focused on enhancing its internal control environment and improving governance procedures within its Chemrex subsidiary. Following the internal review of these recent transactions, management has implemented additional protocols to strengthen compliance with corporate policies and regulatory requirements, particularly concerning related-party transactions and transaction authorization at the subsidiary level.
Current report
The Company also acknowledges a recent communication from our independent auditors JP Centurion & Partners, in which the audit firm expressed concerns regarding certain aspects of Chemrex’s financial reporting and internal control structure. The Company is addressing these matters through comprehensive oversight, led by the audit committee, to ensure transparency, accuracy, and compliance in all reported information. These efforts aim to reinforce the integrity of our financial reporting and provide shareholders with reliable information on the Company’s operational and financial performance.
Current report
Chemrex contributed $2,627,813 (99.9%) of the total revenue for the current quarter ended September 30, 2024, as compared to $2,537,150 (99.4%) of the total revenue for the quarter ended September 30, 2023. Chemrex’s revenues slight increase of 3.6% from same quarter last year was due to an increase in purchases from existing customers.
Current report
MRNA Scientific contributed $2,563 (0.1%) of the total revenue for the quarter ended September 30, 2024, compared to $16,536 (0.6%) of the total revenue for the quarter ended September 30, 2023. Revenues decreased by $13,973 from the same quarter last year, reflecting an 84.5% decline due to fewer client referrals from diagnostics centers.
Current report
*Gross Profit.*For the quarterly period ended September 30, 2024, we had total gross profit of $326,536 as compared to gross profit of $354,332 for the quarterly period ended September 30, 2023. The decrease of 7.8% from the prior period is due to the reasons discussed above.
Current report
Chemrex contributed $326,091 (99.9%) of the total gross profit for the current quarter ended September 30, 2024, as compared to $345,097 (97.4%) of the total gross profit for the quarter ended September 30, 2023. Chemrex’s gross profit decreased by $19,006 reflecting a decline of 5.5% from the prior quarter due to general business fluctuations.
Current report
MRNA Scientific contributed $445 (0.1%) of the total gross profit of $326,536 for the current quarter ended September 30, 2024 as compared to gross profit of $9,235 (2.6%) of the total gross profit of $354,332 from the quarter ended September 30, 2023. The decrease of $8,790 from the prior period is due to decreased revenues for the current period.
Current report
Other Income. For the quarterly period ended September 30, 2024, we had $465,527 in other income, as compared to of $199,284 for the quarterly period ended September 30, 2023, an increase of approximately 133.6%.
Current report
MRNA Scientific contributed $22,772 (4.9%) of other income for the current quarter ended September 30, 2024, as compared to $1,757 (0.9%) of the other income for the quarter ended September 30, 2023. The increase of $21,015, approximately 1,196%, is due to increases in fixed deposits resulting in higher interest revenue, along with higher rental income and gain on unrealised forex transactions.
Current report
*Operating Expenses.*For the quarter ended September 30, 2024, we had total operating expenses of $2,129,685 compared to total operating expenses of $3,082,128 for the quarter ended September 30, 2023. The decrease of approximately 30.9% primarily stemmed from lower professional expenses at the parent level which were related to our Nasdaq listing in 2023, along with a reduction in share-based compensation and a lower provision for loss allowance from Chemrex.
Current report
Chemrex incurred $1,452,543 (68.2%) of the total operating expenses for the current quarter ended September 30, 2024, compared to $1,322,231 (42.9%) of the total operating expenses for the quarter ended September 30, 2023. The increase of approximately 9.9% was due to increases in directors’ remuneration and staff salaries, and a higher loss on the fair value of investments.
Current report
MRNA Scientific incurred $290,544 (13.6%) of the total operating expenses for the quarter ended September 30, 2024, compared to $71,870 (2.3%) of the total operating expenses for the quarter ended September 30, 2023. The increase of approximately 304.3% for the current quarter was due to increases in directors’ remuneration, staff salaries for marketing and business development, amortization of the right-of-use asset, office utilities, additional costs related to losses on realized exchange rates, unrealized exchange rates, and lease terminations.
