Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 30, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | BioNexus Gene Lab Corp | ||
Entity Central Index Key | 0001737523 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Current Reporting Status | Yes | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Ex Transition Period | false | ||
Entity Common Stock Shares Outstanding | 171,218,152 | ||
Entity Public Float | $ 0 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and bank balances | $ 699,585 | $ 366,038 |
Fixed deposits placed with financial institutions | 2,088,107 | 493,038 |
Trade receivables | 3,996,802 | 0 |
Other receivables, deposits and prepayments | 22,640 | 13,057 |
Tax recoverable | 2,190 | 2,858 |
Inventories | 1,176,170 | 7,580 |
Total current assets | 7,985,494 | 882,571 |
NON-CURRENT ASSETS | ||
Operating lease right of use assets | 62,529 | 23,542 |
Property, plant and equipment, net | 1,785,602 | 312,908 |
Other investments | 281,668 | 12,215 |
Total non-current assets | 2,129,799 | 348,665 |
TOTAL ASSETS | 10,115,293 | 1,231,236 |
CURRENT LIABILITIES | ||
Trade payables | 3,170,653 | 0 |
Other payables and accrued liabilities | 95,882 | 19,437 |
Current portion of obligation under finance lease | 25,048 | 20,201 |
Current portion of operating lease liabilities | 20,702 | 11,936 |
Tax payables | 61,313 | 0 |
Total current liabilities | 3,373,598 | 51,574 |
NON-CURRENT LIABILITIES | ||
Non-current portion of operating lease liabilities | 42,377 | 12,212 |
Non-current portion of obligation under finance lease | 35,292 | 45,086 |
Deferred tax liabilities | 1,872 | 0 |
Total non-current liabilities | 79,541 | 57,298 |
TOTAL LIABILITIES | 3,453,139 | 108,872 |
STOCKHOLDERS' EQUITY | ||
As at December 31, 2020, common stock, no par value; 300,000,000 shares authorized and 171,218,152 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. As at December 31, 2019, common stock, no par value; 300,000,000 shares authorized and 102,730,891 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. | 10,779,574 | 6,484,669 |
Additional paid in capital | (5,011,891) | (5,011,891) |
Accumulated surplus/(losses) | 760,787 | (333,311) |
Other comprehensive income/(losses) | 133,684 | (17,103) |
TOTAL STOCKHOLDERS' EQUITY | 6,662,154 | 1,122,364 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,115,293 | $ 1,231,236 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, shares par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, Par value | $ 0 | $ 0 |
Common Stock, Shares authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares outstanding | 171,218,152 | 102,730,891 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME(LOSS) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME(LOSS) | ||
REVENUE | $ 11,390,440 | $ 126,955 |
COST OF REVENUE | (9,670,617) | (71,067) |
GROSS PROFIT | 1,719,823 | 55,888 |
OTHER INCOME | 886,942 | 25,048 |
OPERATING EXPENSES | ||
General and administrative | (1,332,943) | (356,641) |
PROFIT/(LOSS) FROM OPERATIONS | 1,273,822 | (275,705) |
FINANCE COSTS | (11,313) | 0 |
PROFIT/(LOSS) BEFORE TAX | 1,262,509 | (275,705) |
Tax expense: | ||
Deferred tax | (1,238) | 4,477 |
Income tax | 169,649 | 24,759 |
Total tax (expense)/credit | (168,411) | 29,236 |
NET PROFIT/(LOSS) | 1,094,098 | (246,469) |
Other comprehensive income: | ||
Foreign currency translation gain | 150,787 | 9,874 |
COMPREHENSIVE INCOME/(LOSS) | $ 1,244,885 | $ (236,595) |
Earnings per share - Basic and diluted | $ 0.012 | $ 0 |
Weighted average number of common shares outstanding - Basic and diluted | 102,918,015 | 86,369,145 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) | Total | Common Stock | Additional paid up capital | Accumulated Surplus/(loss) | Accumulated other comprehensive income/(Loss) |
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) |
Issuance of shares, shares | 30,033,333 | ||||
Issuance of shares, amount | 30,033 | $ 30,033 | 0 | 0 | 0 |
Cancellation of shares, shares | (1,930,000) | ||||
Cancellation of shares, amount | (193,000) | $ (193,000) | 0 | 0 | 0 |
Net loss for the year | (246,469) | 0 | 0 | (246,469) | 0 |
Foreign currency translation gain | 9,874 | $ 0 | 0 | 0 | 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) |
Issuance of shares, shares | 68,487,261 | ||||
Issuance of shares, amount | 4,294,905 | $ 4,294,905 | 0 | 0 | 0 |
Net loss for the year | 1,094,098 | 0 | 0 | 1,094,098 | 0 |
Foreign currency translation gain | 150,787 | $ 0 | 0 | 0 | 150,787 |
Balance, shares at Dec. 31, 2020 | 171,218,152 | ||||
