Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐	TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________

Commission File Number: 333-229399

BIONEXUS GENE LAB CORP.

(Exact name of registrant as specified in its charter)

Wyoming		35-2604830
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

Unit 02, Level 10 Tower B, Avenue 3, The Vertical Business Suite II Bangsar South No. 8 Jalan Kerinchi Kuala Lumpur, Malaysia		59200
(Address of Principal Executive Offices)		(Zip Code)

+60 1221-26512

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, no par value		BGLC		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer, “ “ accelerated filer, “ “non-accelerated filer ,” “ smaller reporting company, “ and “ emerging growth company “ in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 14, 2023, there were 17,698,549 shares of common stock, no par value per share, issued and outstanding.

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31

PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 2.	Unregistered Sale of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33

SIGNATURES		34

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CAUTIONARY NOTE REGARDING

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains statements that may be deemed to be “forward-looking statements” within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations and or future financial performance. In some cases, you can identify forward-looking statements by their use of terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “intend,” “may,” “ought to,” “plan,” “possible,” “potentially,” “predicts,” “project,” “should,” “will,” “would,” negatives of such terms or other similar terms. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The forward-looking statements in this Quarterly Report on Form 10-Q include, without limitation, statements relating to:

	●	our goals and strategies;

	●	our future business development, results of operations and financial condition;

	●	our estimates regarding expenses, future revenues, capital requirements and our need for additional financing;

	●	our estimates regarding the market opportunity for our services;

	●	the impact of government laws and regulations;

	●	our ability to recruit and retain qualified personnel;

	●	our failure to comply with regulatory guidelines;

	●	uncertainty in industry demand;

	●	general economic conditions and market conditions in the financial services industry;

	●	future sales of large blocks or our securities, which may adversely impact our share price; and

	●	depth of the trading market in our securities.

The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties, including those described in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and elsewhere in this Quarterly Report on Form 10-Q.

You should not unduly rely on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q, to conform these statements to actual results or to changes in our expectations.

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ITEM 1. Financial Statements

BIONEXUS GENE LAB CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2023 AND DECEMBER 31, 2022

(Currency expressed in United States Dollars (“US$”))

			As of
			June 30,			December 31,
	Note		2023			2022
			(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS
Cash and bank balances				297,084			611,849
Fixed deposits placed with financial institutions				1,461,596			1,507,015
Trade receivables		3		2,195,815			2,868,364
Other receivables, deposits and prepayments				47,481			25,240
Tax recoverable		4		59,000			31,551
Inventories				1,165,773			977,807
Total current assets				5,226,749			6,021,826

NON-CURRENT ASSETS
Operating lease right of use assets		5		44,896			55,730
Property, plant and equipment, net		6		1,396,621			1,511,708
Other investments		7		1,230,674			1,150,898
Total non-current assets				2,672,191			2,718,336
TOTAL ASSETS			$	7,898,940		$	8,740,162

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables		8		1,822,506			1,861,015
Other payables and accrued liabilities				30,771			103,370
Current portion of operating lease liabilities		5		16,098			16,569
Advance payment from customer				7,094			23,123
Total current liabilities				1,876,469			2,004,077

NON-CURRENT LIABILITIES
Non-current portion of operating lease liabilities		5		29,658			40,206
Deferred tax liabilities		4		29,047			30,866
Total non-current liabilities				58,705			71,072
TOTAL LIABILITIES			$	1,935,174		$	2,075,149

STOCKHOLDERS’ EQUITY
As at June 30, 2023, common stock, no par value; 300,000,000 shares authorized and 173,718,152 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. As at December 31, 2022, common stock, no par value; 300,000,000 shares authorized and 173,718,152 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding.		10		10,929,574			10,929,574
Additional paid in capital				(5,011,891	)		(5,011,891	)
Accumulated surplus				828,075			1,156,392
Accumulated other comprehensive losses				(781,992	)		(409,062	)
TOTAL STOCKHOLDERS’ EQUITY				5,963,766			6,665,013

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	7,898,940		$	8,740,162

See accompanying notes to the condensed consolidated financial statements.

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BIONEXUS GENE LAB CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

	Three months ended						Six months ended
	June 30,						June 30,
	2023			2022			2023			2022
REVENUE	$	2,566,848		$	2,485,101		$	4,944,053		$	5,514,046

COST OF REVENUE		(2,227,134	)		(2,221,130	)		(4,235,442	)		(4,893,742	)

GROSS PROFIT		339,714			263,971			708,611			620,304

OTHER INCOME		195,164			52,848			312,508			99,230

OPERATING EXPENSES
General and administrative		(807,077	)		(454,783	)		(1,343,949	)		(822,807	)

LOSS FROM OPERATIONS		(272,199	)		(137,964	)		(322,830	)		(103,273	)

FINANCE COSTS		(3,042	)		(2,319	)		(5,487	)		(5,645	)

LOSS BEFORE TAX		(275,241	)		(140,283	)		(328,317	)		(108,918	)

Tax credit/ (expense)		15,990			1,621			-			(12,678	)

NET LOSS	$	(259,251	)	$	(138,662	)	$	(328,317	)	$	(121,596	)

Other comprehensive income:
Foreign currency translation loss		(333,891	)		(317,760	)		(372,930	)		(386,536	)
COMPREHENSIVE LOSS	$	(593,142	)	$	(456,422	)	$	(701,247	)	$	(508,132	)

Earnings per share - Basic and diluted		(0.003	)		(0.003	)		(0.004	)		(0.003	)
Weighted average number of common shares outstanding – Basic and diluted		173,718,152			172,976,394			173,718,152			172,102,130

See accompanying notes to the condensed consolidated financial statements.

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BIONEXUS GENE LAB CORP

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

AS OF JUNE 30, 2023 AND 2022

(Amount expressed in United States Dollars (“US$))


											Accumulated
	Common stock				Additional paid in			Accumulated			other comprehensive			Total
	Number of shares		Amount		capital			surplus			loss			Equity
Balance as of December 31, 2021		171,218,152	$	10,779,574	$	(5,011,891	)	$	1,512,358		$	(100,262	)	$	7,179,779
Net profit for the period		-		-		-			17,066			-			17,066
Foreign currency translation loss		-		-		-			-			(68,776	)		(68,776	)
Balance as of March 31, 2022		171,218,152	$	10,779,574	$	(5,011,891	)	$	1,529,424		$	(169,038	)	$	7,128,069
Net loss for the period		-		-		-			(138,662	)		-			(138,662	)
Issuance of shares		2,500,000		150,000		-			-			-			150,000
Foreign currency translation loss		-		-		-			-			(317,760	)		(317,760	)
Balance as of June 30, 2022		173,718,152	$	10,929,574	$	(5,011,891	)	$	1,390,762		$	(486,798	)	$	6,821,647


	Common stock				Additional paid in			Accumulated			Accumulated other comprehensive			Total
	Number of shares		Amount		capital			surplus			loss			Equity
Balance as of December 31, 2022		173,718,152	$	10,929,574	$	(5,011,891	)	$	1,156,392		$	(409,062	)	$	6,665,013
Net loss for the period		-		-		-			(69,066	)		-			(69,066	)
Foreign currency translation loss		-		-		-			-			(39,039	)		(39,039	)
Balance as of March 31, 2023		173,718,152	$	10,929,574	$	(5,011,891	)	$	1,087,326		$	(448,101	)	$	6,556,908
Net loss for the period		-		-		-			(259,251	)		-			(259,251	)
Foreign currency translation loss		-		-		-			-			(333,891	)		(333,891	)
Balance as of June 30, 2023		173,718,152	$	10,929,574	$	(5,011,891	)	$	828,075		$	(781,992	)	$	5,963,766

See accompanying notes to the condensed consolidated financial statements.

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BIONEXUS GENE LAB CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

	Six months ended June 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(328,317	)	$	(121,596	)

Adjustments to reconcile net loss to net cash used in from operating activities:
Amortization of right of use asset		7,891			8,586
Allowances for expected credit losses		291,940			-
Bad debts		4,078			-
Depreciation of property, plant and equipment		41,587			44,943
Dividend income		(19,788	)		(19,322	)
Fair value (gain)/loss on other investments		(140,862	)		63,202
Interest		4,212			3,785
Property, plant and equipment written off		18			-
Operating loss before working capital changes		(139,241	)		(20,402	)

Changes in operating assets and liabilities:
Inventories		(187,966	)		9,717
Trade and other receivables		354,290			526,165
Deferred cost of revenue		-			67,606
Trade and other payables		(111,108	)		(635,694	)
Advance payment from customer		(16,029	)		(30,307	)
Deferred revenue		-			(77,276	)
Operating lease liabilities		(11,019	)		(11,182	)
Tax recoverable		(29,268	)		(62,435	)
Net cash used in operating activities		(140,341	)		(233,808	)

Cash flows from investing activities:
Acquisition of other investment		(13,444	)		(404,793	)
Dividend income		19,788			19,322
Purchase of plant and equipment		(14,458	)		(33,484	)
Net cash used in investing activities		(8,114	)		(418,955	)

Cash flows from financing activities:
Interest		(4,212	)		(3,785	)
Repayment of finance lease		-			(34038	)
Shares subscriptions		-			150,000
Net cash (used in)/generated from financing activities		(4,212	)		112,177
Foreign currency translation adjustment		(207,517	)		(243,002	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(360,184	)		(783,588	)
CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR		2,118,864			2,123,919

CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR	$	1,758,680		$	1,340,331

CASH AND CASH EQUIVALENTS INFORMATION:
Fixed deposits placed with financial institutions	$	1,461,596		$	849,744
Cash at bank		297,084			490,587
Cash and cash equivalents, end of financial year		1,758,680			1,340,331

Supplementary cash flow information:
Interest paid	$	(5,487	)	$	(5,645	)
Income taxes paid		(30,635	)		(73,547	)

See accompanying notes to the condensed consolidated financial statements.

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

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 BGS Lab Sdn. Bhd., a Malaysian corporation (“BioNexus Malaysia”). BioNexus Malaysia was incorporated in Malaysia on April 7, 2015 which it then subsequently changed its name to Bionexus Gene Lab Sdn. Bhd.

The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 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, 2023 is depicted below:

	BioNexus Gene Lab Corp., a Wyoming company

100% owned		100% owned
Bionexus Gene Lab Sdn. Bhd., a Malaysian company		Chemrex Corporation Sdn. Bhd., a Malaysian company

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

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 are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

·	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 are recorded at the invoiced amount and Chemrex do charge interest to certain debtors with overdue outstanding. Management reviews the adequacy of the allowance for impairment on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and current economic conditions to adjust in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

·	Inventories

Inventories consisting of products available for sell are stated at the lower of cost or market 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 market 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

Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods.

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

·	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:

Categories	Principal 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	%

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.

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

·	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.