Current report
BGLC, the holding company, incurred $386,598 (18.2%) of total operating expenses for the current quarter ended September 30, 2024, compared to $1,688,027 (54.8%) of total operating expenses for the quarter ended September 30, 2023. This represents a decrease of $1,301,429, or approximately 77.1%, in operating costs for the quarter ended September 30, 2024. The decrease was due to additional professional expenses related to the company's successful listing on Nasdaq, as well as costs incurred for advisory, legal, and underwriting services which occurred in the last quarter of 2023 which were not repeated in the same period of 2024. The reduction also includes discontinued expenses for medical advisers, investor relations services, and securities underwriting.
Current report
Chemrex contributed $6,975,567 (99.8%) of the total revenue for the nine month period ended September 30, 2024, as compared to $7,469,271 (99.6%) of the total revenue for the same period last year. Chemrex’s revenues had decreased by $493,704 from the same period last year, representing a decline of 6.61%. We had a decrease in revenue in the first two quarters attributable to increased competition and the lack of new projects in the market, resulting in fewer orders from existing customers, however, conditions gradually improved in the third quarter of 2024.
Current report
Gross Profit. For the nine months period ended September 30, 2024, we had total gross profit of $980,287 as compared to gross profit of $1,062,943 for the same period in 2023, a decrease of approximately 7.8% from the prior period.
Current report
Chemrex contributed $975,786 (99.5%) of the total gross profit for the current nine months period ended September 30, 2024, as compared to $1,049,324 (98.7%) of the total gross profit for the same period last year, a decrease of $73,538. The 7.01% decrease for current period was due to lower revenues, mainly at Chemrex, as stated above.
Current report
MRNA Scientific had a gross profit of $4,501 (0.5%) of the total gross profit of $980,287 for the current nine months period ended September 30, 2024, as compared to $13,619 (1.3%) of the total gross profit of $1,062,943 from the same period last year 2023. The gross profit decrease of 67% was due to a reduction in revenues for the current period as stated above.
Current report
Chemrex contributed $1,298,649 (92.9%) of other income for the current nine months period ended September 30, 2024, as compared to $507,870 (99.2%) of the other income for the same period last year, an increase of $790,779. The 155.71% increase was generated from dividends received, gain on equity investment, doubtful debts recovered, and provision losses allowance recovered.
Current report
MRNA Scientific had $98,830 (7.1%) for nine months period ended September 30, 2024, as compared to $3,922 (0.8%) for the same period in 2023. The 2,419.9% was due to increased interest income from US dollar deposits in Malaysian accounts and gains on unrealised foreign exchange and rental income.
Current report
Operating Expenses. For the nine-month period ended September 30, 2024, we had total operating expenses of $3,535,248 compared to total operating expenses of $4,426,077 for the same period in 2023, a decrease of $890,829. The 20.1% decrease was primarily due to BGLC, the holding company, which reduced professional expenses from advisors, attorneys, underwriting costs and share-based compensation.
Current report
Chemrex had incurred $2,149,306 (60.8%) of the total operating expenses for the current nine months period in 2024 as compared to $2,348,127(53.1%) of the total operating expenses for the same period last year 2023, a decrease of $198,821. The decrease of 8.47% is due to the reduction in the provision for losses on account receivables.
Current report
MRNA Scientific incurred $475,762 (13.5%) of the total operating expenses for the current nine-month period, compared to $170,590 (3.9%) of the total operating expenses for the same period last year, an increase of $305,172. The 178.9% increase in operating costs for the current nine-month period was due to the hiring of new staff for marketing and business development, an increase in directors’ remuneration, additional costs from the settlement of a supplier contract dispute, motor vehicle maintenance fees, and unrealized exchange rate losses of $208,674.
Current report
BGLC, the holding company, incurred $910,180 (25.7%) of total operating expenses for the current nine-month period ended September 30, 2024, compared to $1,907,360 (43.1%) of total operating expenses for the same period last year 2023, a decrease of $997,180. The 52.28% reduction for the current period was primarily due to reduced expenses of consultant fees for capital, corporate advisory services and compliance services and share-based compensation. The reduction also includes discontinued expenses for medical advisers, investor relations services, and underwriting costs.