Balance, amount at Dec. 31, 2020 | $ 6,662,154 | $ 10,779,574 | $ (5,011,891) | $ 760,787 | $ 133,684 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net profit/(loss) | $ 1,094,098 | $ (246,469) |
Adjustments to reconcile net profit/(loss) to net cash generated from/(used in) operating activities: | ||
Amortization of right of use asset | 10,816 | 11,618 |
Bad debts | 2,658 | 0 |
Depreciation of property, plant and equipment | 90,787 | 41,714 |
Dividend income | (6,310) | 0 |
Fair value gain on other investments | (38,742) | 0 |
Loss on disposal of other investments | 3,965 | 0 |
Gain on disposal of property, plant and equipment | (706,953) | 0 |
Operating profit/(loss) before working capital changes | 450,319 | (193,137) |
Changes in operating assets and liabilities: | ||
Inventories | 147,038 | 7,721 |
Trade and other receivables | 411,069 | 9,758 |
Trade and other payables | (524,240) | (30,603) |
Operating lease liabilities | 38,931 | (11,012) |
Tax recoverable | 29,563 | 0 |
Cash generated from/(used in) operating activities | 552,680 | (217,273) |
Cash flows from investing activities: | ||
Acquisition of other investment | (108,631) | 0 |
Dividend income | 6,310 | |
Net cash from acquisition of business under common control | 346,008 | 0 |
Purchase of plant and equipment | (421,621) | (12,817) |
Proceeds from disposal of other investments | 30,059 | 0 |
Proceeds from disposal of property, plant and equipment | 1,467,865 | 0 |
Net cash generated from/(used in) investing activities | 1,319,990 | (12,817) |
Cash flows from financing activities: | ||
Repayment of finance lease | (4,947) | (16,777) |
Repayments to Directors | 0 | (1,061) |
Shares subscriptions | 0 | (162,967) |
Net cash used in financing activities | (4,947) | (180,805) |
Foreign currency translation adjustment | 60,893 | 9,732 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1,928,616 | (401,163) |
CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR | 859,076 | 1,260,239 |
CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR | 2,787,692 | 859,076 |
CASH AND CASH EQUIVALENTS INFORMATION: | ||
Fixed deposits placed with financial institutions | 2,088,107 | 493,038 |
Cash and bank balances | 699,585 | 366,038 |
Cash and cash equivalents, end of financial year | 2,787,692 | 859,076 |
Supplementary cash flow information: | ||
Interest paid | (11,313) | (5,047) |
Income tax refunded | 11,697 | 0 |
Income tax paid | $ (143,496) | $ (10,714) |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
NOTE 1 - 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 (“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 of 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 December 31, 2020 is depicted below: BioNexus Gene Lab Corp. a Wyoming company 100% owned 100% owned Bionexus Gene Lab Sdn. Bhd., a Malaysian company Chemrex Corporation Sdn. Bhd., a Malaysian Company |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | The accompanying 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 consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). ☐ Basis of consolidation The 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 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 expected credit losses 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 Statement of Operations and Comprehensive Income. ☐ Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases, which was subsequently amended in 2018 by ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, Topic 842). Topic 842 will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. Topic 842 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. Topic 842 allows for a cumulative-effect adjustment in the period the new lease standard is adopted and will not require restatement of prior periods. 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 of, 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 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 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$”) and the accompanying financial statements have been expressed in US$ as being the primary currency of the economic environment in which the Company operates. The functional currency of the subsidiaries is Malaysian Ringgit (“MYR”) 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 years: December 31, 2020 December 31, 2019 Year-end US$1.00: MYR exchange rate 4.0170 4.0925 January 1, 2020 to December 31, 2020 January 1, 2019 to December 31, 2019 Yearly average US$1.00: MYR exchange rate 4.2010 4.1410 ☐ 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 December 31, 2020, and December 31, 2019, the Company did not have any non-financial 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. |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2020 | |