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

·	Comprehensive income

ASC Topic 220, “Comprehensive Income” establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying statements of stockholders’ equity consists of changes in unrealized gains and losses on foreign currency translation and cumulative net change in the fair value of available-for-sale investments held at the balance sheet date. This comprehensive income is not included in the computation of income tax expense or benefit.

·	Income taxes

Income taxes are determined in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”). Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

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.” Basic earnings or loss per share is computed by dividing the net earnings or loss by the weighted average number of common shares outstanding during the period. Diluted earnings or loss per share is computed similar to basic earnings or loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

·	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,” using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from the translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income.

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,
	2023		2022
Period ended June 30, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate		4.6650		4.3900

	January 1, 2023 to June 30, 2023		January 1, 2022 to June 30, 2022
6 months average US$1: MYR exchange rate		4.4629		4.2710

·	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.

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

☐	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” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a six-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

☐	Level 1 : Observable inputs such as quoted prices in active markets;

☐	Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

☐	Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions

As of June 30, 2023, and December 31, 2022, the Company did not have any nonfinancial 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.

☐	Recently Adopted Accounting Standards

In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. In November 2019, the FASB issued ASU 2019-10 highlighted the adoption timeline. For smaller reporting entities, Topic 326 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years, of which is effective for the Company on January 1, 2023

Credit loss rate is determined by historical collection based on aging schedule, adjusted for current conditions using reasonable and supportable forecasts. Based on the aging categorization and the adjusted loss rate per category, an allowance for credit losses is calculated by multiplying the adjusted loss rate with the amortized cost in the respective age category.

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, 2023. 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 a case to case basis for customers that exceeded credit term. The normal trade credit term is generally on 30 days to 90 days term.

	As of
	June 30,			December 31,
	2023			2022

Trade receivables		2,487,755			2,868,364
Allowances for expected credit losses		(291,940	)		-
	$	2,195,815		$	2,868,364

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

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

BioNexus Malaysia and Chemrex are both subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range of 24% on its assessable income.

	As of
	June 30,			December 31,
	2023			2022
Tax Recoverable
Local	$	-		$	-
Foreign, representing Malaysia		(59,000	)		(31,551	)
Tax Recoverable		(59,000	)		(31,551	)

Income tax liabilities:
Local	$	-		$	-
Foreign, representing Malaysia		-			-
Income tax payables		-			-

Deferred tax liabilities:
Local	$	-		$	-
Foreign, representing Malaysia		29,047			30,866
Deferred tax liabilities		29,047			30,866
Total		(29,953	)		(685	)

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

NOTE 5 – OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

Lease liabilities are measured at present value of the sum of remaining rental payment as of recognition with a discount rate of 6.40% per annum adopted from Malayan Banking (Maybank) Berhad's base rate as a reference for the discount rate, as this bank is the largest bank and national bank of Malaysia.

A single lease cost is recognized over the lease term on a generally straight-line basis. All cash payments of operating lease costs 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,
	2023			2022
Balance as of beginning of the year	$	55,730		$	41,090
Add: Addition of lease liabilities		-			32,281
Less: Amortization		(7,549	)		(15,534	)
Foreign translation differences		(3,285	)		(2,107	)
Balance	$	44,896		$	55,730

Operating lease liabilities as follows:
	June 30,			December 31,
	2023			2022
Balance as of beginning of the year	$	56,775		$	42,909
Add: Addition of lease liabilities		-			30,770
Less: gross repayment		(9,231	)		(19,618	)
Add: imputed interest		1,559			4,913
Foreign translation differences		(3,347	)		(2,199	)
Balance as of end of the year		45,756			56,775
Less: lease liability current portion		(16,098	)		(16,569	)
Lease liability non-current portion	$	29,658		$	40,206

The amortization of the right of use asset for the six months’ period ended June 30, 2023 and six months’ period ended June 30, 2022 were $7,891 and $8,586 respectively.

Other information:	As of
	June 30, 2023			December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating lease	$	(11,019	)	$	(126,686	)
Right of use assets obtained in exchange for operating lease liabilities		44,896			55,730
Remaining lease term for operating lease (years)		3.5			4
Weighted average discount rate for operating lease	$	6.40	%	$	6.40	%

Lease expenses for the six months’ period ended June 30, 2023 and the year ended December 31, 2022 were $1,559 and $4,913, respectively.

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

NOTE 6 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	As of
	June 30,			December 31,
	2023			2022
Air conditioner	$	1,124		$	1,124
Computer and software		2,516			2,516
Equipment		59,801			60,525
Furniture and fittings		100,118			87,122
Lab equipment		320,102			320,102
Land and buildings		1,506,969			1,506,969
Motor vehicle		137,914			137,914
Office equipment		33,167			38,213
Renovation		98,597			107,414
Signboard		806			704
		2,261,114			2,262,603
(Less): Accumulated depreciation		(615,975	)		(590,317	)
Add: Foreign translation differences		(248,518	)		(160,578	)
Property, plant and equipment, net	$	1,396,621		$	1,511,708

Depreciation expense for the six months’ period ended June 30, 2023 and 2022 were $41,587 and $44,943 respectively.

NOTE 7 - OTHER INVESTMENTS

	As of
	June 30,			December 31,
	2023			2022
As of beginning of the year	$	1,150,898		$	749,027
Addition during the year		13,444			511,706
Disposal during the year		-			(1,776	)
Fair value gain/(loss)		140,862			(70,628	)
Foreign exchange translation		(74,530	)		(37,431	)
As of end of the year	$	1,230,674		$	1,150,898

The other investments consist of the following shares:
	As of
	June 30,		December 31,
	2023		2022
Investment in quoted shares:
Malaysia		737,367		659,970
Singapore		85,488		101,426
Hong Kong		407,819		389,502
	$	1,230,674	$	1,150,898

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

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.

NOTE 9 - CONCENTRATION OF RISKS

a) Major customers

During the three months and six months ended June 30, 2023 and 2022, 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, 2023 and 2022, 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:

	2023		2022		2023	2022		2023		2022
	Purchase				Percentage of purchases			Accounts payable trade
Vendor A	$	471,363	$	345,662	21.16%	15.56%	$	547,406	$	426,165
Vendor B	$	440,135	$	236,779	19.76%	10.66%	$	426,509	$	234,314
Vendor C	$	275,175	$	-	12.36%	-	$	-	$	-
Vendor D	$	254,165	$	253,960	11.41%	11.43%	$	195,856	$	251,316
Vendor E	$	244,265	$	424,781	10.97%	19.12%	$	256,315	$	214,213
	$	1,685,103	$	1,261,182	75.66%	56.78%	$	1,426,086	$	1,126,008

For six months ended June 30, 2023 and 2022, 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:

	2023		2022		2023	2022		2023		2022
	Purchase				Percentage of purchases			Accounts payable trade
Vendor A	$	850,293	$	731,918	20.08%	14.96%	$	426,509	$	234,314
Vendor B	$	669,389	$	657,426	15.80%	13.43%	$	547,406	$	426,165
Vendor C	$	567,721	$	583,334	13.40%	11.92%	$	195,856	$	251,316
Vendor D	$	458,405	$	870,145	10.82%	17.78%	$	256,315	$	214,213
	$	2,545,808	$	2,842,823	60.11%	58.09%	$	1,426,086	$	1,126,008

NOTE 10 - STOCK HOLDERS’ EQUITY

As of June 30, 2023 and 2022, the Company issued and outstanding common stock are 173,718,152 shares, respectively.

NOTE 11 - SEGMENTED INFORMATION

At June 30, 2023, the Company (“BGLC”) operates in the biochemical industry segment through its two Malaysian subsidiaries, BioNexus Malaysia and Chemrex.

	BioNexus Gene Lab Corp., a Wyoming company

100% owned		100% owned
Bionexus Gene Lab Sdn. Bhd., a Malaysian company		Chemrex Corporation Sdn. Bhd., a Malaysian company

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

At June 30, 2023, the Company (“BGLC”) operates in the biochemical industry segment through its two Malaysian subsidiaries, BioNexus Malaysia and Chemrex.

For the six months ended June 30, 2023, segmented (unaudited) revenue and net profit/(loss) (Currency expressed in United States Dollars (“US$”) are as follows:

	BioNexus Malaysia			Chemrex			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	)

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

	BioNexus Malaysia			Chemrex			BGLC			Total
	Six months ended June 30, 2022
REVENUE	$	33,467		$	5,480,579		$	-		$	5,514,046

COST OF REVENUE		(14,929	)		(4,878,813	)		-			(4,893,742	)

GROSS PROFIT		18,538			601,766			-			620,304

OTHER INCOME		4,285			94,945			-			99,230

OPERATING EXPENSES
General and administrative		(94,681	)		(618,348	)		(109,778	)		(822,807	)

(LOSS)/PROFIT FROM OPERATIONS		(71,858	)		78,363			(109,778	)		(103,273	)

FINANCE COSTS		(1,860	)		(3,785	)		-			(5,645	)

PROFIT/(LOSS) BEFORE TAX		(73,718	)		74,578			(109,778	)		(108,918	)

Tax expense		-			(12,678	)		-			(12,678	)

NET PROFIT/(LOSS)	$	(73,718	)	$	61,900		$	(109,778	)	$	(121,596	)

	As of June 30, 2023 and December 31, 2022
	Total Assets				Total Liabilities
	2023		2022		2023		2022

BGLC & Bionexus	$	323,500	$	677,477	$	81,439	$	108,390
Chemrex		7,575,440		8,062,685		1,853,735		1,966,759
TOTAL		7,898,940		8,740,162		1,935,174		2,075,149

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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

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, 2023 up through August 16, 2023 of these consolidated financial statements.

(a) Initial Public Offering

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 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.

(b) Reversal of 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 will be combined into and automatically become one share of common stock. No fractional shares will be 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 will be rounded up to the nearest whole share, or rounded up to 100 shares, respectively.

The Revised Reverse Stock Split was approved and authorized by a majority of the Company’s stockholder on May 8, 2023 and by the Board of Directors of the Company on May 8, 2023.

On July 19, 2023, the Financial Industry Regulatory Authority announced the Revised Reverse Stock Split.

As a result of the 1:12 reverse stock split and the closing of the Offering, the Company has 17,698,549 shares of common stock issued and outstanding as of August 14, 2023.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Description of Business

As used herein, unless the context otherwise indicates, references to the “Company,” “we,” “our,” “us,” “BioNexus” refer to BioNexus Gene Lab Corp., a Wyoming company (“BGLC”), and its wholly owned subsidiaries, Bionexus Gene Lab Sdn. Bhd. (“Bionexus Malaysia”), and Chemrex Corporation Sdn. Bhd. (“Chemrex”), both are Malaysian companies.

