BioNexus Gene Lab Corp Segments Disclosure
NOTE 13 – SEGMENT INFORMATION
The Company determines it reportable segments based on its internal organization structure and internal management reporting used to assess and allocate resources. This information are regularly reviewed by the Company’s Chief Executive Officer who is identified as the Chief Operating Decision Maker (“CODM”). The Company consists of three operating units, BioNexus Gene Lab Corp., MRNA Scientific Sdn. Bhd. and Chemrex Corporation Sdn. Bhd. which are determined as three reportable segments, as described below. These reportable segments offer different products and services, and are managed separately because they require different technology and marketing strategies. The following describes the operations in each of the Company’s reportable segments:
· | Trading of industrial chemicals | - | Includes trading of industrial chemicals |
· | Provision for genomic screening services | - | includes in commercializing proprietary blood-based diagnostic test for early disease detection |
· | Investment holding | - | Investment holding |
The CODM evaluates the performance of each reportable segment based on operating income and key segment-specific metrics. There are no inter-segment revenue transactions between reportable segments. Except for investment holding activities and the revenue to the overseas customers as disclosed in Note 9, the Company’s revenue and principal operations are substantially confined within Malaysia.
Pursuant to ASU 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures”, the financial information concerning the Company’s reportable segments is shown as below:
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| Provision for genomic screening services |
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| Trading of industrial chemicals |
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| Investment holding |
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| Total |
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| Year ended December 31, 2023 |
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REVENUE |
| $ | 24,219 |
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| $ | 9,746,587 |
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| $ | - |
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| $ | 9,770,806 |
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COST OF REVENUE |
|
| (19,851 | ) |
|
| (8,421,457 | ) |
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| - |
|
|
| (8,441,308 | ) |
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GROSS PROFIT |
|
| 4,368 |
|
|
| 1,325,130 |
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|
| - |
|
|
| 1,329,498 |
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OTHER INCOME |
|
| 19,629 |
|
|
| 466,407 |
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|
| - |
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|
| 486,036 |
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OPERATING EXPENSES |
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Sales and marketing |
|
| (18,884 | ) |
|
| (569,896 | ) |
|
| (8,078 | ) |
|
| (596,858 | ) |
Research and development |
|
| (54,982 | ) |
|
| - |
|
|
| - |
|
|
| (54,982 | ) |
General and administrative |
|
| (171,881 | ) |
|
| (134,678 | ) |
|
| (2,136,296 | ) |
|
| (2,442,855 | ) |
Provision for expected credit losses |
|
| - |
|
|
| (1,314,427 | ) |
|
| - |
|
|
| (1,314,427 | ) |
TOTAL OPERATING EXPENSES |
|
| (245,747 | ) |
|
| (2,019,001 | ) |
|
| (2,144,374 | ) |
|
| (4,409,122 | ) |
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LOSS FROM OPERATIONS |
|
| (221,750 | ) |
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| (227,464 | ) |
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| (2,144,374 | ) |
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| (2,593,588 | ) |
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FINANCE COSTS |
|
| (5,052 | ) |
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| (8,877 | ) |
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| - |
|
|
| (13,929 | ) |
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LOSS BEFORE TAX |
|
| (226,802 | ) |
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| (236,341 | ) |
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| (2,144,374 | ) |
|
| (2,607,517 | ) |
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|
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Deferred tax |
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| 12,269 |
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| 5,090 |
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|
| - |
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|
| 17,359 |
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Income tax |
|
| (2,613 | ) |
|
| (36,272 | ) |
|
| - |
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|
| (38,885 | ) |
Total tax (expense)/credit |
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| 9,656 |
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|
| (31,182 | ) |
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| - |
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|
| (21,526 | ) |
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NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
| $ | (217,146 | ) |
| $ | (267,523 | ) |
| $ | (2,144,374 | ) |
| $ | (2,629,043 | ) |
|
| Provision for genomic screening services |
|
| Trading of industrial chemicals |
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| Investment holding |
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| Total |
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| Year ended December 31, 2024 |
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REVENUE |
| $ | 16,069 |
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| $ | 9,494,577 |
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| $ | - |
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| $ | 9,510,646 |
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COST OF REVENUE |
|
| (7,316 | ) |
|
| (8,213,809 | ) |
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| - |
|
|
| (8,221,125 | ) |
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GROSS PROFIT |
|
| 8,753 |
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|
| 1,280,768 |
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|
| - |
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|
| 1,289,521 |
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OTHER INCOME |
|
| 122,951 |
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|
| 1,949,522 |
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|
| - |
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|
| 2,072,473 |
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OPERATING EXPENSES |
|
|
|
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|
|
|
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|
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Sales and marketing |
|
| (125,299 | ) |
|
| (1,861,456 | ) |
|
| (43,929 | ) |
|
| (2,030,684 | ) |
Research and development |
|
| (47,511 | ) |
|
| - |
|
|
| - |
|
|
| (47,511 | ) |
General and administrative |
|
| (194,038 | ) |
|
| (679,321 | ) |
|
| (1,100,609 | ) |
|
| (1,973,968 | ) |
Provision for expected credit losses |
|
| - |
|
|
| (883,533 | ) |
|
| - |
|
|
| (883,533 | ) |
TOTAL OPERATING EXPENSES |
|
| (366,848 | ) |
|
| (3,424,310 | ) |
|
| (1,144,538 | ) |
|
| (4,935,696 | ) |
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LOSS FROM OPERATIONS |
|
| (235,144 | ) |
|
| (194,020 | ) |
|
| (1,144,538 | ) |
|
| (1,573,702 | ) |
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FINANCE COSTS |
|
| (11,795 | ) |
|
| (9,072 | ) |
|
| (279 | ) |
|
| (21,146 | ) |
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LOSS BEFORE TAX |
|
| (246,939 | ) |
|
| (203,092 | ) |
|
| (1,144,817 | ) |
|
| (1,594,848 | ) |
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Tax expense: |
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Deferred tax |
|
| - |
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|
| 12,305 |
|
|
| - |
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|
| 12,305 |
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Income tax |
|
| - |
|
|
| (15,799 | ) |
|
| - |
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|
| (15,799 | ) |
Tax expense |
|
| - |
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|
| (3,494 | ) |
|
| - |
|
|
| (3,494 | ) |
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NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS |
| $ | (246,939 | ) |
| $ | (206,586 | ) |
| $ | (1,144,817 | ) |
| $ | (1,598,342 | ) |
|
| Provision for genomic screening services |
|
| Trading of industrial chemicals |
|
| Investment holding |
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| Total |
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|
| Year ended December 31, 2023 |
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Segment assets |
| $ | 2,522,321 |
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| $ | 6,676,344 |
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| $ | 2,201,128 |
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| $ | 11,399,793 |
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Included in the measure of segment assets are: |
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Addition to non-current assets other than financial instruments and deferred tax assets |
|
| 247,192 |
|
|
| 15,486 |
|
|
| - |
|
|
| 262,678 |
|
|
| Provision for genomic screening services |
|
| Trading of industrial chemicals |
|
| Investment holding |
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| Total |
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|
| Year ended December 31, 2024 |
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Segment assets |
| $ | 2,652,754 |
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| $ | 6,788,302 |
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| $ | 992,792 |
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| $ | 10,433,848 |
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Included in the measure of segment assets are: |
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Addition to non-current assets other than financial instruments and deferred tax assets |
|
| 150,881 |
|
|
| 221,844 |
|
|
| - |
|
|
| 372,725 |
|
The Company had no inter-segment sales for the years presented.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.