Removed paragraphs (32)
Previous report
The results of operations of our subsidiary, MRNA Scientific-Malaysia, with respect to its RNA screening process have been adversely impacted by the onset of the Covid-19 pandemic followed by a number of prominent variants, including Alpha, Beta, Delta, and Omicron. Although new variants are an expected part of the evolution of viruses, new variant is more aggressive, highly transmissible, vaccine-resistant, able to cause more severe disease in Malaysia. We believe that most people were reluctant to visit hospitals and clinics in view of the post Covid-19 Omicron and its subvariants for fear of transmission from other patients or medical staff. Since our RNA screening is administered at a diagnostic center, our business has been adversely affected as a result.
Previous report
(b) Notification of granting of an additional 180 days to regain compliance with Rule 5550(a)(2) by Nasdaq Staff
Previous report
Results of Operations
Previous report
Three Months Ended June 30, 2024 Compared with the Three Months Ended June 30, 2023.
Previous report
The following table sets forth key selected financial data for the three months ended June 30, 2024 and 2023.
Previous report
Consolidated
Previous report
Segmented Information
Previous report
Chemrex contributed $1,969,068 (99.7%) of the total revenue for the current quarter ended June 30, 2024 as compared to $2,562,352 (99.8%) of the total revenue for the quarter ended June 30, 2023. Chemrex’s revenues had a decrease by $593,284 of 23.2% from prior quarter. The revenue decreased in second quarter of 2024 was due to lower selling price because of market competition.
Previous report
MRNA Scientific contributed $5,496 (0.3%) of the total revenue for the quarter ended June 30, 2024 as compared to revenue of $4,496 (0.2%) of the total revenue from the quarter ended June 30, 2023. Revenues had increased of 22.2% from the prior quarter due to referrals from diagnostics centers & clinics.
Previous report
***Gross Profit.For the quarterly period ended June 30, 2024, we had total gross profit of $288,720 as compared to gross profit of $339,714 for the quarterly ***period ended June 30, 2023, a decrease by approximately 15% from the prior period.
Previous report
Chemrex contributed $285,577 (98.9%) of the total gross profit for the current quarter ended June 30, 2024 as compared to $337,419 (99.3%) of the total gross profit for the quarter ended June 30, 2023. Chemrex’s gross profit decreased by $51,842 from the prior quarter, an approximately 15.4% decrease. The gross profit decrease for Chemrex in current quarter compared to the last quarter, was due to lower selling prices.
Previous report
MRNA Scientific contributed $3,143 (1.1%) of the total gross profit of $288,720 for the current quarter ended June 30, 2024 as compared to gross profit of $2,295 (0.7%) of the total gross profit from the quarter ended June 30, 2023. The increase by approximately 36.9% from the prior period due to its increased revenues for the same reason stated above.
Previous report
Other Income**.* For the quarterly period ended June 30, 2024, we had other income of $730,105, as compared to $195,164 for the quarterly period ended June 30, 2023, ***an increase of approximately 274.1%.
Previous report
MRNA Scientific contributed $37,364 (5.1%) of other income for the current quarter ended June 30, 2024 as compared to $1,039 (0.5%) of the other income for the quarter ended June 30, 2023. The increase by $36,325, an approximately 3496.2% was due to increased fund in the fixed deposits resulted increased of bank interest earning and gain on unrealise forex.
Previous report
***Operating Expenses.***For the quarter ended June 30, 2024, we had total operating expense of $759,657 as compared to total operating expenses of $807,077 for the quarter ended June 30, 2023, a decrease by approximately 5.9%. It was due to decrease in provision for losses allowance, provision for doubtful debt, director remuneration, loss of unrealised forex and commission.
Previous report
Chemrex had incurred $281,134 (37%) of the total operating expenses for the current quarter ended June 30, 2024 as compared to $642,719 (79.6%) of the total operating expenses for the quarter ended June 30, 2023, a decrease by 56.3% due to reduction in provision for losses allowance and doubtful debts, commission, loss on unrealised forex and decrease of directors’ remuneration.
Previous report
MRNA Scientific had incurred $104,363 (13.7%) of the total operating expenses for the current quarter ended June 30, 2024 as compared to $52,465 (6.5%) of the total operating expenses for the quarter ended June 30, 2023, an increase by 98.9%. The increase in operating costs of the current quarter was due to directors remuneration, staff salary for marketing & business development, increase of travelling cost, motor vehicle running cost and loss arising from settlement of supplier contract dispute.