BGLC is an emerging molecular lab focused on the application of functional genomics to enable early detection of infectious diseases and cancers. On August 23, 2017, we acquired all of the outstanding capital stock of BioNexus Malaysia, which was incorporated in Malaysia on April 7, 2015. BioNexus Malaysia owns algorithm software, technology, and know-how related to the detection of common diseases through blood analysis which we use in our business. Our non-invasive blood screening tests analyze changes in ribonucleic acid (or RNA) to Coronavirus, Dengue, HIV, HPV and the risk potentiality of cancers diseases. This unique blood genomic biomarker approach is based on the scientific observation that circulating blood reflects, in a detectable way, what is occurring throughout the body currently.

The corporate and principal office address of the Company and BioNexus Malaysia is Unit 02, Level 10, Tower B, Avenue 3, The Vertical Business Suite II, Bangsar South, No. 8 Jalan Kerinchi, Kuala Lumpur, Malaysia., our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. Another lab focuses on Covid-19 and Colon cancer screening is located at 4^th floor, Lifecare Diagnostic Centre, Kuala Lumpur, Malaysia. Our telephone number is (+60) 1221-26512 and our website is www.bionexusgenelab.com.

Chemrex is a wholesaler of industrial chemicals for the manufacture of industrial, medical, appliance, aero, automotive, mechanical and electronic industries in Asean region. On December 31, 2020, we acquired all of the outstanding capital stock of Chemrex, which was incorporated in Malaysia on September 29, 2004.

Chemrex’s corporate office and distribution and storage center is located at 4 Jalan CJ 1/6 Kawasan Perusahaan Cheras Jaya, Selangor, Malaysia. Its phone number is (+60) 1922-23815 and website is www.chemrex.com.my.

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The results of operations of our subsidiary, BioNexus-Malaysia, with respect to its RNA screening process have been adversely impacted by the onset of the Covid-19 pandemic followed by a number of prominent variants, including Alpha, Beta, Delta, and Omicron. Although new variants are an expected part of the evolution of viruses, new variant is more aggressive, highly transmissible, vaccine-resistant, able to cause more severe disease in Malaysia. We believe that most people were reluctant to visit hospitals and clinics in view of the post Covid-19 Omicron and its subvariants for fear of transmission from other patients or medical staff. Since our RNA screening is administered at a diagnostic center, our business has been adversely affected as a result.

The results of operations for Chemrex were adversely impacted during fiscal year 2023 and the 1^st quarter of 2023 as businesses of Chemrex customers especially the manufacturers had suffered significant impact. Many of them across the country saw their supply chains interrupted, demand for their products and services decline, shortages in supplies and inputs.

Recent Developments.

We had proposed an annual $28m screening project to the Chief Secretary of the Health Ministry of Malaysia for a nationwide RNA screening on 0.2% of the population aged 40 and above. The Deputy Director General from Public Health met us on January 17, 2023 to examine the cost effectiveness of our RNA screening. While the Federal government is studying our proposal, the Sabah state government planned to allocate $2.5m to establish a lab in Kota Kinabalu, Sabah capital city for Bionexus-Malaysia to work with local hospitals and state insurance corporation. Meanwhile, we had presented our technology and expansion plan nationally and globally to the Minister of Science and Technology. We received favorable response, and were advised to submit for a $2m technology grant for the continuation of research, commercialization and expansion.

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,
	2023		2022
Period ended June 30, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate		4.6650		4.3900

	January 1, 2023 to June 30, 2023		January 1, 2022 to June 30, 2022
6 months average US$1: MYR exchange rate		4.4629		4,2710

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Results of Operations

Three Months Ended June 30, 2023 Compared with the Three Months Ended June 30, 2022.

The following table sets forth key selected financial data for the three months ended June 30, 2023 and 2022.

Consolidated

	Three months ended
	June 30,
	2023			2022
REVENUE	$	2,566,848		$	2,485,101

COST OF REVENUE		(2,227,134	)		(2,221,130	)

GROSS PROFIT		339,714			263,971

OTHER INCOME		195,164			52,848

OPERATING EXPENSES
General and administrative		(807,077	)		(454,783	)

LOSS FROM OPERATIONS		(272,199	)		(137,964	)

FINANCE COSTS		(3,042	)		(2,319	)

LOSS BEFORE TAX		(275,241	)		(140,283	)

Tax expense		15,990			1,621

NET LOSS	$	(259,251	)	$	(138,662	)
Other comprehensive income:
Foreign currency loss		(333,891	)		(317,760	)

COMPREHENSIVE LOSS	$	(593,142	)	$	(456,422	)

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Segmented Information

	BioNexus Malaysia			Chemrex			BioNexus Malaysia			Chemrex
	Three months ended June 30, 2023						Three months ended June 30, 2022
REVENUE	$	4,496		$	2,562,352		$	9,198		$	2,475,903

COST OF REVENUE		(2,201	)		(2,224,933	)		(6,891	)		(2,214,239	)

GROSS PROFIT		2,295			337,419			2,307			261,664

OTHER INCOME		1,039			194,125			2,209			50,639

OPERATING EXPENSES
General and administrative		(52,465	)		(642,719	)		(50,639	)		(320,579	)

LOSS FROM OPERATIONS		(49,131	)		(111,175	)		(46,123	)		(8,276	)

FINANCE COSTS		(609	)		(2,433	)		(1,061	)		(1,258	)

LOSS BEFORE TAX		(49,740	)		(113,608	)		(47,184	)		(9,534	)

Tax expense		-			15,990			-			1,621

NET LOSS	$	(49,740	)	$	(97,618	)	$	(47,184	)	$	(7,913	)

Revenue. For the quarter ended June 30, 2023, we had total revenue of $2,566,848 as compared to total revenue of $2,485,101 for the quarter ended June 30, 2022, increased by 3.3% from the prior quarter due to slight increase in purchases from customers.

Chemrex contributed $2,562,352 (99.8%) of the total revenue for the current quarter ended June 30, 2023 as compared to $2,475,903 (99.6%) of the total revenue for the quarter ended June 30, 2022. Chemrex’s revenues had an increase by $86,449 of 3.5% from prior quarter. The revenue increased in second quarter of 2023 was due to increase in purchases from customers.

BioNexus-Malaysia contributed $4,496 (0.2%) of the total revenue for the quarter ended June 30, 2023 as compared to revenue of $9,198 (0.4%) of the total revenue from the quarter ended June 30, 2022. Revenues had decreased by $4,702 from prior quarter of $9,198, a 51.1% decrease due to six (6) long weekends public holidays during the second quarter resulting in fewer referrals from diagnostics centers & clinics.

Cost of Revenue. For the quarter ended June 30, 2023, we incurred $2,227,134 in cost of revenues, as compared to $2,221,130 for the quarter ended June 30, 2022, a slight increase of 0.3% was due to reason as stated above.

Chemrex had incurred $2,224,933 (99.9%) of the total cost of revenue during the current quarter period ended June 30, 2023 as compared to the quarter ended June 30, 2022 wherein Chemrex had incurred $2,214,239 (99.7%) of the total cost of revenue. The slightly increase in Chemrex’s cost of revenues of 0.5% for the current period was due to its increased revenues and reason as stated above.

BioNexus had incurred $2,201 (0.1%) of the total cost of revenues during the current quarter period ended June 30, 2023 as compared to $6,891 (0.3%) for the quarterly period ended June 30, 2022. Cost of revenue had decreased by $4,690 from prior quarter of 68.1% decrease was due to its decreased revenues and reason as stated above.

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Gross Profit. For the quarterly period ended June 30, 2023, we had total gross profit of $339,714 as compared to gross profit of $263,971 for the quarterly period ended June 30, 2022, an increase by approximately 28.7% from the prior period.

Chemrex contributed $337,419 (99.3%) of the total gross profit for the current quarter ended June 30, 2023 as compared to $261,664 (99.1%) of the total gross profit for the quarter ended June 30, 2022. Chemrex’s gross profit increased by $75,755 from the prior quarter, an approximately 29% increase. The gross profit increase for Chemrex in current quarter was due to an increase in revenue and reduced purchases prices reduced.

BioNexus-Malaysia contributed $2,295 (0.7%) of the total gross profit of $339,714 for the current quarter ended June 30, 2023 as compared to gross profit of $2,307 (0.9%) of the total gross profit from the quarter ended June 30, 2022. The decrease by approximately 0.5% from the prior period due to its decreased revenues for the same reason stated above.

Other Income. For the quarterly period ended June 30, 2023, we had of $195,164, as compared to of $52,848 for the quarterly period ended June 30, 2022, an increase of approximately 269.3%.

Chemrex contributed $194,125 (99.5%) of other income for the current quarter ended June 30, 2023 as compared to $50,639 (95.8%) of the other income for the quarter ended June 30, 2022. Chemrex’s other income increased by 283.4% due to gain on forex exchange rate, gain on fair value of investment, bank interest earning and unrealized equity investment gain.

BioNexus-Malaysia contributed $1,039 (0.5%) of other income for the current quarter ended June 30, 2023 as compared to $2,209 (4.2%) of the other income for the quarter ended June 30, 2022. The decrease of 53% due to lesser fund in the fixed deposit resulted from a reduction in bank interest earning.

Operating Expenses. For the quarter ended June 30, 2023, we had total operating expense of $807,077 as compared to total operating expenses of $454,783 for the quarter ended June 30, 2022, an increase by approximately 77.5%. It was due to general and administrative expenses which includes depreciation of fixed assets, employee compensation and benefits, professional fees for the Nasdaq uplisting and marketing and travel expenses.

Chemrex had incurred $642,719 (79.6%) of the total operating expenses for the current quarter ended June 30, 2023 as compared to $320,579 (70.5%) of the total operating expenses for the quarter ended June 30, 2022, an increase by 100.5%. The increase in operating expenses was due to debt consultant, directors’ remuneration, entertainment, upkeep of equipment, marketing website improvement and provision for losses on accounts receivable.

BioNexus-Malaysia had incurred $52,465 (6.5%) of the total operating expenses for the current quarter ended June 30, 2023 as compared to $50,639 (11.1%) of the total operating expenses for the quarter ended June 30, 2022, a slight increase by 3.6%. The increase in operating costs of the current quarter was due to Research and development cost incurred for patients with cardiovascular disease.

BGLC, the holding company had incurred $111,893 (13.9%) of total operating expenses for the current quarter ended June 30, 2023 as compared to $83,565 (18.4%) of the total operating expenses for the quarter ended June 30, 2022. The increase by approximately 33.9% in operating costs for the quarter ended June 30, 2023 was due to directors and committees’ fees, professional expenses and charges from Advisor, Attorney, STC (Transfer Agent), Finra, Nasdaq and SEC on the Company’s uplisting to Nasdaq.

Loss/Profit from Operations. We had a loss from operations of $272,199 for the quarter ended June 30, 2023 as compared to a loss of $137,964 for the quarter ended June 30, 2022, an increase by approximately 97.3% from the prior period, for the reasons discussed above.

