Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 14, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | BioNexus Gene Lab Corp. | |
Entity Central Index Key | 0001737523 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2024 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 17,967,663 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-41750 | |
Entity Incorporation State Country Code | WY | |
Entity Tax Identification Number | 35-2604830 | |
Entity Address Address Line 1 | Unit:A-28-7 | |
Entity Address Address Line 2 | Tower A, Menara UOA Bangsar | |
Entity Address Address Line 3 | No.5 Jln Bangsar Utama 1 | |
Entity Address City Or Town | Kuala Lumpur | |
Entity Address Postal Zip Code | 59200 | |
City Area Code | 307 | |
Local Phone Number | 241 6898 | |
Security 12b Title | Common stock, no par value | |
Trading Symbol | BGLC | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS | ||
Cash and bank balances | $ 2,199,847 | $ 2,623,965 |
Fixed deposits placed with financial institutions | 3,214,186 | 3,305,371 |
Trade receivables | 987,962 | 799,674 |
Other receivables, deposits and prepayments | 400,830 | 122,432 |
Tax Recoverable | 7,041 | 57,588 |
Inventories | 1,033,003 | 1,137,770 |
Total current assets | 7,842,869 | 8,046,800 |
NON-CURRENT ASSETS | ||
Operating lease right of use assets | 241,700 | 141,544 |
Property, plant and equipment, net | 1,347,600 | 1,511,618 |
Other investments | 1,707,558 | 1,699,831 |
Total non-current assets | 3,296,858 | 3,352,993 |
TOTAL ASSETS | 11,139,727 | 11,399,793 |
CURRENT LIABILITIES | ||
Trade payables | 954,785 | 1,402,180 |
Other payables and accrued liabilities | 169,883 | 180,912 |
Current portion of operating lease liabilities | 53,210 | 34,632 |
Advance payment from customer | 5,937 | 0 |
Amount owing to directors | 215,543 | 13,199 |
Total current liabilities | 1,399,358 | 1,630,923 |
NON-CURRENT LIABILITIES | ||
Non-current portion of operating lease liabilities | 182,697 | 98,763 |
Deferred tax liabilities | 11,918 | 12,255 |
Total non-current liabilities | 194,615 | 111,018 |
TOTAL LIABILITIES | 1,593,973 | 1,741,941 |
STOCKHOLDERS' EQUITY | ||
As at June 30, 2024, common stock, no par value; 300,000,000 shares authorized and 17,667,663 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. As at December 31, 2023, common stock, no par value; 300,000,000 shares authorized and 17,667,663 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding (on a post-reverse stock split basis)*. | 17,191,315 | 17,191,315 |
Additional paid in capital | (5,011,891) | (5,011,891) |
Accumulated deficit | (1,748,931) | (1,844,278) |
Other comprehensive losses | (884,739) | (677,294) |
TOTAL STOCKHOLDERS' EQUITY | 9,545,754 | 9,657,852 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 11,139,727 | $ 11,399,793 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value per share | $ 0 | $ 0 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 17,667,663 | 17,667,663 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||
REVENUE | $ 1,974,564 | $ 2,566,848 | $ 4,356,415 | $ 4,944,053 |
COST OF REVENUE | (1,685,844) | (2,227,134) | (3,702,664) | (4,235,442) |
GROSS PROFIT | 288,720 | 339,714 | 653,751 | 708,611 |
OTHER INCOME | 730,105 | 195,164 | 931,952 | 312,508 |
OPERATING EXPENSES | ||||
General and administrative | (759,657) | (807,077) | (1,405,563) | (1,343,949) |
PROFIT/(LOSS) FROM OPERATIONS | 259,168 | (272,199) | 180,140 | (322,830) |
FINANCE COSTS | (4,480) | (3,042) | (9,141) | (5,487) |
PROFIT/(LOSS) BEFORE TAX | 254,688 | (275,241) | 170,999 | (328,317) |
Tax (expense)/credit | (55,584) | 15,990 | (75,652) | 0 |
NET PROFIT/(LOSS) | 199,104 | (259,251) | 95,347 | (328,317) |
Other comprehensive income: | ||||
Foreign currency translation gain/(loss) | 2,463 | (333,891) | (207,445) | (372,930) |
COMPREHENSIVE INCOME/(LOSS) | $ 201,567 | $ (593,142) | $ (112,098) | $ (701,247) |
Earnings per share - Basic and diluted | $ 0.011 | $ (0.041) | $ (0.006) | $ (0.048) |
Weighted average shares outstanding and per share amount have been adjusted for the periods shown to reflect the 12-for-1 reverse stock split effected on July 20, 2023, on a retroactive basis as described in Note 10. | 17,667,663 | 14,476,513 | 17,667,663 | 14,476,513 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated surplus | Accumulated other comprehensive loss |
Balance, shares at Dec. 31, 2022 | 14,476,513 | ||||
Balance, amount at Dec. 31, 2022 | $ 6,665,013 | $ 10,929,574 | $ (5,011,891) | $ 1,156,392 | $ (409,062) |
Impacts arising from application of Topic 326 | (371,627) | 0 | 0 | (371,627) | 0 |
Balance as of January 1, 2023, (restated) shares | 14,476,513 | ||||
Balance as of January 1, 2023, (restated) amount | 6,293,386 | 10,929,574 | (5,011,891) | 784,765 | (409,062) |
Net loss for the period | (69,066) | 0 | 0 | (69,066) | 0 |
Foreign currency translation loss | (39,039) | $ 0 | 0 | 0 | (39,039) |
Balance, shares at Mar. 31, 2023 | 14,476,513 | ||||
Balance, amount at Mar. 31, 2023 | 6,185,281 | $ 10,929,574 | (5,011,891) | 715,699 | (448,101) |
Balance, shares at Dec. 31, 2022 | 14,476,513 | ||||
Balance, amount at Dec. 31, 2022 | 6,665,013 | $ 10,929,574 | (5,011,891) | 1,156,392 | (409,062) |
Net loss for the period | (328,317) | ||||
Foreign currency translation gain | (372,930) | ||||
Balance, shares at Jun. 30, 2023 | 14,476,513 | ||||
Balance, amount at Jun. 30, 2023 | 5,592,139 | $ 10,929,574 | (5,011,891) | 456,448 | (781,992) |
Balance, shares at Mar. 31, 2023 | 14,476,513 | ||||
Balance, amount at Mar. 31, 2023 | 6,185,281 | $ 10,929,574 | (5,011,891) | 715,699 | (448,101) |
Net loss for the period | (259,251) | 0 | (259,251) | 0 | |
Foreign currency translation loss | (333,891) | $ 0 | 0 | 0 | (333,891) |
Foreign currency translation gain | (333,891) | ||||
Balance, shares at Jun. 30, 2023 | 14,476,513 | ||||
Balance, amount at Jun. 30, 2023 | 5,592,139 | $ 10,929,574 | (5,011,891) | 456,448 | (781,992) |
Balance, shares at Dec. 31, 2023 | 17,667,663 | ||||
Balance, amount at Dec. 31, 2023 | 9,657,852 | $ 17,191,315 | (5,011,891) | (1,844,278) | (677,294) |
Net loss for the period | (103,757) | 0 | (103,757) | 0 | |
Foreign currency translation loss | (209,908) | $ 0 | 0 | 0 | (209,908) |
Balance, shares at Mar. 31, 2024 | 17,667,663 | ||||
Balance, amount at Mar. 31, 2024 | 9,344,187 | $ 17,191,315 | (5,011,891) | (1,948,035) | (887,202) |
Balance, shares at Dec. 31, 2023 | 17,667,663 | ||||
Balance, amount at Dec. 31, 2023 | 9,657,852 | $ 17,191,315 | (5,011,891) | (1,844,278) | (677,294) |
Net loss for the period | 95,347 | ||||
Foreign currency translation gain | (207,445) | ||||
Balance, shares at Jun. 30, 2024 | 17,667,663 | ||||
Balance, amount at Jun. 30, 2024 | 9,545,754 | $ 17,191,315 | (5,011,891) | (1,748,931) | (884,739) |
Balance, shares at Mar. 31, 2024 | 17,667,663 | ||||
Balance, amount at Mar. 31, 2024 | 9,344,187 | $ 17,191,315 | (5,011,891) | (1,948,035) | (887,202) |
Net loss for the period | 199,104 | 0 | 0 | 199,104 | 0 |
Foreign currency translation gain | 2,463 | $ 0 | 0 | 0 | 2,463 |
Balance, shares at Jun. 30, 2024 | 17,667,663 | ||||
Balance, amount at Jun. 30, 2024 | $ 9,545,754 | $ 17,191,315 | $ (5,011,891) | $ (1,748,931) | $ (884,739) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net profit/(loss) | $ 95,347 | $ (328,317) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of right of use asset | 20,700 | 7,891 |
Allowances for expected credit losses | 120,370 | 291,940 |
Recovered for expected credit losses | (584,415) | 0 |
Bad debts | 0 | 4,078 |
Property, plant and equipment written off | 0 | 18 |