TRADE RECEIVABLES | |
NOTE 4 - 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 expected credit loss has been recorded as of December 31, 2020 and December 31, 2019. Total of $2,658 and $Nil of bad debts were written off for the year ended December 31, 2020 and December 31, 2019, respectively. The Company’s trade receivables consist of receivable from customers which are unrelated to the Company. The account receivables are non-interest bearing and is generally on 30 days to 90 days term. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
NOTE 5 - 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 2019 and with effect from year of assessment 2020, companies with paid-up capital of MYR2.5 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 MYR600,000 (2019: MYR500,000) 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 December 31, December 31, 2020 2019 Tax Recoverable Local $ - $ - Foreign, representing Malaysia (2,190 ) (2,858 ) Tax Recoverable (2,190 ) (2,858 ) Income tax liabilities: Local - - Foreign, representing Malaysia 61,313 - Income tax liabilities 61,313 - Deferred tax liabilities: Local - - Foreign, representing Malaysia 1,872 - Deferred tax liabilities 1,872 - Total $ 60,995 $ (2,858 ) |
OPERATING LEASE RIGHT OF USE AS
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | |
NOTE 6 - OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | During the financial year, the Company recognized an addition of $61,128, lease liabilities as well as right of use assets for all leases (with the exception of short-term leases). Lease liabilities are measured at present value of the sum of remaining rental payment as of recognition with discount rate of 5.40% 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. As of December 31, 2020 and 2019 operating lease right of use assets as follows: As of As of December 31, 2020 December 31, 2019 Balance as of December 31, 2019 $ 23,542 $ 35,313 Add: Addition of right of use assets 61,128 - Less: accumulated amortization (22,587 ) (11,771 ) Foreign translation differences 446 - Balance as of December 31, 2020 $ 62,529 $ 23,542 As of December 31, 2020 and 2019 operating lease liabilities as follows: As of As of December 31, 2020 December 31, 2019 Balance as of beginning of the year $ 24,148 $ 35,313 Add: Addition of lease liabilities 61,128 - Less: gross repayment (26,036 ) (13,192 ) Add: imputed interest 3,380 2,027 Foreign translation differences 459 - Balance as of end of the year 63,079 24,148 Less: lease liabilities current portion (20,702 ) (11,936 ) Lease liabilities non-current portion $ 42,377 $ 12,212 As of December 31, 2020 and 2019, the maturities of the operating lease obligation are as follows: As of As of Years ending December 31: December 31, 2020 December 31, 2019 2020 $ - $ 11,936 2021 20,702 12,212 2022 18,945 - 2023 12,428 - 2024 11,004 - Total $ 63,079 $ 24,148 Other information: As of As of December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 38,931 $ (11,012 ) Right of use assets obtained in exchange for operating lease liabilities 65,529 23,542 Remaining lease term for operating leases (years) 4 2 Weighted average discount rate for operating leases $ 5.40 % $ 6.70 % |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
NOTE 7 - PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment consisted of the following: As of December 31, 2020 December 31, 2019 Air conditioner $ 1,124 $ - Computer and software 1,371 1,372 Equipment 42,830 - Furniture and fittings 86,961 5,617 Lab equipment 284,822 281,651 Land and buildings 1,506,969 - Motor vehicle 137,914 112,344 Office equipment 35,160 1,091 Renovation 107,414 2,916 Signboard 704 - 2,205,269 404,991 (Less): Accumulated depreciation (441,541 ) (98,219 ) Add: Foreign translation differences 21,874 6,136 Property, plant and equipment, net $ 1,785,602 $ 312,908 As of December 31, 2020, the property, plant and equipment included assets transferred under a common control transaction with carrying amount of $1,878,073 as of 1 January 2020. During the year ended December 31, 2020, the Company disposed of a property with at a consideration of $1,467,865 with a gain of disposal of $706,953. During the year ended December 31, 2020 and 2019, the Company recorded depreciation of $90,787 and $41,714, respectively. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Dec. 31, 2020 | |
OTHER INVESTMENTS | |