Previous report
BGLC, the holding company had incurred $374,160 (49.3%) of total operating expenses for the current quarter ended June 30, 2024 as compared to $111,893 (13.9%) of the total operating expenses for the quarter ended June 30, 2023. The increase by approximately 234.4% in operating costs for the quarter ended June 30, 2024 was due to increase of directors fees and back charge of director fees.
Previous report
Six Months Ended June 30, 2024 Compared with the Six Months Ended June 30, 2023.
Previous report
The following table sets forth key selected financial data for the six months ended June 30, 2024 and 2023.
Previous report
Consolidated
Previous report
Segmented Information
Previous report
Chemrex contributed $4,347,754 (99.8%) of the total revenue for the current six months period as compared to $4,932,121 (99.8%) of the total revenue for the same period last year. Chemrex’s revenues had decreased by $584,367 from the prior period, approximately 11.85% decrease. The revenue decreased in 2024 was due lower selling price because of market competition.
Previous report
Gross Profit*.** For the six months period ended June 30, 2024, we had total gross profit of $653,751 as compared to gross profit of $708,611 for the same ***period in 2023, a decreased by approximately 7.7% from the prior period.
Previous report
Chemrex contributed $649,695 (99.4%) of the total gross profit for the current six months period as compared to $704,227 (99.38%) of the total gross profit for the same period last year. The gross profit decreased by $54,532, approximately 7.74% for the current period due to decreased revenues for the current period as according to reason stated above.
Previous report
MRNA Scientific** had a gross profit of $4,056 (0.6%) of the total gross profit of $653,751 for the current six months period as compared to $4,384 (0.6%) **of the total gross profit of $708,611 from the same period last year. The gross profit decreased by 7.5% due to its decreased revenues for the current period as according to reason stated above.
Previous report
Chemrex contributed $855,894 (91.8%) of other income for the current six months period as compared to $310,343 (99.3%) for the same period last year. Chemrex’s other income increased by $545,551, approximately 175.79% due to recovered of doubtful debts, provision losses allowances recovered and capital gain from share investment.
Previous report
MRNA Scientific** **had $76,058 (8.2%) for the six months period ended June 30, 2024 as compared to $2,165 (0.7%) for the same period in 2023, increased by $73,893, approximately 3413.1% due to bank interest earning from US dollar and gain on unrealise forex.
Previous report
Operating Expenses. For the six months period ended June 30, 2024, we had a total operating expense of $1,405,563 as compared to total operating*** ***expenses of $1,343,949 for the same period in 2023. The increase of $61,614, approximately 4.4% was due to increase of general and administrative expenses which include depreciation of fixed assets, employee compensation and benefits, marketing/travel expenses, Nasdaq annual fees and professional fees.
Previous report
Chemrex had incurred $696,763 (49.6%) of the total operating expenses for the current six months period as compared to $1,025,896 (76.3%) of the total operating expenses for the same period last year, decreased by $329,133, approximately 32.08% due to the deduction of commission, decrease of loss on unrealized/realized currency exchanges, provision for doubtful debt on account receivables and decrease in directors’ remuneration.
Previous report
MRNA Scientific had incurred $185,218 (13.2%) of the total operating expenses for the current six months period as compared to $98,720 (7.3%) of the total operating expenses for the same period last year. The increase by approximately 87.6% in operating costs for the six months period was due to the hire of new staff for marketing & business development, increase in director’s remuneration, increase in amortisation of ROU asset and loss arising from settlement of supplier contract dispute.
Previous report
BGLC, the holding company had incurred $523,582 (37.2%) of total operating expenses for the current six months period as compared to $219,333 (16.4%) of the total operating expenses for the same period last year. The increase of $304,249, approximately 138.72% in operating costs of the current period was due to increase of legal fees, audit fees, Nasdaq annual fee plus increase and back charge of directors’ fees.
Reworded paragraphs (27)
Previous wording
BGLC is an emerging molecular lab focused on the application of functional genomics to enable early detection of infectious diseases and cancers. On August 23, 2017, we acquired all of the outstanding capital stock of MRNA Scientific Malaysia, which was incorporated in Malaysia on April 7, 2015. MRNA Scientific Malaysia owns algorithm software, technology, and know-how related to the detection of common diseases through blood analysis which we use in our business. Our non-invasive blood screening tests analyze changes in ribonucleic acid (or RNA) to Coronavirus, Dengue, HIV, HPV and the risk potentiality of cancers diseases. This unique blood genomic biomarker approach is based on the scientific observation that circulating blood reflects, in a detectable way, what is occurring throughout the body currently.