Depreciation of property, plant and equipment | 40,343 | 41,587 |
Dividend income | (20,827) | (19,788) |
Fair value gain on other investments | (72,884) | (140,862) |
Loss arising from settlement of supplier contract dispute | 28,554 | 0 |
Gain on disposal of other investments | (14,298) | 0 |
Interest | 4,545 | 4,212 |
Operating loss before working capital changes | (382,565) | (139,241) |
Changes in operating assets and liabilities: | ||
Inventories | 104,767 | (187,966) |
Trade and other receivables | (2,641) | 354,290 |
Trade and other payables | (458,424) | (111,108) |
Advance payment from customer | 5,937 | (16,029) |
Operating lease liabilities | (22,266) | (11,019) |
Tax recoverable | 50,210 | (29,268) |
Net cash used in operating activities | (704,982) | (140,341) |
Cash flows from investing activities: | ||
Acquisition of other investment | (264,768) | (13,444) |
Dividend income | 20,827 | 19,788 |
Purchase of plant and equipment | (23,778) | (14,458) |
Proceeds from disposal of other investments | 297,678 | 0 |
Proceeds from settlement of supplier contract dispute | 77,201 | 0 |
Net cash generated from/(used in) investing activities | 107,160 | (8,114) |
Cash flows from financing activities: | ||
Interest | (4,545) | (4,212) |
Advances from Directors | 202,344 | 0 |
Net cash generated from/(used in) financing activities | 197,799 | (4,212) |
Foreign currency translation adjustment | (115,280) | (207,517) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (515,303) | (360,184) |
CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL PERIOD | 5,929,336 | 2,118,864 |
CASH AND CASH EQUIVALENTS, END OF FINANCIAL PERIOD | 5,414,033 | 1,758,680 |
CASH AND CASH EQUIVALENTS INFORMATION: | ||
Fixed deposits placed with financial institutions | 3,214,186 | 1,461,596 |
Cash at bank | 2,199,847 | 297,084 |
Supplementary cash flow information: | ||
Interest paid | (9,141) | (5,487) |
Income tax paid | $ (26,772) | $ (30,635) |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 6 Months Ended |
Jun. 30, 2024 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE 1 – ORGANIZATION AND BUSINESS BACKGROUND BioNexus Gene Lab Corp. (the “Company”) was incorporated in the State of Wyoming on May 12, 2017. On August 23, 2017, the Company acquired all the outstanding capital stock of Bionexus Gene Lab Sdn. Bhd., a Malaysian corporation (“BioNexus Malaysia”). BioNexus Malaysia was incorporated in Malaysia on April 7, 2015 and subsequently changed its name to MRNA Scientific Sdn. Bhd. (“MRNA Scientific”) on September 19, 2023. The principal office address is Unit A-28-7, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. We also have a blood collection center located at 1st floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia. On December 31, 2020, the Company consummated its acquisition of Chemrex Corporation Sdn. Bhd. (“Chemrex”), pursuant to a Share Exchange Agreement by and among the Company, Chemrex and the Chemrex shareholders wherein the Company acquired all the issued and outstanding shares of capital stock of Chemrex from the Chemrex shareholders in exchange for 68,487,261 shares of common stock of the Company. The acquisition of Chemrex has been accounted for as a common control transaction as there is no change in the control over the assets acquired and liabilities assumed. The net assets are derecognized by the transferring entity (i.e. Chemrex) and recognized by the receiving entity (i.e. the Company). The difference between the consideration transferred and the carrying amounts of the net assets is recognized in equity. The financial statements of the receiving entity report the results of operations for the period in which the transfer occurs as though the transfer of net assets or exchange of equity interests had occurred at the beginning of the period. Results of operations for that period will thus comprise those of the previously separate entities combined from the beginning of the period to the date the transfer is completed and those of the combined operations from that date to the end of the period. The comparative financial statements were not adjusted retrospectively as Chemrex was not under common control during the comparative period. The corporate structure as at June 30, 2024 is depicted below: BioNexus Gene Lab Corp. a Wyoming company 100% owned 100% owned MRNA Scientific Sdn. Bhd. (formerly “Bionexus Gene Lab Sdn. Bhd.”), Chemrex Corporation Sdn. Bhd., a Malaysian company a Malaysian Company |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. · Basis of presentation The accompanying condensed consolidated financial statements as of and for the six months ended June 30, 2024 and 2023 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Condensed Consolidated Balance Sheet information as of December 31, 2023 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 16, 2024. These financial statements should be read in conjunction with that report. · Basis of consolidation The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. · Use of estimates In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. · Cash and cash equivalents Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. · Trade receivables Trade receivables primarily consist of invoiced amounts from Chemrex’s revenue. Chemrex applies interest charges to outstanding balances for certain receivables that exceed certain periods Expected credit losses The Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables. Management considers historical collection rates, the current financial status of the Company’s customers, macroeconomic factors, and other industry-specific factors when evaluating current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. To determine the provision for credit losses for accounts receivable, the Company has disaggregated its accounts receivable by business component, as management determined that risk profile of the Company’s customers is consistent based on the type and industry in which they operate. Each business component is analyzed for estimated credit losses individually. In doing so, the Company establishes a historical loss matrix, based on the previous collections of accounts receivable by the age of such receivables. Further, the Company considers macroeconomic factors and the status of the industry the business component is in to estimate if there are current expected credit losses within its trade receivables based on the trends of the Company’s expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default. · Inventories Inventories consisting of products available for sell are stated at the lower of cost or net realizable 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 net realizable 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 Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”) in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is based on reference of a borrowing rate from the country where the operating subsidiary is located. The operating lease ROU asset includes any lease payments made and excludes lease incentives. · 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 a 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: Principal Categories 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 % Solar PV System 20 % Leasehold lands are depreciated over the period of the lease term. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place. Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use. · Impairment of long-lived assets Long-lived assets primarily include goodwill, intangible assets and property, plant and equipment. In accordance with the provision of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets,” the Company generally conducts its annual impairment evaluation to its long-lived assets, usually in the fourth quarter of each fiscal year, or more frequently if indicators of impairment exist, such as a significant, sustained change in the business climate. The recoverability of long-lived assets is measured at the lowest level group. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There has been no impairment charge for the years presented. · Revenue recognition Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company records revenue at point in time which is recognized upon goods delivered or services rendered. · Shipping and handling fees Shipping and handling fees, if billed to customers, are included in revenue. Shipping and handling fees associated with inbound and outbound freight are expensed as incurred and included in selling and distribution expenses. · Comprehensive income ASC Topic 220, “ Comprehensive Income · Income taxes Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclosed in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in Malaysia and is subject to tax in their own jurisdictions. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. · Net earnings or loss per share The Company calculates net earnings or loss per share in accordance with ASC Topic 260 “ Earnings per share · Foreign currencies translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the subsidiaries maintain their books and records in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the subsidiaries operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement,” Translation of amounts from MYR into US$1.00 has been made at the following exchange rates for the respective period and year: June 30, December 31, 2024 2023 Period ended June 30, 2024 /Year-ended December 31, 2023 US$1: MYR exchange rate 4.7195 4.5900 January 1, January 1, 2024 2023 to June 30, to June 30, 2024 2023 6 months average US$1: MYR exchange rate 4.7279 4.4629 · 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 June 30, 2024, and December 31, 2023, 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 do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
TRADE RECEIVABLES
TRADE RECEIVABLES | 6 Months Ended |
Jun. 30, 2024 | |
TRADE RECEIVABLES | |
TRADE RECEIVABLES | NOTE 3 - TRADE RECEIVABLES The Company has performed an analysis on all its trade receivables. As such, trade receivables are recognized and carried at the original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful debts and expected credit losses is made when collection of the full amount is no longer probable. Bad debts are written off as identified for the quarter ended June 30, 2024. The Company’s trade receivables consist of receivable from customers which are unrelated to the Company. The account receivables are interest bearing at a rate of 6% per annum on Interlink Techno started in May 2021 till June 2023. From July 2023 onwards, Chemrex had increased the interest to 8.4%. Chemrex imposed 6% per annum interest on Mawintech Sdn Bhd since May 2021 till to date. The normal trade credit term is generally on 30 days to 90 days term. As of June 30, December 31, 2024 2023 Trade receivables 1,794,719 2,107,182 Allowances for expected credit losses (851,002 ) (1,314,427 ) Foreign translation differences 44,245 (6,919 ) $ 987,962 $ 799,674 Movement for trade receivables allowance for impairment accounts: As of June 30, December 31, 2024 2023 At January 1, 2024 and January 1, 2023 1,307,508 - Impacts arising from application of Topic 326 - 371,627 At January 1, 2024 and January 1, 2023, (restated) 1,307,508 371,627 Charge for the period/year Allowances for expected credit losses 804,714 942,800 Recovered for expected credit losses (1,268,139 ) - Foreign translation differences (37,326 ) (6,919 ) $ 806,757 $ 1,307,508 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 4 - INCOME TAXES The Company provides for income taxes under ASC 740, “Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statements and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. It also requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Provision for income taxes consisted of the following: United States of America The Company is registered in the State of Wyoming and is subject to the tax laws of the United States of America. Malaysia MRNA Scientific Malaysia and Chemrex are both subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range from 15% to 24% on its assessable income. As of June 30, December 31, 2024 2023 Tax Recoverable Local $ - $ - Foreign, representing Malaysia (7,041 ) (57,588 ) Tax Recoverable (7,041 ) (57,588 ) Income tax liabilities: Local $ - $ - Foreign, representing Malaysia - - Income tax payables - - Deferred tax liabilities: Local $ - $ - Foreign, representing Malaysia 11,918 12,255 Deferred tax liabilities 11,918 12,255 Total 4,877 (45,333 ) |
OPERATING LEASE RIGHT OF USE AS
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | NOTE 5 – OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES The Company has operating lease arrangements for office space, lab, and motor vehicles in Malaysia with a term between two and five years. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The present value of the lease payments are discounted with rates ranging from 6.40% to 6.65% per annum. These rates are reference from base rate of Malayan Banking Berhad, the largest bank in Malaysia. The lease payments of operating lease are classified within operating activities in the statement of cash flows. Operating lease right of use assets as follows: As of June 30, December 31, 2024 2023 Balance as of beginning of the period/year $ 141,544 $ 55,730 Add: Addition of lease liabilities (1) 124,778 113,279 Less: Amortization (2) (20,700 ) (25,038 ) Foreign translation differences (3,922 ) (2,427 ) Balance as of end of the period/year $ 241,700 $ 141,544 Operating lease liabilities as follows: June 30, December 31, 2024 2023 Balance as of beginning of the period/year $ 133,395 $ 56,775 Add: Addition of lease liabilities (1) 124,778 113,279 Less: gross repayment (23,169 ) (39,798 ) Add: imputed interest (3) 4,595 5,613 Foreign translation differences (3,692 ) (2,474 ) Balance as of end of the year 235,907 133,395 Less: lease liability current portion (53,210 ) (34,632 ) Lease liability non-current portion $ 182,697 $ 98,763 (1) During the six months period ended June 30, 2024, the Company had entered into a new operating lease of rented office for 5 years. An additional right-of-use assets at $124,778 and lease liabilities at $124,778 are recognised upon the commencement of lease term. (2) The amortization of the right of use asset for the six months’ period ended June 30, 2024 and six months’ period ended June 30, 2023 were $20,700 and $7,891 respectively. Other information: As of June 30, December 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ 22,266 76,620 Right of use assets obtained in exchange for operating lease liabilities 241,700 141,544 Remaining lease term for operating lease (years) 4.92 4.50 6.65 % Weighted average discount rate for operating lease $ 6.65 % 6.53 % 3) Lease expenses for the six months’ period ended June 30, 2024 and six months’ period ended June 30, 2023 were $4,595 and $1,275, respectively. |
PROPERTY PLANT AND EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2024 | |