NOTE 8 - OTHER INVESTMENTS | As of As of December 31, 2020 December 31, 2019 As of beginning of the year $ 12,215 $ 12,215 Acquisition of business under common control 147,882 - Addition during the year 108,631 - Disposal during the year (34,923 ) - Fair value gain 38,742 - Foreign exchange translation 9,121 - As of end of the year $ 281,668 $ 12,215 The other investments consist of investment in quoted and unquoted shares in Malaysia of $279,724 and $1,944 (2019: $12,215) respectively as of December 31, 2020. |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Dec. 31, 2020 | |
TRADE PAYABLES | |
NOTE 9 - 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. |
FINANCE LEASE
FINANCE LEASE | 12 Months Ended |
Dec. 31, 2020 | |
FINANCE LEASE | |
NOTE 10 - FINANCE LEASE | The Company purchased motor vehicles under finance lease agreements with the effective interest rate 5.70% of per annum, with principal and interest payable monthly. The obligations under the finance lease are as follows: As of December 31, 2020 December 31, 2019 Finance lease $ 63,703 $ 69,863 Less: interest expense (3,363 ) (4,576 ) Net present value of finance lease 60,340 65,287 Current portion 25,048 20,201 Non-current portion 35,292 45,086 Total $ 60,340 $ 65,287 As of December 31, 2020 and 2019, the maturities of the finance lease obligations are as follows: As of As of Years ending December 31: December 31, 2020 December 31, 2019 2020 $ - $ 20,201 2021 25,048 21,138 2022 (2019: 2022 and after) 22,017 23,948 2023 and after 13,275 - Total $ 60,340 $ 65,287 |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2020 | |
CONCENTRATION OF RISKS | |
NOTE 11 - CONCENTRATION OF RISKS | a) Major customers There are no major customers who accounted for 10% or more of the Company’s revenue for the financial year ended December 31, 2020 and 2019. b) Major suppliers For year ended December 31, 2020, 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: For the year ended December 31, 2020 As of December 31, 2020 Purchases Percentage of cost of sales Payable balances Supplier A $ 2,090,090 22 % $ 1,031,417 Supplier B 1,350,069 14 % 572,938 Supplier C 1,319,232 14 % 335,215 $ 4,759,391 50 % $ 1,939,570 There are no major suppliers who accounted for 10% or more of the Company’s cost of sales for the year ended December 31, 2019. |
ACQUISITION OF BUSINESS UNDER C
ACQUISITION OF BUSINESS UNDER COMMON CONTROL | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITION OF BUSINESS UNDER COMMON CONTROL | |
NOTE 12 - ACQUISITION OF BUSINESS UNDER COMMON CONTROL | During the financial year, the Company acquired a business which has been accounted for as a common control transaction as there is no change in control over the assets acquired and liabilities assumed. The net assets acquired as at the beginning period of the net assets transferred was $4,294,905 and net cash transferred from business acquired was $346,008. As at beginning of period Property, plant and equipment $ 1,878,073 Other investments 147,882 Inventories 1,315,627 Trade and other receivables 4,420,112 Cash and cash equivalents 346,008 Trade and other payables (3,771,339 ) Tax payables and deferred tax liabilities (34,288 ) Finance lease (7,170 ) $ 4,294,905 |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
STOCKHOLDERS EQUITY | |
NOTE 13 - STOCKHOLDERS' EQUITY | As at December 31, 2020 and 2019, the Company issued and outstanding, common stock is 171,218,152 and 102,730,891 shares respectively. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENTED INFORMATION | |
NOTE 14 - SEGMENTED INFORMATION | At December 31, 2020, the Company operates in two industry segments through its two Malaysian subsidiaries, BioNexus Malaysia and Chemrex. For year ended December 31, 2020, segmented revenue and net profit/(loss) are as follows: BioNexus Malaysia Chemrex Total consolidated Revenue $ 134,095 11,256,345 $ 11,390,440 Cost of revenue (113,041 ) (9,557,576 ) (9,670,617 ) Gross profit 21,054 1,698,769 1,719,823 Other income 13,149 873,793 886,942 Operating expenses (225,941 ) (1,107,002 ) (1,332,943 ) Profit/(Loss) from operations (191,738 ) 1,465,560 1,273,822 Finance costs (2,482 ) (8,831 ) (11,313 ) Profit/(Loss) before tax (194,220 ) 1,456,729 1,262,509 Tax expense (881 ) (167,530 ) (168,411 ) Net profit/(loss) $ (195,101 ) 1,289,199 $ 1,094,098 |
SIGNIFICANT EVENTS
SIGNIFICANT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SIGNIFICANT EVENTS | |
