# EDGAR Filing Document

**Accession Number:** 0001737523
**File Stem:** 0001477932-26-002218
**Filing Date:** 2026-4
**Character Count:** 348723
**Document Hash:** 379eba1d30d6191492d5d5391009ec30
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-26-002218.hdr.sgml**: 20260414

**ACCESSION NUMBER**: 0001477932-26-002218

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 103

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260414

**DATE AS OF CHANGE**: 20260414

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BioNexus Gene Lab Corp
- **CENTRAL INDEX KEY:** 0001737523
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MEDICAL LABORATORIES [8071]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 262124961
- **STATE OF INCORPORATION:** WY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41750
- **FILM NUMBER:** 26861734

**BUSINESS ADDRESS:**
- **STREET 1:** 10-2 TOWER B, VERTICAL BUSINESS SUITE,
- **STREET 2:** 8 JALAN KERINCHI,
- **CITY:** KUALA LUMPUR
- **STATE:** N8
- **ZIP:** 59200
- **BUSINESS PHONE:** 1-307-241-6898

**MAIL ADDRESS:**
- **STREET 1:** 10-2 TOWER B, VERTICAL BUSINESS SUITE,
- **STREET 2:** 8 JALAN KERINCHI,
- **CITY:** KUALA LUMPUR
- **STATE:** N8
- **ZIP:** 59200

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BioNexus Gene Lab Coporation
- **DATE OF NAME CHANGE:** 20180413

?xml version='1.0' encoding='ASCII'? bglc_10k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 10-K**

(Mark One)

☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: **<u>December 31, 2025</u>**

or

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: **<u>001-41750</u>**

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| **BIONEXUS GENE LAB CORP** |
| (Exact name of registrant as specified in its charter) |

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|:---|:---|
| **Wyoming** | **35-2604830** |
| (State or Other Jurisdiction of | (I.R.S. Employer |
| Incorporation or Organization) | Identification No.) |
| **Unit A-28-7, Level 28, Tower A,** |  |
| **Menara UOA Bangsar,** |  |
| **No.5 Jln Bangsar Utama 1,** |  |
| **Kuala Lumpur, Malaysia** | **59000** |
| (Address of Principal Executive Offices) | (Zip Code) |

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**<u>+1 307 241 6898</u>**

(Registrant's telephone number, including area code)

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

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|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** | **Name of each exchange where registered** |
| Common Stock, no par value | BGLC | Nasdaq Capital Market |

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Securities registered pursuant to Section 12(g) of the Act: **<u>None</u>**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

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, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

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

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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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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 the last business day of the Issuer's most recently completed second fiscal quarter, June 30, 2025, the aggregate market value of the voting and non-voting common equity held by non-affiliates was approximately $4,814,884.

As of December 31, 2025, there were 2,417,314 shares of common stock, no par value, outstanding.

**CONTENTS**

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|  |  | **PAGE** |
| [PART I](#p1) |  |  |
| [Item 1.](#i1) | [Business](#i1) | 4 |
| [Item 1A.](#i1a) | [Risk Factors](#i1a) | 20 |
| [Item 1B.](#i1b) | [Unresolved Staff Comments](#i1b) | 34 |
| [Item 1C.](#i1c) | [Cybersecurity](#i1c) | 34 |
| [Item 2.](#i2) | [Properties](#i2) | 35 |
| [Item 3.](#i3) | [Legal Proceedings](#i3) | 35 |
| [Item 4.](#i4) | [Mine Safety Disclosures](#i4) | 35 |
| [PART II](#p2) |  |  |
| [Item 5.](#i5) | [Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#i5) | 36 |
| [Item 6.](#i6) | [Selected Financial Data](#i6) | 36 |
| [Item 7.](#i7) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#i7) | 36 |
| [Item 7A.](#i7a) | [Quantitative and Qualitative Disclosures About Market Risk](#i7a) | 46 |
| [Item 8.](#i8) | [Financial Statements and Supplementary Data](#i8) | 46 |
| [Item 9.](#i9) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i9) | 46 |
| [Item 9A.](#i9a) | [Controls and Procedures](#i9a) | 46 |
| [Item 9B.](#i9b) | [Other Information](#i9b) | 47 |
| [PART III](#p3) |  |  |
| [Item 10.](#i10) | [Directors, Executive Officers and Corporate Governance](#i10) | 48 |
| [Item 11.](#i11) | [Executive Compensation](#i11) | 54 |
| [Item 12.](#i12) | [Security Ownership of Certain Beneficial Owners and Management](#i12) | 56 |
| [Item 13.](#i13) | [Certain Relationships and Related Transactions, and Director Independence](#i13) | 57 |
| [Item 14.](#i14) | [Principal Accountant Fees and Services](#i14) | 59 |
| [PART IV](#p4) |  |  |
| [Item 15.](#i15) | [Exhibits, Financial Statement Schedules](#i15) | 60 |
| [SIGNATURES](#sig) | [SIGNATURES](#sig) | 62 |

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| 2 |
| *[**Table of Contents**](#toc)* |

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**FORWARD-LOOKING STATEMENTS**

Certain statements made in this Annual Report on Form 10-K are "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the plans and objectives of management for future operations. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Registrant to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. The Company's plans and objectives are based, in part, on assumptions involving the continued expansion of business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be construed as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

Unless stated otherwise, the words "we," "us," "our," or "the Company" in this Annual Report collectively refers to BioNexus Gene Lab Corp., a Wyoming corporation and our wholly owned subsidiaries, MRNA Scientific Sdn. Bhd. (formerly BioNexus Gene Lab Sdn. Bhd.) ("MRNA Scientific"), and Chemrex Corporation Sdn. Bhd. ("Chemrex"), both Malaysian companies ("Subsidiaries"). "BGLC" or "BioNexus" refers to BioNexus Gene Lab Corp. "RM" refers to Malaysian Ringgit, the legal currency of Malaysia. "USD," "US$," or "$" refer to US dollars, the legal currency of the United States.

We acquired Chemrex on December 31, 2020, pursuant to a Share Exchange Agreement with Chemrex its shareholders. We acquired all of 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 BioNexus issued to the Chemrex shareholders.

Our principal corporate office is Unit A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia. The MRNA Scientific Malaysia lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia and it also has a blood collection center located at 1<sup>st</sup> floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia. Chemrex offices and supply hub is located at 4 Jalan CJ 1/6 Kawasan Perusahaan Cheras Jaya, Selangor, Malaysia.

Our corporate telephone number is +1 307 241 6898 and our website is www.bionexusgenelab.com.

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**PART I**

**Item 1. Business.**

***Overview***

BioNexus Gene Lab Corp. is a Wyoming corporation with two principal operating subsidiaries in Malaysia: Chemrex Corporation Sdn. Bhd. ("Chemrex") and MRNA Scientific Sdn. Bhd. ("MRNA Scientific"). Chemrex is engaged in the distribution of chemical raw materials, primarily for industrial applications in Southeast Asia. MRNA Scientific is engaged in the development and provision of blood-based genomic screening services intended to support early disease risk assessment and health management.

In November 2025, the Company entered into a Share Subscription and Shareholders' Agreement with Fidelion Diagnostics Pte. Ltd. ("Fidelion") and related parties, and also entered into an exclusive Southeast Asia intellectual property license arrangement relating to the VitaGuard™ minimal residual disease platform. These transactions expanded the Company's strategic focus in molecular diagnostics and oncology-related screening technologies.

The Company's principal executive office is located at Unit A-28-7, Level 28, Tower A, Menara UOA Bangsar, No. 5 Jalan Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia. The Company's telephone number is +1 307 241 6898 and its website is www.bionexusgenelab.com. Information contained on, or accessible through, the Company's website is not incorporated by reference into this Annual Report on Form 10-K.

**Current Operations and Key Recent Developments**

The Company, through its wholly owned subsidiary Chemrex, focuses on the sale of chemical raw materials for the manufacture of industrial, medical, appliance, aero, automotive, mechanical, and electronic industries in the Southeast Asia region. These countries include Malaysia, Indonesia, Vietnam, and other countries in Southeast Asia.

In addition, through its wholly owned subsidiary MRNA Scientific, the Company conducts genomic screening and related laboratory services. MRNA Scientific's services involve blood-based analysis intended to provide risk-related information with respect to certain disease categories. The Company continues to evaluate MRNA Scientific's operations, commercial opportunities, and strategic direction.

In November 2025, the Company completed a Share Subscription and Shareholders' Agreement with Fidelion Diagnostics Pte. Ltd., a Singapore company ("Fidelion"). The parties also entered into an Intellectual Property License Agreement, pursuant to which the Company obtained exclusive commercial rights to the VitaGuard™ Minimal Residual Disease (MRD) platform in the ASEAN region, on a perpetual and exclusive basis. VitaGuard™ is a next-generation, AI-enabled platform for minimal residual disease (MRD) monitoring. Designed as a high-efficiency, high-fidelity liquid biopsy system, VitaGuard™ enables clinicians to detect early signs of cancer recurrence and support precision-treatment decision making. In January 2026, the Company announced the formal commencement of the deployment phase for the VitaGuard™ MRD platform in connection with its licensing arrangement.

In November 2025, the Company also filed a registration statement on Form S-3 to register securities that may be offered from time to time and entered into an Equity Distribution Agreement with Maxim Group LLC for an at-the-market offering program.

During 2025, the Company also continued its governance remediation efforts relating to historical control and approval issues identified at Chemrex.

**Corporate History**

The Company was incorporated in the State of Wyoming on May 12, 2017. On August 23, 2017, the Company acquired all of the outstanding capital stock of MRNA Scientific Sdn. Bhd. (formerly BioNexus Gene Lab Sdn. Bhd), a Malaysian corporation incorporated in Malaysia on April 7, 2015, which it then subsequently changed its name to MRNA Scientific Sdn. Bhd. ("MRNA Scientific") on September 19, 2023.

On December 31, 2020, the Company consummated a Share Exchange Agreement with Chemrex and the Chemrex shareholders, pursuant to which the Company acquired all of the issued and outstanding shares of capital stock of Chemrex, which was incorporated in Malaysia on September 29, 2004, from the Chemrex shareholders in exchange for 68,487,261 shares of common stock of the Company issued to the Chemrex shareholders.

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***Initial Public Offering and Reverse Stock Split***

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.

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.

Prior to the public offering on June 5, 2023, the Company filed an Article of Amendment to its 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 were combined into and automatically became one share of common stock. No fractional shares were 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) that were issuable in the Revised Reverse Stock Split were 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 stockholders 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.

***2025 Reverse Stock Split.***

On March 19, 2025, the Company held a Special Meeting of Shareholders which, among other items, approved an Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company's outstanding shares of common stock, with a ratio ranging from one-for-five (1:5) to one-for-ten (1:10), with the exact ratio to be set at the discretion of the Board of Directors.

On April 1, 2025, the Company filed its Articles of Amendment with the Wyoming Secretary of State to effect a one for ten (1 for 10) reverse stock split of its issued and outstanding common stock, which became effective April 7, 2025. Immediately prior to the reverse stock split, the Company had 17,967,663 shares of common stock issued and outstanding and immediately after the reverse stock split, the Company had 1,796,597 shares of common stock issued and outstanding. No fractional shares were issued in connection with the reverse stock split. Instead, shareholders who would otherwise be entitled to receive a fractional share received a cash payment in lieu thereof based on the daily Volume Weighted Average Price (VWAP) of our common stock, calculated for ten (10) trading days immediately preceding the effective date of the Reverse Stock Split, multiplied by the fractional share.

***2025 Shelf Filing***

On November 7, 2025, the Company filed a registration statement on Form S-3 with the U.S. Securities and Exchange Commission to register up to $100 million of securities that may be offered from time to time. The Company concurrently entered into an Equity Distribution Agreement with Maxim Group LLC ("Agent"), pursuant to which the Company may offer and sell, from time to time, shares of its common stock, no par value (the "Common Stock"), having an aggregate offering price of up to $20,000,000 through the Agent, acting as the Company's exclusive sales agent (the "ATM Program").

Sales, if any, will be made in transactions deemed to be "at-the-market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended, which may be made directly on The Nasdaq Capital Market or otherwise at prevailing market prices, at prices related to prevailing market prices, or at negotiated prices, as permitted by the Agreement. The Company is not obligated to sell any shares under the ATM Program, and the Agent is not required to purchase any shares. The Form S-3 became effective on November 27, 2025, and 53,478 shares have been sold for proceeds of $267,311 as of the date of filing of this Form 10-K.

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*Recent and Ongoing Corporate Events*

*A. Annual Meeting Irregularities.*

As previously reported, in connection with the Company's Annual Meeting held on October 4, 2024, the Company believes that, in advance of the Annual Meeting and potentially in violation of federal securities laws, a solicitation of dissident proxies, along with the dissemination of false and misleading statements, was made to a number of Company shareholders holding substantial voting power. Many of these shareholders were prior shareholders of our subsidiary, Chemrex. No dissident proxy was filed with the Securities and Exchange Commission as required under their rules and regulations. This belief is premised upon preliminary information received by the Company from certain of these shareholders. Based on this information, the Company believes that a former Officer and Director of the Company, who was previously removed by the Company shareholders, was one of the primary dissident parties directing the unlawful acts ("Dissident Actors"). The Company believes the dissident solicitation negatively affected the results of the approval of the stock option plan and a reverse stock split proposal ("Compromised Proposals"). The Company believes the Dissident Actors ostensibly urged a number of shareholders holding a substantial number of votes to oppose the Compromised Proposals. The Company believes that as a result, the Compromised Proposals were not approved by the Company's shareholders. The reverse stock split proposal was necessary for the Company to maintain its Nasdaq listing (See B. *Nasdaq Deficiency* below).

*B. Nasdaq Deficiency and Compliance*

On November 6, 2023, the Company reported that it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market ("Nasdaq") regarding the Company's failure to comply with Nasdaq Continued Listing Rule ("Rule") 5550(a)(2), which requires listed securities to maintain a minimum bid price of $1.00 per share. A failure to comply with Rule 5550(a)(2) exists when listed securities fail to maintain a closing bid price of at least $1.00 per share for 30 consecutive business days.

Under Rule 5810(c)(3)(A), the Company automatically was provided a period of 180 calendar days, until May 6, 2024, to regain compliance.

Subsequently, the Company requested a number of compliance extensions/exceptions which were granted by Nasdaq. On March 19, 2025**,** the "Company held a Special Meeting of Shareholders to approve a reverse stock split of the Company's outstanding shares of common stock, with a ratio ranging from one-for-five (1:5) to one-for-ten (1:10), with the exact ratio to be set at the discretion of the Board of Directors. After a quorum was established, the shareholders approved the Reverse Stock Split. Thereafter, on that same date, the Board of Directors set the reverse stock split ratio at 1 for 10. The Reverse Stock Split was approved by the Board at a ratio of one-for-ten (1:10), an amendment was filed with the Wyoming Secretary of State on April 1, 2025, and the reverse split became market effective on April 7, 2025.

*C. Chemrex Governance.*

During preparation of the Company's quarterly report for the period ending September 30, 2024, several lapses in corporate governance standards were discovered in our wholly owned subsidiary, Chemrex. These findings have been duly disclosed in our prior filings after investigation by the Audit Committee. The findings of the Audit Committee investigation were that due to the resignation of two Directors (Mr. Wei Foong Lim, and Mr. Koon Wai Wong), one of which was an Audit Committee member, that oversight and governance at the subsidiary level of Chemrex required improvement. This was communicated with our Independent Auditor, and the result is that the Audit Committee has authorized an Internal Audit program to help improve overall governance and controls, that the report would be tabled to the Audit Committee and Management for action, and that the lapses would be reviewed at an upcoming Annual Shareholder Meeting of Chemrex.

During this meeting, the transactions associated with the governance lapses were reviewed and rejected by the Company as the sole shareholder. As all accounting treatment has been duly disclosed, we do not expect any material negative impact on the financial statements pending the results of the Annual Meeting.

The transactions and notes are highlighted in Item 13, Related Party Transactions.

