BioNexus Gene Lab Corp. Reports 10.3% Revenue Decline in Q1 2025

BioNexus Gene Lab Corp. reported its financial results for the first quarter of 2025, revealing a total revenue of $2.14 million, a decrease of 10.3% from $2.38 million in the same period last year. The decline was primarily attributed to a slowdown in market demand and disruptions related to new government-mandated e-Invoicing requirements in Malaysia, which affected customer purchasing activities. The company's gross profit also fell to $343,493 from $365,031, reflecting a 5.9% decrease. The loss from operations widened significantly to $618,418 compared to a loss of $79,028 in the prior year, driven by increased operating expenses.

The company's total operating expenses surged by 63.3% to $1.05 million, largely due to heightened sales and marketing efforts, as well as general and administrative costs. Sales and marketing expenses alone increased by 251.4% to $540,695, primarily due to higher remuneration for officers and directors at the Chemrex subsidiary. In contrast, the provision for expected credit losses decreased significantly, indicating improved credit risk management.

In terms of strategic developments, BioNexus has been actively pursuing growth opportunities, including a recent investment in Ascension Innovation Sdn. Bhd., a Malaysian healthcare technology company. This investment aims to enhance the development of AI-driven healthcare solutions. Additionally, the company has implemented a new treasury strategy focused on Ethereum, positioning itself as a leader among Nasdaq-listed companies in this area. The company also successfully executed a reverse stock split on April 7, 2025, to regain compliance with Nasdaq listing requirements.

As of March 31, 2025, BioNexus reported total assets of $9.48 million, down from $10.43 million at the end of 2024. The company’s cash and cash equivalents stood at $2.09 million, a decrease from $4.44 million a year earlier. The decline in cash reserves was attributed to operational losses and strategic investments. The company’s working capital also decreased to $4.98 million from $6.42 million, reflecting the impact of its ongoing operational challenges.

Looking ahead, BioNexus aims to leverage its clean balance sheet and low compliance costs to pursue selective mergers and acquisitions that align with its long-term strategy. The company is optimistic about restoring service levels and revenue growth, particularly with the anticipated return of a key RNA machine to operation in the second quarter of 2025. Management remains focused on enhancing operational efficiency and exploring additional capital-raising mechanisms to support its growth initiatives.