Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | BioNexus Gene Lab Coporation | |
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, 2020 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 102,730,891 | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and bank balances | $ 314,144 | $ 366,038 |
Fixed deposits placed with financial institutions | 469,752 | 493,038 |
Other receivables and deposits | 13,927 | 13,057 |
Tax recoverable | 3,040 | 2,858 |
Inventories | 7,211 | 7,580 |
Total current assets | 808,074 | 882,571 |
NON-CURRENT ASSETS | ||
Operating lease right of use asset, net | 19,596 | 23,542 |
Plant and equipment, net | 287,625 | 312,908 |
Other investment | 11,620 | 12,215 |
Total non-current assets | 318,841 | 348,665 |
TOTAL ASSETS | 1,126,915 | 1,231,236 |
CURRENT LIABILITIES | ||
Other payables and accrued liabilities | 16,592 | 19,437 |
Current portion of obligation under finance lease | 19,217 | 20,201 |
Tax payables | 11,546 | 11,936 |
Total current liabilities | 47,355 | 51,574 |
NON-CURRENT LIABILITIES | ||
Non-current portion of obligation under finance lease | 38,169 | 45,086 |
Non-current portion of operating lease liability | 8,657 | 12,212 |
Total non-current liabilities | 46,826 | 57,298 |
TOTAL LIABILITIES | 94,181 | 108,872 |
STOCKHOLDERS' EQUITY | ||
Common stock, no par value, authorized 300,000,000 shares and outstanding 102,730,891 shares and Preferred stock, no par value, 30,000,000 shares authorized and no shares outstanding; as of March 31, 2020 | 6,484,669 | 6,484,669 |
Additional paid in capital | (5,011,891) | (5,011,891) |
Accumulated losses | (381,264) | (333,311) |
Other comprehensive income/(expense) | (58,780) | (17,103) |
TOTAL STOCKHOLDERS' EQUITY | 1,032,734 | 1,122,364 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,126,915 | $ 1,231,236 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, authorized | 300,000,000 | 300,000,000 |
Common stock, outstanding | 102,730,891 | 102,730,891 |
Preferred Stock, Par Value | $ 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 AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||
REVENUE | $ 28,088 | |
COST OF REVENUE | (12,992) | (18,822) |
GROSS (LOSS)/PROFIT | (12,992) | 9,266 |
OTHER INCOME | 4,745 | 7,020 |
OPERATING EXPENSES | ||
General and administrative | (38,846) | (76,489) |
(LOSS) PROFIT FROM OPERATIONS | (47,093) | (60,203) |
Income tax expense | (860) | (1,264) |
NET (LOSS) PROFIT | (47,953) | (61,467) |
Other comprehensive income: | ||
Foreign currency translation(loss)/gain | (41,677) | 17,145 |
COMPREHENSIVE (LOSS) PROFIT | $ (89,630) | $ (44,322) |
Net loss per share - Basic and diluted | $ 0 | $ 0 |
Weighted average number of common shares outstanding - Basic and diluted | 102,730,891 | 74,663,734 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) | Total | Common Stock | Additional paid up share capital | Accumulated Losses | Accumulated other comprehensive income/(expense) |
Balance, shares at Dec. 31, 2018 | 74,627,558 | ||||
Balance, amount at Dec. 31, 2018 | $ 1,521,926 | $ 6,647,636 | $ (5,011,891) | $ (86,842) | $ (26,977) |
Issued shares, shares | 30,033,333 | ||||
Issued shares, amount | 30,033 | $ 30,033 | |||
Cancellation of Shares, shares | (1,930,000) | ||||
Cancellation of Shares, amount | (193,000) | $ (193,000) | |||
Net loss for the period | (246,469) | (246,469) | |||
Foreign currency translation gain | 9,874 | 9,874 | |||
Balance, shares at Dec. 31, 2019 | 102,730,891 | ||||
Balance, amount at Dec. 31, 2019 | 1,122,364 | $ 6,484,669 | (5,011,891) | (333,311) | (17,103) |
Net loss for the period | (47,953) | (47,953) | |||
Foreign currency translation gain | (41,677) | (41,677) | |||
Balance, shares at Mar. 31, 2020 | 102,730,891 | ||||
Balance, amount at Mar. 31, 2020 | $ 1,032,734 | $ 6,484,669 | $ (5,011,891) | $ (381,264) | $ (58,780) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (47,953) | $ (61,467) |
Adjustments to reconcile net profit/(loss) to net cash generated from/(used in) operating activities: | ||
Depreciation of property, plant and equipment | 10,278 | 10,562 |
Amortization of right of use asset | 2,865 | |
Operating loss before working capital changes | (34,810) | (50,905) |
Changes in operating assets and liabilities: | ||
Inventories | 5,251 | |
Other receivables and deposits | (871) | (3,970) |
Trade and other payables | (2,654) | 1,063 |
Operating lease liability | (2,257) | |
Cash used in operating activities | (40,592) | (48,561) |
Cash flows from investing activities: | ||
Purchase of plant and equipment | (14,631) | |