PROPERTY PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 6 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: As of June 30, December 31, 2024 2023 Air conditioner $ 1,124 $ 1,124 Computer and software 5,880 3,923 Equipment 63,037 60,412 Furniture and fittings 98,883 100,118 Lab equipment 320,102 320,102 Land and buildings 1,506,969 1,506,969 Motor vehicle 161,148 161,148 Office equipment 35,547 33,914 Renovation 96,000 98,597 Signboard 806 806 Solar PV System 16,935 - Capital Work In Progress - 109,509 2,306,431 2,396,622 Less: Accumulated depreciation (694,979 ) (659,115 ) Add: Foreign translation differences (263,852 ) (225,889 ) Property, plant and equipment, net $ 1,347,600 $ 1,511,618 Depreciation expense for the six months’ period ended June 30, 2024 and 2023 were $40,343 and $41,587 respectively. |
OTHER INVESTMENTS
OTHER INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
OTHER INVESTMENTS | |
OTHER INVESTMENTS | NOTE 7 - OTHER INVESTMENTS As of June 30, December 31, 2024 2023 As of beginning of the period/year $ 1,699,831 $ 1,150,898 Addition during the year 264,768 320,733 Disposal during the year (283,380 ) (26,146 ) Fair value gain 72,884 313,859 Impairment on other investment - (6,194 ) Foreign exchange translation (46,545 ) (53,319 ) As of end of the period/year $ 1,707,558 1,699,831 The other investments consist of the following shares: As of June 30, 2024 December 31, 2023 Investment in quoted shares: Malaysia 1,018,140 1,138,863 Singapore 151,409 79,577 Hong Kong 538,009 481,391 $ 1,707,558 $ 1,699,831 |
TRADE PAYABLES
TRADE PAYABLES | 6 Months Ended |
Jun. 30, 2024 | |
TRADE PAYABLES | |
TRADE PAYABLES | NOTE 8 - TRADE PAYABLES Trade payables are amounts billed to the Company by suppliers for goods and services in the ordinary course of business. All amounts have short-term repayment terms and vary by supplier. |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 6 Months Ended |
Jun. 30, 2024 | |
CONCENTRATION OF RISKS | |
CONCENTRATION OF RISKS | NOTE 9 - CONCENTRATION OF RISKS a) Major customers During the three months and six months ended June 30, 2024 and 2023, the Company did not have any material recognizable major customers accounted for 10% or more of the Company’s revenue. b) Major suppliers For three months ended June 30, 2024 and 2023, 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: 2024 2023 2024 2023 2024 2023 Purchase Percentage of purchases Accounts payable trade Vendor A $ 279,263 $ 471,363 16.57 % 21.16 % $ 304,561 $ 547,406 Vendor B $ 274,081 $ 440,135 16.26 % 19.76 % $ 274,842 $ 426,509 Vendor C $ 181,885 $ 244,265 10.79 % 10.97 % $ 117,148 $ 256,315 Vendor D $ 177,985 $ 254,165 10.56 % 11.41 % $ 112,482 $ 195,856 Vendor E $ - $ 275,175 - 12.36 % $ - $ - $ 913,214 $ 1,685,103 54.18 % 75.66 % $ 809,033 $ 1,426,086 For six months ended June 30, 2024 and 2023, 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: 2024 2023 2024 2023 2024 2023 Purchase Percentage of purchases Accounts payable trade Vendor A $ 671,441 $ 669,389 18.13 % 15.80 % $ 304,561 $ 547,406 Vendor B $ 620,397 $ 850,293 16.76 % 20.08 % $ 274,842 $ 426,509 Vendor C $ 492,944 $ 567,721 13.31 % 13.40 % $ 112,482 $ 195,856 Vendor D $ - $ 458,405 - 10.82 % $ - $ 256,315 $ 1,784,782 $ 2,545,808 48.20 % 60.10 % $ 691,885 $ 1,426,086 |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
STOCKHOLDERS EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 10 - STOCK HOLDERS’ EQUITY Reverse Stock Split On June 5, 2023, the Company filed an Article of Amendment to the Articles of Incorporation with the Wyoming Secretary of State to modify the ratio of the Reverse Stock Split from one-for-ten (10) to one-for-twelve (12) (the “Revised Reverse Stock Split”). Upon effectiveness of the Revised Reverse Stock Split, every twelve (12) outstanding shares of common stock were combined into and automatically became one share of common stock. No fractional shares was issued in connection with the Revised Reverse Stock Split and all such fractional shares or odd lots (less than 100 shares to any record or beneficial holder) issuable in the Revised Reverse Stock Split were rounded up to 100 shares. An aggregate of 1,044,351 shares were issued to applicable shareholders as a result of the round-up. The Revised Reverse Stock Split was approved and authorized by a majority of the Company’s stockholder on August 8, 2023 and by the Board of Directors of the Company on August 8, 2023. Public Offering & Nasdaq Listing On July 20, 2023, the Company entered into an underwriting agreement (the "Underwriting Agreement") with Network 1 Financial Securities, Inc., as underwriter (the "Underwriter") pursuant to which the Company agreed to issue and sell, in a firm commitment underwritten public offering by the Company (the "Offering") of 1,250,000 shares of common stock, no par value, priced at a public offering price of $4.00 per share. In addition, pursuant to the Underwriting Agreement, the Underwriter was granted a 45-day option (the "Over-Allotment Option") to purchase up to an additional 187,500 shares of common stock at the public offering price of $4.00 per share. The Underwriter fully exercised the Over-Allotment Option on July 24, 2023. The securities were offered by the Company pursuant to the registration statement on Form S-1 (File No. 333-269753), which was originally filed with the U.S. Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended, on February 14, 2023, and declared effective by the Commission on July 19, 2023. On July 24, 2023, the Offering closed, and the Company issued and sold 1,437,500 shares of common stock, including 187,500 shares sold pursuant to the full exercise of the Over-Allotment Option. The Offering was priced at $4.00 per share for total gross proceeds of $5.75 million before deducting underwriting discounts, commissions, and offering expenses. Pursuant to the Underwriting Agreement, the Underwriter received an 8% underwriting discount on the public offering price for the shares common stock. The Company will therefore receive net proceeds, before expenses, of $5,290,000 from the sale of the common stocks. In addition, the Company issued to the Underwriter warrants to purchase up to an aggregate of 115,000 shares of the Company's common stock (the "Underwriter's Warrants") at an exercise price of $4.40 per share. The Underwriter's Warrants are exercisable from July 24, 2023 until July 24, 2028. In August, 2023, an aggregate of 759,299 shares of common stock were issued to professional parties or service providers in lieu of cash for services rendered, 125,000 were subsequently cancelled in November, 2023. In August, 2023, an aggregate of 75,000 shares of common stock were issued to three directors in lieu of cash for services rendered in connection with their employment as directors of the Company. From July 20, 2023 to August 4, 2023, an aggregate total of 1,044,351 shares of common stock were issued as part of the round-up exercise to the reverse stock split. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENTED INFORMATION | |