Current wording
BGLC is an emerging technology company focused on the application of functional genomics to enable early detection of infectious diseases and cancers. On August 23, 2017, we acquired all of the outstanding capital stock of MRNA Scientific Malaysia, which was incorporated in Malaysia on April 7, 2015. MRNA Scientific Malaysia owns algorithm software, technology, and know-how related to the detection of common diseases through blood analysis which we use in our business. Our non-invasive blood screening tests analyze changes in ribonucleic acid (or RNA) to Coronavirus, Dengue, HIV, HPV and the risk potentiality of cancers diseases. This unique blood genomic biomarker approach is based on the scientific observation that circulating blood reflects, in a detectable way, what is occurring throughout the body currently.
Previous wording
The results of operations for Chemrex were adversely impacted during fiscal year 2023 and the slow recovery into 2024 as the businesses of Chemrex customers especially manufacturers continue to suffer from the lingering impact of Covid. Many customers across Malaysia saw their supply chains interrupted, demand for their products and services decline and experienced shortages in supplies and inputs.
Current wording
The results of operations for Chemrex were adversely impacted during fiscal year 2023 and the slow recovery into 2024 as the businesses of Chemrex customers especially manufacturers continue to suffer from the lingering impact of Covid and supply chain shocks to the global economy. Many customers across Malaysia saw their supply chains interrupted, demand for their products and services decline and experienced shortages in supplies and inputs.
Previous wording
On July 1, 2024, we entered into an advisory service agreement with Maxim Group LLC (“Maxim”) to provide merger and acquisition (M&A) services, general financial advisory services, and investment banking services to the Company. We agreed and issued 300,000 shares of our common stock to Maxim for such service. Pursuant to the agreement, Maxim agrees to return a proportionate number of the shares to the company if Maxim is in material breach of the agreement.
Current wording
On July 1, 2024, the Company entered into an advisory service agreement with Maxim Group LLC (“Maxim”) to provide merger and acquisition (M&A) services, general financial advisory services, and investment banking services to the Company. The Company agreed and issued 300,000 shares of our common stock to Maxim for such service. Pursuant to the agreement, Maxim agrees to return a proportionate number of the shares to the company if Maxim is in material breach of the agreement.
Previous wording
***Revenue.For the quarter ended June 30, 2024, we had total revenue of $1,974,564 as compared to total revenue of $2,566,848 for the quarter ended June ***30, 2023, a decreased by 23.1% from the prior quarter.
Current wording
Revenue. For the quarter ended September 30, 2024, we had total revenue of $2,630,376 as compared to total revenue of $2,553,686 for the quarter ended September 30, 2023, an increase of 3% from the prior quarter.
Previous wording
Cost of Revenue**.* For the quarter ended June 30, 2024, we incurred $1,685,844 in cost of revenues, as compared to $2,227,134 for the quarter ended June ***30, 2023, a decrease of 24.3% which was compatible to its decreased revenues for the current period.
Current wording
Cost of Revenue. For the quarter ended September 30, 2024, we incurred $2,303,840 in cost of revenues, as compared to $2,199,354 for the quarter ended September 30, 2023, a slight increase of 4.8% was due to higher sales and fluctuations in purchasing conditions.
Previous wording
Chemrex had incurred $1,683,491 (99.9%) of the total cost of revenue during the current quarter period ended June 30, 2024 as compared to the quarter ended June 30, 2023 wherein Chemrex had incurred $2,224,933 (99.9%) of the total cost of revenue. The decrease in Chemrex’s cost of revenues of 24.3% for the current period was due to its decreased revenues and reason as stated above.
Current wording
Chemrex had incurred $2,301,722 (99.9%) of the total cost of revenue during the current quarter period ended September 30, 2024, as compared to the quarter ended September 30, 2023, wherein Chemrex had incurred $2,192,053 (99.7%) of the total cost of revenue. The slight decrease in Chemrex’s cost of revenues for the current period was due to decreased revenues.
Previous wording
MRNA Scientific had incurred $2,353 (0.1%) of the total cost of revenues during the current quarter period ended June 30, 2024 as compared to $2,201 (0.1%) for the quarterly period ended June 30, 2023. Cost of revenue had increased 6.9% from the prior quarter due to its increased revenues and reason as stated above.