Income tax expense. For the quarter ended June 30, 2023, we had adjustment of income tax credit of $15,990 as compared to tax credit of $1,621 for the quarter ended June 30, 2022 for Chemrex. There was no tax provision for Bio-Nexus Malaysia for the quarters ended June 30, 2023 and 2022.

Foreign currency exchange loss. We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate would require us to recognize a transaction gain or loss on revaluation. For the three-month period ended June 30, 2023, we experienced a foreign currency loss of $333,891 as compared with a foreign currency loss of $317,760 for the three-month period ended June 30, 2022.

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Six Months Ended June 30, 2023 Compared with the Six Months Ended June 30, 2022.

The following table sets forth key selected financial data for the six months ended June 30, 2023 and 2022.

Consolidated

	Six months ended
	June 30,
	2023			2022
REVENUE	$	4,944,053		$	5,514,046

COST OF REVENUE		(4,235,442	)		(4,893,742	)

GROSS PROFIT		708,611			620,304

OTHER INCOME		312,508			99,230

OPERATING EXPENSES
General and administrative		(1,343,949	)		(822,807	)

LOSS FROM OPERATIONS		(322,830	)		(103,273	)

FINANCE COSTS		(5,487	)		(5,645	)

LOSS BEFORE TAX		(328,317	)		(108,918	)

Tax expense		-			(12,678	)

NET LOSS	$	(328,317	)	$	(121,596	)

Other comprehensive income:
Foreign currency translation loss		(372,930	)		(386,536	)
COMPREHENSIVE LOSS	$	(701,247	)	$	(508,132	)

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Segmented Information

	BioNexus Malaysia			Chemrex			BioNexus Malaysia			Chemrex
	Six months ended June 30, 2023						Six months ended June 30, 2022
REVENUE	$	11,932		$	4,932,121		$	33,467		$	5,480,579

COST OF REVENUE		(7,548	)		(4,227,894	)		(14,929	)		(4,878,813	)

GROSS PROFIT		4,384			704,227			18,538			601,766

OTHER INCOME		2,165			310,343			4,285			94,945

OPERATING EXPENSES
General and administrative		(98,720	)		(1,025,896	)		(94,681	)		(618,348	)

(LOSS)/PROFIT FROM OPERATIONS		(92,171	)		(11,326	)		(71,858	)		78,363

FINANCE COSTS		(1,275	)		(4,212	)		(1,860	)		(3,785	)

(LOSS)/PROFIT BEFORE TAX		(93,446	)		(15,538	)		(73,718	)		74,578

Tax expense		-			-			-			(12,678	)

NET (LOSS)/PROFIT	$	(93,446	)	$	(15,538	)	$	(73,718	)	$	61,900

Revenue. For the six months period ended June 30, 2023, we had total revenue of $4,944,053 as compared to total revenue of $5,514,046 for the same period in 2022, which had decreased by $569,993 from the prior period, approximately 10.3% decrease.

Chemrex contributed $4,932,121 (99.8%) of the total revenue for the current six months period as compared to $5,480,579 (99.4%) of the total revenue for the same period last year. Chemrex’s revenues had decreased by $548,458 from prior period, approximately 10.01% decrease. The revenue decreased in 2023 was due to material cost for Resin & Fiberglass mat has been reduced in Malaysia since January 2023. As a result, we adjusted the selling price of our product to stay competitive. Chemrex is catching up with the markets change post pandemic by targeting the right manufacturers to reduce cost of logistics and warehousing meanwhile may scarify some small retail businesses.

BioNexus-Malaysia contributed $11,932 (0.2%) of the total revenue for the current six months period as compared to revenue of $33,467 (0.6%) of the total revenue from the same period last year. BioNexus’s revenue had decreased by $21,535 from prior quarter, an approximately 64.3% decrease. The revenue decrease in 2023 was due to RNA screening process having been adversely impacted by the onset of the Covid-19 pandemic followed by a number of prominent variants, including Alpha, Beta, Delta, and Omicron. Although new variants are an expected part of the evolution of viruses, new variant is more aggressive, highly transmissible, vaccine-resistant, able to cause more severe disease in Malaysia. We believe that most people were reluctant to visit hospitals and clinics in view of the post Covid-19 Omicron and its subvariants for fear of transmission from other patients or medical staff. Since our RNA screening is administered at a diagnostic center, our business had been adversely affected as a result.

Cost of Revenue. For the six months period ended June 30, 2023, we incurred $4,235,442 in cost of revenues, as compared to $4,893,742 for the same period in 2022, decreased by $658,300 approximately 13.5% decrease was due to the same reason stated above.

Chemrex had incurred $4,227,894 (99.8%) of the total cost of revenue during the current period as compared to the same period last year wherein Chemrex had incurred $4,878,813 (99.7%) of the total in cost of revenue, decreased by $650,919, approximately 13.34% was due to the same reason stated above.

BioNexus had incurred $7,548 (0.2%) of the total cost of revenues during the current period as compared to $14,929 (0.3%) for the same period in 2023, decreased by $7,381, approximately 49.4% in cost of revenues for the current period was due to the same reason stated above.

Gross Profit. For the six months period ended June 30, 2023, we had total gross profit of $708,611 as compared to gross profit of $620,304 for the same period in 2023, increased by approximately 14.2% from the prior period.

Chemrex contributed $704,227 (99.4%) of the total gross profit for the current six months period as compared to $601,766 (97.0%) of the total gross profit for the same period last year. The gross profit increased by $102,461, approximately 17.3% for current period was due to higher revenue resulting higher gross profit.

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BioNexus-Malaysia had a gross profit of $4,384 (0.6%) of the total gross profit of $708,611 for the current six months period as compared to $18,538 (3%) of the total gross profit of $620,304 from the same period last year. The gross profit decreased by 76.4% was due to its decreased revenues for the current period as according to reason stated above.

Other Income. For the six months period ended June 30, 2023, we had $312,508 as compared to $99,230 for the same period in 2022, increased by $213,278 approximately 214.9%.

Chemrex contributed $310,343 (99.3%) of other income for the current six months period as compared to $94,945 (95.7%) of the other income for the same period last year. Chemrex’s other income increased by $215,398, approximately 226.87% was generated from bank interest and gain from fair value on investment.

BioNexus Malaysia had $2,165 (0.7%) for six months period ended June 30, 2023 as compared to $4,285 (4.3%) for the same period in 2022, decreased by approximately 49.5% was due to lower bank interest earning from lower fund deposited.

Operating Expenses. For the six months period ended June 30, 2023, we had a total operating expense of $1,343,949 as compared to total operating expenses of $822,807 for the same period in 2022. The increase of $521,142, approximately 63.3% was due to general and administrative expenses which includes depreciation of fixed assets, employee compensation and benefits, marketing/travel expenses, FINRA, SEC, Nasdaq and professional fees for Nasdaq uplist.

Chemrex had incurred $1,025,896 (76.3%) of the total operating expenses for the current six months period as compared to $618,348 (75.2%) of the total operating expenses for the same period last year, increased by $407,548, approximately 65.91% due to the increased commission, directors’ remuneration, medical expenses, loss on unrealized/realized currency exchanges and provision for losses on account receivables.

BioNexus-Malaysia had incurred $98,720 (7.3%) of the total operating expenses for the current six months period as compared to $94,681 (11.5%) of the total operating expenses for the same period last year. The slightly increase by approximately 4.3% in operating costs for the six months period was due to an increase of traveling expenses for marketing and staff remuneration increase.

BGLC, the holding company had incurred $219,333 (16.3%) of total operating expenses for the current six months period as compared to $109,778 (13.3%) of the total operating expenses for the same period last year. The increase of $109,555, approximately 99.8% in operating costs of the current period was due to the expenses on filing fees for form S-1, consultant fees for capital & corporation advisory services, fees for three independent board members and audit committee, SEC compliance services, SEC registration fee, 300+ shareholders’ notice printing and mailing expenses regarding stock reverse split by Securities Transfer Corporation, an additional review fee for S-1 and listing expenses for Nasdaq uplist.

Profit/Loss from Operations. We had a loss from operations of $322,830 for six months period ended June 30, 2023 as compared to loss of $103,273 for the same period in 2022. The decrease of $219,557, approximately 212.6% was due to the reasons discussed above.

Income tax expense. For the six-months period ended June 30, 2023, we had no income tax provided for Chemrex and Bionexus as compared to the same period 2022 which was a tax estimated $12,678 from Chemrex and no tax provided from Bionexus.

Foreign currency exchange gain/(loss). We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate would require us to recognize a transaction gain or loss on revaluation. For the six-months period ended June 30, 2023, we experienced a foreign currency loss of $372,930 as compared with a foreign currency loss of $386,536 for the same period in 2022.

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LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2023, we had working capital of $3,350,280 compared with working capital of $4,017,749 as of December 31, 2022. The decrease in working capital as of June 30, 2023 from December 31, 2022 was due principally to the decrease in cash used in our operations.

Our primary uses of cash had been for operations. The main sources of cash was generated from operational revenues and the private placement of our common stock. The following trends could result in a material decrease in our liquidity over the near to long term:

	·	Addition of administrative and marketing personnel as the business grows,
	·	Development of a Company website,
	·	Increases in advertising and marketing in order to attempt to generate more revenues, and
	·	The cost of being a public company.

The Company believes that cash flow from operations together will be sufficient to sustain its current level of operations for at least the next 12 months of operations.

The following is a summary of the Company’s cash flows provided by (used in) / generated from operating, investing, and financing activities for the three months ended June 30, 2023 and 2022:

	Six months ended
	June 30,
	2023			2023
Net cash used in Operating Activities	$	(140,341	)	$	(237,593	)
Net cash used in investing activities		(8,114	)		(418,955	)
Net cash generated from/(used in) financing activities		(4,212	)		112,177
Foreign currency translation adjustment		(207,517	)		(243,002	)
Net Change in Cash and Cash Equivalents	$	(360,184	)	$	(783,588	)

Operating Activities

During the six months ended June 30, 2023, the Company incurred a net loss of $328,317 which, after adjusting for amortization, depreciation, dividend income, fair value gain on share investment, provision for losses on accounts receivable, an increase in inventories, a decrease in trade receivables and a substantial reduction in trade payables, operating lease liabilities, advance payment from customer, resulted in net cash of $40,341 being used in operating activities during the six months ended June 30, 2023.By comparison, during the six months ended June 30, 2022, the Company had a net loss of $121,596 after adjusting for amortization, depreciation, dividend income, fair value loss on share investments and a decrease in inventories, trade receivables, deferred cost of revenue, a substantial reduction in trade payables, operating lease liabilities, advance payment from customer, deferred revenue, resulted in net cash of $233,808 being used in operating activities during the period.