SEGMENTED INFORMATION | NOTE 11 – SEGMENTED INFORMATION At June 30, 2024, the Company (“BGLC”) operates in the biochemical industry segment through its two Malaysian subsidiaries, MRNA Scientific Malaysia (formerly known as Bionexus Gene Lab Sdn. Bhd.) and Chemrex. BioNexus Gene Lab Corp. a Wyoming company 100% owned 100% owned MRNA Scientific Sdn. Bhd. (formerly “Bionexus Gene Lab Sdn. Bhd.”), Chemrex Corporation Sdn. Bhd., a Malaysian company a Malaysian Company At June 30, 2024, the Company (“BGLC”) operates in the biochemical industry segment through its two Malaysian subsidiaries, MRNA Scientific Malaysia and Chemrex. For the six months ended June 30, 2024, segmented (unaudited) revenue and net (loss)/profit (Currency expressed in United States Dollars (“US$”) are as follows: MRNA Scientific Chemrex Corporation BGLC Total Six months ended June 2024 REVENUE $ 8,661 $ 4,347,754 $ - $ 4,356,415 COST OF REVENUE (4,605 ) (3,698,059 ) - (3,702,664 ) GROSS PROFIT 4,056 649,695 - 653,751 OTHER INCOME 76,058 855,894 - 931,952 OPERATING EXPENSES General and administrative (185,218 ) (696,763 ) (523,582 ) (1,405,563 ) (LOSS)/PROFIT FROM OPERATIONS (105,104 ) 808,826 (523,582 ) 180,140 FINANCE COSTS (4,595 ) (4,433 ) (113 ) (9,141 ) (LOSS)/PROFIT BEFORE TAX (109,699 ) 804,393 (523,695 ) 170,999 Tax expense - (75,652 ) - (75,652 ) NET (LOSS)/PROFIT $ (109,699 ) $ 728,741 $ (523,695 ) $ 95,347 MRNA Scientific Chemrex Corporation BGLC Total Six months ended June 30, 2023 REVENUE $ 11,932 $ 4,932,121 $ - $ 4,944,053 COST OF REVENUE (7,548 ) (4,227,894 ) - (4,235,442 ) GROSS PROFIT 4,384 704,227 - 708,611 OTHER INCOME 2,165 310,343 - 312,508 OPERATING EXPENSES General and administrative (98,720 ) (1,025,896 ) (219,333 ) (1,343,949 ) LOSS FROM OPERATIONS (92,171 ) (11,326 ) (219,333 ) (322,830 ) FINANCE COSTS (1,275 ) (4,212 ) - (5,487 ) LOSS BEFORE TAX (93,446 ) (15,538 ) (219,333 ) (328,317 ) Tax expense - - - - NET LOSS $ (93,446 ) $ (15,538 ) $ (219,333 ) $ (328,317 ) As of June 30, 2024 and December 31, 2023 Total Assets Total Liabilities 2024 2023 2024 2023 BGLC & MRNA Scientific $ 4,380,021 4,723,449 $ 616,300 $ 260,119 Chemrex Corporation 6,759,706 6,676,344 977,673 1,481,822 TOTAL 11,139,727 11,399,793 1,593,973 1,741,941 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events,” which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2024 up through August 14, 2024 of these consolidated financial statements. Strategic Investment into Ascension Innovation Sdn Bhd. by our subsidiary, MRNA Scientific Sdn. Bhd. Pursuant to a Form 8-K filed on April 18, 2024, the Company announced a strategic investment in Ascension Innovation Sdn Bhd (AISB), a privately held Malaysian company. Please refer to that filing for more information on the investment. The investment campaign facilitated by Pitchin was recently successfully concluded. As of the date of this form, the investment has yet to be closed. |
CONTINGENT ASSETS
CONTINGENT ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
CONTINGENT ASSETS | |
CONTINGENT ASSETS | NOTE 13 - CONTINGENT ASSETS On January 12, 2024 our subsidiary, MRNA Scientific issued a termination notice to one of our suppliers for failing to deliver hardware of merchantable quality, for a contract with the value of RM500,000 (approximately $109,000 USD). Through subsequent negotiations, MRNA Scientific has been offered a without prejudice settlement of RM350,000 (approximately $76,000 USD) via a letter from the suppliers’ legal counsel, dated March 21, 2024. On 30 May 2024, the supplier had proposed to collect the hardware from MRNA Scientific premises and upon the hardware being returned intact in same condition per deliver, the supplier would refund the sum of 350,000 to MRNA Scientific. The supplier then duly refunded the sum on 14 June 2024 whereby MRNA Scientific had confirmed the receipt on 19 June 2024. MRNA Scientific then net off the receipt with fixed asset decapitalization in Balance Sheet while the remaining balance was recorded in the book as loss arising from settlement of supplier dispute in Income Statement. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | The accompanying condensed consolidated financial statements as of and for the six months ended June 30, 2024 and 2023 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) that permit reduced disclosure for interim periods. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The Condensed Consolidated Balance Sheet information as of December 31, 2023 was derived from the Company’s audited Consolidated Financial Statements as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 16, 2024. These financial statements should be read in conjunction with that report. |
Basis of consolidation | The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation. |
Use of estimates | In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments. |
Trade receivables | Trade receivables primarily consist of invoiced amounts from Chemrex’s revenue. Chemrex applies interest charges to outstanding balances for certain receivables that exceed certain periods Expected credit losses The Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables. Management considers historical collection rates, the current financial status of the Company’s customers, macroeconomic factors, and other industry-specific factors when evaluating current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. To determine the provision for credit losses for accounts receivable, the Company has disaggregated its accounts receivable by business component, as management determined that risk profile of the Company’s customers is consistent based on the type and industry in which they operate. Each business component is analyzed for estimated credit losses individually. In doing so, the Company establishes a historical loss matrix, based on the previous collections of accounts receivable by the age of such receivables. Further, the Company considers macroeconomic factors and the status of the industry the business component is in to estimate if there are current expected credit losses within its trade receivables based on the trends of the Company’s expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default. |
Inventories | Inventories consisting of products available for sell are stated at the lower of cost or net realizable 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 net realizable 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 | Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest (“discount rate”) in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is based on reference of a borrowing rate from the country where the operating subsidiary is located. The operating lease ROU asset includes any lease payments made and excludes lease incentives. |
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 a 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: Principal Categories 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 % Solar PV System 20 % Leasehold lands are depreciated over the period of the lease term. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use Maintenance and repairs are charged to operations as incurred. Expenditures which substantially increase the useful lives of the related assets are capitalized. When properties are disposed, the related costs and accumulated depreciation are removed from the accounts and any gain or loss is reported in the period the transaction takes place. Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use. |
Impairment of long-lived assets | Long-lived assets primarily include goodwill, intangible assets and property, plant and equipment. In accordance with the provision of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets,” the Company generally conducts its annual impairment evaluation to its long-lived assets, usually in the fourth quarter of each fiscal year, or more frequently if indicators of impairment exist, such as a significant, sustained change in the business climate. The recoverability of long-lived assets is measured at the lowest level group. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There has been no impairment charge for the years presented. |
Revenue recognition | Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company records revenue at point in time which is recognized upon goods delivered or services rendered. |
