BioNexus Gene Lab Corp Releases Q3 2023 10-Q Report

BioNexus Gene Lab Corp, a company specializing in industrial chemicals and RNA screening tests, has released its Form 10-Q report for the third quarter of 2023. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting the challenges and strategic initiatives undertaken during the period.

Financial Highlights

• Revenue: $7.50 million, decreased by 7.3% from the prior period due to competition and lack of new projects.
• Gross Profit: $1.06 million, increased by 15.6% from the prior period due to higher gross margin from old stock bought at lower prices.
• Loss from Operations: $(2.85) million, increased by 1591.7% from the prior period due to increased operating expenses related to Nasdaq uplisting and share-based compensation.
• Net Loss: $(2.94) million, increased significantly from the prior period due to higher operating expenses and provision for losses on account receivables.
• Earnings per share - Basic and diluted: $(0.025), reflecting the increased net loss.

Business Highlights

Revenue Segments

Chemrex contributed significantly to the company's revenue, accounting for 99.6% of total revenue for the nine months ended September 30, 2023. MRNA Scientific-Malaysia contributed a smaller portion, reflecting the impact of the COVID-19 pandemic on its operations. Chemrex's revenue decreased by approximately 7.21% due to competitive pricing and a lack of new projects in the market, while MRNA Scientific-Malaysia's revenue decreased by approximately 27.8% due to reduced demand for RNA screening tests post-pandemic.

Geographical Performance

The company's operations are primarily based in Malaysia, with Chemrex and MRNA Scientific-Malaysia as its main subsidiaries. The performance in Malaysia was affected by the COVID-19 pandemic, with Chemrex facing challenges due to supply chain disruptions and reduced demand from manufacturers. MRNA Scientific-Malaysia's operations were impacted by the reluctance of individuals to visit diagnostic centers for RNA screening tests due to fears of COVID-19 transmission.

Sales Units

Chemrex's revenue was primarily driven by sales of industrial chemicals, while MRNA Scientific-Malaysia's revenue was derived from RNA screening tests.

Future Outlook

The company anticipates that cash flow from operations will be sufficient to sustain its current level of operations for at least the next 12 months. It plans to focus on increasing advertising and marketing efforts to generate more revenue and is considering the addition of administrative and marketing personnel as the business grows. The company also aims to develop a website to enhance its online presence.

SEC Filing: BioNexus Gene Lab Corp Releases Q3 2023 [ NASDAQ:BGLC ] - 10-Q - Nov. 20, 2023