Investing Activities

During the six months ended June 30, 2023, the Company had net cash of $8,114 used in investment activities from acquisition of share investment of $13,444 and purchase of plant & equipment of $14,458. By comparison during the six months ended June 30, 2022, the Company had net cash from acquisition of share investment of $404,793 and purchase of plant and equipment of $33,484, resulting in net cash used in investing activities of $418,955.

Financing Activities

During the six month ended June 30, 2023, the Company had net cash of $4,212 used in financing activities. By comparison during the six months ended June 30, 2022, we had net cash of $112,177 generated from financing activities for continued the repayment of a finance lease of $34,038 and shares subscriptions of $150,000.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this item.

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Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

In connection with the preparation of this quarterly report, an evaluation was carried out by the Company’s management, with the participation of the principal executive officer and the principal financial officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act (“Exchange Act”) as of June 30, 2023. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms, and that such information is accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

Based on that evaluation, the Company’s management concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were capable in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commission’s rules and forms, and that such information was accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

Management’s Report on Internal Control over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process, under the supervision of the principal executive officer and the principal financial officer, designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with United States generally accepted accounting principles (GAAP). Internal control over financial reporting includes those policies and procedures that:

Pertain to the maintenance of records that is in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;

ii)

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with the authorizations of management and the board of directors; and

iii)

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management had assessed the effectiveness of our internal control over financial reporting as of June 30, 2023, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, which assessment identified material weaknesses in internal control over financial reporting had improved. A material weakness could create reasonable possibility that a material misstatement in annual or interim financial statements. The management considers its internal control over financial reporting required further improvement.

Management had concluded an internal control over financial reporting and glad to note that a majority of our Board of Directors was made up of independent directors and the Audit Committee comprised of all independent directors since 2023, the adequacy in the monitoring of required internal controls and procedures were improving.

While these control deficiencies did not result in any audit adjustments to our 2023 or 2022 interim or annual financial statements, it could have resulted in a material misstatement that might have been prevented or detected by a segregation of duties.

To the extent reasonably possible, given our limited resources, upon consummation of a merger with a private operating company, the Company had been relying on three or more individuals. We were expanding our current board of directors to include additional independents willing to perform directorial functions. Since the recited remedial actions and we would hire or engage additional personnel, this material weakness would be overcome in the near term. Until such remedial actions could be realized, we would continue to rely on the advice of outside professionals and consultants.

This quarterly report does not include an attestation report of our registered public accounting firm regarding our internal controls over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to Section 404(c) of the Sarbanes-Oxley Act that permit us to provide only management’s report in this annual report.

Changes in Internal Controls over Financial Reporting

During the period ended June 30, 2023, there had been no change in internal control over financial reporting that had materially affected or was reasonably likely to materially affect our internal control over financial reporting.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings.

There are presently no pending legal proceedings to which the Company or any of its property is subject, or any material proceedings to which any director, officer or affiliate of the Company, any owner of record or beneficially of more than five percent of any class of voting securities is a party or has a material interest adverse to the Company, and no such proceedings are known to the Company to be threatened or contemplated against it.

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds.

(a) None.

(b) None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable to our Company.

Item 5. Other Information.

None.

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Item 6. Exhibits.

Exhibit		Description

31.1		Certification of the Company’s Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

31.2		Certification of the Company’s Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

32.1		Certification of the Company’s Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+

32.2		Certification of the Company’s Principal Accounting Officer and Principal Financial pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+

101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).*

101.SCH		Inline XBRL Taxonomy Extension Schema Document.*

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.*

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.*

101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.*

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.*

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

__________

+	In accordance with SEC Release 33-8238, Exhibit 32.1 and 32.2 are being furnished and not filed.

*	Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BIONEXUS GENE LAB CORPORATION

/s/ Sook Keng Yeoh
Sook Keng Yeoh
Chief Executive Officer and Director
(Principal Executive Officer)

/s/ Wei Li Leong
Wei Li Leong
Chief Financial Officer
(Principal Financial and Accounting Officer)

August 16, 2023

nullnullnullnull

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 14, 2023
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, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		17,698,549
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-229399
Entity Incorporation State Country Code	WY
Entity Tax Identification Number	35-2604830
Entity Interactive Data Current	Yes
Entity Address Address Line 1	Unit 02, Level 10 Tower B, Avenue 3, The Vertical
Entity Address Address Line 2	Business Suite II Bangsar South
Entity Address Address Line 3	No. 8 Jalan Kerinchi
Entity Address City Or Town	Kuala Lumpur
Entity Address Postal Zip Code	59200
City Area Code	60
Local Phone Number	1221-26512
Entity Address Country	MY
Trading Symbol	BGLC
Security 12b Title	Common stock, no par value
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and bank balances	$ 297,084	$ 611,849
Fixed deposits placed with financial institutions	1,461,596	1,507,015
Trade receivables	2,195,815	2,868,364
Other receivables, deposits and prepayments	47,481	25,240
Tax recoverable	59,000	31,551
Inventories	1,165,773	977,807
Total current assets	5,226,749	6,021,826
NON-CURRENT ASSETS
Operating lease right of use assets	44,896	55,730
Property, plant and equipment, net	1,396,621	1,511,708
Other investments	1,230,674	1,150,898
Total non-current assets	2,672,191	2,718,336
TOTAL ASSETS	7,898,940	8,740,162
CURRENT LIABILITIES
Trade payables	1,822,506	1,861,015
Other payables and accrued liabilities	30,771	103,370
Current portion of operating lease liabilities	16,098	16,569
Advance payment from customer	7,094	23,123
Total current liabilities	1,876,469	2,004,077
NON-CURRENT LIABILITIES
Non-current portion of operating lease liabilities	29,658	40,206
Deferred tax liabilities	29,047	30,866
Total non-current liabilities	58,705	71,072
TOTAL LIABILITIES	1,935,174	2,075,149
STOCKHOLDERS' EQUITY
As at June 30, 2023, common stock, no par value; 300,000,000 shares authorized and 173,718,152 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. As at December 31, 2022, common stock, no par value; 300,000,000 shares authorized and 173,718,152 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding.	10,929,574	10,929,574
Additional paid in capital	(5,011,891)	(5,011,891)
Accumulated surplus	828,075	1,156,392
Accumulated other comprehensive losses	(781,992)	(409,062)
TOTAL STOCKHOLDERS' EQUITY	5,963,766	6,665,013
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 7,898,940	$ 8,740,162

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
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	173,718,152	173,718,152
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 STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
REVENUE	$ 2,566,848	$ 2,485,101	$ 4,944,053	$ 5,514,046
COST OF REVENUE	(2,227,134)	(2,221,130)	(4,235,442)	(4,893,742)
GROSS PROFIT	339,714	263,971	708,611	620,304
OTHER INCOME	195,164	52,848	312,508	99,230
OPERATING EXPENSES
General and administrative	(807,077)	(454,783)	(1,343,949)	(822,807)
LOSS FROM OPERATIONS	(272,199)	(137,964)	(322,830)	(103,273)
FINANCE COSTS	(3,042)	(2,319)	(5,487)	(5,645)
LOSS BEFORE TAX	(275,241)	(140,283)	(328,317)	(108,918)
Tax credit/ (expense)	15,990	1,621		(12,678)
NET LOSS	(259,251)	(138,662)	(328,317)	(121,596)
Other comprehensive income:
Foreign currency translation loss	(333,891)	(317,760)	(372,930)	(386,536)
COMPREHENSIVE LOSS	$ (593,142)	$ (456,422)	$ (701,247)	$ (508,132)
Earnings per share - Basic and diluted	$ (0.003)	$ (0.003)	$ (0.004)	$ (0.003)
Weighted average number of common shares outstanding - Basic and diluted	173,718,152	172,976,394	173,718,152	172,102,130

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid In Capital	Accumulated Surplus/(Loss)	Accumulated Other Comprehensive Income/(Loss)
Balance, shares at Dec. 31, 2021		171,218,152
Balance, amount at Dec. 31, 2021	$ 7,179,779	$ 10,779,574	$ (5,011,891)	$ 1,512,358	$ (100,262)
Net profit for the period	17,066	0	0	17,066	0
Foreign currency translation loss	(68,776)	$ 0	0	0	(68,776)
Balance, shares at Mar. 31, 2022		171,218,152
Balance, amount at Mar. 31, 2022	7,128,069	$ 10,779,574	(5,011,891)	1,529,424	(169,038)
Balance, shares at Dec. 31, 2021		171,218,152
Balance, amount at Dec. 31, 2021	7,179,779	$ 10,779,574	(5,011,891)	1,512,358	(100,262)
Net profit for the period	(121,596)
Balance, shares at Jun. 30, 2022		173,718,152
Balance, amount at Jun. 30, 2022	6,821,647	$ 10,929,574	(5,011,891)	1,390,762	(486,798)
Balance, shares at Mar. 31, 2022		171,218,152
Balance, amount at Mar. 31, 2022	7,128,069	$ 10,779,574	(5,011,891)	1,529,424	(169,038)
Net profit for the period	(138,662)	0	0	(138,662)	0
Foreign currency translation loss	(317,760)	$ 0	0	0	(317,760)
Issuance of shares, shares		2,500,000
Issuance of shares, amount	150,000	$ 150,000	0	0	0
Balance, shares at Jun. 30, 2022		173,718,152
Balance, amount at Jun. 30, 2022	6,821,647	$ 10,929,574	(5,011,891)	1,390,762	(486,798)
Balance, shares at Dec. 31, 2022		173,718,152
Balance, amount at Dec. 31, 2022	6,665,013	$ 10,929,574	(5,011,891)	1,156,392	(409,062)
Net profit 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		173,718,152
Balance, amount at Mar. 31, 2023	6,556,908	$ 10,929,574	(5,011,891)	1,087,326	(448,101)
Balance, shares at Dec. 31, 2022		173,718,152
Balance, amount at Dec. 31, 2022	6,665,013	$ 10,929,574	(5,011,891)	1,156,392	(409,062)
Net profit for the period	(328,317)
Balance, shares at Jun. 30, 2023		173,718,152
Balance, amount at Jun. 30, 2023	5,963,766	$ 10,929,574	(5,011,891)	828,075	(781,992)
Balance, shares at Mar. 31, 2023		173,718,152
Balance, amount at Mar. 31, 2023	6,556,908	$ 10,929,574	(5,011,891)	1,087,326	(448,101)
Net profit for the period	(259,251)	0	0	(259,251)	0
Foreign currency translation loss	(333,891)	$ 0	0	0	(333,891)
Balance, shares at Jun. 30, 2023		173,718,152
Balance, amount at Jun. 30, 2023	$ 5,963,766	$ 10,929,574	$ (5,011,891)	$ 828,075	$ (781,992)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (328,317)	$ (121,596)
Adjustments to reconcile net loss to net cash used in from operating activities:
Amortization of right of use asset	7,891	8,586
Allowances for expected credit losses	291,940	0
Bad debts	4,078	0
Depreciation of property, plant and equipment	41,587	44,943
Dividend income	(19,788)	(19,322)
Fair value (gain)/loss on other investments	(140,862)	63,202
Interest	4,212	3,785
Property, plant and equipment written off	18	0
Operating loss before working capital changes	(139,241)	(20,402)
Changes in operating assets and liabilities:
Inventories	(187,966)	9,717
Trade and other receivables	354,290	526,165
Deferred cost of revenue	0	67,606
Trade and other payables	(111,108)	(635,694)
Advance payment from customer	(16,029)	(30,307)
Deferred revenue	0	(77,276)
Operating lease liabilities	(11,019)	(11,182)
Tax recoverable	(29,268)	(62,435)
Net cash used in operating activities	(140,341)	(233,808)
Cash flows from investing activities:
Acquisition of other investment	(13,444)	(404,793)
Dividend income	19,788	19,322
Purchase of plant and equipment	(14,458)	(33,484)
Net cash used in investing activities	(8,114)	(418,955)
Cash flows from financing activities:
Interest	(4,212)	(3,785)
Repayment of finance lease	0	(34,038)
Shares subscriptions	0	150,000
Net cash (used in)/generated from financing activities	(4,212)	112,177
Foreign currency translation adjustment	(207,517)	(243,002)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(360,184)	(783,588)
CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR	2,118,864	2,123,919
CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR	1,758,680	1,340,331
CASH AND CASH EQUIVALENTS INFORMATION:
Fixed deposits placed with financial institutions	1,461,596	849,744
Cash at bank	297,084	490,587
Cash and cash equivalents, end of financial year	1,758,680	1,340,331
Supplementary cash flow information:
Interest paid	(5,487)	(5,645)
Income taxes paid	$ (30,635)	$ (73,547)

