Bionexus Gene Lab (BGLC) - 2024 Q2 - Quarterly Report

Revenue Performance - For the quarter ended June 30, 2024, total revenue was $1,974,564, a decrease of 23.1$2,566,848 for the same quarter in 2023[72]. - Chemrex contributed $1,969,068 (99.7$2,562,352 (99.8%) in the prior year[77]. - MRNA Scientific's revenue increased by 22.2% to $5,496, compared to$4,496 in the same quarter last year[77]. - Total revenue for the six months ended June 30, 2024, decreased by approximately 11.9% to $4,356,415 from$4,944,053 in the same period of 2023[86]. - Chemrex's revenue for the six months ended June 30, 2024, decreased by approximately 11.85% to $4,347,754 from$4,932,121 in the same period of 2023[86]. Profitability - Gross profit for the quarter was $288,720, down approximately 15$339,714 in the same quarter of 2023[79]. - Profit from operations for the quarter ended June 30, 2024, was $259,168, a 195.2$272,199 in the same quarter of 2023[82]. - The company reported a net profit of $199,104 for the quarter, compared to a net loss of$259,251 in the same quarter last year[73]. - The company incurred a net profit of $95,347 for the six months ended June 30, 2024, compared to a net loss of$328,317 for the same period in 2023[96][97]. Expenses - Cost of revenue for the quarter was $1,685,844, a decrease of 24.3$2,227,134 in the prior year[78]. - Total operating expenses decreased by approximately 5.9% to $759,657 for the quarter ended June 30, 2024, down from$807,077 in the same quarter of 2023[81]. - MRNA Scientific's operating expenses increased by approximately 87.6% to $185,218 for the six months ended June 30, 2024, compared to$98,720 in the same period of 2023[91]. Other Income - Other income increased significantly to $730,105, compared to$195,164 in the prior year, marking an increase of approximately 274.1%[79]. - Chemrex's other income increased by 256.9% to $692,741 for the quarter ended June 30, 2024, compared to$194,125 for the same quarter in 2023[80]. - Other income for the six months ended June 30, 2024, was $931,952, an increase of approximately 198.2$312,508 in the same period of 2023[89]. Cash Flow and Working Capital - Net cash used in operating activities for the six months ended June 30, 2024, was $704,982, compared to$140,341 used in the same period of 2023[95]. - The company generated net cash of $107,160 from investing activities during the six months ended June 30, 2024, compared to a cash outflow of$8,114 in the same period of 2023[98]. - Net cash generated from financing activities was $197,799 for the six months ended June 30, 2024, compared to a cash outflow of$4,212 in the same period of 2023[99]. - The company reported a net change in cash and cash equivalents of $(515,303) for the six months ended June 30, 2024, compared to$(360,184) for the same period in 2023[95]. - As of June 30, 2024, the company had working capital of $6,443,511, up from$6,415,877 as of December 31, 2023, primarily due to profits incurred during the quarter[93]. Compliance and Strategic Initiatives - The company received an additional 180 days from Nasdaq to regain compliance with the minimum bid price requirement, extending the deadline to November 4, 2024[71]. - A strategic investment was made in Ascension Innovation Sdn Bhd by MRNA Scientific Sdn. Bhd., details of which can be found in a Form 8-K filed on April 18, 2024[70]. - The company entered into an advisory service agreement with Maxim Group LLC for M&A services, issuing 300,000 shares for these services[69]. Foreign Currency Impact - Foreign currency translation gain for the quarter ended June 30, 2024, was $2,463, compared to a loss of$333,891 in the same quarter of 2023[83]. - For the six-month period ended June 30, 2024, the company experienced a foreign currency loss of $207,445, an improvement from a loss of$372,930 in the same period of 2023[93]. - The company had a foreign currency translation adjustment of $(115,280) for the six months ended June 30, 2024, compared to$(207,517) in the same period of 2023[95]. Internal Control - The management assessed that internal control over financial reporting had improved, although further improvements are required[103].