NOTE 15 - SIGNIFICANT EVENTS | a) Acquisition of business under common control During the financial year, the Company consummated its acquisition of Chemrex Corporation Sdn. Bhd., pursuant to a Share Exchange Agreement. The transfer of net assets was completed on 31 December 2020. b) Covid-19 pandemic outbreak On 11 March 2020, the World Health Organization declared the Coronavirus (“Covid-19”) outbreak to be a pandemic, which has caused severe global social and economic disruptions and uncertainties, including markets where the Company operates or intends to operate. The Company is actively monitoring and managing its operations to respond to these changes, the Company does not consider it practicable to provide any quantitative estimate on the potential impact it may have on the Company as the outbreak continue to evolve as of the date of this report. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
NOTE 16 - 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 December 31, 2020 up through March 24, 2021 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) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Basis of consolidation | The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Use of estimates | In preparing these 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 expected credit losses 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 Statement of Operations and Comprehensive Income |
Leases | In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases, which was subsequently amended in 2018 by ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, Topic 842). Topic 842 will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. Topic 842 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. Topic 842 allows for a cumulative-effect adjustment in the period the new lease standard is adopted and will not require restatement of prior periods. 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 of, 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: · · · · · 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 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 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$”) and the accompanying financial statements have been expressed in US$ as being the primary currency of the economic environment in which the Company operates. The functional currency of the subsidiaries is Malaysian Ringgit (“MYR”) 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 years: December 31, 2020 December 31, 2019 Year-end US$1.00: MYR exchange rate 4.0170 4.0925 January 1, 2020 to December 31, 2020 January 1, 2019 to December 31, 2019 Yearly average US$1.00: MYR exchange rate 4.2010 4.1410 |
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 December 31, 2020, and December 31, 2019, the Company did not have any non-financial 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) | 12 Months Ended |
Dec. 31, 2020 | |
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 | December 31, 2020 December 31, 2019 Year-end US$1.00: MYR exchange rate 4.0170 4.0925 January 1, 2020 to December 31, 2020 January 1, 2019 to December 31, 2019 Yearly average US$1.00: MYR exchange rate 4.2010 4.1410 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Provision for income taxes | As of December 31, December 31, 2020 2019 Tax Recoverable Local $ - $ - Foreign, representing Malaysia (2,190 ) (2,858 ) Tax Recoverable (2,190 ) (2,858 ) Income tax liabilities: Local - - Foreign, representing Malaysia 61,313 - Income tax liabilities 61,313 - Deferred tax liabilities: Local - - Foreign, representing Malaysia 1,872 - Deferred tax liabilities 1,872 - Total $ 60,995 $ (2,858 ) |
OPERATING LEASE RIGHT OF USE _2
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Tables) | |
Schedule of operating lease right of use assets | As of As of December 31, 2020 December 31, 2019 Balance as of December 31, 2019 $ 23,542 $ 35,313 Add: Addition of right of use assets 61,128 - Less: accumulated amortization (22,587 ) (11,771 ) Foreign translation differences 446 - Balance as of December 31, 2020 $ 62,529 $ 23,542 |
Schedule of the operating lease liability | As of As of December 31, 2020 December 31, 2019 Balance as of beginning of the year $ 24,148 $ 35,313 Add: Addition of lease liabilities 61,128 - Less: gross repayment (26,036 ) (13,192 ) Add: imputed interest 3,380 2,027 Foreign translation differences 459 - Balance as of end of the year 63,079 24,148 Less: lease liabilities current portion (20,702 ) (11,936 ) Lease liabilities non-current portion $ 42,377 $ 12,212 |
Schedule of maturities of the operating lease obligation | As of As of Years ending December 31: December 31, 2020 December 31, 2019 2020 $ - $ 11,936 2021 20,702 12,212 2022 18,945 - 2023 12,428 - 2024 11,004 - Total $ 63,079 $ 24,148 |