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**Corporate Structure**

The corporate structure as of the date of this filing depicted below:

<br>BioNexus Gene Lab Corp.<br>a Wyoming Company<br>

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| 100% owned | 100% owned |
| MRNA Scientific Sdn. Bhd., | Chemrex Corporation |
| a Malaysian company | Sdn. Bhd., |
|  | a Malaysian company |

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Our two core businesses are Chemical Raw Materials and MRNA Diagnostics described below.

**Chemical Raw Material Business**

**Our Products**

Chemrex, our wholly owned subsidiary, is involved in the wholesale of chemical raw material products. We purchase raw chemical materials, mostly fibre re-enforced polymers ("FRP"), from domestic and international manufacturers and sell them to manufacturers in Southeast Asia. The FRP and other raw materials we offer are used to produce a wide variety of goods, including handrails, bench tops, automotive and aero parts, cleanroom panels, and covers for various instruments used in manufacturing.

A substantial portion of the Company's revenue comes from the sale of FRP products. FRP products are sought after by our customers due to:

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| The material's light weight coupled with high strength. The material's ability to be a good electrical insulator with no electro-magnetic behavior and no electric spark. |
| The material's rust-free nature and resistance to acid, alkali, organic dissolvents, and other gas and liquid mixtures. |
| The material's resistance to aging with more than 20 years of useful life under normal working conditions. |
| The material's ease of maintenance. |

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**Chemical Raw Material Product Examples**

Listed below are some examples of FRP chemical raw material products the company sells. In addition, there are both general purpose and more specific use case materials.

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| ![bglc_10kimg12.jpg](bglc_10kimg12.jpg) | *Polyester Resin SHCP 268*<br>SHCP 268 is a thixotropic, quick-curing unsaturated polyester resin suitable as a general-purpose resin. It can be used in generally all FRP products. However, it does not have significant structural integrity, chemical resistance, or UV resistance properties and as a result its application is limited. For example, one of the ways this material has been used is in the construction of train seats. |
| ![bglc_10kimg13.jpg](bglc_10kimg13.jpg) | *Polyester Resin 9509*<br>This is a premium raw material compared to Polyester Resin SHCP 268 and is priced higher. Like Polyester Resin SHCP 268, it is a general-purpose material but provides more structural integrity and is longer lasting. Customers have used this material to produce marine boats and water slides. |
| ![bglc_10kimg14.jpg](bglc_10kimg14.jpg) | *Polyester Resin 2802*<br>This is also a more premium grade of resin. It has a niche use case and is generally used as a key component in the pultrusion process by certain manufacturers. |

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*Chemical Raw Material Product Applications*

Our chemicals are used to produce a wide variety of finished goods. Common products utilizing our FRP materials include handrails, bench tops, automotive and aero parts, panelling for hospital/laboratory/industrial clean rooms, and covers for various instruments used in manufacturing. Some examples of FRP end-user products manufactured by our customers are displayed below:

<u>Medical and Industrial Equipment</u>

![bglc_10kimg15.jpg](bglc_10kimg15.jpg)

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<u>Platform, Handrail</u>

![bglc_10kimg16.jpg](bglc_10kimg16.jpg)

<u>Medical Appliances</u>

![bglc_10kimg18.jpg](bglc_10kimg18.jpg)

***Sales and Marketing***

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| **Online Promotion**. We market our product offerings through our website, www.chemrex.com.my. We utilize Google's search engine optimization to drive traffic to our website. Our marketing team also conducts online searches and attempts to identify new customers from time to time. |
| **Product Display**. We invite current and potential customers to examine our product range at our warehouse in order that customers can get a more comprehensive assessment of our product's quality. |
| **Marketing Personnel**. Our product sales and marketing are performed by two marketing and technical representatives. In addition, our marketing team visits our existing customers regularly. |
| **Business Introduction from Suppliers**. We meet our suppliers regularly. From time to time, our suppliers also will provide us with the contact details of new potential customers to whom we can provide our products, and our marketing personnel will follow up on these new sales leads. |

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***Our Chemical Raw Material Customers***

Chemrex's customers are primarily manufacturers, fabricators, and contractors. Many of these customers are repeat customers with whom Chemrex has maintained business relationships over a number of years. Typically, they would give us a forecast of the products they need and place their orders monthly. Our top five customers, based on revenue, accounted for approximately 27.43% of our revenue for the fiscal year ended December 31, 2025.

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| **Chemrex Top 5 Customers** | **2025** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;A | $599018 | 8.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;B | $545558 | 7.37% |
| &nbsp;&nbsp;&nbsp;&nbsp;C | $329222 | 4.45% |
| &nbsp;&nbsp;&nbsp;&nbsp;D | $316852 | 4.28% |
| &nbsp;&nbsp;&nbsp;&nbsp;E | $240811 | 3.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 2031461 | 27.43% |

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From time to time, we assist customers with their new product development or projects with suitable and compatible raw materials. In addition, leveraging on our prior successful dealings with local and international raw materials manufacturers, we often collaborate with our customer's research teams to meet their new product needs, such as the various technical and aesthetic requirements of their new products or projects.

**Our Chemical Raw Material Suppliers**

We consider our major vendors in each period to be those vendors that accounted for more than 10% of overall purchases in such period. We had two suppliers accounted for 23.83% and 15.01% of the Company's total chemical raw material purchase, respectively. We had two major vendors during the fiscal year ended December 31, 2025, who collectively accounted for 38.84% of total purchases. We purchase from a variety of suppliers and believe these raw materials are widely available. If we are unable to purchase from our primary suppliers, we do not expect we would face difficulties in locating another supplier at substantially the same price. We have secure and efficient access to all the raw materials necessary to produce customers' products saving them the trouble of sourcing from several distributors.

We believe our relationships with the suppliers of these raw materials are strong. While the prices of such raw materials may vary greatly from time to time, we believe we could hedge such risk by adjusting our price or absorb the higher cost at times if necessary.

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| **Fiscal Year** | **2025** | **2025** |
|  | **Cost of** | **% of Cost** |
| **Vendor Name** | **Revenue** <br>**(USD)** | **of** <br>**Revenue** |
| A | $1508422 | 23.83% |
| B | $950001 | 15.01% |
| Total | $2458423 | 38.84% |

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|:---|:---|:---|
| **Fiscal Year** | **2024** | **2024** |
|  | **Cost of** | **% of Cost** |
| **Vendor Name** | **Revenue** <br>**(USD)** | **of** <br>**Revenue** |
| A | $1635124 | 19.89% |
| B | $1321889 | 16.08% |
| C | $1138814 | 13.85% |
| Total | $4095827 | 49.82% |

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**Quality Control Policies**

Chemrex's quality control procedures focus principally on product handling, storage, traceability, and review of manufacturer documentation, including certificates of analysis where applicable. Product packaging and supporting documentation generally identify batch information and production-related details provided by the manufacturer.

**Competition**

Chemrex competes primarily with other distributors of industrial chemical raw materials in Malaysia and the broader Southeast Asian region. Competition is based principally on product availability, pricing, technical support, reliability of supply, customer service, and the ability to source materials suitable for customer applications.

Many of the products distributed by Chemrex are manufactured to industry-standard specifications and are available from multiple suppliers and distributors. As a result, Chemrex competes both with independent distributors and, in some cases, with manufacturers that may sell directly to end customers. Certain competitors may have greater financial, technical, marketing, or other resources than Chemrex.

Chemrex seeks to compete by maintaining supplier relationships, offering technical support to customers, and providing a broad product range for industrial applications in the markets it serves.

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**Growth Strategy**

The composite raw materials market is expected to reach an estimated $40.2 billion by 2025 globally and is forecasted to grow at a CAGR of 3.3% from 2019 to 2025. Furthermore, the composites end-user market is expected to reach an estimated $114.7 billion by 2025 globally. The major drivers for growth in this market are the increasing demand for lightweight materials in the aerospace, defence, and automotive industries. Also, corrosion and chemical resistance materials are in demand in the construction and pipe and water tank industries. With our wide variety of product offerings, we are well-positioned to take advantage of this increase in chemical composite market demand. *Source: Composites Market: Trends, Opportunities and Competitive Analysis (https://www.researchandmarkets.com/categories/chemicals-materials)*

**Regulatory Matters**

We are subject to the laws and regulations of various jurisdictions in Malaysia.

**Product Liability**

Because Chemrex distributes chemical raw materials used in a variety of industrial applications, it may be exposed to claims relating to product defects, product returns, personal injury, property damage, environmental matters, or other losses. We currently do not hold any insurance should a claim arise.

**MRNA Diagnostics Business**

Through our wholly owned subsidiary, MRNA Scientific, we engage in the application of genomic testing to enable early disease diagnosis and support proactive health management.

MRNA Scientific's principal office address is Unit A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia. Our molecular genomic lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia, and we have a colon cancer and infectious diseases screening lab located at 4<sup>th</sup> floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia. MRNA Scientific's telephone number is (+60 182218762) and website is www.bionexusgenelab.com.

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**MRNA Scientific Services**

MRNA Scientific's historical activities have included the development and provision of blood-based genomic screening services using laboratory processes and internally developed analytical methods. These services have been offered in connection with certain disease categories, including selected cancers, inflammatory conditions, osteoarthritis, and certain other health-risk related areas described in the Company's prior disclosures.

MRNA Scientific analyzes ribonucleic acid (RNA) expression patterns derived from blood samples and generates reports intended for use by the referring healthcare provider. The Company does not present these services as a substitute for physician judgment, diagnostic confirmation, or treatment decisions, and the related reports are accompanied by appropriate cautionary language.

Our blood-based assays analyze changes in ribonucleic acid (RNA) to assess specific risks and detailed aspects of an individual's health condition. These tests currently screen for:

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| Eight types of cancer: nasopharyngeal, lung, liver, stomach, breast, cervical, prostate, and colon; |
| Two inflammatory bowel diseases: ulcerative colitis and Crohn's disease. |
| Osteoarthritis. |
| Cardiovascular and neurological risks, including heart attack, stroke, and mental disorders (added in 2023/2024). |

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We generate revenue by screening blood samples collected by third-party healthcare providers including doctors, labs, and hospitals using proprietary biomarkers developed in-house. Our screening results support personalized medicine by informing customized therapies tailored to each patient's risk profile.

**Development of Screening Process**

Our late co-founder, Dr. Choong-Chin Liew, pioneered a novel approach to RNA-based diagnostics by identifying circulating blood biomarkers that reflect tissue-level disease processes. His research demonstrated that gene expression in peripheral blood can change in response to injury or illness, providing molecular insight into disease states.

These expression profiles, or molecular signatures, serve as the foundation for our diagnostic assays. By identifying disease-specific gene activity patterns, we can develop screening tools that enable early detection, monitor disease progression, and support precision interventions.

We take advantage of profiling these changes, which enables us to identify unique molecular signatures (biomarkers) reflecting disease activity which can then be used to develop disease-specific molecular diagnostic assays. We use these biomarkers as the basis for screening tests for early disease detection and generate revenue from providing screening services.

**The Screening Process**

MRNA Scientific's screening process generally begins with a blood sample collected by a licensed healthcare provider and delivered to the laboratory. Laboratory personnel then perform sample handling, extraction, quality assessment, processing, and data analysis using internal laboratory procedures and software tools. Results are provided in report form to the referring healthcare provider.

The business is subject to operational risks common to laboratory activities, including risks relating to sample integrity, processing accuracy, data analysis, reporting, privacy, and quality control.

Upon arrival:

· Samples are labelled with the patient's name, ID number, and lab reference code.

· RNA is extracted in a biosafety cabinet, then processed using microcentrifugation and spectrophotometry to assess quality and concentration.

· RNA is purified, biotinylated, hybridized onto a GeneChip™ microarray, and analysed using proprietary software to generate a personalized risk score report.

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Our reports are delivered to the referring healthcare provider for clinical use. These include a disease risk chart and interpretations intended to aid further diagnostics and therapeutic planning.

![bglc_10kimg26.jpg](bglc_10kimg26.jpg)

The process for effectuating RNA analysis depicted in the picture below.

![bglc_10kimg29.jpg](bglc_10kimg29.jpg)

The raw data obtained will be analyzed and quality control processed by our lab in Malaysia using proprietary software to calculate the risk analysis of 11 different diseases. We simplify the result into a graph which is contained in the patient booklet provided to the health care professional. A sample graph is depicted below.

![bglc_10kimg28.jpg](bglc_10kimg28.jpg)

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In the above chart, NPC is Nasopharyngeal Cancer, ATDS is Ascending, Transverse, Descending, and Sigmoid Colon Cancer, and OA is Osteoarthritis.

The following cautionary text is contained in the results booklet we provide to the healthcare provider and each patient. The results booklet contains recommendations to assist with a physician's final diagnosis and treatment plan and is not meant to be medical advice. Below is the disclaimer that is included in each result booklet.

*This report/screening is not intended or implied as a substitute for professional medical advice, diagnostics, or treatment. The content, including text, graphics, and information in the report, illustrates the risk score only. MRNA Scientific Sdn. Bhd. makes no representation and assumes no responsibility for the accuracy of the information, as such information and contents are subject to change without notice. You are encouraged to review any medical condition or treatment with your doctor.*

The key proprietary aspect of our process is our algorithm software, biomarkers, and the RNA extraction, preservation, quality control, hybridization, and data analysis processes developed by Dr. Liew. First, the gene expression from a reference population representing a specific disease condition is filtered using a quality assurance process based on repeatability data. Our proprietary algorithm software then analyzes this collected data and processes checked by the laboratory manager to ensure all the steps are followed in the deriving predictive model for each disease condition. Once these models have been established, they can be applied to the data from a new sample to make risk predictions for this individual. Each disease/disorder has a similar group of diseased/disordered genes identified through years of our research and clinical trials in Malaysia.

**Commercialization and Business Development**

MRNA Scientific has historically marketed its screening services to healthcare providers, laboratories, hospitals, and certain corporate clients in Malaysia. During fiscal 2025, however, MRNA Scientific remained a limited-revenue business relative to the Company's consolidated operations.

The Company continues to evaluate potential commercialization strategies for MRNA Scientific, including healthcare-provider relationships, outsourcing arrangements, and selected business development initiatives in Malaysia and, where appropriate, other markets. Any broader expansion of MRNA Scientific's business would depend on a range of factors, including available capital, commercial demand, operating capacity, regulatory considerations, and strategic partnerships.

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We aim to have more healthcare providers in the Klang Valley referring patients to us for screening protocol. Once we have established our brand and reputation in Klang Valley, we will expand to other large cities in Malaysia. In 2024 we signed agreements that allow for the expansion of our services to outsourcing with screening providers and large healthcare groups. It is the intention that these agreements will form the basis for increased revenue growth and profitability in the future.

We believe that an increase in our marketing and promotional efforts will correlate to increased revenues and the expansion of our business. Our growth and expansion strategies are as follows:

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| **Continue to leverage our relationships with healthcare providers**. To date, we have relied upon the efforts of management and their relationships with healthcare providers to create continued interest in our blood-based genomic screening. These relationships have been located primarily in the Klang Valley market. |
| **Allocate more capital resources to our marketing efforts**. Apart from sales through existing relationships with healthcare providers, we intend to allocate more capital to marketing and promotion. Our current strategy proposes to increase the awareness of our "BGS" testing to the public, via direct marketing through wellness and healthcare key opinion leaders ("KOL"). We are currently in talks with various successful parties and wellness providers in the Klang Valley area to form partnerships on public awareness. |
| **Expand to other regions in Malaysia**. We intend to expand to other large cities in Malaysia, such as Penang, Ipoh, Seremban, Melaka, Johor Bahru, and Kuantan. |
| **Expand to other international regions.** We have been in discussions with key market access experts and professionals in Europe to explore the possibility of offering our screening products in Europe.  |

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**Competition**

MRNA Scientific competes with diagnostic laboratories, molecular testing providers, healthcare screening providers, and research-driven diagnostic businesses in Malaysia and other markets in which it may seek to operate. Competition may arise from companies offering RNA-based, DNA-based, imaging-based, proteomic, pathology-based, or other diagnostic and screening approaches.

Competition in this sector is based on factors such as scientific validity, clinical acceptance, turnaround time, cost, commercial reach, reimbursement availability, regulatory positioning, and relationships with healthcare providers and institutions.