Net cash used in investing activities | (14,631) | |
Cash flows from financing activities: | ||
Repayment of finance lease | (7,901) | (3,606) |
Repayments from Directors | (368) | |
Net cash used in financing activities | (8,269) | (3,606) |
Foreign currency translation adjustment | (26,319) | 19,513 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (75,180) | (47,285) |
CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR | 859,076 | 1,260,239 |
CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR | 783,896 | 1,212,954 |
CASH AND CASH EQUIVALENTS INFORMATION: | ||
Fixed deposits placed with financial institutions | 469,752 | 615,491 |
Cash at bank | 314,144 | 597,463 |
Cash and cash equivalents, end of financial year | 783,896 | 1,212,954 |
Supplementary cash flow information: | ||
Interest paid | (1,063) | (921) |
Income taxes paid | $ (183) |
BASIS OF PREPARATION
BASIS OF PREPARATION | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PREPARATION | |
NOTE 1 - BASIS OF PREPARATION | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, the consolidated balance sheet as of March 31, 2020 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2020 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019. |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 3 Months Ended |
Mar. 31, 2020 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
NOTE 2 - ORGANIZATION AND BUSINESS BACKGROUND | BioNexus Gene Lab Corp was incorporated in the State of Wyoming on May 12, 2017. On August 23, 2017, the Company acquired all of the outstanding capital stock of BGS Lab Sdn. Bhd., a Malaysian corporation (“Subsidiary”). The Subsidiary 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. The corporate structure is depicted below: BioNexus Gene Lab Corp., a Wyoming company 100% owned Bionexus Gene Lab Sdn. Bhd., a Malaysian company |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PREPARATION | |
NOTE 3 - 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. • Plant and equipment 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/Expected Useful Life Furniture & fittings 20 % Computer and software 33 % Motor vehicle 10 % Lab Equipment 10 % Office equipment 20 % Renovation 20 % Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use. • Trade receivables Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts 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 make adjustments 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 Condensed Statements of Operations and Comprehensive Income. • 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. • Finance lease Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”. • Revenue recognition Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable. a. Sales of goods or rendering of services An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: - i. The amount of revenue can be measured reliably; ii. It is probable that the economic benefits associated with the transaction will flow to the entity; iii. The stage of completion of the transaction at the end of the reporting period can be measured reliably; and iv. The costs incurred for the transaction and the costs to complete the transaction can be measured reliably. b. Interest income Interest is recognized on receipt basis. • Cost of revenues Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues. • Shipping and handling fees Shipping and handling fees, if billed to customers, are included in revenue. Shipping ang 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 loss per share The Company calculates net 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 Company maintains 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 entity operates. 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 the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: remove line above December 31 March 31, 2020 December 31, 2019 Year-end US$1 : MYR exchange rate 4.3025 4.0925 January 1, 2020 to March 31, 2020 January 1, 2019 to March 31, 2019 3 months average US$1 : MYR exchange rate 4.2057 4.0800 • 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, 2020, and December 31, 2019, 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 does 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. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 3 Months Ended |
Mar. 31, 2020 | |
STOCKHOLDERS EQUITY | |
NOTE 4 - STOCKHOLDERS' EQUITY | As at March 31, 2020, the Company had 102,730,891 shares of common stock issued and outstanding. |
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2020 | |
PLANT AND EQUIPMENT | |