Shipping and handling fees | Shipping and handling fees, if billed to customers, are included in revenue. Shipping and handling fees associated with inbound and outbound freight are expensed as incurred and included in selling and distribution expenses. |
Comprehensive income | ASC Topic 220, “ Comprehensive Income |
Income taxes | Income taxes are determined in accordance with the provisions of ASC Topic 740, “ Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclosed in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company conducts major businesses in Malaysia and is subject to tax in their own jurisdictions. As a result of its business activities, the Company will file separate tax returns that are subject to examination by the foreign tax authorities. |
Net earnings or loss per share | The Company calculates net earnings or loss per share in accordance with ASC Topic 260 “ Earnings per share |
Foreign currencies translation | Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations. The functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the subsidiaries maintain their books and records in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the subsidiaries operate. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, “Translation of Financial Statement,” Translation of amounts from MYR into US$1.00 has been made at the following exchange rates for the respective period and year: June 30, December 31, 2024 2023 Period ended June 30, 2024 /Year-ended December 31, 2023 US$1: MYR exchange rate 4.7195 4.5900 January 1, January 1, 2024 2023 to June 30, to June 30, 2024 2023 6 months average US$1: MYR exchange rate 4.7279 4.4629 |
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 June 30, 2024, and December 31, 2023, 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 do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Principal Annual Rates | The principal annual rates used are as follows: Principal Categories 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 % Solar PV System 20 % |
Schedule of Exchange Rates | June 30, December 31, 2024 2023 Period ended June 30, 2024 /Year-ended December 31, 2023 US$1: MYR exchange rate 4.7195 4.5900 January 1, January 1, 2024 2023 to June 30, to June 30, 2024 2023 6 months average US$1: MYR exchange rate 4.7279 4.4629 |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
TRADE RECEIVABLES | |
Schedule of Trade Receivables | As of June 30, December 31, 2024 2023 Trade receivables 1,794,719 2,107,182 Allowances for expected credit losses (851,002 ) (1,314,427 ) Foreign translation differences 44,245 (6,919 ) $ 987,962 $ 799,674 |
Schedule of trade receivables allowance | As of June 30, December 31, 2024 2023 At January 1, 2024 and January 1, 2023 1,307,508 - Impacts arising from application of Topic 326 - 371,627 At January 1, 2024 and January 1, 2023, (restated) 1,307,508 371,627 Charge for the period/year Allowances for expected credit losses 804,714 942,800 Recovered for expected credit losses (1,268,139 ) - Foreign translation differences (37,326 ) (6,919 ) $ 806,757 $ 1,307,508 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
Schedule of Deferred Tax Assets and Liabilities | As of June 30, December 31, 2024 2023 Tax Recoverable Local $ - $ - Foreign, representing Malaysia (7,041 ) (57,588 ) Tax Recoverable (7,041 ) (57,588 ) Income tax liabilities: Local $ - $ - Foreign, representing Malaysia - - Income tax payables - - Deferred tax liabilities: Local $ - $ - Foreign, representing Malaysia 11,918 12,255 Deferred tax liabilities 11,918 12,255 Total 4,877 (45,333 ) |
OPERATING LEASE RIGHT OF USE _2
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | |
Schedule of operating lease right of use assets | As of June 30, December 31, 2024 2023 Balance as of beginning of the period/year $ 141,544 $ 55,730 Add: Addition of lease liabilities (1) 124,778 113,279 Less: Amortization (2) (20,700 ) (25,038 ) Foreign translation differences (3,922 ) (2,427 ) Balance as of end of the period/year $ 241,700 $ 141,544 |
Schedule of the operating lease liability | June 30, December 31, 2024 2023 Balance as of beginning of the period/year $ 133,395 $ 56,775 Add: Addition of lease liabilities (1) 124,778 113,279 Less: gross repayment (23,169 ) (39,798 ) Add: imputed interest (3) 4,595 5,613 Foreign translation differences (3,692 ) (2,474 ) Balance as of end of the year 235,907 133,395 Less: lease liability current portion (53,210 ) (34,632 ) Lease liability non-current portion $ 182,697 $ 98,763 |
Schedule of Amortization of Right of Use | As of June 30, December 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating lease $ 22,266 76,620 Right of use assets obtained in exchange for operating lease liabilities 241,700 141,544 Remaining lease term for operating lease (years) 4.92 4.50 6.65 % Weighted average discount rate for operating lease $ 6.65 % 6.53 % |
PROPERTY PLANT AND EQUIPMENT (T
PROPERTY PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
PROPERTY PLANT AND EQUIPMENT | |
Schedule of Plant and Equipment | As of June 30, December 31, 2024 2023 Air conditioner $ 1,124 $ 1,124 Computer and software 5,880 3,923 Equipment 63,037 60,412 Furniture and fittings 98,883 100,118 Lab equipment 320,102 320,102 Land and buildings 1,506,969 1,506,969 Motor vehicle 161,148 161,148 Office equipment 35,547 33,914 Renovation 96,000 98,597 Signboard 806 806 Solar PV System 16,935 - Capital Work In Progress - 109,509 2,306,431 2,396,622 Less: Accumulated depreciation (694,979 ) (659,115 ) Add: Foreign translation differences (263,852 ) (225,889 ) Property, plant and equipment, net $ 1,347,600 $ 1,511,618 |
OTHER INVESTMENTS (Tables)
OTHER INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
OTHER INVESTMENTS | |
Schedule of Other Investments | As of June 30, December 31, 2024 2023 As of beginning of the period/year $ 1,699,831 $ 1,150,898 Addition during the year 264,768 320,733 Disposal during the year (283,380 ) (26,146 ) Fair value gain 72,884 313,859 Impairment on other investment - (6,194 ) Foreign exchange translation (46,545 ) (53,319 ) As of end of the period/year $ 1,707,558 1,699,831 |
Schedule of Other Investments consist of Country | As of June 30, 2024 December 31, 2023 Investment in quoted shares: Malaysia 1,018,140 1,138,863 Singapore 151,409 79,577 Hong Kong 538,009 481,391 $ 1,707,558 $ 1,699,831 |
CONCENTRATION OF RISKS (Tables)
CONCENTRATION OF RISKS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
CONCENTRATION OF RISKS | |
Schedule of concentration of risk | 2024 2023 2024 2023 2024 2023 Purchase Percentage of purchases Accounts payable trade Vendor A $ 279,263 $ 471,363 16.57 % 21.16 % $ 304,561 $ 547,406 Vendor B $ 274,081 $ 440,135 16.26 % 19.76 % $ 274,842 $ 426,509 Vendor C $ 181,885 $ 244,265 10.79 % 10.97 % $ 117,148 $ 256,315 Vendor D $ 177,985 $ 254,165 10.56 % 11.41 % $ 112,482 $ 195,856 Vendor E $ - $ 275,175 - 12.36 % $ - $ - $ 913,214 $ 1,685,103 54.18 % 75.66 % $ 809,033 $ 1,426,086 2024 2023 2024 2023 2024 2023 Purchase Percentage of purchases Accounts payable trade Vendor A $ 671,441 $ 669,389 18.13 % 15.80 % $ 304,561 $ 547,406 Vendor B $ 620,397 $ 850,293 16.76 % 20.08 % $ 274,842 $ 426,509 Vendor C $ 492,944 $ 567,721 13.31 % 13.40 % $ 112,482 $ 195,856 Vendor D $ - $ 458,405 - 10.82 % $ - $ 256,315 $ 1,784,782 $ 2,545,808 48.20 % 60.10 % $ 691,885 $ 1,426,086 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENTED INFORMATION | |