Certain existing and potential competitors may have substantially greater financial, technical, clinical, regulatory, marketing, and commercial resources than MRNA Scientific. In addition, universities, hospitals, government institutions, and private research laboratories may develop competing technologies or screening approaches.

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**Seasonality**

The nature of our business does not appear to be affected by seasonal variations.

**Regulatory Matters**

We are and will be subject to the laws and regulations of those jurisdictions in which we operate. Generally, business licensing requirements, income taxes, and payroll taxes apply to all business operations. The development and operation of our business is subject to general corporate, tax, employment, privacy, local licensing, and potentially healthcare- and laboratory-related regulation, and that future regulation could materially affect operations. We currently require an operating permit from the City Hall of Kuala Lumpur, Malaysia, which we have received.

**Product Liability**

Due to the nature of our business, we may face claims for product liability resulting from the inaccurate or erroneous diagnosis using our screening process.

MRNA Scientific does not currently have insurance against any such claims.

**Research and Development**

Our research and development budget over the years is listed in the following table:

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| <br>**Year** | **Research &**<br>**Development**<br>**(self-funded)** |
| 2020 | $45000 |
| 2021 | $45000 |
| 2022 | $173300 |
| 2023 | $54982 |
| 2024 | $47511 |
| 2025 | $50670 |

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**Our Properties**

The corporate office for MRNA Scientific is located at Unit A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jalan Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia. The lease commenced on June 1, 2024 and terminates on May 31, 2027, with option to extend till May 31, 2029. The space consists of 2,206 square feet with an annual rent of approximately $30,190.

We also have two laboratories. One of our laboratories is located at 4<sup>th</sup> Floor, Wisma Life Care, No. 5, Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia. The lease commenced on November 1, 2016 and terminates on April 30, 2026. The annual rent is approximately $6,563. The other laboratory is located at Lab 353, University Science Malaysia, George Town, Penang, Malaysia. The lease commenced on December 1, 2017 and terminates on November 30, 2026. The space consists of 1,500 square feet with an annual rent of approximately $32,257.

On July 2, 2012, we purchased a 25,000 sq. ft wholesale distribution center at 4, Jalan CJ 1/6, Kawasan Perusahaan Cheras Jaya, 43200 Cheras, Selangor, Malaysia, and two investment properties for $1,395,210. The two investment properties are listed below.

· An 1,100 sq ft condominium located at No. B-17-03, Duet Residence, Jalan Kinrara 6, Bandar Kinrara, 47180 Puchong, Selangor, purchased on August 26, 2020;

· A 2,000 sq ft commercial building located at First floor, No. 2B Pelangi Avenue, Jalan Kelicap 42A/KU1, Klang Bandar, Diraja, 41050 Klang, Selangor purchased on September 21, 2020.

On July 1, 2024, we entered into a lease for Lot 238 and 239, Jalan Villaraya 1/9, Kawasan Industri Villaraya, 43500 Semenyih, Selangor. The lease terminates on June 30, 2026, with an option to extend for one year. The purpose of this lease is to establish a manufacturing facility for a new high-quality color paste production line.

**Intellectual Property**

As of date of this filing, we have 1 trademark registered with the Intellectual Property Corporation of Malaysia. We do not have any patents, copyright, or licensing rights. Additionally, for MRNA Scientific, we rely on trade secrets and know-how using the process developed by and assigned to the Company by Dr. Liew, one of Our Founders. However, there is no assurance that others will not independently develop the same or similar technology or obtain unauthorized access to such trade secrets, know-how, and other unpatented technology. To protect our rights in these areas, we require all laboratory managers that work in our lab to enter into strict confidentiality agreements.

As part of our on-going software development process that has been supplemented by our Initial Public Offering, we are in the process of developing from the original source code, a Cloud Based (SaaS) implementation and evolutionary development of our Machine Learning sample analysis software.

While we have attempted to protect the unpatented proprietary technology that we develop or acquire and will continue to attempt to protect future proprietary technology through patents, copyrights, and trade secrets, we believe that our success will depend, to a large extent, upon continued innovation and technological expertise.

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**Employees**

As of date of this filing, Chemrex has 6 full-time employees, and MRNA Scientific has 10 full time employees. We believe we have good relations with our employees. The company presently is covered by social security insurance and contributes to the Employee Provident Fund of its employees, a compulsory pension scheme for all Malaysian citizens and permanent residents who are working in Malaysia.

The following table sets out the number of Chemrex's employees, excluding external experts, categorized by functions as of the date of this filing:

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| **Function** | **Number of**<br>**Employees** |
| Director | 0 |
| Sales & Marketing | 1 |
| Warehouse | 1 |
| Operation & Administration | 3 |
| Finance | 1 |
| Total | 6 |

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The following table sets out the number of MRNA Scientific's employees, excluding external experts, categorized by functions as of the date of this filing:

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| **Function** | **Number of**<br>**Employees** |
| Executive Director | 2 |
| Finance | 2 |
| Lab Operation | 1 |
| Research & Development | 1 |
| Marketing & Business Development | 4 |
| Total | 10 |

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The following table sets out the number of BGLC's employees, excluding external experts, categorized by functions as of the date of this filing:

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| **Function** | **Number of**<br>**Employees** |
| Chief Executive Officer | 1 |
| Chief Financial Officer | 1 |
| Administrative Staffing | 1 |
| Total | 3 |

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We have entered into employment agreements with our officers. We do not have stock options, profit sharing, or similar benefit plans, other than our 2025 Equity Incentive Plan ("Plan"), which was approved by our Board of Directors, and later adopted by our shareholders at our annual shareholders' meeting in December 2025. The Plan allocated approximately 403,000 shares of common stock for issuance, subject to annual share increases. The Company is currently exploring multiple methods to expand its Executive Team, including advertising and engaging with specialist recruitment agencies to bolster our human capital and business development resources.

**Insurance**

For our Chemrex operations, we maintain third-party liability insurance to cover claims in respect of personal injury or property or environmental damage arising from accidents on our chemical warehouse and office or relating to our operations. Our employees presently are covered by Social Security insurance (SOCSO) and retirement fund (EPF). We do not maintain business interruption insurance or key person insurance. Our insurance coverage is consistent with the industry and sufficient to cover our key assets, facilities, and liabilities. Also, as part of our Chemrex business, we maintain burglary and fire insurance for our property at 4, Jalan CJ 1/6, Kawasan Perusahaan Cheras Jaya, 43200 Cheras, Selangor, Malaysia, and fidelity guarantee insurance against our employees.

**Item 1A. Risk Factors**

**RISK FACTORS**

*An investment in our common stock involves a number of very significant risks. You should carefully consider the following known material risks and uncertainties in addition to other information in this Form 10-K in evaluating our company and its business before purchasing shares of our company's common stock. You could lose all or part of your investment due to any of these risks.*

**Risk Factors Related to Our Financial Prospects and Capitalization**

**We are an early commercial-stage company and have a limited operating history, which may make it difficult to evaluate our current business and predict our future performance.**

We are an early commercial-stage company that has a limited operating history. Our limited operating history may make it difficult to evaluate our current business, and this makes predictions about our future success or viability subject to significant uncertainty. In combination with other anticipated increased operating expenses in connection with becoming a public company, these anticipated changes in our operating expenses may make it difficult to evaluate our current business, assess our future performance relative to prior performance and accurately predict our future performance.

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We will continue to encounter risks and difficulties frequently experienced by early commercial-stage companies, including those associated with increasing the size of our organization and the prioritization of our commercial, research, and business development activities. If we do not address these risks successfully, our business could suffer.

**Our growth (organic and inorganic) may require substantial capital and long-term investments.**

Our competitiveness and growth depend on our ability to fund our capital expenditures. We cannot assure you that we will be able to fund our capital expenditures at reasonable costs due to adverse macroeconomic conditions, our performance or other external factors.

In the future, we expect to incur significant costs in connection with its operations. We intend to expand our business through increased marketing efforts of MRNA Scientific and Chemrex. We also expect to incur costs related to the marketing of the VitaGuard™ platform in the ASEAN market. These development activities generally require a substantial investment before we can determine commercial viability, and the proceeds of this offering will not be sufficient to fully fund these activities. We expect to need to raise additional funds through public or private equity or debt financings, collaborations or licensing arrangements to continue to fund or expand our operations.

Our actual liquidity and capital funding requirements will depend on numerous factors, including:

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| the scope and duration of and expenditures associated with our discovery efforts and research and development programs; |
| the costs to fund our commercialization strategies for any product candidates for which we receive marketing authorization or otherwise launch and to prepare for potential product marketing authorizations, as required; |
| the costs of any acquisitions of complementary businesses or technologies that we may pursue; |
| potential licensing or partnering transactions, if any; |
| Our facilities expenses, which will vary depending on the time and terms of any facility lease or sublease we may enter into, and other operating expenses; |
| the scope and extent of the expansion of our sales and marketing efforts; |
| the settlement of the government investigation described below, potential and pending litigation, potential payor recoupments of reimbursement amounts, and other contingencies; |
| the commercial success of our products; |
| Our ability to obtain more extensive coverage and reimbursement for our tests and therapeutic products, if any, including in the general, average-risk patient population; and |
| Our ability to collect its accounts receivable. |

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The availability of additional capital, whether from private capital sources (including banks) or the public capital markets, fluctuates as our financial condition and market conditions in general change. There may be times when the private capital sources and the public capital markets lack sufficient liquidity or when our securities cannot be sold at attractive prices or at all, in which case we would not be able to access capital from these sources. In addition, a weakening of our financial condition or deterioration in its credit ratings could adversely affect our ability to obtain necessary funds. Even if available, additional financing could be costly or have adverse consequences.

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**Our net losses may continue in the future.**

We have devoted substantial resources to the development and commercialization of the products of MRNA Scientific and Chemrex and we intend to devote substantial resources toward the VitaGuard™ platform. For the last three fiscal years, we have not achieved profitable operations. Accordingly, we might not become profitable for any future period. Our failure to achieve profitability would negatively affect our business, financial condition, results of operations, and cash flows. If we are unable to execute our sales and marketing strategy and our products are unable to gain sufficient acceptance in the market, we may be unable to generate sufficient revenues to sustain our business.

**Any additional capital we raise may not be available on satisfactory terms and may adversely affect stockholders' holdings or rights.**

Additional capital, if needed, may not be available on satisfactory terms or at all. In addition, the terms of any financing may adversely affect stockholders' holdings or rights. Debt financing, if available, may include restrictive covenants. To the extent that we raise additional funds through collaborations and licensing arrangements, it may be necessary to relinquish some rights to our technologies or grant licenses on terms that may not be favorable to us.

If we are not able to obtain adequate funding when needed, we may be required to delay development programs or sales and marketing initiatives. If we are unable to raise additional capital in sufficient amounts or on satisfactory terms, we may have to make reductions in our workforce and may be prevented from continuing our discovery, development, and commercialization efforts and exploiting other corporate opportunities. In addition, it may be necessary to work with a partner on one or more of our tests or products under development, which could lower the economic value of those products to us. Each of the foregoing may harm our business, operating results, and financial condition and may impact our ability to continue as a going concern.

**Raising additional capital may lead to dilution of shareholdings by our existing shareholders, restrict our operations, and may further result in fair value loss, adversely affecting our financial results.**

We may seek additional funding through a combination of equity and debt financings and collaborations. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of existing holders of our shares will be diluted, and the terms may include liquidation or other preferences that adversely affect the rights of our existing shareholders.

The incurrence of additional indebtedness or the issuance of certain equity securities could result in increased fixed payment obligations and could also result in certain additional restrictive covenants, such as limitations on our ability to incur additional debt or issue additional equity, limitations on our ability to acquire or license IP rights and other operating restrictions that could adversely impact our ability to conduct its business.

**Risk Factors Related to Our Business and Industry**

***General Business and Industry Risks***

**We are unable to predict the duration of future economic conditions.**

Future economic downturns, prolonged slow growth or stagnation in the economy could materially adversely affect our business, results of operations, financial condition and cash flows.

**Global economic conditions could materially adversely impact demand for our products and services.**

Our operations and performance depend significantly on economic conditions. Global financial conditions continue to be subject to volatility arising from international geopolitical developments and global economic phenomenon, as well as general financial market turbulence and natural phenomena such as the COVID-19 pandemic. Uncertainty about global economic conditions could result in:

· customers postponing purchases of its products and services in response to tighter credit, unemployment, negative financial news and/or declines in income or asset values and other macroeconomic factors, which could have a material negative effect on demand for its products and services; and

· third-party suppliers being unable to produce devices for its products or raw materials in the same quantity or on the same timeline or being unable to deliver such parts and components as quickly as before or subject to price fluctuations, which could have a material adverse effect on the services and products provided by MRNA Scientific; and accordingly, on its business, results of operations or financial condition.

Access to public financing and credit can be negatively affected by the effect of these events on Malaysian, U.S. and global credit markets. The health of the global financing and credit markets may affect its ability to obtain equity or debt financing in the future and the terms at which financing or credit is available to us. These instances of volatility and market turmoil could adversely affect its operations and the trading price of its common stock.

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**Our risk management programs, processes, or procedures for identifying and addressing risks in MRNA Scientific's business may not be adequate or effectively applied, and this may adversely impact its businesses.**

MRNA Scientific relies on a combination of technical and human factors to protect us against risks. MRNA Scientific policies, procedures and practices are used to identify, monitor and control a variety of risks, including risks related to human error and hardware and software errors. The administration and results of each test are reviewed by a physician and a scientist in Malaysia before the results are released to the patient. The Company's standard of operations was primarily developed by Dr. Liew. These risk-management methods may not adequately prevent losses and may not protect us against all risks, in which case our business, economic conditions, operations and cash flows may be materially adversely affected.

We have risk-management policies, control systems and compliance manuals in place; however, there is no guarantee that such policies, systems, and manuals will be effectively applied in every circumstance by our staff. For example, employees could override the system technology and theoretically waive requirements, thereby exposing the company accurately conduct its quality control.

**We may be adversely impacted by changes in laws and regulations, or in their application.**

The Malaysian government passed the Pathology Laboratory Bill of 2007 ("Pathology Act"). However, since 2007, the government has not implemented the regulations underlying the legislation nor has the government enforced the Pathology Act. Any such regulations could establish criteria for the various classes and specialties of laboratories, the organization and management system of the laboratory, the qualification and experience of the person-in-charge, the qualification and competence of pathologists, scientific and technical staff engaged to conduct tests, and the standards of laboratory practice. MRNA Scientific cannot predict whether it would be able to comply with the Pathology Act and its regulations, if implemented. In addition, there also is a risk that the regulations arising from the Pathology Act or new legislation or regulations could increase MRNA Scientific' costs of doing business or otherwise prevent us from carrying out the expansion of its business. Accordingly, our business may be harmed if we are not able to comply with any future governmental legislation or regulations, including the Pathology Act.

MRNA Scientific is currently operating under a license granted by the City Hall of Kuala Lumpur, Malaysia. Under Malaysian and local laws, we may continue to operate under its current operating license which MRNA Scientific Malaysia currently has. We cannot predict whether there will be future regulations which may impact its ability to conduct its business.

Future legislation or regulations could increase Chemrex's costs of doing business or otherwise prevent us from carrying out the expansion of its business.

**Business disruptions could seriously harm our future revenue and financial condition and increase its costs and expenses.**

Our operations could be subject to power shortages, telecommunications failures, wildfires, water shortages, floods, earthquakes, hurricanes, typhoons, fires, extreme weather conditions, medical epidemics and other natural or man-made disasters or business interruptions. The occurrence of any of these business disruptions could seriously harm MRNA Scientific' operations and financial condition and increase MRNA Scientific' costs and expenses. Unfavorable global economic conditions could adversely affect our business, financial condition, or results of operations.

We do not carry insurance for all categories of risk that our business may encounter. Although MRNA Scientific intends to obtain some form of business interruption insurance in the future, there can be no assurance that we will secure adequate insurance coverage or that any such insurance coverage will be sufficient to protect our operations to significant potential liability in the future. Any significant uninsured liability may require us to pay substantial amounts, which would adversely affect our financial position and results of operations.