Current wording
MRNA Scientific had incurred $2,118 (0.1%) of the total cost of revenues during the current quarter period ended September 30, 2024, as compared to $7,301 (0.3%) for the quarterly period ended September 30, 2023. Cost of revenue decreased by $5,183 from prior quarter due to its decreased revenues as stated above.
Previous wording
Chemrex contributed $692,741 (94.9%) of other income for the current quarter ended June 30, 2024 as compared to $194,125 (99.5%) of the other income for the quarter ended June 30, 2023. Chemrex’s other income increased by 256.9% due to recovery of provision losses allowances, recovery of doubtful debts, capital gain on stock investment and bank interest earning.
Current wording
Chemrex contributed $442,755 (95.1%) to other income for the current quarter ended September 30, 2024, as compared to $197,527 (99.1%) of other income for the quarter ended September 30, 2023. Chemrex’s other income increased by 124.1% due to dividends received from other investments, increases in fixed deposits resulting in higher interest income, gains on equity investment, and the recovery of doubtful debts and loss allowances.
Previous wording
Profit/(Loss) from Operations**.* We had a profit from operations of $259,168 for the quarter ended June 30, 2024 as compared to a loss of $272,199 for the ***quarter ended June 30, 2023, an increase by approximately 195.2% from the prior period, for the reasons discussed above.
Current wording
Loss from Operations. We had a loss from operations of $1,337,622 for the quarter ended September 30, 2024, compared to a loss of $2,528,512 for the quarter ended September 30, 2023, reflecting a reduction of approximately 47.1% from the prior period.
Previous wording
Income tax expense**.* For the quarter ended June 30, 2024, we had tax expenses of $55,584 as compared to tax credit of $15,990 for the ***quarter ended June 30, 2023 for Chemrex. There was no tax provision for MRNA Scientific for the quarters ended June 30, 2024 and 2023.
Current wording
Income tax expense. For the quarter ended September 30, 2024, we had a tax expense of $1,555 as compared to tax expenses of $76,418 for the quarter ended September 30, 2023, for Chemrex. The lower tax expense was lower due to operating losses during the prior period. There was no tax provision for MRNA Scientific-Malaysia for the quarters ended September 30, 2024, and 2023.
Previous wording
Foreign currencytranslation***gain/(loss).We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities ***denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate would require us to recognize a transaction gain or loss on revaluation. For the three-month period ended June 30, 2024, we experienced a foreign currency gain of $2,463 as compared with a foreign currency loss of $333,891 for the three-month period ended June 30, 2023.
Current wording
*Foreign currency exchange gain/(loss).*We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate would require us to recognize a transaction gain or loss on revaluation. For the three-month period ended September 30, 2024, we experienced a foreign currency gain of $1,046,789 as compared with a foreign currency loss of $18,603 for the three-month period ended September 30, 2023.
Previous wording
Revenue*.** For the six months period ended June 30, 2024, we had total revenue of $4,356,415 as compared to total revenue of $4,944,053 for the same ***period in 2023, which had decreased by $587,638 from the prior period, approximately 11.9% decrease.
Current wording
Revenue. For the nine months period ended September 30, 2024, we had total revenue of $6,986,791 as compared to total revenue of $7,497,739 for the same period in 2023, a 6.8% decrease from the same period last year.
Previous wording
MRNA Scientific contributed $8,661 (0.2%) of the total revenue for the current six months period as compared to revenue of $$11,932 (0.2%) of the total revenue from the same period last year. MRNA Scientific’s revenue had decreased by $3,271 from the prior quarter, an approximately 27.4% decrease. The revenue decrease in 2024 was due to RNA machine breakdowns which occurred during the current period.
Current wording
MRNA Scientific contributed $11,224 (0.2%) of total revenue for the nine-month period ended September 30, 2024, compared to $28,468 (0.4%) for the same period last year. MRNA Scientific's revenue decreased by $17,244 from the nine months of 2023, a 60.6% decrease. The decrease in revenue for 2024 was due to RNA machine breakdowns that occurred during the current period for BGS tests along with fewer client referrals from diagnostics centers.