Schedule of Segmented Revenue and Net Profit/(Loss) | MRNA Scientific Chemrex Corporation BGLC Total Six months ended June 2024 REVENUE $ 8,661 $ 4,347,754 $ - $ 4,356,415 COST OF REVENUE (4,605 ) (3,698,059 ) - (3,702,664 ) GROSS PROFIT 4,056 649,695 - 653,751 OTHER INCOME 76,058 855,894 - 931,952 OPERATING EXPENSES General and administrative (185,218 ) (696,763 ) (523,582 ) (1,405,563 ) (LOSS)/PROFIT FROM OPERATIONS (105,104 ) 808,826 (523,582 ) 180,140 FINANCE COSTS (4,595 ) (4,433 ) (113 ) (9,141 ) (LOSS)/PROFIT BEFORE TAX (109,699 ) 804,393 (523,695 ) 170,999 Tax expense - (75,652 ) - (75,652 ) NET (LOSS)/PROFIT $ (109,699 ) $ 728,741 $ (523,695 ) $ 95,347 MRNA Scientific Chemrex Corporation BGLC Total Six months ended June 30, 2023 REVENUE $ 11,932 $ 4,932,121 $ - $ 4,944,053 COST OF REVENUE (7,548 ) (4,227,894 ) - (4,235,442 ) GROSS PROFIT 4,384 704,227 - 708,611 OTHER INCOME 2,165 310,343 - 312,508 OPERATING EXPENSES General and administrative (98,720 ) (1,025,896 ) (219,333 ) (1,343,949 ) LOSS FROM OPERATIONS (92,171 ) (11,326 ) (219,333 ) (322,830 ) FINANCE COSTS (1,275 ) (4,212 ) - (5,487 ) LOSS BEFORE TAX (93,446 ) (15,538 ) (219,333 ) (328,317 ) Tax expense - - - - NET LOSS $ (93,446 ) $ (15,538 ) $ (219,333 ) $ (328,317 ) As of June 30, 2024 and December 31, 2023 Total Assets Total Liabilities 2024 2023 2024 2023 BGLC & MRNA Scientific $ 4,380,021 4,723,449 $ 616,300 $ 260,119 Chemrex Corporation 6,759,706 6,676,344 977,673 1,481,822 TOTAL 11,139,727 11,399,793 1,593,973 1,741,941 |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) | 6 Months Ended |
Jun. 30, 2024 shares | |
Chemrex Corporation Sdn. Bhd. [Member] | |
Business aquisition, shares converted | 68,487,261 |
BGS Lab Sdn. Bhd [Member] | |
Business acquisition, business operation description | The principal office address is Unit A-28-7, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia |
Business Acquisition, Effective Date of Acquisition | May 12, 2017 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jun. 30, 2024 |
Equipment [Member] | |
Principal Annual Rates | 20% |
Air Conditioner [Member] | |
Principal Annual Rates | 20% |
Buildings [Member] | |
Principal Annual Rates | 2% |
Computer and Software [Member] | |
Principal Annual Rates | 33% |
Furniture and Fittings [Member] | Minimum [Member] | |
Principal Annual Rates | 10% |
Furniture and Fittings [Member] | Maximum [Member] | |
Principal Annual Rates | 20% |
Lab Equipment [Member] | |
Principal Annual Rates | 10% |
Motor Vehicle [Member] | Minimum [Member] | |
Principal Annual Rates | 10% |
Motor Vehicle [Member] | Maximum [Member] | |
Principal Annual Rates | 20% |
Office Equipment [Member] | |
Principal Annual Rates | 20% |
Renovation [Member] | Minimum [Member] | |
Principal Annual Rates | 10% |
Renovation [Member] | Maximum [Member] | |
Principal Annual Rates | 20% |
Signboard [Member] | |
Principal Annual Rates | 10% |
Solar PV System [Member] | |
Principal Annual Rates | 20% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Year-end US$1.00: MYR exchange rate | 4.7195 | 4.5900 | |
6 months average US$1: MYR exchange rate | 4.7279 | 4.4629 |
TRADE RECEIVABLES (Details)
TRADE RECEIVABLES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
TRADE RECEIVABLES | ||
Trade Receivables | $ 1,794,719 | $ 2,107,182 |
Allowances for expected credit losses | (851,002) | (1,314,427) |
Foreign translation differences | 44,245 | (6,919) |
Total | $ 987,962 | $ 799,674 |
TRADE RECEIVABLES (Details 1)
TRADE RECEIVABLES (Details 1) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
TRADE RECEIVABLES | ||
trade receivables allowance Beginning | $ 1,307,508 | $ 0 |
Impacts arising from application of Topic 326 | 0 | 371,627 |
trade receivables allowance Restated | 1,307,508 | 371,627 |
Allowances for expected credit losses | 804,714 | 942,800 |
Recovered for expected credit losses | (1,268,139) | 0 |
Foreign translation differences | (37,326) | (6,919) |
Trade receivables allowance Ending | $ 806,757 | $ 1,307,508 |
TRADE RECEIVABLES (Details Narr
TRADE RECEIVABLES (Details Narrative) | 6 Months Ended |
Jun. 30, 2024 | |
TRADE RECEIVABLES | |
Description of trade receivable | The Company’s trade receivables consist of receivable from customers which are unrelated to the Company. The account receivables are interest bearing at a rate of 6% per annum on Interlink Techno started in May 2021 till June 2023. From July 2023 onwards, Chemrex had increased the interest to 8.4%. Chemrex imposed 6% per annum interest on Mawintech Sdn Bhd since May 2021 till to date. The normal trade credit term is generally on 30 days to 90 days term |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Tax Recoverable | $ (7,041) | $ (57,588) |
Income tax liabilities | 0 | 0 |
Deferred tax liabilities | 11,918 | 12,255 |
Total | 4,877 | (45,333) |
Local [Member] | ||
Tax Recoverable | 0 | 0 |
Income tax liabilities | 0 | 0 |
Deferred tax liabilities | 0 | 0 |
Malaysia [Member] | ||
Tax Recoverable | (7,041) | (57,588) |
Income tax liabilities | 0 | 0 |
Deferred tax liabilities | $ 11,918 | $ 12,255 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - Malaysia [Member] | 6 Months Ended |
Jun. 30, 2024 | |
Maximum [Member] | |
Statutory income tax rate | 24% |
Minimum [Member] | |
Statutory income tax rate | 15% |
OPERATING LEASE RIGHT OF USE _3
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES | ||
Beginning Balance | $ 141,544 | $ 55,730 |
Add: Addition of lease liabilities | 124,778 | 113,279 |
Less: Amortization | (20,700) | (25,038) |
Foreign translation differences | (3,922) | (2,427) |
Ending Balance | $ 241,700 | $ 141,544 |
OPERATING LEASE RIGHT OF USE _4
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 1) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Foreign translation differences | $ (3,922) | $ (2,427) |
Lease liabilities non-current portion | 182,697 | 98,763 |
Operating lease liability [Member] | ||
Beginning Balance | 133,395 | 56,775 |
Add: Addition of lease liabilities | 124,778 | 113,279 |
Less: gross repayment | (23,169) | (39,798) |
Add: imputed interest | 4,595 | 5,613 |
Foreign translation differences | (3,692) | (2,474) |
Ending Balance | 235,907 | 133,395 |
Less: lease liabilities current portion | (53,210) | (34,632) |
Lease liabilities non-current portion | $ 182,697 | $ 98,763 |
OPERATING LEASE RIGHT OF USE _5
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 2) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating lease | $ 22,266 | $ 76,620 |
Right of use assets obtained in exchange for operating lease liabilities | $ 241,700 | $ 141,544 |
Remaining lease term for operating lease (years) | 4 years 11 months 1 day | 4 years 6 months |
Weighted average discount rate for operating lease | 6.65% | 6.53% |
OPERATING LEASE RIGHT OF USE _6
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Lease expenses | $ 4,595 | $ 1,275 |
Right-of-use assets | 124,778 | |
Additional right-of-use assets | 124,778 | |
Amortization of right of use asset | $ 20,700 | $ 7,891 |
Rented term | 5 years | |
Malayan Banking [Member] | ||
Discount rate, effective date | 6.40% | |
Discount rate, initial recognized date | 6.65% |
PROPERTY PLANT AND EQUIPMENT (D
PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Total Plant and equipment | $ 2,306,431 | $ 2,396,622 |
Less: Accumulated amortization | (694,979) | (659,115) |
Add: Foreign translation differences | (263,852) | (225,889) |
Property, plant and equipment, net | 1,347,600 | 1,511,618 |
Equipment [Member] | ||
Total Plant and equipment | 63,037 | 60,412 |
Air Conditioner [Member] | ||
Total Plant and equipment | 1,124 | 1,124 |
Computer and Software [Member] | ||
Total Plant and equipment | 5,880 | 3,923 |
Lab Equipment [Member] | ||
Total Plant and equipment | 320,102 | 320,102 |
Office Equipment [Member] | ||
Total Plant and equipment | 35,547 | 33,914 |
Signboard [Member] | ||