NOTE 5 - PLANT AND EQUIPMENT | Plant and equipment consisted of the following: As of March 31, 2020 December 31, 2019 Furniture and fittings $ 5,617 $ 5,617 Computer and software 1,372 1,372 Motor vehicle 112,344 112,344 Lab equipment 281,651 281,651 Office equipment 1,091 1,091 Renovation 2,916 2,916 404,991 404,991 (Less): Accumulated depreciation (108,497 ) (98,219 ) Add: Foreign translation differences (8,869 ) 6,136 Plant and equipment, net $ 287,625 $ 312,908 Depreciation expense for the three months’ period ended March 31, 2020 and 2019 were $10,278 and $10,562, respectively. |
FINANCE LEASE
FINANCE LEASE | 3 Months Ended |
Mar. 31, 2020 | |
FINANCE LEASE | |
NOTE 6 - FINANCE LEASE | The Company purchased motor vehicles under a finance lease agreement with the effective interest rate 5.99% of per annum due through January 2023, with principal and interest payable monthly. The obligation under the finance lease is as follows: As of March 31, 2020 December 31, 2019 Finance lease $ 61,071 $ 69,863 Less: interest expense (3,685 ) (4,576 ) Net present value of finance lease $ 57,386 $ 65,287 Current portion $ 19,217 $ 20,201 Non-current portion 38,169 45,086 Total $ 57,386 $ 65,287 |
LEASE RIGHT OF USE ASSET AND LE
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY | 3 Months Ended |
Mar. 31, 2020 | |
FINANCE LEASE | |
NOTE 7 - LEASE RIGHT OF USE ASSET AND LEASE LIABILITY | Operating lease right of use as follow: As of March 31, 2020 December 31, 2019 Initial recognition $ 33,593 $ 35,313 Accumulated amortization (13,997 ) (11,771 ) Balance $ 19,596 $ 23,542 Operating lease liability as follows: As of March 31, 2020 December 31, 2019 Initial recognition $ 33,593 $ 35,313 Less: gross repayment (15,687 ) (13,192 ) Add: imputed interest 2,297 2,027 Balance $ 20,203 $ 24,148 Less: lease liability current portion (11,546 ) (11,936 ) Lease liability non-current portion 8,657 12,212 The amortization of the operating lease right of use asset for the three months’ period ended March 31, 2020 and the year ended December 31, 2019 were $2,865 and $11,618, respectively. Other information: As of March 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ 2,257 $ 11,012 Right of use assets obtained in exchange for operating lease liabilities 19,596 23,542 Remaining lease term for operating lease (years) 2 2 Weighted average discount rate for operating lease $ 6.70 % $ 6.70 % Lease expenses for the three months’ period ended March 31, 2020 and the year ended December 31, 2019 were $378 and $2,001, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
INCOME TAXES | |
NOTE 8 - INCOME TAXES | 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 Gene Lab Sdn Bhd are subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range is 24% on its assessable income. As of March 31, December 31, 2020 2019 Tax Recoverable Local $ - $ - Foreign, representing: Malaysia (3,040 ) (2,858 ) Tax Recoverable (3,040 ) (2,858 ) Income tax liabilities: Local $ - $ - Foreign, representing: Malaysia - - Income tax liabilities - - Deferred tax liabilities: Plant and equipment Local $ - $ - Foreign, representing: Malaysia - - Deferred tax liabilities - - Total (3,040 ) (2,858 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 9 - 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, 2020 up through April 15, 2020 of these consolidated financial statements. During the period, the Company did not have any material recognizable subsequent events. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PREPARATION | |
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. |
Plant and equipment | 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/Expected Useful Life Furniture & fittings 20 % Computer and software 33 % Motor vehicle 10 % Lab Equipment 10 % Office equipment 20 % Renovation 20 % Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use. |
Trade receivables | Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts 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 make adjustments 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 Condensed Statements of Operations and Comprehensive Income. |
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. |
Finance lease | Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”. |
Revenue recognition | Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable. a. Sales of goods or rendering of services An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: - i. The amount of revenue can be measured reliably; ii. It is probable that the economic benefits associated with the transaction will flow to the entity; iii. The stage of completion of the transaction at the end of the reporting period can be measured reliably; and iv. The costs incurred for the transaction and the costs to complete the transaction can be measured reliably. b. Interest income Interest is recognized on receipt basis. |