**Our lack of insurance could expose us to significant costs and business disruption.**

We currently do not have any product liability or disruption insurance to cover our operations in Malaysia or overseas. We have determined that the costs of insuring for these risks and the difficulties associated with acquiring such insurance on commercially reasonable terms make it impractical for us to have such insurance. If we suffer any losses, damages or liabilities in the course of our business operations, we may not have adequate insurance coverage to provide sufficient funds to cover any such losses, damages or product claim liabilities. Therefore, there may be instances when we will sustain losses, damages and liabilities because of our lack of insurance coverage, which may in turn materially and adversely affect our financial condition and results of operations.

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We are currently a "smaller reporting company", meaning that we are not an investment company, an asset- backed issuer, or a majority-owned subsidiary of a parent company that is not a smaller reporting company and annual revenues of less than $50.0 million during the most recently completed fiscal year. In the event that we are still considered a "smaller reporting company," at such time as we cease being an "emerging growth company," we will be required to provide additional disclosure in our SEC filings. However, similar to "emerging growth companies", "smaller reporting companies" are able to provide simplified executive compensation disclosures in their filings; are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that independent registered public accounting firms provide an attestation report on the effectiveness of internal control over financial reporting; and have certain other decreased disclosure obligations in their SEC filings, including, among other things, only being required to provide two years of audited financial statements in annual reports. Decreased disclosures in our SEC filings due to our status as a "smaller reporting company" may make it harder for investors to analyze our results of operations and financial prospects.

Our independent registered public accounting firm may be required to attest to and report on the effectiveness of our internal control over financial reporting. Our management may conclude that our internal control over financial reporting is not effective. Moreover, even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may issue a report that is qualified if it is not satisfied with our internal controls or the level at which our controls are documented, designed, operated or reviewed, or if it interprets the relevant requirements differently from us. In addition, after we become a public company, our reporting obligations may place a significant strain on our management, operational and financial resources and systems for the foreseeable future. We may be unable to timely complete our evaluation testing and any required remediation.

During the course of documenting and testing our internal control procedures, in order to satisfy the requirements of SOX 404, we may identify other weaknesses and deficiencies in our internal control over financial reporting. In addition, if we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with SOX 404. If we fail to achieve and maintain an effective internal control environment, we could suffer material misstatements in our financial statements and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial information. This could in turn limit our access to capital markets, harm our results of operations, and lead to a decline in the trading price of our shares. Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock exchange on which we list, regulatory investigations and civil or criminal sanctions. We may also be required to restate our financial statements from prior periods.

**Fluctuations in foreign currency exchange rates could have a material adverse effect on our financial results.**

We earn revenues, pay expenses, own assets and incur liabilities in countries using Malaysian Ringgit ("RM") other than the U.S. dollar ("$"). Since our consolidated financial statements are presented in U.S. dollars, we must translate revenues, income and expenses, as well as assets and liabilities, into U.S. dollars at exchange rates in effect during or at the end of each reporting period. Therefore, increases or decreases in the value of the U.S. dollar against Malaysian currency affect our net operating revenues, operating income and the value of balance sheet items denominated in foreign currencies. We cannot assure you that fluctuations in foreign currencies exchange rates, particularly the strengthening or weakening of the U.S. dollar against Malaysian currency would not materially affect our financial results.

***Risk Related to MRNA Scientific's Business and Industry***

**Exponential growth in biotechnology.**

Biotechnology is a rapidly changing field that continues to transform both in scope and impact. Well-funded established molecular labs are gathering big data on health records, genomics, lifestyle information that led to new health solutions. Digitization is revolutionizing health care, allowing for patient reported symptoms, health outcome to be captured as mineable data. MRNA Scientific, as well as our rights to the recently acquired VitaGuard™, could be subject to exponential growth of competitors if we are unable to establish distribution networks with medical centers, pharmaceutical groups and other molecular laboratories synergistically in sharing customers and big data.

**MRNA Scientific's inability to manage growth could harm its business.**

MRNA Scientific expects to continue to add personnel in the areas of sales and marketing, research & development, laboratory operations, finance, quality assurance and compliance. As MRNA Scientific builds its commercialization efforts and expands research and development activities, operating expenses and capital requirements will increase, and MRNA Scientific expects that they will continue to increase, significantly. MRNA Scientific's ability to manage its growth effectively requires us to forecast expenses accurately, and to properly forecast and expand operational and testing facilities, if necessary, to expend funds to improve our operational, financial and management controls, reporting systems and procedures. As MRNA Scientific moves forward in marketing our tests and developing our test portfolio, the company will also need to effectively manage its growing manufacturing, laboratory operations and sales and marketing needs. If MRNA Scientific is unable to manage its anticipated growth effectively, MRNA Scientific's future business could be harmed.

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**MRNA Scientific's financial prospects depend substantially upon the successful commercialization of the Company's services and products in the future, which may fail or experience significant delays.**

MRNA Scientific's future success depends upon MRNA Scientific's ability to continuously develop technologies and successfully market its existing cancer genetic offerings to customers within Malaysia and expand overseas. MRNA Scientific's ability to generate significant revenue in the next several years will depend primarily on the successes of each key stage of its business, including pre-clinical research and development, clinical trials, regulatory approval, manufacture, marketing and commercialization of its services and products, which is subject to significant uncertainty. MRNA Scientific's ability to generate sales revenue from its products and services and its future profitability depends on several factors, including its ability to:

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| obtain regulatory approvals and marketing authorizations for MRNA Scientific's services and products; |
| obtain market acceptance by patients, hospitals, clinicians, biopharmaceutical companies and others in the medical community; |
| establish sufficient testing capacity and commercial capabilities, either by expanding MRNA Scientific's current facility or making arrangements with third parties; |
| develop and maintain MRNA Scientific's sales network to launch and commercialize its new cancer genomic testing services and products; |
| set appropriate and favorable prices for MRNA Scientific's genomic testing services and products and obtaining adequate reimbursement from third-party payers; |
| maintain commercially viable supply relationships with third parties and maintaining sufficient research and development capabilities and infrastructure; |
| address any competing technological and market developments; and |
| maintain, protect, and expand MRNA Scientific's portfolio of intellectual property rights including trade secrets and know-how. |

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**The marketing, sale and use of MRNA Scientific's products and services could result in substantial damages arising from products or service liability or professional liability claims, that exceed MRNA Scientific's resources.**

Due to the nature of MRNA Scientific's business, it may face claims for products or service liability. These claims may arise from the inaccurate or erroneous diagnosis of patient information or the mix-up of patient information whereby a patient receives the wrong diagnostic information. While the company feels confident in its quality control measures to ensure the safeguard of patient and client information, it cannot provide assurances that products or service liability claims will arise in the future.

Moreover, litigation or adverse publicity resulting from these allegations could materially and adversely affect MRNA Scientific's business, regardless of whether the allegations are valid or whether the company is liable. Currently MRNA Scientific has no products and service liability insurance coverage, and even if there was such coverage, such coverage might not be sufficient to properly protect MRNA Scientific. Further, claims of this type, whether substantiated or not, may divert MRNA Scientific's financial and management resources from revenue generating activities and the business operation.

**MRNA Scientific may face technology transfer challenges and expenses in adding new tests to its portfolio and in expanding its reach into new geographical areas.**

MRNA Scientific's plan for expanding its business includes developing and acquiring additional tests or additional biomarkers that can be transferred into its current and future diagnostic product portfolio and distributed in target markets. Due to differences in the hardware and software platforms available at different laboratories for running molecular tests, MRNA Scientific's may need to adjust the configuration of the reagents and there may be changes to the related software in order for the tests to be performed on particular hardware platforms. Making any such adjustments could take a considerable amount of time and expense, and MRNA Scientific's might not will succeed in running its tests on the hardware and software that it may encounter in different laboratories. To manage this issue, MRNA Scientific's may license or acquire additional instruments and software from another company that will be compatible with its tests. This may include additional licenses and license fees needed for reagents or components required hereto as well.

**MRNA Scientific's biomarkers have not undergone clinical trials.**

MRNA Scientific has not conducted clinical trials on its biomarkers. While MRNA Scientific believes that its tests help detect the potential risk of different diseases, the specificity and sensitivity of those tests have not been determined in clinical trials let alone those that meet the scope or standards of clinical trials that would satisfy regulators in the United States or the European Union. If MRNA Scientific were to conduct such clinical trials, the results might prove to be less successful than we anticipate, and such tests might not be approved for sale in markets that require such clinical trials.

**MRNA Scientific currently receives and expects to continue to receive a significant portion of its revenues from its genomic screening products, and if its efforts to further increase the use and adoption of these products fail, its business will be harmed.**

MRNA Scientific currently receives and expects to continue to receive a significant portion of its revenues from its screening tests. MRNA Scientific undertakes efforts to increase the awareness and adoption of its tests among laboratories, clinics, clinicians, physicians, payors, and patients in new markets. Continued and additional market acceptance and its ability to attract new customers are key elements to its future success.

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MRNA Scientific's ability to increase sales of its services and establish greater levels of adoption and reimbursement for its tests is uncertain for many reasons, including, among others:

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| MRNA Scientific may be unable to demonstrate to laboratories, clinics, clinicians, physicians, payors, and patients that its services are superior to alternatives with respect to value, convenience, specificity, sensitivity, scope of coverage, and other factors; |
| third-party coverage and reimbursement are currently primarily limited to high-risk pregnancies and may not gain acceptance for use in the average-risk pregnancy population or for the screening of microdeletions, limiting the overall addressable market; |
| third-party payors may set the amounts of reimbursement at prices that reduce its profit margins or do not allow us to cover its expenses; |
| MRNA Scientific may not be able to maintain and grow effective sales and marketing capabilities; |
| its sales and marketing efforts may fail to effectively reach customers or communicate the benefits of its services; |
| superior alternatives to its services may be developed and commercialized; |
| MRNA Scientific may experience supply constraints, including due to the failure of its key suppliers to provide required sequencing instruments and reagents; |
| regulatory or legislative bodies may adopt new regulations or policies or take other actions that impose significant restrictions on its ability to market its services. |

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If the market and its market share for its genomic products fail to grow or grow more slowly than expected, its business, operating results, and financial condition would be adversely affected.

**MRNA Scientific's success depends on their ability to improve and enhance its current tests and new test candidates, which is complex and costly, and the results are uncertain.**

Effective execution of research and development activities and the timely introduction of enhanced, improved, or new tests and test candidates to the market are important elements of MRNA Scientific's business strategy. For example, MRNA Scientific is currently collaborating with the National Heart Institute in Malaysia to identify genomic signatures in acute myocardial infarctions. However, the development of enhanced, improved, or new heart attack risks is complex, costly, and uncertain and requires us to, among other factors, accurately anticipate patients', clinicians', and payors' needs, and emerging technology trends.

In the development of enhanced, improved, or new test and test candidates, we can provide no assurance that:

· MRNA Scientific will develop any tests that meet its desired target product profile and address the relevant clinical need or commercial opportunity;

· any tests that MRNA Scientific develop will prove to be effective in clinical trials, platform validations, or otherwise;

· MRNA Scientific will obtain necessary regulatory authorizations, in a timely manner or at all;

· any tests that MRNA Scientific develop will be successfully marketed to and ordered by healthcare providers;

· any tests that MRNA Scientific develop will be produced at an acceptable cost and with appropriate quality;

· its current or future competitors will not introduce tests similar to ours that have superior performance, lower prices, or other characteristics that cause healthcare providers to recommend, and consumers to choose, such competitive tests over ours; or

· third parties do not or will not hold patents in any key jurisdictions that would be infringed by its tests.

These and other factors beyond MRNA Scientific's control could delay its launch of enhanced, improved, or new test and test candidates.

The research and development process in the biotechnology industry generally requires a significant amount of time from the research and design stage through commercialization. The launch of such new test requires the completion of certain clinical development and/or assay validations in the commercial laboratory. This process is conducted in various stages, and each stage presents the risk that MRNA Scientific will not achieve its goals and will not be able to complete clinical development for any planned test in a timely manner. Such development and/or validation failures could prevent or significantly delay its ability to obtain FDA clearance or approval as may be necessary or desired, obtain approval by entities that provide oversight over laboratory diagnostic tests in the localities MRNA Scientific operate in, or launch any of its planned tests and test candidates. At times, it may be necessary for us to abandon a product in which MRNA Scientific has invested substantial resources. Without the timely introduction of new test candidates and improvements or enhancements of its current tests, its tests may become obsolete over time and its competitors may develop tests that are more competitive, in which case its business, operating results, and financial condition will be harmed.

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**MRNA Scientific faces challenges from the evolving regulatory environment and increasing public awareness on privacy, personal data protection and cybersecurity. Actual or alleged failure to comply with privacy, cybersecurity and data protection-related laws and regulations could adversely affect MRNA Scientific's business and reputation.**

MRNA Scientific face risks inherent in handling large volumes of data and in protecting the security of such data, including cyber attacks. In particular, MRNA Scientific face a number of challenges relating to data inter-connected with regional labs, including:

· protecting the data in and hosted on MRNA Scientific's system, including against hacking on MRNA Scientific's system by outside parties or its employees.

· addressing concerns related to privacy and sharing, safety, security and others;

· complying with applicable laws, rules and regulations relating to the collection, use, disclosure of personal information, including any requests from regulatory and government authorities relating to such data;

· Any system failure or security breach or lapse that results in the release of user data could harm MRNA Scientific's reputation and brand and, consequently, MRNA Scientific's business, in addition to exposing us to potential legal liability.

As our operations expand, it may be subject to these laws in other jurisdictions where its customers and other participants are located. The laws, rules and regulations of other jurisdictions may impose more stringent or conflicting requirements and penalties than those in Malaysia, compliance with which could require significant resources and costs. MRNA Scientific's privacy policies and practices concerning the collection, use and disclosure of user data are posted on its websites. Any failure, or perceived failure, by us to comply with MRNA Scientific's posted privacy policies or with any regulatory requirements or privacy protection-related laws, rules and regulations could result in proceedings or actions against us by authorities or others. These proceedings or actions may subject us to significant penalties and negative publicity, require MRNA Scientific to change its business practices, increase its costs and severely disrupt its business.

**MRNA Scientific's software is highly complex and may contain undetected errors.**

MRNA Scientific's proprietary software underlying its diagnosis is highly complex and may contain undetected errors or vulnerabilities, some of which may only be discovered after a diagnosis. This may result in an inaccurate diagnosis which could expose us to substantial liability due to the misdiagnosis. Any errors or vulnerabilities discovered in MRNA Scientific' software could result in damage to our reputation, loss of clients, loss of revenue or liability for damages, any of which could adversely affect our growth prospects and our business.

**MRNA Scientific's use of "open source" software could subject its proprietary software to general release, adversely affect its ability to sell its tests and subject the company to possible litigation.**

A portion of the screenings by MRNA Scientific incorporate so-called "open-source" software and MRNA Scientific may incorporate open-source software into other tests and technologies in the future. Such open-source software generally is licensed by its authors or other third parties under open-source licenses. Some open-source licenses may contain certain unfavorable conditions, such as requirements that MRNA Scientific disclose source code for modifications or derivative works that the company makes to the open-source software and that the company license such modifications or derivative works to third parties at no cost or under the terms of the particular open-source license. MRNA Scientific monitors its use of open-source software in an effort to avoid uses in a manner that would require it to disclose or grant licenses under its proprietary source code; however, there can be no assurance that such efforts will be successful. Open-source license terms are often ambiguous and such use could inadvertently occur. There is little legal precedent governing the interpretation of many of the terms of these licenses, and the potential impact of these terms on our business may result in unanticipated obligations regarding our technologies. If an author or other third party that distributes such open-source software were to allege that MRNA Scientific had not complied with the conditions of an open-source license, the company could incur significant legal costs defending itself against such allegations. In the event such claims were successful, MRNA Scientific could be subject to significant damages or be enjoined from the distribution of the infringing product. These risks could be difficult to eliminate or manage, and, if not addressed, could harm our business, financial condition and results of operations.