Schedule of other information | As of As of December 31, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 38,931 $ (11,012 ) Right of use assets obtained in exchange for operating lease liabilities 65,529 23,542 Remaining lease term for operating leases (years) 4 2 Weighted average discount rate for operating leases $ 5.40 % $ 6.70 % |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of Property, plant and equipment | As of December 31, 2020 December 31, 2019 Air conditioner $ 1,124 $ - Computer and software 1,371 1,372 Equipment 42,830 - Furniture and fittings 86,961 5,617 Lab equipment 284,822 281,651 Land and buildings 1,506,969 - Motor vehicle 137,914 112,344 Office equipment 35,160 1,091 Renovation 107,414 2,916 Signboard 704 - 2,205,269 404,991 (Less): Accumulated depreciation (441,541 ) (98,219 ) Add: Foreign translation differences 21,874 6,136 Property, plant and equipment, net $ 1,785,602 $ 312,908 |
OTHER INVESTMENTS (Tables)
OTHER INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
OTHER INVESTMENTS | |
Schedule of other investment | As of As of December 31, 2020 December 31, 2019 As of beginning of the year $ 12,215 $ 12,215 Acquisition of business under common control 147,882 - Addition during the year 108,631 - Disposal during the year (34,923 ) - Fair value gain 38,742 - Foreign exchange translation 9,121 - As of end of the year $ 281,668 $ 12,215 |
FINANCE LEASE (Tables)
FINANCE LEASE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FINANCE LEASE | |
Schedule of finance lease | As of December 31, 2020 December 31, 2019 Finance lease $ 63,703 $ 69,863 Less: interest expense (3,363 ) (4,576 ) Net present value of finance lease 60,340 65,287 Current portion 25,048 20,201 Non-current portion 35,292 45,086 Total $ 60,340 $ 65,287 |
Schedule of lease payments | As of As of Years ending December 31: December 31, 2020 December 31, 2019 2020 $ - $ 20,201 2021 25,048 21,138 2022 (2019: 2022 and after) 22,017 23,948 2023 and after 13,275 - Total $ 60,340 $ 65,287 |
CONCENTRATION OF RISKS (Tables)
CONCENTRATION OF RISKS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CONCENTRATION OF RISKS | |
Schedule of concentration of risk | For the year ended December 31, 2020 As of December 31, 2020 Purchases Percentage of cost of sales Payable balances Supplier A $ 2,090,090 22 % $ 1,031,417 Supplier B 1,350,069 14 % 572,938 Supplier C 1,319,232 14 % 335,215 $ 4,759,391 50 % $ 1,939,570 |
ACQUISITION OF BUSINESS UNDER_2
ACQUISITION OF BUSINESS UNDER COMMON CONTROL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITION OF BUSINESS UNDER COMMON CONTROL | |
Schedule of change in control over the assets acquired and liabilities assumed | As at beginning of period Property, plant and equipment $ 1,878,073 Other investments 147,882 Inventories 1,315,627 Trade and other receivables 4,420,112 Cash and cash equivalents 346,008 Trade and other payables (3,771,339 ) Tax payables and deferred tax liabilities (34,288 ) Finance lease (7,170 ) $ 4,294,905 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENTED INFORMATION | |
Schedule of segmented revenue and net profit/(loss) | BioNexus Malaysia Chemrex Total consolidated Revenue $ 134,095 11,256,345 $ 11,390,440 Cost of revenue (113,041 ) (9,557,576 ) (9,670,617 ) Gross profit 21,054 1,698,769 1,719,823 Other income 13,149 873,793 886,942 Operating expenses (225,941 ) (1,107,002 ) (1,332,943 ) Profit/(Loss) from operations (191,738 ) 1,465,560 1,273,822 Finance costs (2,482 ) (8,831 ) (11,313 ) Profit/(Loss) before tax (194,220 ) 1,456,729 1,262,509 Tax expense (881 ) (167,530 ) (168,411 ) Net profit/(loss) $ (195,101 ) 1,289,199 $ 1,094,098 |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) | 12 Months Ended |
Dec. 31, 2020shares | |
Chemrex Corporation Sdn. Bhd. [Member] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Business aquisition, shares converted | 68,487,261 |
BGS Lab Sdn. Bhd [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) | Dec. 31, 2020 |
Equipment [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
Furniture and fittings [Member] | Minimum [Member] | |
Principal Annual Rates/Expected Useful Life | 10.00% |
Air conditioner [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
Buildings [Member] | |
Principal Annual Rates/Expected Useful Life | 2.00% |
Signboard [Member] | |
Principal Annual Rates/Expected Useful Life | 10.00% |
Furniture and fittings [Member] | Maximum [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
Motor vehicle [Member] | Minimum [Member] | |
Principal Annual Rates/Expected Useful Life | 10.00% |
Motor vehicle [Member] | Maximum [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
Renovation [Member] | Minimum [Member] | |
Principal Annual Rates/Expected Useful Life | 10.00% |
Renovation [Member] | Maximum [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
Computer and software [Member] | |