Cost of revenues | Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues. |
Shipping and handling fees | Shipping and handling fees, if billed to customers, are included in revenue. Shipping ang 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 loss per share | The Company calculates net 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 Company maintains 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 entity operates. 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 the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: remove line above December 31 March 31, 2020 December 31, 2019 Year-end US$1 : MYR exchange rate 4.3025 4.0925 January 1, 2020 to March 31, 2020 January 1, 2019 to March 31, 2019 3 months average US$1 : MYR exchange rate 4.2057 4.0800 |
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, 2020, and December 31, 2019, 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 does 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PREPARATION | |
Schedule of principal annual rates | Categories Principal Annual Rates/Expected Useful Life Furniture & fittings 20 % Computer and software 33 % Motor vehicle 10 % Lab Equipment 10 % Office equipment 20 % Renovation 20 % |
Schedule of exchange rates | March 31, 2020 December 31, 2019 Year-end US$1 : MYR exchange rate 4.3025 4.0925 January 1, 2020 to March 31, 2020 January 1, 2019 to March 31, 2019 3 months average US$1 : MYR exchange rate 4.2057 4.0800 |
PLANT AND EQUIPMENT (Tables)
PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
PLANT AND EQUIPMENT | |
Plant and equipment | As of March 31, 2020 December 31, 2019 Furniture and fittings $ 5,617 $ 5,617 Computer and software 1,372 1,372 Motor vehicle 112,344 112,344 Lab equipment 281,651 281,651 Office equipment 1,091 1,091 Renovation 2,916 2,916 404,991 404,991 (Less): Accumulated depreciation (108,497 ) (98,219 ) Add: Foreign translation differences (8,869 ) 6,136 Plant and equipment, net $ 287,625 $ 312,908 |
FINANCE LEASE (Tables)
FINANCE LEASE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FINANCE LEASE (Tables) | |
Schedule of finance lease | As of March 31, 2020 December 31, 2019 Finance lease $ 61,071 $ 69,863 Less: interest expense (3,685 ) (4,576 ) Net present value of finance lease $ 57,386 $ 65,287 Current portion $ 19,217 $ 20,201 Non-current portion 38,169 45,086 Total $ 57,386 $ 65,287 |
LEASE RIGHT OF USE ASSET AND _2
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FINANCE LEASE (Tables) | |
Schedule of the operating lease right | As of March 31, 2020 December 31, 2019 Initial recognition $ 33,593 $ 35,313 Accumulated amortization (13,997 ) (11,771 ) Balance $ 19,596 $ 23,542 |
Schedule of the operating lease liability | As of March 31, 2020 December 31, 2019 Initial recognition $ 33,593 $ 35,313 Less: gross repayment (15,687 ) (13,192 ) Add: imputed interest 2,297 2,027 Balance $ 20,203 $ 24,148 Less: lease liability current portion (11,546 ) (11,936 ) Lease liability non-current portion 8,657 12,212 |
Schedule of other information | As of March 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ 2,257 $ 11,012 Right of use assets obtained in exchange for operating lease liabilities 19,596 23,542 Remaining lease term for operating lease (years) 2 2 Weighted average discount rate for operating lease $ 6.70 % $ 6.70 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
INCOME TAXES | |
Provision for income taxes | As of March 31, December 31, 2020 2019 Tax Recoverable Local $ - $ - Foreign, representing: Malaysia (3,040 ) (2,858 ) Tax Recoverable (3,040 ) (2,858 ) Income tax liabilities: Local $ - $ - Foreign, representing: Malaysia - - Income tax liabilities - - Deferred tax liabilities: Plant and equipment Local $ - $ - Foreign, representing: Malaysia - - Deferred tax liabilities - - Total (3,040 ) (2,858 ) |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) | 3 Months Ended |
Mar. 31, 2020 | |
Entity Incorporation, State Country Name | Wyoming |
Entity Incorporation, Date of Incorporation | May 12, 2017 |
BGS Lab Sdn. Bhd [Member] | Subsidiary [Member] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Business Acquisition, Effective Date of Acquisition | Aug. 23, 2017 |
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 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Mar. 31, 2020 |