Previous wording
Cost of Revenue. For the six months period ended June 30, 2024, we incurred $3,702,664 in cost of revenues, as compared to $4,235,442 for the same*** ***period in 2023. The decrease of $532,778 or approximately 12.6% was due to the same reason stated above.
Current wording
Cost of Revenue. For the nine months period ended September 30, 2024, we incurred $6,006,504 in cost of revenues as compared to $6,434,796 for the same period in 2023, which represents a decrease of $428,292. The 6.7% decrease was due to reduction in costs related to lower revenues discussed above.
Previous wording
Chemrex had incurred $3,698,059 (99.9%) of the total cost of revenue during the current period as compared to the same period last year wherein Chemrex had incurred $4,227,894 (99.8%) of the total in cost of revenue. The decrease of $529,835, or approximately 12.53% was due to the same reason stated above.
Current wording
Chemrex had incurred $5,999,781 (99.9%) of the total cost of revenue during the current period ended September 30, 2024, as compared to $6,419,947 for the same period in last year wherein Chemrex had incurred (99.8%) of the total in cost of revenue, a decrease of $420,166. The 6.55% decrease was due to the reason stated above.
Previous wording
MRNA Scientific had incurred $4,605 (0.1%) of the total cost of revenues during the current period as compared to $7,548 (0.2%) for the same period in 2023, decreased by $2,943, approximately 39% from the prior period due to the same reason stated above.
Current wording
MRNA Scientific had incurred $6,723 (0.1%) of the total cost of revenues during the current period ended September 30, 2024 as compared to $14,849 (0.2%) for the same period last year. Cost of revenue decreased by $8,126 from the prior nine month period due a reduction of revenues during the current nine month period.
Previous wording
Other Income. For the six months period ended June 30, 2024, we had $931,952 other income as compared to $312,508 for the same period in 2023, increased by*** ***$619,444 or approximately 198.2%.
Current wording
Other Income. For the nine months period ended September 30, 2024, we had $1,397,479 as compared to $511,792 for the same period in 2023, increased by $885,687 approximately 173.1%.
Previous wording
Profit/(Loss) from Operations. We had a profit from operations of $180,140 for the six months period ended June 30, 2024 as compared to loss of $322,830 for*** ***the same period in 2023. The increase of $502,980, approximately 155.8% was due to the reasons discussed above.
Current wording
Loss from Operations. We had a loss from operations of $1,157,482 for nine months period ended September 30, 2024, as compared to loss of $2,851,342 for the same period in 2023, a decrease of $1,693,860. The 59.4% decrease was due to the reasons discussed above.
Previous wording
Income tax expense. For the six-months period ended June 30, 2024, we had income tax expenses of $75,652 provided for Chemrex and no tax provision for MRNA Scientific as compared to the same* *period in 2023 whereby we had no income tax provided for both Chemrex and MRNA Scientific.
Current wording
Income tax expense***.*** For the nine-months period ended September 30, 2024, we had income tax provided by Chemrex $77,207 and MRNA Scientific had no tax provision as compared to the same period in 2023 which had a tax estimated $76,418 from Chemrex and no tax provided from MRNA Scientific-Malaysia.
Previous wording
***Foreign currency translation loss.We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities ***denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate would require us to recognize a transaction gain or loss on revaluation. For the six-months period ended June 30, 2024, we experienced a foreign currency loss of $207,445 as compared with a foreign currency loss of $372,930 for the same period in 2023.
Current wording
Foreign currency exchange gain/(loss). We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate would require us to recognize a transaction gain or loss on revaluation. For the nine-months period ended September 30, 2024, we experienced a foreign currency gain of $839,344 as compared with a foreign currency loss of $391,533 for the same period in 2023.
Previous wording
As of June 30, 2024, we had working capital of $6,443,511 compared with working capital of $6,415,877 as of December 31, 2023. The increase in working capital as of June 30, 2024 from December 31, 2023 was due principally to profit incurred during the quarter ended June 30, 2024.
Current wording
As of September 30, 2024, we had working capital of $5,635,310 compared with working capital of $6,415,877 as of December 31, 2023. The decrease in working capital as of September 30, 2024 was due principally to investments and expansion of operations.