Principal Annual Rates/Expected Useful Life | 33.00% |
Lab Equipment [Member] | |
Principal Annual Rates/Expected Useful Life | 10.00% |
Office equipment [Member] | |
Principal Annual Rates/Expected Useful Life | 20.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Year-end US$1.00: MYR exchange rate | 4.0170 | 4.0925 |
Yearly average US$1.00: MYR exchange rate | 4.2010 | 4.1410 |
TRADE RECEIVABLES (Details Narr
TRADE RECEIVABLES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
TRADE RECEIVABLES | ||
Bed debts written off | $ 2,658 | $ 0 |
Non-interest bearing | The account receivables are non-interest bearing and is generally on 30 days to 90 days term. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Tax Recoverable | $ (2,190) | $ (2,858) |
Income tax liabilities | 61,313 | 0 |
Deferred tax liabilities | 1,872 | 0 |
Total | 60,995 | (2,858) |
Local [Member] | ||
Tax Recoverable | 0 | 0 |
Income tax liabilities | 0 | 0 |
Deferred tax liabilities | 0 | 0 |
Malaysia [Member] | ||
Tax Recoverable | (2,190) | (2,858) |
Income tax liabilities | 61,313 | 0 |
Deferred tax liabilities | $ 1,872 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Malaysia [Member] | |
Statutory income tax rate, description | 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 2019 and with effect from year of assessment 2020, companies with paid-up capital of MYR2.5 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 MYR600,000 (2019: MYR500,000) 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 ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Balance | $ 62,529 | $ 23,542 |
Operating Lease Right of Use [Member] | ||
Initial recognition | 23,542 | 35,313 |
Add: Addition of right of use assets | 61,128 | 0 |
Less: accumulated amortization | (22,587) | (11,771) |
Foreign translation differences | 446 | 0 |
Balance | $ 62,529 | $ 23,542 |
OPERATING LEASE RIGHT OF USE _4
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liability non-current portion | $ 42,377 | $ 12,212 |
Operating lease liability [Member] | ||
Initial recognition | 24,148 | 35,313 |
Add: Addition of lease liabilities | 61,128 | 0 |
Less: gross repayment | (26,036) | (13,192) |
Add: imputed interest | 3,380 | 2,027 |
Foreign translation differences | 459 | 0 |
Balance | 63,079 | 24,148 |
Less: lease liability current portion | (20,702) | (11,936) |
Lease liability non-current portion | $ 42,377 | $ 12,212 |
OPERATING LEASE RIGHT OF USE _5
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 2) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
FINANCE LEASE | ||
2020 | $ 0 | $ 11,936 |
2021 | 20,702 | 12,212 |
2022 | 18,945 | 0 |
2023 | 12,428 | 0 |
2024 | 11,004 | 0 |
Total | $ 63,079 | $ 24,148 |
OPERATING LEASE RIGHT OF USE _6
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating lease | $ 38,931 | $ (11,012) |
Right of use assets obtained in exchange for operating lease liabilities | $ 65,529 | $ 23,542 |
Remaining lease term for operating lease (years) | 4 years | 2 years |
Weighted average discount rate for operating lease | 5.40% | 6.70% |
OPERATING LEASE RIGHT OF USE _7
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details Narrative) | |
Discount rate | Discount rate of 5.40% per annum |
lease liabilities | $ 61,128 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Plant and equipment, net | $ 1,785,602 | $ 312,908 |
Equipment [Member] | ||
Plant and equipment | 42,830 | 0 |
Air conditioner [Member] | ||
Plant and equipment | 1,124 | 0 |
Signboard [Member] | ||
Plant and equipment | 704 | 0 |
Computer and software [Member] | ||
Plant and equipment | 1,371 | 1,372 |
Lab Equipment [Member] | ||
Plant and equipment | 284,822 | 281,651 |
Office equipment [Member] | ||
Plant and equipment | 35,160 | 1,091 |
Motor vehicle [Member] | ||
Plant and equipment | 137,914 | 112,344 |
Renovation [Member] | ||
Plant and equipment | 107,414 | 2,916 |
Furniture and fittings [Member] | ||
Plant and equipment | 86,961 | 5,617 |
Land and buildings [Member] | ||
Plant and equipment | 1,506,969 | 0 |
Property, Plant and Equipment [Member] | ||
Less: accumulated amortization | (441,541) | (98,219) |
Plant and equipment | 2,205,269 | 404,991 |
Add: Foreign translation differences | 21,874 | 6,136 |
Plant and equipment, net | $ 1,785,602 | $ 312,908 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation expense | $ 90,787 | $ 41,714 |
Gain of disposal | 706,953 | |
Disposed of a property | 1,467,865 | $ 0 |
1, January 2020 [Member] | ||
Transferred of property under common control transaction | $ 1,878,073 |
OTHER INVESTMENTS (Details)
OTHER INVESTMENTS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OTHER INVESTMENTS | ||