ORGANIZATION AND BUSINESS BACKGROUND

6 Months Ended

Jun. 30, 2023

ORGANIZATION AND BUSINESS BACKGROUND

ORGANIZATION AND BUSINESS BACKGROUND

NOTE 1 – ORGANIZATION AND BUSINESS BACKGROUND

The corporate structure as at June 30, 2023 is depicted below:

	BioNexus Gene Lab Corp., a Wyoming company

100% owned		100% owned
Bionexus Gene Lab Sdn. Bhd., a Malaysian company		Chemrex Corporation Sdn. Bhd., a Malaysian company

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

·	Basis of presentation

The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

·	Basis of consolidation

·	Use of estimates

·	Cash and cash equivalents

·	Trade receivables

·	Inventories

Leases

·	Property, plant and equipment

The principal annual rates used are as follows:

Categories	Principal 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	%

Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use.

·	Impairment of long-lived assets

·	Revenue recognition

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

·	Comprehensive income

·	Income taxes

·	Net earnings or loss per share

·	Foreign currencies translation

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,
	2023		2022
Period ended June 30, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate		4.6650		4.3900

	January 1, 2023 to June 30, 2023		January 1, 2022 to June 30, 2022
6 months average US$1: MYR exchange rate		4.4629		4.2710

·	Related parties

☐	Fair value of financial instruments

☐	Level 1 : Observable inputs such as quoted prices in active markets;

☐	Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

☐	Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions

☐	Recent accounting pronouncements

☐	Recently Adopted Accounting Standards

TRADE RECEIVABLES

6 Months Ended

Jun. 30, 2023

TRADE RECEIVABLES

TRADE RECEIVABLES

NOTE 3 - TRADE RECEIVABLES

	As of
	June 30,			December 31,
	2023			2022

Trade receivables		2,487,755			2,868,364
Allowances for expected credit losses		(291,940	)		-
	$	2,195,815		$	2,868,364

INCOME TAXES

6 Months Ended

Jun. 30, 2023

INCOME TAXES

INCOME TAXES

NOTE 4 - INCOME TAXES

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

BioNexus Malaysia and Chemrex are both subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range of 24% on its assessable income.

	As of
	June 30,			December 31,
	2023			2022
Tax Recoverable
Local	$	-		$	-
Foreign, representing Malaysia		(59,000	)		(31,551	)
Tax Recoverable		(59,000	)		(31,551	)

Income tax liabilities:
Local	$	-		$	-
Foreign, representing Malaysia		-			-
Income tax payables		-			-

Deferred tax liabilities:
Local	$	-		$	-
Foreign, representing Malaysia		29,047			30,866
Deferred tax liabilities		29,047			30,866
Total		(29,953	)		(685	)

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

6 Months Ended

Jun. 30, 2023

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

Operating lease right of use assets as follows:	As of
	June 30,			December 31,
	2023			2022
Balance as of beginning of the year	$	55,730		$	41,090
Add: Addition of lease liabilities		-			32,281
Less: Amortization		(7,549	)		(15,534	)
Foreign translation differences		(3,285	)		(2,107	)
Balance	$	44,896		$	55,730

Operating lease liabilities as follows:
	June 30,			December 31,
	2023			2022
Balance as of beginning of the year	$	56,775		$	42,909
Add: Addition of lease liabilities		-			30,770
Less: gross repayment		(9,231	)		(19,618	)
Add: imputed interest		1,559			4,913
Foreign translation differences		(3,347	)		(2,199	)
Balance as of end of the year		45,756			56,775
Less: lease liability current portion		(16,098	)		(16,569	)
Lease liability non-current portion	$	29,658		$	40,206

The amortization of the right of use asset for the six months’ period ended June 30, 2023 and six months’ period ended June 30, 2022 were $7,891 and $8,586 respectively.

Other information:	As of
	June 30, 2023			December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating lease	$	(11,019	)	$	(126,686	)
Right of use assets obtained in exchange for operating lease liabilities		44,896			55,730
Remaining lease term for operating lease (years)		3.5			4
Weighted average discount rate for operating lease	$	6.40	%	$	6.40	%

Lease expenses for the six months’ period ended June 30, 2023 and the year ended December 31, 2022 were $1,559 and $4,913, respectively.

PROPERTY PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2023

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,
	2023			2022
Air conditioner	$	1,124		$	1,124
Computer and software		2,516			2,516
Equipment		59,801			60,525
Furniture and fittings		100,118			87,122
Lab equipment		320,102			320,102
Land and buildings		1,506,969			1,506,969
Motor vehicle		137,914			137,914
Office equipment		33,167			38,213
Renovation		98,597			107,414
Signboard		806			704
		2,261,114			2,262,603
(Less): Accumulated depreciation		(615,975	)		(590,317	)
Add: Foreign translation differences		(248,518	)		(160,578	)
Property, plant and equipment, net	$	1,396,621		$	1,511,708

Depreciation expense for the six months’ period ended June 30, 2023 and 2022 were $41,587 and $44,943 respectively.

OTHER INVESTMENTS

6 Months Ended

Jun. 30, 2023

OTHER INVESTMENTS

OTHER INVESTMENTS

NOTE 7 - OTHER INVESTMENTS

	As of
	June 30,			December 31,
	2023			2022
As of beginning of the year	$	1,150,898		$	749,027
Addition during the year		13,444			511,706
Disposal during the year		-			(1,776	)
Fair value gain/(loss)		140,862			(70,628	)
Foreign exchange translation		(74,530	)		(37,431	)
As of end of the year	$	1,230,674		$	1,150,898

The other investments consist of the following shares:
	As of
	June 30,		December 31,
	2023		2022
Investment in quoted shares:
Malaysia		737,367		659,970
Singapore		85,488		101,426
Hong Kong		407,819		389,502
	$	1,230,674	$	1,150,898

TRADE PAYABLES

6 Months Ended

Jun. 30, 2023

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

6 Months Ended

Jun. 30, 2023

CONCENTRATION OF RISKS

CONCENTRATION OF RISKS

NOTE 9 - CONCENTRATION OF RISKS

a) Major customers

During the three months and six months ended June 30, 2023 and 2022, 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, 2023 and 2022, 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:

	2023		2022		2023	2022		2023		2022
	Purchase				Percentage of purchases			Accounts payable trade
Vendor A	$	471,363	$	345,662	21.16%	15.56%	$	547,406	$	426,165
Vendor B	$	440,135	$	236,779	19.76%	10.66%	$	426,509	$	234,314
Vendor C	$	275,175	$	-	12.36%	-	$	-	$	-
Vendor D	$	254,165	$	253,960	11.41%	11.43%	$	195,856	$	251,316
Vendor E	$	244,265	$	424,781	10.97%	19.12%	$	256,315	$	214,213
	$	1,685,103	$	1,261,182	75.66%	56.78%	$	1,426,086	$	1,126,008

For six months ended June 30, 2023 and 2022, 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:

	2023		2022		2023	2022		2023		2022
	Purchase				Percentage of purchases			Accounts payable trade
Vendor A	$	850,293	$	731,918	20.08%	14.96%	$	426,509	$	234,314
Vendor B	$	669,389	$	657,426	15.80%	13.43%	$	547,406	$	426,165
Vendor C	$	567,721	$	583,334	13.40%	11.92%	$	195,856	$	251,316
Vendor D	$	458,405	$	870,145	10.82%	17.78%	$	256,315	$	214,213
	$	2,545,808	$	2,842,823	60.11%	58.09%	$	1,426,086	$	1,126,008

STOCKHOLDERS EQUITY

6 Months Ended

Jun. 30, 2023

STOCKHOLDERS EQUITY

STOCKHOLDERS' EQUITY

NOTE 10 - STOCK HOLDERS’ EQUITY

As of June 30, 2023 and 2022, the Company issued and outstanding common stock are 173,718,152 shares, respectively.

SEGMENTED INFORMATION

6 Months Ended

Jun. 30, 2023

SEGMENTED INFORMATION

SEGMENTED INFORMATION

NOTE 11 - SEGMENTED INFORMATION

At June 30, 2023, the Company (“BGLC”) operates in the biochemical industry segment through its two Malaysian subsidiaries, BioNexus Malaysia and Chemrex.

	BioNexus Gene Lab Corp., a Wyoming company

100% owned		100% owned
Bionexus Gene Lab Sdn. Bhd., a Malaysian company		Chemrex Corporation Sdn. Bhd., a Malaysian company

At June 30, 2023, the Company (“BGLC”) operates in the biochemical industry segment through its two Malaysian subsidiaries, BioNexus Malaysia and Chemrex.