**MRNA Scientific may face competition from other biotechnology competitors and its operating results will suffer if MRNA Scientific fail to compete effectively.**

MRNA Scientific competes with companies worldwide that specialize in RNA blood analysis to detect disease. Laboratories in universities and research institutions that are attempting to extend their research from DNA into RNA screening could become competitors if they succeed. Many of MRNA Scientific' competitors and potential competitors may have stronger financial resources than the company. Their discovery and development of novel protocols could make MRNA Scientific's screening obsolete. As a result of these factors, MRNA Scientific's competitors may succeed in obtaining patent protection and/or FDA approval or discovering, developing and commercializing screening process for cancer, inflammation, osteoarthritis and many more indications.

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In addition, smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large, established companies. In addition, many universities and private and public research institutes may become active in MRNA Scientific's target disease areas.

If MRNA Scientific's competitors market products that are more effective, safer or less expensive or that reach the market sooner than MRNA Scientific's future tests, if any, the Company may not achieve commercial success. In addition, because of MRNA Scientific's limited resources, it may be difficult for us to stay abreast of the rapid changes in each technology. If MRNA Scientific fails to stay at the forefront of technological change, MRNA Scientific may be unable to compete effectively. Technological advances or products developed by MRNA Scientific's competitors may render MRNA Scientific's technologies or test candidates obsolete, less competitive or not economical.

**Cyber breaches, loss of data, and other disruptions could compromise sensitive information related to MRNA Scientific's business or prevent us from accessing critical information and expose us to liability, which could adversely affect MRNA Scientific's business and its reputation.**

In the ordinary course of MRNA Scientific's business, MRNA Scientific collects and stores sensitive data, including protected health information, personally identifiable information, financial information, intellectual property, and proprietary business information owned or controlled by the company or its customers, payers, and other parties. MRNA Scientific manages and maintains its applications and data utilizing a combination of on-site systems and cloud-based data centers. The company utilizes external security and infrastructure vendors to manage parts of its data centers. MRNA Scientific also communicates sensitive data, including patient data, electronically, and through relationships with multiple third-party vendors and their subcontractors. These applications and data encompass a wide variety of business-critical information, including research and development information, patient data, commercial information, and business and financial information. MRNA Scientific faces a number of risks relative to protecting this critical information stemming from cyber attacks, including loss of access risk, inappropriate use or disclosure, inappropriate modification, and the risk of the company being unable to adequately monitor, audit, and modify its controls over critical information. This risk extends to the third-party vendors and subcontractors MRNA Scientific uses to manage this sensitive data.

The secure processing, storage, maintenance, and transmission of this critical information are vital to MRNA Scientific's operations and business strategy, and MRNA Scientific devote significant resources to protecting such information. Although MRNA Scientific takes measures to protect sensitive data from unauthorized access, use or disclosure, MRNA Scientific's information technology and infrastructure may be vulnerable to cyber attacks by hackers or viruses or breached due to employee error, malfeasance, or other malicious or inadvertent disruptions. In addition, while MRNA Scientific has implemented security measures and a formal, dedicated enterprise security program to prevent unauthorized access to patient data, such data is currently accessible through multiple channels, and there is no guarantee MRNA Scientific can protect its data from breach. Unauthorized access, loss, or dissemination could also result in delays of MRNA Scientific's services and tests development and commercialization as well as damage MRNA Scientific's reputation, including MRNA Scientific's ability to conduct its analysis, deliver test results, process claims and appeals, provide customer assistance, conduct research and development activities, collect, process, and prepare company financial information, provide information about MRNA Scientific's tests and other patient and physician education and outreach efforts through its website, and manage the administrative aspects of its business.

Any such unauthorized access, loss, or dissemination of information could also result in legal claims or proceedings, liabilities under Malaysian laws and regulations in relation to the protection of personal information and cybersecurity as well as those specifically governing patient and medical data. MRNA Scientific shall establish, maintain and execute internal systems to safeguard relevant personal healthcare data. Any failure to comply with above-mentioned regulation would result in administrative liabilities including but not limited to informed criticism.

**MRNA Scientific plans to expand its tests and services to multiple countries exposes us to risks associated with doing business outside of Malaysia. The expansion may not be successful, which could limit MRNA Scientific's ability to grow its revenue, net income, and profitability.**

As MRNA Scientific plans to set up RNA screening labs operations in markets outside of Malaysia. If approved, these operations will be subject to risks associated with doing business outside Malaysia including an increase in the Company's expenses, diversion of the Company's management's attention from the research and development of additional diseases/disorders risk detection or forgoing profitable licensing opportunities in these economies.

Accordingly, the Company's business and financial results in the future could be adversely affected due to a variety of factors including the risks associated with expanding into markets in which the Company has limited or no experience and in which the company may be less well-known. The Company may be unable to attract a sufficient number of customers and other participants, fail to anticipate competitive conditions or face difficulties in operating effectively in these new markets. The expansion of the Company's cross-border business will also expose us to risks relating to staffing and managing cross-border operations, increased costs to protect intellectual property, tariffs and other trade barriers, differing and potentially adverse tax consequences, increased and conflicting regulatory compliance requirements, lack of acceptance of the Company's product and service offerings, challenges caused by distance, language and cultural differences, exchange rate risk and political instability. Accordingly, any efforts the Company make to expand its cross-border operations may not be successful, which could limit the Company's ability to grow its revenue, net income and profitability.

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***Risk Related to Chemrex's Business and Industry***

**The chemical raw material industry is cyclical and both recessions and prolonged periods of slow economic growth could have an adverse effect on Chemrex's business.**

Demand for most of Chemrex's products is cyclical in nature and sensitive to general economic conditions. Chemrex's business supports cyclical industries such as the construction, energy, appliance and medical devices. As a result, downturns in the Malaysian economy, the global economy or any of these industries could materially adversely affect Chemrex's results of operations, financial condition and cash flows.

We are unable to predict the duration of current economic conditions. Future economic downturns, prolonged slow growth or stagnation in the economy, or a sector-specific slowdown in one of its key end-use markets, such as non-residential construction, could materially adversely affect Chemrex's business, results of operations, financial condition and cash flows, especially considering the capital-intensive nature of Chemrex's business.

**The results of Chemrex's operations are sensitive to volatility in the cost of raw materials, particularly fibre reinforced plastics.**

Chemrex, as a reseller, relies on outside vendors to supply us with raw materials, including fibre reinforced plastics. Chemrex purchases most of its primary raw material, from numerous other sources located throughout Malaysia and internationally.

Prices of these chemical raw materials are volatile and are influenced by export changes in response to demands of Chemrex's global competitors and customers, as well as currency fluctuations. At any given time, Chemrex may be unable to obtain an adequate supply of these chemical raw materials with price and other terms acceptable to us. The availability and prices of raw materials may also be negatively affected by new laws and regulations, allocation by suppliers, interruptions in production, accidents or natural disasters, changes in exchange rates, worldwide price fluctuations, and the availability and cost of transportation.

If Chemrex's suppliers increase the prices of its chemical raw materials, Chemrex may not have alternative sources of supply. In addition, to the extent that Chemrex has quoted prices to its customers and accepted customer orders for its products prior to purchasing necessary raw materials, it may be unable to raise the price of its products to cover all or part of the increased cost of the materials. Also, if Chemrex are unable to obtain adequate and timely deliveries of its chemical raw materials, it may be unable to timely deliver orders of its products. This could cause Chemrex to lose sales, incur additional costs or suffer harm to its reputation.

**Disruptions in the supply of chemicals that we distribute or in the operations of our customers could adversely affect our business.**

Our business depends on access to adequate supplies of the chemicals that our customers purchase from us. From time to time, we may be unable to access adequate quantities of certain chemicals because of supply disruptions due to natural disasters (including hurricanes and other extreme weather), industrial accidents, scheduled production outages, high demand leading to allocation, port closures and other transportation disruptions and other circumstances beyond our control, or we may be unable to purchase chemicals that we are obligated to deliver to our customers at prices that enable us to earn a profit. In addition, unpredictable events may have a significant impact on the industries in which many of our customers operate, reducing demand for products that we normally distribute in significant volumes.

Significant changes in the business strategies of our suppliers could also disrupt our supply. Large chemicals manufacturers may elect to distribute certain products (or products in certain regions) directly to end user customers, instead of relying on independent distributors such as us. While we do not believe that our results depend materially on access to any individual producer's products, a reversal of the trend toward more outsourced distribution of chemicals would likely result in increasing margin pressure or products becoming unavailable to us. Any of these developments could have a material adverse effect on our business, financial condition, and results of operations.

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**We have oral contracts with suppliers and customers, which are generally terminable upon notice, and the termination of our relationships with suppliers and customers contracts could negatively affect our business.**

Our purchases and sales of chemicals are typically made pursuant to verbal purchase orders rather than written contracts. Many of our contracts with both customers and suppliers are terminable without cause to us from the supplier or customer. Our business relationships and reputation may suffer if we are unable to meet our delivery obligations to customers which may occur because many of our suppliers are not subject to contracts or can terminate contracts on short notice. In addition, renegotiation of purchase or sales terms to our disadvantage could reduce our sales margins. Any of these developments could adversely affect our business, financial condition, and results of operations.

**We may lose customers and suffer damage to our reputation if we are unable to meet customer demand for a particular product.**

We face the risk of dissatisfied customers and damage to our reputation if we cannot meet customer demand for a particular chemical because we are short on inventories. In addition, particularly in cases of pronounced cyclicality in the end market, it can be difficult to anticipate our customers' requirements for particular chemicals, and we could be asked to deliver larger-than-expected quantities of a particular chemical on short notice. If for any reason we experience widespread, systemic difficulties in filling customer orders, our customers may be dissatisfied and discontinue their relationship with us or we may be required to pay a higher price to obtain the needed chemical on short notice, thereby adversely affecting our margins.

**We may be exposed to product returns and product liability claims and latent defect liability claims.**

Our FRP and other raw materials are used to produce a wide variety of goods including handrails, bench tops, automotive and aero parts, cleanroom panels, and covers for various instruments used in manufacturing. We are exposed to potential product returns and latent defect liability claims from our customers and the end-users of goods and products. Although we have put in place stringent quality control measures, including the setting up of different teams for incoming quality control, quality control and quality assurance which monitor the quality of the raw material, semi-finished products as well as finished products, there may be undetected flaws or manufacturing defects or other irregularities that may be subsequently detected at any point in the life of our products. We have adopted return policy on products with manufacturing defects to accommodate our customers. If after any checkup or analysis by our laboratory the defect of a product is found to be manufacturing defect, return and replacement of products will be made. Therefore, if undetected flaws or manufacturing defects or other irregularities from either the design or manufacture of our products are to occur, additional costs and expenses which we may not recoup may incur, and our revenue and costs control can be negatively impacted.

In addition, if our defective or sub-standard products cause bodily injuries or property damage, our suppliers may face latent defect liability claims from our customers or the end-users of goods and products made with our products and regardless of the merits or the outcome of these claims, we may be required to address and, if necessary, and divert management attention and other resources from our business and operations. We may also face adverse publicity associated with such claims, which could have an adverse effect on our business, results of operations and financial condition.

**<u>Risks Related to Our Operations</u>**

**Our officers and directors may in future have outside business activities. As a result, there may be potential conflicts of interest and negatively impact the amount of time they will be able to dedicate to the company.**

Currently our officers, who are also directors, have been working on promoting business for the Company. A potential conflict of interest may arise in the future that may cause our business to fail, including conflicts of interest in allocating their time to the company and their other business interests. While the company's officers have verbally agreed to devote sufficient time and attention to the affairs of the Company, it has no written arrangement with our officers regarding this matter. As a result, we may face conflicts between business decisions that they may have to make regarding its operations and that of their other business interests.

**We may not be able to attract and retain key senior management members and research and development personnel.**

Our future success depends upon the continuing services of members of our senior management team and key research and development personnel and consultants. Although we typically require our key personnel to enter into non-compete and confidentiality agreement with us, we cannot prevent former personnel from joining the Company's competitors after the non-compete period. The loss of their services could adversely impact its ability to achieve its business objectives. If one or more of our senior management or key clinical and scientific personnel are unable or unwilling to continue in their present positions or joins a competitor or forms a competing company, the company may not be able to replace them in a timely manner or at all, which will have a material and adverse effect on its business, financial condition, and results of operations.

In addition, the continued growth of our business depends on our ability to hire additional qualified personnel with expertise in molecular biology, chemistry, biological information processing, software, engineering, sales, marketing, and technical support. We compete for qualified management and scientific personnel with other life science and technology companies, universities, and research institutions in Malaysia and overseas. Competition for these individuals is intense, and the turnover rate can be high. Failure to attract and retain management and scientific and engineering personnel could prevent the Company from pursuing collaborations or developing its services and products or technologies.

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**We may be unable to protect the company's intellectual property adequately.**

Our software intellectual property is an essential asset of its business. To establish and protect our intellectual property rights, we rely primarily upon trade secrets, and to a lesser extent, contractual provisions with current and future employees. As a result, our efforts to protect our intellectual property may not be sufficient or effective. If these measures do not protect our intellectual property rights adequately, third parties could use the Company's technology, and our ability to compete in the market would be reduced significantly.

In addition, we may not be effective in policing unauthorized use of the company's intellectual property. Even if we do detect violations, we may need to engage in litigation to enforce our intellectual property rights. Any enforcement efforts we undertake, including litigation, could be time-consuming and expensive and could divert our management's attention. In addition, our efforts may be met with defenses and counterclaims challenging the validity and enforceability of our intellectual property rights or may result in a court determining that our intellectual property rights are unenforceable. If we are unable to cost-effectively protect our intellectual property rights, then our business could be harmed.

**We may be subject to intellectual property claims, which are extremely costly to defend, could require us to pay significant damages and could limit the company's ability to use certain technologies in the future.**

Companies in bio-medical or bio-technology industries are frequently subject to litigation based on allegations of infringement or other violations of intellectual property rights. To the extent we gain greater public recognition, we may face a higher risk of being the subject of intellectual property claims. Third-party intellectual property rights may cover significant aspects of our technologies or business methods or block us from expanding our offerings. Any intellectual property claims against us, with or without merit, could be time consuming and expensive to settle or litigate and could divert the attention of our management. Litigation regarding intellectual property rights is inherently uncertain due to the complex issues involved, and the company may not be successful in defending itself in such matters.

In addition, some of our competitors have extensive portfolios of issued patents. Many potential litigants, including some of our competitors and patent holding companies, have the ability to dedicate substantial resources to enforcing their intellectual property rights. Any claims successfully brought against us could subject us to significant liability for damages and we may be required to stop using technology or other intellectual property alleged to be in violation of a third party's rights. We also might be required to seek a license for third-party intellectual property. Even if a license is available, we could be required to pay significant royalties or submit to unreasonable terms, which would increase our operating expenses. We may also be required to develop alternative non-infringing technology, which could require significant time and expense. If we cannot license or develop technology for any allegedly infringing aspect of our business, we would be forced to limit our service and may be unable to compete effectively. Any of these results could harm our business.

**Audit Committee investigation may result in material adjustments or restatements.**

We may be required to restate our financial statements or make material adjustments due to ongoing investigations into past governance failures at our Chemrex subsidiary.

Our Audit Committee is actively investigating several historical transactions undertaken including related party transactions, unauthorized remuneration increases. If these investigations reveal breaches of financial controls, policy noncompliance, or accounting errors, we may be required to restate our financial statements, record impairments, or disclose material weaknesses in internal control over financial reporting. Such actions could adversely affect investor confidence, our stock price, and our ability to raise capital.

**Internal control deficiencies may persist despite remediation efforts.**

Our internal controls over financial reporting may remain deficient due to legacy governance gaps and evolving compliance frameworks.

Specifically, the Company has experienced governance breakdowns, particularly at the subsidiary level, relating to approval processes, documentation, and internal oversight. While management and the Audit Committee have undertaken remediation efforts, including committee reconstitution and internal reviews, these measures may not be sufficient to prevent similar issues from recurring. If we are unable to design and maintain effective internal controls, we may be subject to regulatory scrutiny, reputational damage, or legal liability.