Previous wording
Our primary uses of cash had been for operations. The main sources of cash were generated from operational revenues, the private placement of our common stock, and the proceeds of our public offering. The following trends could result in a material decrease in our liquidity over the near to long term:
Current wording
Our primary uses of cash had been for operations and strategic investments. The main sources of cash were generated from operational revenues, the private placement of our common stock, and the proceeds of our public offering. The following trends could result in a material decrease in our liquidity over the near to long term:
Previous wording
The following is a summary of the Company’s cash flows (used in) / generated from operating, investing, and financing activities for the six months ended June 30, 2024 and 2023:
Current wording
The following is a summary of the Company’s cash flows (used in) / generated from operating, investing, and financing activities for the nine months ended September 30, 2024 and 2023
Previous wording
During the six months ended June 30, 2024, the Company incurred a net profit of $95,347 which, after adjusting for amortization, depreciation, dividend income, allowances for expected credit losses, recovery for expected credit losses, fair value gain on share investment, gain on disposal on share investment, loss arising from settlement of supplier contract dispute, a decrease inventories and operating lease liabilities, increase in trade and other receivables, advance payment from customer and a substantial reduction in trade payables, resulted in net cash of $704,982 being used in operating activities during the six months ended June 30, 2024.
Current wording
During the nine months ended September 30, 2024, the Company incurred a net loss of $1,250,023 which, after adjusting for amortization, depreciation, dividend income, allowances for expected credit losses of $122,843, recovery for expected credit losses of 842,401, fair value gain on share investment, gain on disposal on share investment, loss arising from settlement of supplier contract dispute of $29,140, share-based compensation of $141,000, an increase in inventories, a decrease in trade and other receivables, advance payment from customer and a substantial reduction in trade payables, resulted in net cash of $2,164,489 being used in operating activities during the nine months ended September 30, 2024.
Previous wording
By comparison, during the six months ended June 30, 2023, the Company had a net loss of $328,317 which, after adjusting for amortization, depreciation, dividend income, fair value gain on share investment, provision for losses on accounts receivable, an increase in inventories, a decrease in trade receivables and a substantial reduction in trade payables, operating lease liabilities, advance payment from customer, resulted in net cash of $140,341 being used in operating activities during the six months ended June 30, 2023.
Current wording
By comparison, during the nine months ended September 30, 2023, the Company incurred a net loss of $2,937,506 which, after adjusting for amortization, depreciation, dividend income, fair value gain on share investment, allowances for expected credit losses of $1,372,573, share-based compensation of $601,741, an increase in inventories, a decrease in trade receivables and a substantial reduction in trade payables, advance payment from customer, resulted in net cash of $1,039,686 being used in operating activities during the nine months ended September 30, 2023.
Previous wording
During the six months ended June 30, 2024, the Company had net cash of $107,160 generated from investment activities from acquisition of share investment of $264,768, purchase of plant & equipment of $23,778, proceeds from disposal of share investments of $297,678, refund from settlement of supplier contract dispute at $77,201 and receiving dividend income of $20,827. By comparison during the six months ended June 30, 2023, the Company had net cash of $8,114 used in investment activities from acquisition of share investment of $13,444, purchase of plant & equipment of $14,458 and receiving dividend income of $19,788.
Current wording
During the nine months ended September 30, 2024, the Company had net cash of $75,956 used in investment activities from the acquisition of quoted shares valued at $486,170, purchase of plant & equipment of $222,967, proceeds from disposal of share investments of $494,741, refund from settlement of supplier contract dispute at $78,787 and dividend income of $59,653. By comparison during the nine months ended September 30, 2023, the Company had net cash of $368,824 used in investment activities from acquisition of share investment of $296,109, purchase of plant & equipment of $148,461, proceeds from disposal of share investments of $26,854 and dividend income of $48,892
Previous wording
During the six months ended June 30, 2024, the Company had net cash of $197,799 generated from financing activities for advances from directors of $202,344 and used for interest of $4,545. By comparison during the six months ended June 30, 2023, we had net cash of $4,212 used in financing activities for interest used of $4,212.
Current wording
During the nine months ended September 30, 2024, the Company had net cash of $1,612 used in financing activities due to advances from directors of $5,362 and offset by interest expense of $6,974. By comparison during the nine months ended September 30, 2023, the Company had net cash of $5,743,206 generated from financing activities due to our initial public offering of 1,437,500 shares at a price of $4.00 per share for total proceeds of $5,750,000 and offset by interest expense of $6,794.