Furniture and fittings [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
Computer and software [Member] | |
Principal Annual Rates/Expected Useful Life | 33.00% |
Motor vehicle [Member] | |
Principal Annual Rates/Expected Useful Life | 10.00% |
Lab Equipment [Member] | |
Principal Annual Rates/Expected Useful Life | 10.00% |
Office equipment [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
Renovation [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
BASIS OF PREPARATION | |||
Year-end US$1 : MYR exchange rate | 4.3025 | 4.0925 | |
Yearly average US$1 : MYR exchange rate | 4.2057 | 4.0800 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended |
Mar. 31, 2020 | |
Tax benefits rate | 50.00% |
Description of finance lease term | The lease term exceeding 75% of the estimated economic life of the leased asset |
Minimum [Member] | |
Lease payment exceeding fair value | 90.00% |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - shares | Mar. 31, 2020 | Dec. 31, 2019 |
STOCKHOLDERS EQUITY | ||
Common stock, issued | 102,730,891 | |
Common stock, outstanding | 102,730,891 | 102,730,891 |
PLANT AND EQUIPMENT (Details)
PLANT AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Plant and equipment | $ 404,991 | $ 404,991 |
(Less): Accumulated depreciation | (108,497) | (98,219) |
Add: Foreign translation differences | (8,869) | 6,136 |
Plant and equipment, net | 287,625 | 312,908 |
Furniture and fittings [Member] | ||
Plant and equipment | 5,617 | 5,617 |
Computer and software [Member] | ||
Plant and equipment | 1,372 | 1,372 |
Motor vehicle [Member] | ||
Plant and equipment | 112,344 | 112,344 |
Lab Equipment [Member] | ||
Plant and equipment | 281,651 | 281,651 |
Office equipment [Member] | ||
Plant and equipment | 1,091 | 1,091 |
Renovation [Member] | ||
Plant and equipment | $ 2,916 | $ 2,916 |
PLANT AND EQUIPMENT (Details Na
PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
PLANT AND EQUIPMENT | ||
Depreciation expense | $ 10,278 | $ 10,562 |
FINANCE LEASE (Details)
FINANCE LEASE (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
FINANCE LEASE | ||
Finance lease | $ 61,071 | $ 69,863 |
Less: interest expense | (3,685) | (4,576) |
Net present value of finance lease | 57,386 | 65,287 |
Current portion | 19,217 | 20,201 |
Non-current portion | 38,169 | 45,086 |
Finance lease, Total | $ 57,386 | $ 65,287 |
FINANCE LEASE (Details Narrativ
FINANCE LEASE (Details Narrative) - Lease Agreements [Member] | 3 Months Ended |
Mar. 31, 2020 | |
Interest rate, Annually | 5.99% |
Expiration date | January 2023 |
LEASE RIGHT OF USE ASSET AND _3
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
(Less): Accumulated depreciation | $ (108,497) | $ (98,219) |
Operating Lease Right of Use [Member] | ||
Initial recognition | 33,593 | 35,313 |
(Less): Accumulated depreciation | (13,997) | (11,771) |
Balance | $ 19,596 | $ 23,542 |
LEASE RIGHT OF USE ASSET AND _4
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lease liability non-current portion | $ 8,657 | $ 12,212 |
Operating lease liability [Member] | ||
Initial recognition | 33,593 | 35,313 |
Less: gross repayment | (15,687) | (13,192) |
Add: imputed interest | 2,297 | 2,027 |
Balance | 20,203 | 24,148 |
Less: lease liability current portion | (11,546) | (11,936) |
Lease liability non-current portion | $ 8,657 | $ 12,212 |
LEASE RIGHT OF USE ASSET AND _5
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details 2) - USD ($) | 3 Months Ended | 24 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details 2) | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating lease | $ 2,257 | $ 11,012 |
Right of use assets obtained in exchange for operating lease liabilities | $ 19,596 | $ 23,542 |
Remaining lease term for operating lease (years) | 2 years | 2 years |
Weighted average discount rate for operating lease | 6.70% | 6.70% |
LEASE RIGHT OF USE ASSET AND _6
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details Narrative) | |||
Amortization of right of use asset | $ 2,865 | $ 11,618 | |
Lease expenses | $ 378 | $ 2,001 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Tax Recoverable | $ (3,040) | $ (2,858) |
Income tax liabilities | ||
Plant and equipment | ||
Deferred tax liabilities | ||
Total | (3,040) | (2,858) |
Local [Member] | ||
Tax Recoverable | ||
Income tax liabilities | ||
Deferred tax liabilities | ||
Malaysia [Member] | ||
Tax Recoverable | (3,040) | (2,858) |
Income tax liabilities | ||
Deferred tax liabilities |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 3 Months Ended |
Mar. 31, 2020 | |
Malaysia [Member] | |
Statutory income tax rate | 24.00% |