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**We may pursue collaborations, in-licensing or out-license arrangements, joint ventures, strategic alliances, partnerships or other strategic investments or arrangements, which may fail to produce anticipated benefits and adversely affect the company's operations.**

We may pursue opportunities for collaboration, in-licensing, out-license, joint ventures, acquisitions of products, assets or technology, strategic alliances, or partnerships that we believe would be complementary to or promote our existing business. Proposing, negotiating and implementing these opportunities may be a lengthy and complex process. Other companies, including those with substantially greater financial, marketing, sales, technology, or other business resources, may compete with us for these opportunities or arrangements. We may not be able to identify, secure, or complete any such transactions or arrangements in a timely manner, on a cost-effective basis, on acceptable terms, or at all.

We have limited experience with respect to these business development activities. Management and integration of a licensing arrangement, collaboration, joint venture or other strategic arrangement may disrupt our current operations, decrease our profitability, result in significant expenses, or divert management resources that otherwise would be available for our existing business. We may not realize the anticipated benefits of any such transaction or arrangement.

Furthermore, partners, collaborators, or other parties to such transactions or arrangements may fail to fully perform their obligations or meet its expectations or cooperate with us satisfactorily for various reasons and subject us to potential risks, including the followings:

· partners, collaborators, or other parties have significant discretion in determining the efforts and resources that they will apply to a transaction or arrangement;

· partners, collaborators, or other parties could independently develop, or develop with third parties, services and products that compete directly or indirectly with its services and products;

· partners, collaborators, or other parties may stop, delay or discontinue research and development, and commercialization efforts;

· partners, collaborators, or other parties may not properly maintain or defend our intellectual property rights or may use its intellectual property or proprietary information in a way that gives rise to actual or threatened litigation that could jeopardize or invalidate our intellectual property or proprietary information or expose us to potential liability;

· disputes may arise between us and partners, collaborators, or other parties that cause the delay or termination of the research, development or commercialization of our services and products, or that result in costly litigation or arbitration that diverts management attention and resources;

· partners, collaborators, or other parties may be terminated and, if terminated, may result in a need for additional capital to pursue further development or commercialization of the applicable services and products; and

· partners, collaborators, or other parties may own or co-own intellectual property covering our services and products that results from our collaborations with them, and in such cases, we would not have the exclusive right to commercialize such intellectual property.

Any such transactions or arrangements may also require actions, consents, approval, waiver, participation, or involvement of various degrees from third parties, such as regulators, government authorities, creditors, licensors or licensees, related individuals, suppliers, distributors, shareholders or other stakeholders or interested parties. There is no assurance that such third parties will be cooperative as we desire, or at all, in which case we may be unable to carry out the relevant transactions or arrangements.

**<u>Risks Related to Doing Business in the Southeast Asia Region</u>**

**Changes in policies in Malaysia and other Southeast Asian countries could have a significant impact upon the company's ability to operate profitably in Malaysia and the Southeast Asia region.**

Changes in the political and economic policies of Malaysia and other governments in Southeast Asia may materially and adversely affect our business, financial condition and results of operations and may result in its inability to sustain its growth and expansion strategies. Accordingly, our financial condition and results of operations are affected to a significant extent by economic, political and legal developments in Southeast Asia region.

The Southeast Asia economy differs from the economies of most developed countries in many respects, including the extent of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources. In addition, the government continues to play a significant role in regulating industry development by imposing industrial policies. The government also exercises significant control over economic growth by allocating resources, controlling payment of foreign currency-denominated obligations, setting monetary policy, regulating financial services and institutions and providing preferential treatment to particular industries or companies.

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Local governments have implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall economy but may also have a negative effect on us. Our financial condition and results of operation could be materially and adversely affected by government control over capital investments or changes in tax regulations that are applicable to us. In addition, the government has implemented in the past certain measures, including interest rate increases, to control the pace of economic growth. These measures may cause decreased economic activity, which in turn could lead to a reduction in demand for its services and consequently have a material adverse effect on its businesses, financial condition and results of operations.

**Developments in the social, political, regulatory and economic environment in Malaysia may have a material adverse impact on us.**

Our business, prospects, financial condition and results of operations may be adversely affected by social, political, regulatory and economic developments in Malaysia. Such political and economic uncertainties include, but are not limited to, the risks of war, terrorism, nationalism, nullification of contract, changes in interest rates, imposition of capital controls and methods of taxation.

Although the overall Malaysian economic environment (in which we predominantly operate) appears to be positive, there can be no assurance that this will continue to prevail in the future. Economic growth is determined by countless factors, and it is extremely difficult to predict with any level of absolute certainty.

**You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in Malaysia against the company or its management based on foreign laws, and the ability of U.S. authorities to bring actions in Malaysia may also be limited.**

The Company's operating subsidiaries are incorporated in Malaysia and conduct substantially all of its operations in Southeast Asia. All of our executive officers and directors reside outside the United States, and all their assets are located outside of the United States. As a result, it may be difficult or impossible for shareholders to bring an action against us or against these individuals in Malaysia in the event that you believe that your rights have been infringed under the securities laws of the United States or otherwise. Even if you are successful in bringing an action of this kind, the laws of Malaysia may render you unable to enforce a judgment against our assets or the assets of our directors and officers. There is no statutory recognition in Malaysia of judgments obtained in the United States, although the courts of Malaysia will generally recognize and enforce a non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits. The rights of shareholders to take legal action against us and our directors, actions by minority shareholders and the fiduciary responsibilities of its directors are to a large extent governed by the common law of Malaysia. The common law of Malaysia is derived in part from comparatively limited judicial precedent in Malaysia as well as from English common law, which provides persuasive, but not binding, authority in a court in Malaysia. The rights of our shareholders and the fiduciary responsibilities of its directors under Malaysian law are not as clearly established as they would be under statutes or judicial precedents in the United States. Malaysia has a less developed body of securities laws than the United States and provides significantly less protection to investors. As a result, our public shareholders may have more difficulty in protecting their interests through actions against us, its management, its directors or its major shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States. In addition, to receive any form of remedy, the shareholders would have to engage Malaysian counsel regarding the process to receive any such remedy.

**We are subject to foreign exchange control policies in Malaysia.**

The ability of our subsidiaries to pay dividends or make other payments may be restricted by the foreign exchange control policies in the countries where they operate. For example, there are foreign exchange policies in Malaysia which support the monitoring of capital flows into and out of the country in order to preserve its financial and economic stability. The foreign exchange policies are administered by the Foreign Exchange Administration, an arm of Bank Negara Malaysia ("BNM"), the central bank of Malaysia. The foreign exchange policies monitor and regulate both residents and non-residents. Under the current Foreign Exchange Administration rules issued by BNM, non-residents are free to repatriate any amount of funds from Malaysia in foreign currency other than the currency of Israel at any time (subject to limited exceptions), including capital, divestment proceeds, profits, dividends, rental, fees and interest arising from investment in Malaysia, subject to any withholding tax. In the event BNM or any other country where we operate introduces any restrictions in the future, it may be affected in its ability to repatriate dividends or other payments from our subsidiaries in Malaysia or in such other countries. Since we rely principally on dividends and other payments from its subsidiaries for its cash requirements, any restrictions on such dividends or other payments could materially and adversely affect its liquidity, financial condition and results of operations.

**Volatility in our share price may subject us to securities litigation.**

The market for our shares may have, when compared to seasoned issuers, significant price volatility and we expect that our share price may continue to be more volatile than that of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. We may, in the future, be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management's attention and resources.

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**We may never be able to pay dividends and are unlikely to do so.**

To date, we have not paid, nor do we intend to pay in the foreseeable future, dividends on our common stock, even if we become profitable. Earnings, if any, are expected to be used to advance our activities and for working capital and general corporate purposes, rather than to make distributions to stockholders. Since we are not in a financial position to pay dividends on our common stock and future dividends are not presently being contemplated, investors are advised that return on investment in our common stock is restricted to an appreciation in the share price. The potential or likelihood of an increase in share price is uncertain.

**Shareholders may be diluted significantly through our efforts to obtain financing and satisfy obligations through the issuance of securities.**

Wherever possible, our board of directors will attempt to use non-cash consideration to satisfy obligations. In many instances, we believe that the non-cash consideration will consist of shares of our common stock, warrants to purchase shares of our common stock or other securities. In the future, we may issue our authorized but previously unissued equity securities, resulting in the dilution of the ownership interests of our stockholders. We are authorized to issue an aggregate of 300,000,000 shares of common stock. We may issue additional shares of common stock or other securities that are convertible into or exercisable for our common stock in connection with hiring or retaining employees, future acquisitions, future sales of our securities for capital raising purposes, or for other business purposes. The future issuance of any such additional shares of our common stock may create downward pressure on the trading price of the common stock. We expect we will need to raise additional capital in the near future to meet our working capital needs, and there can be no assurance that we will not be required to issue additional shares, warrants or other convertible securities in the future in conjunction with these capital-raising efforts, including at a price (or exercise prices) below the price you paid for your stock.

**We are a "smaller reporting company," and we cannot be certain if the reduced disclosure requirements applicable to smaller reporting companies will make our common stock less attractive to investors.**

We are currently a "smaller reporting company", meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a smaller reporting company and annual revenues of less than $100 million during the most recently completed fiscal year. In the event that we are still considered a "smaller reporting company," at such time as we cease being an "emerging growth company," we will be required to provide additional disclosure in our SEC filings. However, similar to an "emerging growth companies", "smaller reporting companies" are able to provide simplified executive compensation disclosures in their filings; are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that independent registered public accounting firms provide an attestation report on the effectiveness of internal control over financial reporting; and have certain other decreased disclosure obligations in their SEC filings, including, among other things, only being required to provide two years of audited financial statements in annual reports. Decreased disclosures in our SEC filings due to our status as a "smaller reporting company" may make it harder for investors to analyze our results of operations and financial prospects.

**Item 1B. Unresolved Staff Comments.**

None.

**Item 1C. Cybersecurity**

**Risk Management and Strategy**

The Company's cybersecurity risk management program is designed to assess, identify, and manage risks to the confidentiality, integrity, and availability of its corporate systems and data, including finance and reporting systems, email and collaboration systems, cloud-hosted information, and third-party service providers. The Company uses a combination of internal administrative controls and external service providers to support access management, backup procedures, vulnerability monitoring, vendor review, and incident response.

Management, under the oversight of the Chief Executive Officer, periodically reviews cybersecurity risks and escalates material cybersecurity matters to the Board of Directors, and where appropriate the Audit Committee, as part of the Company's broader risk oversight process.

During fiscal 2025, the Company did not identify any cybersecurity incident that materially affected, or is reasonably likely to materially affect, the Company's business strategy, results of operations, or financial condition. However, cybersecurity threats remain a continuing risk and future incidents could adversely affect the Company's operations, financial condition, or reputation.

**Governance**

Our Board of Directors maintains oversight of risks from cybersecurity threats. Our Chief Executive Officer is assigned oversight of cybersecurity risks. Our Chief Executive Officer is responsible for ensuring that management has processes in place designed to identify and evaluate cybersecurity risks to which the Company is exposed and to implement processes and programs to manage cybersecurity risks and mitigate cybersecurity incidents.

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**Item 2. Properties.**

The corporate office for MRNA Scientific is located at Unit A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jalan Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia. The lease commenced on June 1, 2024 and terminates on May 31, 2027, with option to extend till May 31, 2029. The space consists of 2,206 square feet with an annual rent of approximately $30,190.

We also have two laboratories. One of our laboratories is located at 4<sup>th</sup> Floor, Wisma Life Care, No. 5, Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia. The lease commenced on November 1, 2016 and terminates on April 30, 2026. The annual rent is approximately $6,563. The other laboratory is located at Lab 353, University Science Malaysia, George Town, Penang, Malaysia. The lease commenced on December 1, 2017 and terminates on November 30, 2026. The space consists of 1,500 square feet with an annual rent of approximately $32,257.

On July 2, 2012, we purchased a 25,000 sq. ft wholesale distribution center at 4, Jalan CJ 1/6, Kawasan Perusahaan Cheras Jaya, 43200 Cheras, Selangor, Malaysia, and two investment properties for $1,395,210. The two investment properties are listed below.

· An 1,100 sq ft condominium located at No. B-17-03, Duet Residence, Jalan Kinrara 6, Bandar Kinrara, 47180 Puchong, Selangor, purchased on August 26, 2020;

· A 2,000 sq ft commercial building located at First floor, No. 2B Pelangi Avenue, Jalan Kelicap 42A/KU1, Klang Bandar, Diraja, 41050 Klang, Selangor purchased on September 21, 2020.

On July 1, 2024, we entered into a lease for Lot 238 and 239, Jalan Villaraya 1/9, Kawasan Industri Villaraya, 43500 Semenyih, Selangor. The lease terminates on June 30, 2026, with an option to extend for one year. The purpose of this lease is to establish a manufacturing facility for a new high-quality color paste production line.

**Item 3. Legal Proceedings.**

From time to time, the Company may be involved in claims, disputes, investigations, or legal proceedings arising in the ordinary course of business.

As previously disclosed, the Company has been reviewing certain historical transactions involving former officers of Chemrex Corporation Sdn. Bhd. and related governance and approval matters. That review remains ongoing, and the Company is continuing to assess whether any claims or legal actions should be pursued in connection with those matters.

As of the date of this Annual Report, except for the foregoing review and related matters, the Company is not a party to any material legal proceeding, and, to the Company's knowledge, no material legal proceeding is pending or threatened against the Company or its subsidiaries that the Company believes would have a material adverse effect on its business, financial condition, or results of operations.

**Item 4. Mine Safety Disclosures.**

None.

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**PART II**

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.**

Our common stock is traded on the Nasdaq Capital Market under the symbol "BGLC".

***Capital Stock***

As of the date of this filing, there are 2,417,314 shares of our common stock issued and outstanding that was held by 293 stockholders of record and no shares of preferred stock issued and outstanding. Under our Articles of Incorporation, as amended, we are authorized to issue 300,000,000 shares of common stock, no par value, and 30,000,000 shares of preferred stock, no par value. The shares of preferred stock are "blank check' meaning the Company's board of directors can issue shares of preferred stock in such series with such rights, privileges and preferences as determined from time to time by the board of directors without shareholder approval, subject to conditions outlined in the Nasdaq listing rules.

***Dividend Policy***

The Company has not declared or paid any cash dividends on its Common Stock and do not anticipate declaring or paying any cash dividends in the foreseeable future. The payment of dividends, if any, is within the discretion of the board of directors and will depend on the Company's earnings, if any, its capital requirements and financial condition and such other factors as the board of directors may consider.

***Securities Authorized for Issuance under Equity Compensation Plans***

In December 2025, the Company shareholders approved the Company's 2025 Equity Incentive Plan ("Plan"). The Plan authorizes the issuance of approximately 403,000 shares of common stock to Company employees and consultants, subject to annual adjustment provisions under the plan. As of the date of this filing, no options or grants have been issued under the Plan.

***Recent Sales of Registered Securities***

On November 7, 2025, the Company filed a registration statement on Form S-3 with the U.S. Securities and Exchange Commission ("SEC") to register up to $100 million of securities that may be offered from time to time. The Company concurrently entered into an Equity Distribution Agreement (the "Agreement") with Maxim Group LLC (the "Agent"), pursuant to which the Company may offer and sell, from time to time, shares of its common stock, no par value (the "Common Stock"), having an aggregate offering price of up to $20,000,000 through the Agent, acting as the Company's exclusive sales agent (the "ATM Program").

Sales, if any, will be made in transactions deemed to be "at-the-market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended, which may be made directly on The Nasdaq Capital Market or otherwise at prevailing market prices, at prices related to prevailing market prices, or at negotiated prices, as permitted by the Agreement. The Company is not obligated to sell any shares under the ATM Program, and the Agent is not required to purchase any shares. The Form S-3 became effective on November 27, 2025, and 53,478 shares have been sold for proceeds of $267,311 as of the date of filing of this Form 10-K.

***Recent Sales of Unregistered Securities***

In November 2025, the Company issued 175,000 shares of common stock to ARC Group International Ltd ('ARC") as consideration for ARC's commitment under the purchase agreement to purchase, from time to time at the Company discretion, up to $500,000,000 of the Company's common stock, no par value per share, over a 36-month period. The stock issuances were exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder.