As of beginning of the year | $ 12,215 | $ 12,215 |
Acquisition of business under common control | 147,882 | 0 |
Addition during the year | 108,631 | |
Disposal during the year | (34,923) | 0 |
Fair value gain | 38,742 | |
Foreign exchange translation | 9,121 | 0 |
As of end of the year | $ 281,668 | $ 12,215 |
OTHER INVESTMENTS (Details Narr
OTHER INVESTMENTS (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other investment | $ 281,668 | $ 12,215 |
Local [Member] | ||
Other investment | 1,944 | $ 12,215 |
Malaysia [Member] | ||
Other investment | $ 279,724 |
FINANCE LEASE (Details)
FINANCE LEASE (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
FINANCE LEASE | ||
Finance lease | $ 63,703 | $ 69,863 |
Less: interest expense | (3,363) | (4,576) |
Net present value of finance lease | 60,340 | 65,287 |
Current portion | 25,048 | 20,201 |
Non-current portion | 35,292 | 45,086 |
Finance lease, Total | $ 60,340 | $ 65,287 |
FINANCE LEASE (Details 1)
FINANCE LEASE (Details 1) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
FINANCE LEASE | ||
2020 | $ 0 | $ 20,201 |
2021 | 25,048 | 21,138 |
2022 (2019: 2022 and after) | 22,017 | 23,948 |
2023 and after | 13,275 | 0 |
Total | $ 60,340 | $ 65,287 |
FINANCE LEASE (Details Narrativ
FINANCE LEASE (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Major Customer [Member] | |
Interest rate, Annually | 5.70% |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details) | Dec. 31, 2020USD ($) |
Purchases | $ 4,759,391 |
Percentage of cost of sales | 50.00% |
Payable balances | $ 1,939,570 |
Supplier A [Member] | |
Purchases | $ 2,090,090 |
Percentage of cost of sales | 22.00% |
Payable balances | $ 1,031,417 |
Supplier B [Member] | |
Purchases | $ 1,350,069 |
Percentage of cost of sales | 14.00% |
Payable balances | $ 572,938 |
Supplier C [Member] | |
Purchases | $ 1,319,232 |
Percentage of cost of sales | 14.00% |
Payable balances | $ 335,215 |
ACQUISITION OF BUSINESS UNDER_3
ACQUISITION OF BUSINESS UNDER COMMON CONTROL (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other investments | $ 281,668 | $ 12,215 |
Inventories | 1,176,170 | 7,580 |
Trade and other receivables | 22,640 | 13,057 |
Trade and other payables | 1,939,570 | |
Finance lease | 60,340 | 65,287 |
Property, plant and equipment, net | 1,785,602 | $ 312,908 |
Acquisition Of Business Under Common Contro [Member] | ||
Property, plant and equipment, gross | 1,878,073 | |
Other investments | 147,882 | |
Inventories | 1,315,627 | |
Trade and other receivables | 4,420,112 | |
Cash and cash equivalents | 346,008 | |
Trade and other payables | (3,771,339) | |
Tax payables and deferred tax liabilities | (34,288) | |
Finance lease | (7,170) | |
Property, plant and equipment, net | $ 4,294,905 |
ACQUISITION OF BUSINESS UNDER_4
ACQUISITION OF BUSINESS UNDER COMMON CONTROL (Details Narrative) | Dec. 31, 2020USD ($) |
ACQUISITION OF BUSINESS UNDER COMMON CONTROL | |
Net assets acquired | $ 4,294,905 |
Net cash transferred | $ 346,008 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
STOCKHOLDERS EQUITY | ||
Common stock, issued | 171,218,152 | 102,730,891 |
Common stock, outstanding | 171,218,152 | 102,730,891 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 11,390,440 | $ 126,955 |
COST OF REVENUE | (9,670,617) | (71,067) |
Gross profit | 1,719,823 | 55,888 |
Other income | 886,942 | 25,048 |
Profit/(Loss) from operations | 1,273,822 | (275,705) |
FINANCE COSTS | (11,313) | 0 |
Profit/(Loss) before tax | 1,262,509 | (275,705) |
Net profit/(loss) | 1,094,098 | $ (246,469) |
Total Consolidated [Member] | ||
Revenue | 11,390,440 | |
COST OF REVENUE | (9,670,617) | |
Gross profit | 1,719,823 | |
Other income | 886,942 | |
Operating expenses | (1,332,943) | |
Profit/(Loss) from operations | 1,273,822 | |
FINANCE COSTS | (11,313) | |
Profit/(Loss) before tax | 1,262,509 | |
Tax expense | (168,411) | |
Net profit/(loss) | 1,094,098 | |
Chemrex Corporation Sdn. Bhd. [Member] | ||
Revenue | 11,256,345 | |
COST OF REVENUE | (9,557,576) | |
Gross profit | 1,698,769 | |
Other income | 873,793 | |
Operating expenses | (1,107,002) | |
Profit/(Loss) from operations | 1,465,560 | |
FINANCE COSTS | (8,831) | |
Profit/(Loss) before tax | 1,456,729 | |
Tax expense | (167,530) | |
Net profit/(loss) | 1,289,199 | |
BioNexus [Member] | ||
Revenue | 134,095 | |
COST OF REVENUE | (113,041) | |
Gross profit | 21,054 | |
Other income | 13,149 | |
Operating expenses | (225,941) | |
Profit/(Loss) from operations | (191,738) | |
FINANCE COSTS | (2,482) | |
Profit/(Loss) before tax | (194,220) | |
Tax expense | (881) | |
Net profit/(loss) | $ (195,101) |