For the six months ended June 30, 2023, segmented (unaudited) revenue and net profit/(loss) (Currency expressed in United States Dollars (“US$”) are as follows:

	BioNexus Malaysia			Chemrex			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	)

	BioNexus Malaysia			Chemrex			BGLC			Total
	Six months ended June 30, 2022
REVENUE	$	33,467		$	5,480,579		$	-		$	5,514,046

COST OF REVENUE		(14,929	)		(4,878,813	)		-			(4,893,742	)

GROSS PROFIT		18,538			601,766			-			620,304

OTHER INCOME		4,285			94,945			-			99,230

OPERATING EXPENSES
General and administrative		(94,681	)		(618,348	)		(109,778	)		(822,807	)

(LOSS)/PROFIT FROM OPERATIONS		(71,858	)		78,363			(109,778	)		(103,273	)

FINANCE COSTS		(1,860	)		(3,785	)		-			(5,645	)

PROFIT/(LOSS) BEFORE TAX		(73,718	)		74,578			(109,778	)		(108,918	)

Tax expense		-			(12,678	)		-			(12,678	)

NET PROFIT/(LOSS)	$	(73,718	)	$	61,900		$	(109,778	)	$	(121,596	)

	As of June 30, 2023 and December 31, 2022
	Total Assets				Total Liabilities
	2023		2022		2023		2022

BGLC & Bionexus	$	323,500	$	677,477	$	81,439	$	108,390
Chemrex		7,575,440		8,062,685		1,853,735		1,966,759
TOTAL		7,898,940		8,740,162		1,935,174		2,075,149

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 12 - SUBSEQUENT EVENTS

(a) Initial Public Offering

(b) Reversal of stock split

The Revised Reverse Stock Split was approved and authorized by a majority of the Company’s stockholder on May 8, 2023 and by the Board of Directors of the Company on May 8, 2023.

On July 19, 2023, the Financial Industry Regulatory Authority announced the Revised Reverse Stock Split.

As a result of the 1:12 reverse stock split and the closing of the Offering, the Company has 17,698,549 shares of common stock issued and outstanding as of August 14, 2023.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Foreign currencies translation

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,
	2023		2022
Period ended June 30, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate		4.6650		4.3900

	January 1, 2023 to June 30, 2023		January 1, 2022 to June 30, 2022
6 months average US$1: MYR exchange rate		4.4629		4.2710

Related parties

Fair value of financial instruments

☐	Level 1 : Observable inputs such as quoted prices in active markets;

☐	Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

☐	Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions

Recent accounting pronouncements

☐	Recently Adopted Accounting Standards

Basis of presentation

The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

Basis of consolidation

Use of estimates

Cash and cash equivalents

Trade receivables

Inventories

Leases

Property, plant and equipment

The principal annual rates used are as follows:

Categories	Principal 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	%

Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use.

Impairment of long-lived assets

Revenue recognition

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.

Comprehensive income

Income taxes

Net earnings or loss per share

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Principal Annual Rates

Categories	Principal 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	%

Schedule of Exchange Rates

	June 30,		December 31,
	2023		2022
Period ended June 30, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate		4.6650		4.3900

	January 1, 2023 to June 30, 2023		January 1, 2022 to June 30, 2022
6 months average US$1: MYR exchange rate		4.4629		4.2710

TRADE RECEIVABLES (Table)

6 Months Ended

Jun. 30, 2023

TRADE RECEIVABLES

Schedule of Principal Trade Receivable

	As of
	June 30,			December 31,
	2023			2022

Trade receivables		2,487,755			2,868,364
Allowances for expected credit losses		(291,940	)		-
	$	2,195,815		$	2,868,364

INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2023

INCOME TAXES

Schedule of Deferred Tax Assets and Liabilities

	As of
	June 30,			December 31,
	2023			2022
Tax Recoverable
Local	$	-		$	-
Foreign, representing Malaysia		(59,000	)		(31,551	)
Tax Recoverable		(59,000	)		(31,551	)

Income tax liabilities:
Local	$	-		$	-
Foreign, representing Malaysia		-			-
Income tax payables		-			-

Deferred tax liabilities:
Local	$	-		$	-
Foreign, representing Malaysia		29,047			30,866
Deferred tax liabilities		29,047			30,866
Total		(29,953	)		(685	)

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES

Schedule of operating lease right of use assets

Operating lease right of use assets as follows:	As of
	June 30,			December 31,
	2023			2022
Balance as of beginning of the year	$	55,730		$	41,090
Add: Addition of lease liabilities		-			32,281
Less: Amortization		(7,549	)		(15,534	)
Foreign translation differences		(3,285	)		(2,107	)
Balance	$	44,896		$	55,730

Schedule of the operating lease liability

Operating lease liabilities as follows:
	June 30,			December 31,
	2023			2022
Balance as of beginning of the year	$	56,775		$	42,909
Add: Addition of lease liabilities		-			30,770
Less: gross repayment		(9,231	)		(19,618	)
Add: imputed interest		1,559			4,913
Foreign translation differences		(3,347	)		(2,199	)
Balance as of end of the year		45,756			56,775
Less: lease liability current portion		(16,098	)		(16,569	)
Lease liability non-current portion	$	29,658		$	40,206

Schedule of Amortization of Right of Use

Other information:	As of
	June 30, 2023			December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating lease	$	(11,019	)	$	(126,686	)
Right of use assets obtained in exchange for operating lease liabilities		44,896			55,730
Remaining lease term for operating lease (years)		3.5			4
Weighted average discount rate for operating lease	$	6.40	%	$	6.40	%

PROPERTY PLANT AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2023

PROPERTY PLANT AND EQUIPMENT

Schedule of Plant and Equipment

	As of
	June 30,			December 31,
	2023			2022
Air conditioner	$	1,124		$	1,124
Computer and software		2,516			2,516
Equipment		59,801			60,525
Furniture and fittings		100,118			87,122
Lab equipment		320,102			320,102
Land and buildings		1,506,969			1,506,969
Motor vehicle		137,914			137,914
Office equipment		33,167			38,213
Renovation		98,597			107,414
Signboard		806			704
		2,261,114			2,262,603
(Less): Accumulated depreciation		(615,975	)		(590,317	)
Add: Foreign translation differences		(248,518	)		(160,578	)
Property, plant and equipment, net	$	1,396,621		$	1,511,708

OTHER INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2023

OTHER INVESTMENTS

Schedule of Other Investments

	As of
	June 30,			December 31,
	2023			2022
As of beginning of the year	$	1,150,898		$	749,027
Addition during the year		13,444			511,706
Disposal during the year		-			(1,776	)
Fair value gain/(loss)		140,862			(70,628	)
Foreign exchange translation		(74,530	)		(37,431	)
As of end of the year	$	1,230,674		$	1,150,898

The other investments consist of the following shares:
	As of
	June 30,		December 31,
	2023		2022
Investment in quoted shares:
Malaysia		737,367		659,970
Singapore		85,488		101,426
Hong Kong		407,819		389,502
	$	1,230,674	$	1,150,898

CONCENTRATION OF RISKS (Tables)

6 Months Ended

Jun. 30, 2023

CONCENTRATION OF RISKS

Schedule of Major suppliers Cost Of Sales

	2023		2022		2023	2022		2023		2022
	Purchase				Percentage of purchases			Accounts payable trade
Vendor A	$	471,363	$	345,662	21.16%	15.56%	$	547,406	$	426,165
Vendor B	$	440,135	$	236,779	19.76%	10.66%	$	426,509	$	234,314
Vendor C	$	275,175	$	-	12.36%	-	$	-	$	-
Vendor D	$	254,165	$	253,960	11.41%	11.43%	$	195,856	$	251,316
Vendor E	$	244,265	$	424,781	10.97%	19.12%	$	256,315	$	214,213
	$	1,685,103	$	1,261,182	75.66%	56.78%	$	1,426,086	$	1,126,008

	2023		2022		2023	2022		2023		2022
	Purchase				Percentage of purchases			Accounts payable trade
Vendor A	$	850,293	$	731,918	20.08%	14.96%	$	426,509	$	234,314
Vendor B	$	669,389	$	657,426	15.80%	13.43%	$	547,406	$	426,165
Vendor C	$	567,721	$	583,334	13.40%	11.92%	$	195,856	$	251,316
Vendor D	$	458,405	$	870,145	10.82%	17.78%	$	256,315	$	214,213
	$	2,545,808	$	2,842,823	60.11%	58.09%	$	1,426,086	$	1,126,008

SEGMENTED INFORMATION (Tables)

6 Months Ended

Jun. 30, 2023

SEGMENTED INFORMATION

Schedule of Segmented Revenue and Net Profit/(Loss)

	BioNexus Malaysia			Chemrex			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	)

	BioNexus Malaysia			Chemrex			BGLC			Total
	Six months ended June 30, 2022
REVENUE	$	33,467		$	5,480,579		$	-		$	5,514,046

COST OF REVENUE		(14,929	)		(4,878,813	)		-			(4,893,742	)

GROSS PROFIT		18,538			601,766			-			620,304

OTHER INCOME		4,285			94,945			-			99,230

OPERATING EXPENSES
General and administrative		(94,681	)		(618,348	)		(109,778	)		(822,807	)

(LOSS)/PROFIT FROM OPERATIONS		(71,858	)		78,363			(109,778	)		(103,273	)

FINANCE COSTS		(1,860	)		(3,785	)		-			(5,645	)

PROFIT/(LOSS) BEFORE TAX		(73,718	)		74,578			(109,778	)		(108,918	)

Tax expense		-			(12,678	)		-			(12,678	)

NET PROFIT/(LOSS)	$	(73,718	)	$	61,900		$	(109,778	)	$	(121,596	)

	As of June 30, 2023 and December 31, 2022
	Total Assets				Total Liabilities
	2023		2022		2023		2022

BGLC & Bionexus	$	323,500	$	677,477	$	81,439	$	108,390
Chemrex		7,575,440		8,062,685		1,853,735		1,966,759
TOTAL		7,898,940		8,740,162		1,935,174		2,075,149

ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative)	6 Months Ended
	Jun. 30, 2023 shares
BGS Lab Sdn. Bhd [Member]
Business acquisition, business operation description	The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 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.
Business Acquisition, Effective Date of Acquisition	Aug. 23, 2017
Chemrex Corporation Sdn. Bhd. [Member]
Business aquisition, shares converted	68,487,261

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2023
Common Stock
Principal Annual Rates	20.00%
Equipment [Member]
Principal Annual Rates	20.00%
Buildings [Member]
Principal Annual Rates	2.00%
Computer and Software [Member]
Principal Annual Rates	33.00%
Furniture and Fittings [Member] \| Minimum [Member]
Principal Annual Rates	10.00%
Furniture and Fittings [Member] \| Maximum [Member]
Principal Annual Rates	20.00%
Lab Equipment [Member]
Principal Annual Rates	10.00%
Motor Vehicle [Member] \| Minimum [Member]
Principal Annual Rates	10.00%
Motor Vehicle [Member] \| Maximum [Member]
Principal Annual Rates	20.00%
Office Equipment [Member]
Principal Annual Rates	20.00%
Renovation [Member] \| Minimum [Member]
Principal Annual Rates	10.00%
Renovation [Member] \| Maximum [Member]
Principal Annual Rates	20.00%
Signboard [Member]
Principal Annual Rates	10.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	6 Months Ended		12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Period ended March 31, 2023 /Year-ended December 31, 2022 US$1: MYR exchange rate	4.6650		4.3900
3 months average US$1: MYR exchange rate	4.4629	4.2710