In November 2025, the Company issued 392,329 shares of common stock to Fidelion Diagnostics Pte. Ltd ("Fidelion") as consideration for the Company's subscription of Fidelion shares. This formed part of the conditions under the Share Subscription and Shareholders' Agreement "SSSA" entered into with Fidelion and TongShu Biotechnology (Hong Kong) Co., Limited ('Tongshu"). The stock issuances were exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder.

***Issuer Purchases of Equity Securities***

None

**Item 6. Selected Financial Data.**

As a "smaller reporting company" as defined by Rule 12b-2 of the Exchange Act, the Company is not required to provide this information.

**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

<u>General</u>

*The following discussion and analysis of the Company's financial condition and results of operations should be read together with the consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those discussed in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" and elsewhere in this Annual Report.*

<u>Overview</u>

BioNexus Gene Lab Corp. conducts operations through Chemrex Corporation Sdn. Bhd. and MRNA Scientific Sdn. Bhd. Chemrex is engaged in the distribution of industrial chemical raw materials, and MRNA Scientific is engaged in blood-based genomic screening services and related diagnostics activities.

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During fiscal year 2025, the Company's results were affected primarily by lower sales volume at Chemrex, lower other income compared to fiscal year 2024 due mainly to a smaller reversal of expected credit losses, higher holding-company general and administrative expenses, and financing and strategic transactions involving Fidelion Diagnostics Pte. Ltd., ARC Group International Ltd., and the Company's at-the-market offering program.

Management's principal areas of focus during fiscal year 2025 included liquidity management, remediation of internal control and governance issues identified at Chemrex, support for ongoing subsidiary operations, and the evaluation of strategic opportunities in diagnostics-related businesses.

<u>Going Concern and Liquidity Considerations</u>

We ended 2025 with positive working capital, and our liquidity remains dependent on continued management of operating cash usage, the performance of Chemrex, and access to capital. At December 31, 2025, we had working capital of $4,927,781, compared to $5,479,146 at December 31, 2024. The year-over-year decline reflected operating losses, expenditures relating to strategic initiatives, and continued public-company and holding-company costs.

Management's current plans to address liquidity include maintaining and improving Chemrex operating performance, controlling discretionary expenditures, continuing remediation efforts intended to strengthen internal controls and governance, and pursuing external financing and capital markets transactions where available. However, there can be no assurance that additional financing, if needed, will be available on acceptable terms or at all. The use of equity financing could be dilutive to existing shareholders, while debt financing could impose restrictive covenants or other limitations.

<u>Recent Developments</u>

**<u>Corporate Actions</u>**

*Notification of Delisting and Remedy of Delisting*

As mentioned herein, from late 2023 through the second quarter of 2025, the Company faced potential Nasdaq delisting due to its "Bid Price" deficiency. The Company shareholders approved a 1 for 10 reverse split of its common stock in March 2025, which was filed with the State of Wyoming on April 7, 2025. The Company subsequently remedied its Bid Price deficiency with Nasdaq.

*Reverse Stock Split*

As referenced above, on March 19, 2025**,** the "Company held a Special Meeting of Shareholders (the "Meeting") to approve a reverse stock split of the Company's outstanding shares of common stock, with a ratio ranging from one-for-five (1:5) to one-for-ten (1:10), with the exact ratio to be set at the discretion of the Board of Directors. After a quorum was established, the shareholders approved the Reverse Stock Split. Thereafter, on that same date, the Board of Directors set the reverse stock split ratio at 1 for 10. The Reverse Stock Split became effective on April 7, 2025.

*Share Subscription and Shareholders' Agreement (the "SSSA")* 

On November 12, 2025, the Company entered into a Share Subscription and Shareholders' Agreement (the "SSSA") by and among Fidelion, the Company, Tongshu Biotechnology (Hong Kong) Co., Limited ("Tongshu"), Mr. Su-Leng Tan Lee, Molecule Bio LLC and Rainy Morning Technology (Hong Kong) Limited.

Pursuant to the SSSA, the Company agreed to subscribe for newly issued ordinary shares of Fidelion such that the Company will hold at least 15.0% of Fidelion's enlarged share capital at completion, in exchange for the Company issuing to Fidelion 392,329 shares of common stock (which represents 19.9% of the Company's outstanding common stock as of such date). Completion of the SSSA is subject to specified conditions precedent, including execution of a Southeast Asia intellectual property license between the Company and Fidelion and customary corporate and third-party consents.

*Exclusive Southeast Asia License Agreement ('License Agreement") with Fidelion* 

Pursuant to a Form 8-K filed on November 28, 2025, the Company announced that it has entered into a Licensing Agreement with Fidelion. In consideration for the license, the Company agreed to pay Fidelion a total license fee of $2,000,000 in 24 equal monthly instalments and committed to purchase at least $500,000 in value of VitaGuard™ reagents and system component during the first 24 months following the effective date.

*ARC Group International Equity Purchase Agreement*

On November 28, 2025, the Company entered into an Equity Purchase Agreement (the "Purchase Agreement") with ARC Group International Ltd. ("ARC"), the parent of ARC Group Securities, a FINRA registered broker/dealer. Under the terms of the Purchase Agreement, ARC has committed to purchase, from time to time at the Company's discretion, up to $500,000,000 of the Company's common stock, no par value per share ("Common Stock"), over a 36-month period (the "Facility").

Under the Facility, the Company, in its sole discretion and subject to the terms and conditions of the Purchase Agreement, may direct ARC to purchase registered shares of Common Stock at a purchase price equal to a specified discount to the prevailing volume-weighted average price during an agreed pricing period, the discount being between 3.0% and 3.5%. ARC may not purchase shares under the Facility that would result in its beneficial ownership exceeding 9.99% of the Company's then-outstanding Common Stock and is prohibited from short selling or hedging transactions involving the Company's securities.

As consideration for ARC's commitment under the Facility, the Company issued to ARC 175,000 shares of Common Stock (the "Commitment Shares") on November 26, 2025.

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**Audit Committee Review and Governance Remediation**

In 2025, our Audit Committee undertook a comprehensive review of historical transactions at our wholly owned subsidiary, Chemrex Corporation Sdn. Bhd., following concerns raised about internal control procedures and board authorization. The review identified the following material items:

· A sale of Chemrex's primary operating property to CCRE Composite Sdn. Bhd. was initiated without formal Board approval. This transaction has since been cancelled, and the deposit was forfeited in favor of the Company.

· Transactions with Honkuk Material Sdn. Bhd., a related party, were not submitted for prior Board or Audit Committee review, although no material misstatement has been identified to date.

· Director remuneration increases and payments to Mr. Wong Kim Hai were processed without documented approvals. These are scheduled to be presented to shareholders for ratification at the next Chemrex shareholder meeting.

· Procurement from Quote Me Sdn. Bhd., a dissolved entity at the time of transaction, is being accepted based on auditor confirmation of assets received and management representations.

As a result of these findings, the Board, in coordination with the Audit Committee, is implementing enhanced governance controls, updating approval workflows, and reviewing subsidiary-level delegations of authority. These steps are intended to strengthen oversight and align our corporate governance practices with Nasdaq and SEC expectations. In addition, at this time, the Company is assessing its claims against the former Chemrex officers.

**Cybersecurity and Digital Assets Integration**

On March 5, 2025, the Company announced its Ethereum-focused treasury strategy. This decision marked the Company as the first Nasdaq-listed company to exclusively prioritize Ethereum (ETH) as a strategic treasury asset, and is in line with recent announcements of Ethereum being included in the US "Crypto Strategic Reserve."

The Company published its "Ethereum Strategy Whitepaper" on that same date, which is available https://www.bionexusgenelab.com/ethstrategy.

On March 7, 2025, we announced our strategic partnership with ML Tech to optimize the BGLC's Ethereum-based growth strategies. ML Tech is an AI-driven wealth management platform for digital assets regulated by the National Futures Association (NFA), and is headquartered in Miami, Florida. This collaboration follows the announced Ethereum treasury strategy by BGLC, marking its commitment to technological and financial innovation.

**Known Trends, Uncertainties, and Events**

Looking ahead, we anticipate the following key developments will shape our operations:

· Full remediation of internal control deficiencies and establishment of a uniform group-level risk and compliance framework;

· Continued development of the VitaGuard™ Minimal Residual Disease (MRD) platform in the South East Asian market;

· Continued expansion into digital healthcare markets, including the deployment of capital into Malaysian government co-investment projects;

· Potential revenue acceleration through strategic alliances, mergers, or acquisitions facilitated by the Company's investment banking advisor; and

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**Critical Accounting Policies and Estimates** 

In preparing our Consolidated Financial Statements in accordance with generally accepted accounting principles in the United States, and pursuant to the rules and regulation of the SEC, we make assumptions, judgments and estimates that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. We evaluate our assumptions, judgments and estimates on a regular basis. We also discuss our critical accounting policies and estimates with the Audit Committee of the Board of Directors.

We believe that the assumptions, judgments and estimates involved in the accounting for valuation of current expected credit losses have the greatest potential impact on our Consolidated Financial Statements. This area is key component of our results of operations and are based on complex rules requiring us to make judgments and estimates, and consequently, we consider these to be our critical accounting policies. Historically, our assumptions, judgments and estimates relative to our critical accounting policies have not differed materially from actual results.

**Current Expected Credit Losses**

The Company maintains an allowance for credit losses on financial assets, including trade receivables and other financial instruments, in accordance with ASC 326, which requires the use of the current expected credit loss ("CECL") model. Under the CECL model, the Company estimates expected credit losses over the contractual life of financial assets based on a combination of historical loss experience, current conditions, and reasonable and supportable forecasts of future economic conditions.

The determination of the allowance for credit losses requires significant judgment and estimation. In developing its estimate, the Company considers factors such as the aging and composition of receivables, historical collection trends, customer creditworthiness, and forward-looking macroeconomic indicators. The Company may also apply qualitative adjustments to address specific risks not fully captured in the quantitative analysis, including changes in industry conditions or customer-specific developments.

This estimate is considered critical because it involves a high degree of subjectivity and has a material impact on the Company's financial condition and results of operations. Changes in key assumptions, including the economic outlook or the financial condition of customers, could result in material adjustments to the allowance. In particular, adverse economic conditions, increased customer concentration risk, or deterioration in credit quality may lead to higher expected credit losses.

The Company reassesses the adequacy of the allowance at each reporting period. Changes in estimates are recognized in earnings in the period in which they are identified and could materially affect the Company's results of operations

**Result of Operations**

**<u>Exchange Rates</u>**

Translation of amounts from RM (MYR) into US$1.00 has been made at the following exchange rates for the respective years:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Year-end US$1.00: MYR exchange rate | 4.0610 | 4.4755 |

---

---

| | | |
|:---|:---|:---|
|  | **January 1,**<br>**to**<br>**December 31,**<br>**2025** | **January 1,**<br>**2024 to**<br>**December 31,**<br>**2024** |
| Yearly average US$1.00: MYR exchange rate | 4.2798 | 4.5710 |

---

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**Results of Operations for the Year Ended December 31, 2025, compared to the Year Ended December 31, 2024 (Audited).**

The following table sets forth key components of the results of operations for fiscal years ended December 31, 2025 and 2024, respectively.

---

| | | |
|:---|:---|:---|
| **Consolidated** | **Year ended** | **Year ended** |
|  | **December 31, (Audited)** | **December 31, (Audited)** |
|  | **2025** | **2024** |
| REVENUE (including $68,104 and $112,556 of revenue from related parties for the year ended December 31, 2025 and 2024 respectively) | $7424911 | $9510646 |
| COST OF REVENUE (including $9,503 and $297,736 of cost of revenue from related parties for the year ended December 31, 2025 and 2024, respectively) | (6339694) | (8221125) |
| GROSS PROFIT | 1085217 | 1289521 |
| OTHER INCOME |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income  | 22112 | 68130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 83888 | 147641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value gain on investments in equity securities |  | 69476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of investments in equity securities | 27201 | 38409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of expected credit losses | 144767 | 1689412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain from foreign exchange | 94664 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 59485 | 59405 |
| TOTAL OTHER INCOME | 432117 | 2072473 |
| OPERATING EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | (1736331) | (2030684) |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | (50670) | (47511) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative (including $4,206 and $1,969 of rental expenses to related parties for the year ended December 31, 2025 and 2024, respectively) | (1535452) | (1832968) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | (794770) | (141000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value loss on investments in equity securities | (93965) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for expected credit losses  | (271211) | (883533) |
| TOTAL OPERATING EXPENSES | (4482399) | (4935696) |
| **LOSS FROM OPERATIONS** | **(2965065)** | **(1573702)** |
| FINANCE COSTS | (19542) | (21146) |
| LOSS BEFORE TAXES | (2984607) | (1594848) |
| Tax expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax |  | 12305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax | - | (15799) |
| Tax expense | - | (3494) |
| **NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS** | $**(2984607)** | $**(1598342)** |
| Other comprehensive income |  |  |
| Foreign currency translation gain | 434251 | 122294 |
| **COMPREHENSIVE LOSS** | $**(2550356)** | $**(1476048)** |

---

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---

***Revenues*** 

Revenues decreased by 21.9% during fiscal year 2025 compared to fiscal year 2024 primarily due to lower business volume registered by Chemrex as a result of the change of management which impacted relations with a number of customers. The foreign currency translation denominated in currency other than the U.S. dollar also has an impact on revenues during fiscal year 2025.

***Cost of Revenues***

Cost of revenue decreased by 23% during fiscal year 2025 compared to fiscal year 2024 primarily due to lower revenues for the reasons described above.

***Other Income***

Other income decreased by 79% during fiscal year 2025 compared to fiscal year 2024 primarily due to a smaller reversal of expected credit losses during fiscal year 2025 by Chemrex. In fiscal year 2024, there was a reversal of expected credit losses of $1,689,412 by Chemrex, whereas during fiscal year 2025, the reversal was only $144,767. Dividend, fair value gain on investment in equity securities and interest income was also reduced due to reductions in shares owned and term deposits held in interest bearing accounts. The foreign currency translation denominated in currency other than the U.S. dollar has also impacted on other income during 2025.

***Operating Expenses***

Operating expenses decreased by 9% during fiscal year 2025 compared to fiscal year 2024. The main reason for the lower operating expenses in fiscal year 2025 was mainly due to lower provision of expected credit losses and lower sales and marketing expenses incurred partially offset by higher general administration expenses. The foreign currency translation denominated in currency other the U.S. dollar also has an impact on lowering operating expenses during fiscal year 2025.

***Loss from Operations***

Our loss from operations has increased by 88% due to the reasons outlined above.

***Tax Expense***

We had a lower tax expense during fiscal year 2025 compared to fiscal year 2024 due to losses from our operating subsidiaries.

***Foreign Currency Translation Gain***

We are exposed to fluctuations in foreign exchange rates on the translation of monetary assets and liabilities denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate will require us to recognize a transaction gain or loss on revaluation. For the annual period ended December 31, 2025, we had foreign currency translation gain of $434,251 compared with foreign currency translation gain of $122,294 for 2024.

