BioNexus Gene Lab Corp. Reports 6.8% Revenue Decline, Net Loss Improvement in Nine Months Ending September 30, 2024

BioNexus Gene Lab Corp. (BGLC) reported its financial results for the nine months ending September 30, 2024, revealing a total revenue of $6,986,791, a decrease of 6.8% from $7,497,739 in the same period of 2023. The decline was primarily attributed to a drop in contributions from its subsidiary Chemrex Corporation, which generated $6,975,567, down from $7,469,271, reflecting a decrease of $493,704 (6.61%). MRNA Scientific contributed $11,224, a significant decline of 60.6% from $28,468 in the previous year.

Gross profit for the nine-month period was $980,287, down from $1,062,943, marking a decrease of approximately 7.8%. Chemrex's gross profit fell to $975,786 from $1,049,324, while MRNA Scientific's gross profit decreased to $4,501 from $13,619. However, other income surged to $1,397,479, up from $511,792, driven largely by Chemrex's increased contributions.

Operating expenses for the nine months decreased to $3,535,248 from $4,426,077, a reduction of 20.1%. This was primarily due to a significant decrease in BGLC's own operating expenses, which fell to $910,180 from $1,907,360. The overall loss from operations improved to $1,157,482, compared to a loss of $2,851,342 in the prior year. The net loss for the period was $1,250,023, a notable improvement from $2,937,506 in 2023.

As of September 30, 2024, total current assets decreased to $7,039,453 from $8,046,800 at the end of 2023, with cash and bank balances also declining to $2,061,716. Trade receivables, however, increased significantly to $1,425,343 from $799,674. Total assets decreased to $10,995,055 from $11,399,793, while total liabilities fell to $1,606,882 from $1,741,941.

Strategically, BGLC has been active in enhancing its governance and internal controls, particularly following concerns raised by independent auditors regarding financial reporting at Chemrex. The company is implementing strengthened review and authorization procedures. Additionally, BGLC has engaged in related party transactions, including a purchase agreement with Quote Me Sdn. Bhd. for technical know-how and machinery, which has raised legitimacy concerns due to the dissolved status of the entity.

The company also faced challenges with Nasdaq compliance, receiving a notification regarding non-compliance with listing rules, which has led to a request for a hearing to appeal a potential delisting.