Total Plant and equipment | 806 | 806 |
Solar PV System [Member] | ||
Total Plant and equipment | 16,935 | 0 |
Furniture and fittings [Member] | ||
Total Plant and equipment | 98,883 | 100,118 |
Land and buildings [Member] | ||
Total Plant and equipment | 1,506,969 | 1,506,969 |
Motor Vehicle [Member] | ||
Total Plant and equipment | 161,148 | 161,148 |
Renovation [Member] | ||
Total Plant and equipment | 96,000 | 98,597 |
Capital Work In Progress [Member] | ||
Total Plant and equipment | $ 0 | $ 109,509 |
PROPERTY PLANT AND EQUIPMENT _2
PROPERTY PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
PROPERTY PLANT AND EQUIPMENT | ||
Depreciation expense | $ 40,343 | $ 41,587 |
OTHER INVESTMENTS (Details)
OTHER INVESTMENTS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
OTHER INVESTMENTS | ||
As of beginning of the year | $ 1,699,831 | $ 1,150,898 |
Addition during the year | 264,768 | 320,733 |
Disposal during the year | (283,380) | (26,146) |
Fair value gain/(loss) | 72,884 | 313,859 |
Impairment on other investment | 0 | (6,194) |
Foreign exchange translation | (46,545) | (53,319) |
As of end of the year | $ 1,707,558 | $ 1,699,831 |
OTHER INVESTMENTS (Details 1)
OTHER INVESTMENTS (Details 1) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Other investment | $ 1,707,558 | $ 1,699,831 |
Malaysia [Member] | ||
Other investment | 1,018,140 | 1,138,863 |
Singapore [Member] | ||
Other investment | 151,409 | 79,577 |
Hong Kong [Member] | ||
Other investment | $ 538,009 | $ 481,391 |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Vendor A [Member] | ||||
Concentration of risk purchase | $ 279,263 | $ 471,363 | $ 671,441 | $ 669,389 |
Percentage of purchases | 16.57% | 21.16% | 18.13% | 15.80% |
Accounts payable trade | $ 304,561 | $ 547,406 | $ 304,561 | $ 547,406 |
Vendor B [Member] | ||||
Concentration of risk purchase | $ 274,081 | $ 440,135 | $ 620,397 | $ 850,293 |
Percentage of purchases | 16.26% | 19.76% | 16.76% | 20.08% |
Accounts payable trade | $ 274,842 | $ 426,509 | $ 274,842 | $ 426,509 |
Vendor C [Member] | ||||
Concentration of risk purchase | $ 181,885 | $ 244,265 | $ 492,944 | $ 567,721 |
Percentage of purchases | 10.79% | 10.97% | 13.31% | 13.40% |
Accounts payable trade | $ 117,148 | $ 256,315 | $ 112,482 | $ 195,856 |
Vendor D [Member] | ||||
Concentration of risk purchase | $ 177,985 | $ 254,165 | $ 0 | $ 458,405 |
Percentage of purchases | 10.56% | 11.41% | 0% | 10.82% |
Accounts payable trade | $ 112,482 | $ 195,856 | $ 0 | $ 256,315 |
Vendor E [Member] | ||||
Concentration of risk purchase | $ 275,175 | |||
Percentage of purchases | 0% | 12.36% | ||
Accounts payable trade | $ 0 | $ 0 | ||
Vendor [Member] | ||||
Concentration of risk purchase | $ 913,214 | $ 1,685,103 | $ 1,784,782 | $ 2,545,808 |
Percentage of purchases | 54.18% | 75.66% | 48.20% | 60.10% |
Accounts payable trade | $ 809,033 | $ 1,426,086 | $ 691,885 | $ 1,426,086 |
CONCENTRATION OF RISKS (Detai_2
CONCENTRATION OF RISKS (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Major suppliers | ||||
Concentration of risk | 10% | 10% | 10% | 10% |
Major Customer Member | ||||
Concentration of risk | 10% | 10% | 10% | 10% |
STOCK HOLDERS EQUITY (Details N
STOCK HOLDERS EQUITY (Details Narrative) - USD ($) | 1 Months Ended | |||
Jul. 24, 2023 | Jul. 20, 2023 | Aug. 31, 2023 | Jun. 05, 2023 | |
Reverse Stock Split Member | ||||
Common stock, shares issued | 1,044,351 | |||
Underwriting Agreement Member | ||||
Common stock, shares issued | 1,437,500 | 1,250,000 | ||
Public offering price | $ 4 | $ 4 | ||
Description of Over allotment option | On July 24, 2023, the Offering closed, and the Company issued and sold 1,437,500 shares of common stock, including 187,500 shares sold pursuant to the full exercise of the Over-Allotment Option | purchase up to an additional 187,500 shares of common stock at the public offering price of $4.00 per share. The Underwriter fully exercised the Over-Allotment Option on July 24, 2023 | ||
Gross proceeds | $ 5,750,000 | |||
Underwrinting discount | 8% | |||
Net proceeds before expenses against issuance of common stock | $ 5,290,000 | |||
Additional Underwriting Agreement Member | ||||
Common stock, shares issued | 115,000 | |||
Public offering price | $ 4 | |||
Professional Parties Member | ||||
Common stock, shares issued | 759,299 | |||
Three Directors Member | ||||
Common stock, shares issued | 75,000 | |||
Cede & Company | ||||
Common stock, shares issued | 1,044,351 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUE | $ 1,974,564 | $ 2,566,848 | $ 4,356,415 | $ 4,944,053 | ||
COST OF REVENUE | (1,685,844) | (2,227,134) | (3,702,664) | (4,235,442) | ||
GROSS PROFIT | 288,720 | 339,714 | 653,751 | 708,611 | ||
OTHER INCOME | 730,105 | 195,164 | 931,952 | 312,508 | ||
General and administrative | (1,405,563) | (1,343,949) | ||||
(LOSS)/PROFIT FROM OPERATIONS | 259,168 | (272,199) | 180,140 | (322,830) | ||
FINANCE COSTS | (9,141) | (5,487) | ||||
(LOSS)/PROFIT BEFORE TAX | 254,688 | (275,241) | 170,999 | (328,317) | ||
Tax expense | (55,584) | 15,990 | (75,652) | 0 | ||
NET (LOSS)/PROFIT | 199,104 | $ (103,757) | (259,251) | $ (69,066) | 95,347 | (328,317) |
GROSS PROFIT | 288,720 | 339,714 | 653,751 | 708,611 | ||
NET PROFIT/(LOSS) | $ 199,104 | $ (103,757) | $ (259,251) | $ (69,066) | 95,347 | (328,317) |
MRNA Scientific Malaysia [Member] | ||||||
REVENUE | 8,661 | 11,932 | ||||
COST OF REVENUE | (4,605) | (7,548) | ||||
GROSS PROFIT | 4,056 | 4,384 | ||||
OTHER INCOME | 76,058 | 2,165 | ||||
General and administrative | (185,218) | (98,720) | ||||
(LOSS)/PROFIT FROM OPERATIONS | (105,104) | (92,171) | ||||
FINANCE COSTS | (4,595) | (1,275) | ||||
(LOSS)/PROFIT BEFORE TAX | (109,699) | (93,446) | ||||
Tax expense | 0 | 0 | ||||
NET (LOSS)/PROFIT | (109,699) | (93,446) | ||||
GROSS PROFIT | 4,056 | 4,384 | ||||
NET PROFIT/(LOSS) | (109,699) | (93,446) | ||||
Chemrex [Member] | ||||||
REVENUE | 4,347,754 | 4,932,121 | ||||
COST OF REVENUE | (3,698,059) | (4,227,894) | ||||
GROSS PROFIT | 649,695 | 704,227 | ||||
OTHER INCOME | 855,894 | 310,343 | ||||
General and administrative | (696,763) | (1,025,896) | ||||
(LOSS)/PROFIT FROM OPERATIONS | 808,826 | (11,326) | ||||
FINANCE COSTS | (4,433) | (4,212) | ||||
(LOSS)/PROFIT BEFORE TAX | 804,393 | (15,538) | ||||
Tax expense | (75,652) | 0 | ||||
NET (LOSS)/PROFIT | 728,741 | (15,538) | ||||
GROSS PROFIT | 649,695 | 704,227 | ||||
NET PROFIT/(LOSS) | 728,741 | (15,538) | ||||
BGLC [Member] | ||||||
REVENUE | 0 | 0 | ||||
COST OF REVENUE | 0 | 0 | ||||
GROSS PROFIT | 0 | 0 | ||||
OTHER INCOME | 0 | 0 | ||||
General and administrative | (523,582) | (219,333) | ||||
(LOSS)/PROFIT FROM OPERATIONS | (523,582) | (219,333) | ||||
FINANCE COSTS | (113) | 0 | ||||
(LOSS)/PROFIT BEFORE TAX | (523,695) | (219,333) | ||||
NET (LOSS)/PROFIT | (523,695) | (219,333) | ||||
GROSS PROFIT | 0 | 0 | ||||
NET PROFIT/(LOSS) | (523,695) | (219,333) | ||||
Income tax | $ 0 | $ 0 |
SEGMENTED INFORMATION (Details
SEGMENTED INFORMATION (Details 1) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Total assets | $ 11,139,727 | $ 11,399,793 |
Total Liabilities | 1,593,973 | 1,741,941 |
Chemrex [Member] | ||
Total assets | 6,759,706 | 6,676,344 |
Total Liabilities | 977,673 | 1,481,822 |
BGLC & MRNA Scientific [Member] | ||
Total assets | 4,380,021 | 4,723,449 |
Total Liabilities | $ 616,300 | $ 260,119 |
CONTINGENT ASSETS (Details Narr
CONTINGENT ASSETS (Details Narrative) - USD ($) | 1 Months Ended | |
Jan. 12, 2024 | May 30, 2024 | |
CONTINGENT ASSETS | ||
Contract refund paid to supplier | $ 350,000 | |
Contract termination amount | $ 109,000 | |
Contract settlement amount | $ 76,000 |