TRADE RECEIVABLES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
TRADE RECEIVABLES
Trade Receivables	$ 2,487,755	$ 2,868,364
Allowances for expected credit losses	(291,940)	0
Total	$ 2,195,815	$ 2,868,364

TRADE RECEIVABLES (Details Narrative)	6 Months Ended
TRADE RECEIVABLES (Details Narrative)	Jun. 30, 2023
TRADE RECEIVABLES
Non-interest bearing	The normal trade credit term is generally on 30 days to 90 days term
Interest rate	6.00%

INCOME TAXES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Tax Recoverable	$ (59,000)	$ (31,551)
Income tax liabilities	0	0
Deferred tax liabilities	29,047	30,866
Total	(29,953)	(685)
Local [Member]
Tax Recoverable	0	0
Income tax liabilities	0	0
Deferred tax liabilities	0	0
Malaysia [Member]
Tax Recoverable	(59,000)	(31,551)
Income tax liabilities	0	0
Deferred tax liabilities	$ 29,047	$ 30,866

INCOME TAXES (Details Narrative) - Malaysia [Member]	6 Months Ended
INCOME TAXES (Details Narrative) - Malaysia [Member]	Jun. 30, 2023
Statutory income tax rate	24.00%
Statutory income tax rate, description	Under the amendment of Income Tax Act 1967 by the Finance Act 2020 and with effect from year of assessment 2020, companies with paid-up capital of RM2.5 million or less, and with annual business income of not more than RM50 million are subject to Small and Medium Enterprise Corporate Tax at 17% on chargeable income up to RM600,000 (2021: RM600,000) except for companies with investment holding nature or companies does not have gross income from business sources are subject to corporate tax at 24% on chargeable income.

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES
Beginning Balance	$ 55,730	$ 41,090
Add: Addition of lease liabilities	0	32,281
Less: Amortization	(7,549)	(15,534)
Foreign translation differences	(3,285)	(2,107)
Ending Balance	$ 44,896	$ 55,730

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 1) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Foreign translation differences	$ (3,285)	$ (2,107)
Lease liabilities non-current portion	29,658	40,206
Operating lease liability [Member]
Beginning Balance	56,775	42,909
Add: Addition of lease liabilities	0	30,770
Less: gross repayment	(9,231)	(19,618)
Add: imputed interest	1,559	4,913
Foreign translation differences	(3,347)	(2,199)
Ending Balance	45,756	56,775
Less: lease liabilities current portion	(16,098)	(16,569)
Lease liabilities non-current portion	$ 29,658	$ 40,206

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details 2) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating lease	$ (11,019)	$ (126,686)
Right of use assets obtained in exchange for operating lease liabilities	$ 44,896	$ 55,730
Remaining lease term for operating lease (years)	3 years 6 months	4 years
Weighted average discount rate for operating lease	6.40%	6.40%

OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Lease expenses	$ 1,559		$ 4,913
Amortization of right of use asset	$ 7,891	$ 8,586
Malayan Banking [Member]
Rental payment discount rate	6.40%

PROPERTY PLANT AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Total Plant and equipment	$ 2,261,114	$ 2,262,603
Less: Accumulated amortization	(615,975)	(590,317)
Add: Foreign translation differences	(248,518)	(160,578)
Property, plant and equipment, net	1,396,621	1,511,708
Equipment [Member]
Total Plant and equipment	59,801	60,525
Computer and Software [Member]
Total Plant and equipment	2,516	2,516
Lab Equipment [Member]
Total Plant and equipment	320,102	320,102
Office Equipment [Member]
Total Plant and equipment	33,167	38,213
Signboard [Member]
Total Plant and equipment	806	704
Air Conditioner [Member]
Total Plant and equipment	1,124	1,124
Furniture and fittings [Member]
Total Plant and equipment	100,118	87,122
Land and buildings [Member]
Total Plant and equipment	1,506,969	1,506,969
Motor Vehicle [Member]
Total Plant and equipment	137,914	137,914
Renovation [Member]
Total Plant and equipment	$ 98,597	$ 107,414

PROPERTY PLANT AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
PROPERTY PLANT AND EQUIPMENT
Depreciation expense	$ 41,587	$ 44,943

OTHER INVESTMENTS (Details) - USD ($)	6 Months Ended	12 Months Ended
OTHER INVESTMENTS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
OTHER INVESTMENTS
As of beginning of the year	$ 1,150,898	$ 749,027
Addition during the year	13,444	511,706
Disposal during the year	0	(1,776)
Fair value loss	140,862	(70,628)
Foreign exchange translation	(74,530)	(37,431)
As of end of the year	$ 1,230,674	$ 1,150,898

OTHER INVESTMENTS (Details 1) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Other investment	$ 1,230,674	$ 1,150,898
Malaysia [Member]
Other investment	737,367	659,970
Singapore [Member]
Other investment	85,488	101,426
Hong Kong [Member]
Other investment	$ 407,819	$ 389,502

CONCENTRATION OF RISKS (Details) - USD ($)	3 Months Ended		6 Months Ended
CONCENTRATION OF RISKS (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Concentration of risk purchase	$ 1,685,103	$ 1,261,182	$ 2,545,808	$ 2,842,823
Percentage of purchases	75.66%	56.78%	60.11%	58.09%
Accounts payable trade	$ 1,426,086	$ 1,126,008	$ 1,426,086	$ 1,126,008
Vendor A [Member]
Concentration of risk purchase	$ 471,363	$ 345,662	$ 850,293	$ 731,918
Percentage of purchases	21.16%	15.56%	20.08%	14.96%
Accounts payable trade	$ 547,406	$ 426,165	$ 426,509	$ 234,314
Vendor B [Member]
Concentration of risk purchase	$ 440,135	$ 236,779	$ 669,389	$ 657,426
Percentage of purchases	19.76%	10.66%	15.80%	13.43%
Accounts payable trade	$ 426,509	$ 234,314	$ 547,406	$ 426,165
Vendor C [Member]
Concentration of risk purchase	$ 275,175	$ 0	$ 567,721	$ 583,334
Percentage of purchases	12.36%	0.00%	13.40%	11.92%
Accounts payable trade	$ 0	$ 0	$ 195,856	$ 251,316
Vendor D [Member]
Concentration of risk purchase	$ 254,165	$ 253,960	$ 458,405	$ 870,145
Percentage of purchases	11.41%	11.43%	10.82%	17.78%
Accounts payable trade	$ 195,856	$ 251,316	$ 256,315	$ 214,213
Vendor E [Member]
Concentration of risk purchase	$ 244,265	$ 424,781
Percentage of purchases	10.97%	19.12%
Accounts payable trade	$ 256,315	$ 214,213

STOCK HOLDERS EQUITY (Details Narrative) - shares	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
STOCKHOLDERS EQUITY
Common stock, shares issued	173,718,152		171,218,152
Common stock, shares outstanding	173,718,152	173,718,152	171,218,152

SEGMENTED INFORMATION (Details) - USD ($)	3 Months Ended				6 Months Ended
SEGMENTED INFORMATION (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUE	$ 2,566,848		$ 2,485,101		$ 4,944,053	$ 5,514,046
COST OF REVENUE	(2,227,134)		(2,221,130)		(4,235,442)	(4,893,742)
GROSS PROFIT	339,714		263,971		708,611	620,304
OTHER INCOME	195,164		52,848		312,508	99,230
General and administrative					(1,343,949)	(822,807)
(LOSS)/PROFIT FROM OPERATIONS	(272,199)		(137,964)		(322,830)	(103,273)
FINANCE COSTS					(5,487)	(5,645)
(LOSS)/PROFIT BEFORE TAX	(275,241)		(140,283)		(328,317)	(108,918)
Tax expense					0	(12,678)
Net loss	$ (259,251)	$ (69,066)	$ (138,662)	$ 17,066	(328,317)	(121,596)
BioNexus Malaysia [Member]
REVENUE					11,932	33,467
COST OF REVENUE					(7,548)	(14,929)
GROSS PROFIT					4,384	18,538
OTHER INCOME					2,165	4,285
General and administrative					(98,720)	(94,681)
(LOSS)/PROFIT FROM OPERATIONS					(92,171)	(71,858)
FINANCE COSTS					(1,275)	(1,860)
(LOSS)/PROFIT BEFORE TAX					(93,446)	(73,718)
Tax expense					0	0
Net loss					(93,446)	(73,718)
Chemrex [Member]
REVENUE					4,932,121	5,480,579
COST OF REVENUE					(4,227,894)	(4,878,813)
GROSS PROFIT					704,227	601,766
OTHER INCOME					310,343	94,945
General and administrative					(1,025,896)	(618,348)
(LOSS)/PROFIT FROM OPERATIONS					(11,326)	78,363
FINANCE COSTS					(4,212)	(3,785)
(LOSS)/PROFIT BEFORE TAX					(15,538)	74,578
Tax expense					0	(12,678)
Net loss					(15,538)	61,900
BGLC [Member]
REVENUE					0	0
COST OF REVENUE					0	0
GROSS PROFIT					0	0
OTHER INCOME					0	0
General and administrative					(219,333)	(109,778)
(LOSS)/PROFIT FROM OPERATIONS					(219,333)	(109,778)
FINANCE COSTS					0	0
(LOSS)/PROFIT BEFORE TAX					(219,333)	(109,778)
Tax expense					0	0
Net loss					$ (219,333)	$ (109,778)

SEGMENTED INFORMATION (Details 1) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Total assets	$ 7,898,940	$ 8,740,162
Total Liabilities	1,935,174	2,075,149
Chemrex [Member]
Total assets	7,575,440	8,062,685
Total Liabilities	1,853,735	1,966,759
BGLC & Bionexus [Member]
Total assets	323,500	677,477
Total Liabilities	$ 81,439	$ 108,390

SUBSEQUENT EVENTS (Detail Narrative) - USD ($)	1 Months Ended		6 Months Ended
SUBSEQUENT EVENTS (Detail Narrative) - USD ($)	Jul. 24, 2023	Jul. 20, 2023	Jun. 30, 2023	Aug. 10, 2023	Dec. 31, 2022	Jun. 30, 2022
Common stock shares			173,718,152			171,218,152
Reverse stock split			1:12 reverse stock split
Expenses			$ 5,290,000
Purchase of shares			115,000
Total gross proceeds			$ 5,750,000
Common stock, shares outstanding			173,718,152		173,718,152	171,218,152
Subsquent Event [Member]
Public offering price	$ 4	$ 4
Common stock shares	187,500	1,250,000		17,698,549
Stock issued during period	1,437,500
Common stock par value		$ 4
Common stock, shares outstanding				17,698,549

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