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **MRNA Scientific**<br>**(Provision for genomic screening services)** | **Chemrex**<br>**(Trading of industrial chemicals)** | **MRNA Scientific**<br>**(Provision for genomic screening services)** | **Chemrex**<br>**(Trading of industrial chemicals)** |
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
| REVENUE | $19089 | $7405822 | $16069 | $9494577 |
| COST OF REVENUE | (9335) | (6330359) | (7316) | (8213809) |
| GROSS PROFIT | 9754 | 1075463 | 8753 | 1280768 |
| OTHER INCOME |  |  |  |  |
| Dividend income  |  | 22112 |  | 68130 |
| Interest income | 73274 | 10614 | 109444 | 38197 |
| Fair value gain on investments in equity securities |  |  |  | 69476 |
| Gain on disposal of investments in equity securities |  | 27201 |  | 38409 |
| Reversal of expected credit losses |  | 144767 |  | 1689412 |
| Gain from foreign exchange | 94664 |  |  |  |
| Others | 10514 | 48971 | 13507 | 45898 |
| TOTAL OTHER INCOME | 178452 | 253665 | 122951 | 1949522 |
| OPERATING EXPENSES |  |  |  |  |
| Sales and marketing | (135714) | (1548420) | (125299) | (1861456) |
| Research and development | (50670) |  | (47511) |  |
| General and administrative | (211467) | (461943) | (194038) | (679321) |
| Fair value loss on investments in equity securities |  | (93965) |  |  |
| Provision for expected credit losses  | - | (271211) | - | (883533) |
| TOTAL OPERATING EXPENSES | (397851) | (2375539) | (366848) | (3424310) |
| **LOSS FROM OPERATIONS** | **(209645)** | **(1046411)** | **(235144)** | **(194020)** |
| FINANCE COSTS | (12709) | (6645) | (11795) | (9072) |
| **LOSS BEFORE TAXES** | **(222354)** | **(1053056)** | **(246939)** | **(203092)** |
| Deferred tax |  |  |  | 12305 |
| Tax expense |  | - | - | (15799) |
| Total tax (expense)/credit | - | - | - | (3494) |
| **NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS**  | $**(222354)** | $**(1053056)** | $**(246939)** | $**(206586)** |

---

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**Revenue** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **FYE December 31 2025** | **FYE December 31 2025** | **FYE December 31 2025** | **FYE December 31 2024** | **FYE December 31 2024** |
|  | **Revenue** <br>**$** | **Change from** <br>**prior year %** | **Contribution to** <br>**total revenue** | **Revenue** <br>**$** | **Contribution to** <br>**total revenue** |
| MRNA Scientific | 19089 | 18.8% | 0.3% | 16069 | 0.2% |
| Chemrex | 7405822 | -22.0% | 99.7% | 9494577 | 99.8% |
|  | 7424911 | -21.9% | 100.0% | 9510646 | 100.0% |

---

MRNA Scientific's revenue increased by 18.8%, due to the impact of foreign currency translation denominated in non-U.S. dollar currencies.

Revenue for Chemrex decreased by 22% mainly due to lower business volume as a result of change of management in the 4<sup>th</sup> quarter of the fiscal year 2025.

**Cost of Revenues and Gross Margin**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **FYE December 31**  | **FYE December 31**  | **FYE December 31**  | **FYE December 31**  |
|  | **2025** | **2025** | **2024** | **2024** |
| **Cost of Revenue** |  |  |  |  |
| MRNA Scientific |  | 9335 |  | 7316 |
| Chemrex |  | 6330359 |  | 8213809 |
| Total cost of sale |  | 6339694 |  | 8221125 |
| **Gross Margin percentage** |  |  |  |  |
| MRNA Scientific |  | 51.1% |  | 54.5% |
| Chemrex | 14.6 | 14.6% | 13.6 | 13.6% |
| Total Gross Margin percentage | 14.7 | 14.7% | 13.7 | 13.7% |

---

The gross margin percentage for MRNA Scientific reduced slightly during fiscal year 2025 compared to fiscal year 2024 mainly due to a different mix of services with lower gross margins.

The gross margin percentage for Chemrex improved during fiscal year 2025 compared to fiscal year 2024 mainly due to a different product mix in sales.

**Other Income** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **FYE December 31**  | **FYE December 31**  | **FYE December 31**  | **FYE December 31**  |
|  | **2025** | **2025** | **2025** | **2024** |
|  | **$** | $**% Change from prior year** | **% Change from prior year** | **$** |
| MRNA Scientific |  |  | 45.1% | 122951 |
| Chemrex |  |  | -87.0% | 1949522 |
|  |  |  | -79.1% | 2072473 |

---

Other income for MRNA Scientific improved during fiscal year 2025 compared to fiscal year 2024 mainly due to higher rental received and gain from unrealised foreign exchange.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **MRNA Scientific** **(Provision for genomic screening services)** | **MRNA Scientific** **(Provision for genomic screening services)** | **MRNA Scientific** **(Provision for genomic screening services)** | **MRNA Scientific** **(Provision for genomic screening services)** |
| OTHER INCOME | **2025** | **Change from prior year** | **Change from prior year** | **2024** |
|  | **$**  | $**%** | **%** | **$** |
| Interest income |  |  | -33% | 109444 |
| Gain from unrealised foreign exchange |  |  | 100% |  |
| Others |  |  | -22% | 13507 |
| TOTAL OTHER INCOME |  |  | **45%** | **122951** |

---

Chemrex recorded lower other income during 2025 compared to 2024 mainly due to lower reversal of expected credit losses, no fair value gain on investments in equity securities, lower dividend income and interest income during 2025 compared to 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Chemrex** **(Trading of industrial chemicals)** | **Chemrex** **(Trading of industrial chemicals)** | **Chemrex** **(Trading of industrial chemicals)** | **Chemrex** **(Trading of industrial chemicals)** |
| OTHER INCOME | **2025** | **Change from prior year** | **Change from prior year** | **2024** |
|  | **$** | $**%** | **%** | **$** |
| Dividend income |  |  | -68% | 68130 |
| Interest income |  |  | -72% | 38197 |
| Fair value gain on investments in equity securities |  |  | -100% | 69476 |
| Gain on disposal of investments in equity securities |  |  | -29% | 38409 |
| Reversal of expected credit losses |  |  | -91% | 1689412 |
| Others |  |  | 7% | 45898 |
| TOTAL OTHER INCOME |  |  | **-87%** | **1949522** |

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**Sales and Marketing**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **FYE December 31**  | **FYE December 31**  | **FYE December 31**  | **FYE December 31**  |
|  | **2025** | **2025** | **2025** | **2024** |
|  | **$** | $**% Change from prior year** | **% Change from prior year** | **$** |
| MRNA Scientific |  |  | 8.3% | 125299 |
| Chemrex |  |  | -16.8% | 1861456 |
| BGLC |  |  | 18.8% | 43929 |
|  |  |  | -14.5% | 2030684 |

---

Sales and marketing expenses for MRNA Scientific during fiscal year 2025 increased by 8.3% mainly due to higher business development and travelling expenses compared to the prior fiscal year. Sales and marketing expenses for Chemrex was reduced by 16.8% primarily due to lower associated staff remuneration and variable selling expenses. Foreign currency translation for currency denominated other than in U.S dollars also has a negative impact on expenses during fiscal year 2025.

Sales and marketing expenses for BGLC increased for fiscal year 2025 due to increased direct business development and travelling expenses incurred in fiscal year 2025.

**Research and Development**

Research and development costs during fiscal year 2025 were solely related to MRNA Scientific's continued development of its blood-based genomic screening (BGS) test.

**General and Administrative**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **FYE December 31** | **FYE December 31** | **FYE December 31** | **FYE December 31** |
|  | **2025** | **2025** | **2025** | **2024** |
|  | **$** | $**% Change from prior year** | **% Change from prior year** | **$** |
| MRNA Scientific |  |  | 9.0% | 194038 |
| Chemrex |  |  | -32.0% | 679321 |
| BGLC |  |  | -10.2% | 959609 |
|  |  |  | -16.2% | 1832968 |

---

General and administrative expenses for MRNA Scientific increased by 9% mainly due to higher amortisation of right of use assets and higher staff costs. General and administrative expenses for Chemrex was reduced by 32% primarily due to lower staff salaries, lower impairment loss on investment properties and reduced losses on foreign exchange. The foreign currency translation for currency denominated other than in U.S dollars also has an impact on expenses during fiscal year 2025.

General and administrative expenses for BGLC, reduced by 10.2% due to lower professional fee related to legal and lower director fee.

**Share-based Compensation**

Share-based compensation increased due to the issuance of 175,000 shares of common stock related to financing in fiscal year 2025. In fiscal year 2024, 30,000 shares (after reversed split of 1 to 10) of common stock were issued to professional parties or service providers in lieu of cash for services rendered

**Provision for Expected Credit Losses**

With the improvement in our collection efforts, we had a lower provision of expected credit losses during fiscal year 2025 as compared to fiscal year 2024.

**Loss Before Tax**es

Loss before taxes has increased to $2,984,607 (87.1%) during fiscal year 2025 from $1,594,848 in fiscal year 2024 for the reasons described above.

**Income Tax Expense**

For fiscal year 2025, we did not have income tax expenses due to our incurred losses.

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**LIQUIDITY AND CAPITAL RESOURCES**

As of December 31, 2025, we had working capital of $4,927,781 compared with working capital of $5,479,146 as of December 31, 2024. The decrease in working capital as of December 31, 2025 from December 31, 2024, was due principally to operational losses, which included undertaking new strategic initiatives, in line with the Company's overall strategic plans.

Our primary uses of cash have been for operations and strategic investments. The main sources of cash were generated from operational revenues, the private placement of our common stock, and the proceeds of our public offering. The following trends could result in a material decrease in our liquidity over the near to long term:

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| |
|:---|
| Addition of administrative and marketing personnel as the business grows, |
| Increases in advertising and marketing in order to attempt to generate more revenues, and |
| The cost of being a public company. |

---

The Company's ability to sustain operations over the next 12 months will depend on operating performance, working capital management, cost controls, and access to external financing, and there can be no assurance that these sources will be sufficient or available on acceptable terms.

The following is a summary of the Company's cash flows provided by (used in) / generated from operating, investing, and financing activities for the year ended December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | **Year Ended**  | **Year Ended**  |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Net cash used in operating activities | $(1838382) | $(2093260) |
| Net cash generated from investing activities | 944751 | 418202 |
| Net cash generated from financing activities | 298841 | 3975 |
| Foreign currency translation adjustment | 194207 | 40339 |
| **Net Change in Cash and Cash Equivalents** | $**(400583)** | $**(1630744)** |

---

**Operating Activities**

Cash provided by operating activities decreased $254,878 in fiscal year 2025 compared to fiscal year 2024. This is primarily due to lower revenue and substantial decreased in trade payable, partly offset by substantial decrease in trade receivables.

**Investing Activities**

Cashflow outflows from investing activities are primarily for acquisition and capital expenditure, while cash inflows are primarily proceeds from disposal of investment and capital items.

Cash generated for investing activities was $944,751 in fiscal year 2025 as compared to cash generated of $418,202 in fiscal year 2024.

In fiscal year 2025, the Company had net cash of $944,751 generated from investment activities from acquisition of investments in equity securities of $(9,159), purchase of plant and equipment of $(36,971), fixed deposits placed of $(62,860), cash generated from dividend income of $22,112, proceeds from disposal of investments in equity securities of $1,031,629.

During fiscal year 2024, the Company had net cash of $418,202 generated from investment activities from acquisition of investments in equity securities of $(492,732), purchase of plant and equipment of $(226,989), fixed deposits placed of $(78,835), cash generated from dividend income of $68,130, proceeds from disposal of investments in equity securities of $1,068,777, and a refund from the settlement of a supplier contract dispute at $79,851.

**Financing Activities**

Cash generated from financing activities increased to $298,841 in 2025 from $3,975 in 2024. The increase is primarily attributable to 53,478 shares having been sold for proceeds of $267,311 under the ATM Program.

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**Item 7A. Quantitative and Qualitative Disclosures About Market Risk.**

Not applicable to smaller reporting companies.

**Item 8. Financial Statements and Supplementary Data.**

Our financial statements are contained in pages F-1 through F-30, which appear at the end of this Form 10-K Annual Report.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.**

None.

**Item 9A. Controls and Procedures.**

<u>Evaluation of Disclosure Controls and Procedures</u>

As of December 31, 2025, the Company's management, with the participation of the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended).

Based on that evaluation, management concluded that, as of December 31, 2025, the Company's disclosure controls and procedures were not effective due to a material weakness in internal control over financial reporting identified at the Company's wholly owned subsidiary, Chemrex Corporation Sdn. Bhd.

The material weakness related to a lack of oversight and inadequate delegation authority over certain financial transactions, which were executed without proper Board or Audit Committee approval. These issues arose during a period in which there was a temporary governance gap surrounding the resignation of key directors, including one member of the Audit Committee.

<u>Management's Report on Internal Control over Financial Reporting</u>

The Company is not required to provide an attestation report from its registered public accounting firm pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 as it qualifies as a smaller reporting company.

Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Management conducted an assessment of the effectiveness of internal control over financial reporting as of December 31, 2025, using the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Based on this assessment, management concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2025, due to the same material weakness described above.

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**Remediation Plan**

In response to the identified material weakness, the Company has initiated a remediation plan that includes the following actions:

· Implementation of a revised delegation of authority policy at the subsidiary level;

· Reconstitution and strengthening of oversight mechanisms through the Board and Audit Committee;

· Review and ratification of all affected transactions by the Audit Committee;

· Initiation of an internal audit of Chemrex procurement and contracting procedures;

· Staff retraining on internal control and reporting policies.

Management has implemented significant elements of this remediation plan. However, the review and ratification process relating to certain affected transactions remains ongoing as of the date of this Annual Report. In addition, the material weakness will not be considered remediated until the revised controls have been in operation for a sufficient period of time and management has concluded, through testing, that these controls are designed and operating effectively.

**Changes in Internal Controls over Financial Reporting**

During the quarter ended December 31, 2025, the Company began implementing remediation measures in response to the material weakness described above, including changes to approval and oversight processes at the subsidiary level. Other than those remediation activities, there were no changes in the Company's internal control over financial reporting during the quarter ended December 31, 2025 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. The Company expects to continue implementing and testing remediation measures during 2026.

**Item 9B. Other Information.**

During the quarter ended December 31, 2025, no director or officer of the Company adopted, modified, or terminated any contract, instruction, or written plan for the purchase or sale of the Company's securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), and no director or officer adopted, modified, or terminated any non-Rule 10b5-1 trading arrangement, in each case as defined in Item 408(a) of Regulation S-K.

The Company has adopted insider trading policies and procedures governing the purchase, sale, and other dispositions of the Company's securities by directors, officers, employees, and the Company itself. These policies and procedures are contained in the Company's Code of Business Conduct and Ethics. A copy of the Company's insider trading policies and procedures, as set forth in the Code of Business Conduct and Ethics, is filed as Exhibit 19 to this Annual Report on Form 10-K.

There was no information required to be disclosed in a report on Form 8-K during the quarter ended December 31, 2025 that was not previously reported.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.**

None

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**PART III**

**Item 10. Directors, Executive Officers and Corporate Governance.**

The following table sets forth the names, ages, and positions of our executive officers and directors as of the date of this Annual Report. Our executive officers are elected by, and serve at the discretion of, our Board of Directors. Our directors are elected by our shareholders and hold office until their successors are duly elected and qualified, or until their earlier resignation, death, or removal.

**Directors and Executive Officers**

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Su-Leng Tan Lee | 42 | Chief Executive Officer, President, and Director |
| Muhammad Azrul bin Abdul Hamid | 51 | Director; Chair of the Compensation and Nominating Committees; Member of Audit Committee |
| Chee Keong Yap | 70 | Director; Chair of the Audit Committee; Member of Compensation Committee |
| Jook Yuen Low | 48 | Director; Member of Audit and Nominating Committees |
| Set Fui Chong | 62 | Chief Financial Officer |

---

There are no family relationships among any of our directors or executive officers. To the best of our knowledge, during the past ten years none of our current directors or executive officers has been involved in any event required to be disclosed under Item 401(f) of Regulation S-K.

*Su-Leng Tan Lee* has been the Chief Executive Officer of the Company since December 11, 2023, and was appointed President of the Company on November 5, 2024. Previously, Mr. Tan Lee was the Company's Chief Operating Officer from August 2023 until December 11, 2023. Mr. Tan Lee has over 20 years of extensive experience in a variety of industries, including information systems, hospitality, investment management, construction, property development, travel, government liaison, and life sciences, primarily focused on commercialization, finance, and general management. From May 2022 to August 2023, Mr. Tan worked as the Chief Commercial Officer for Dryox Health Limited, a startup focused on repurposing drugs for unmet needs in the dermatological space, specifically anticholinergic drugs. From August 2017 to August 2023, Mr. Tan worked as the FLO Life Sciences Group's owner and Managing Director, focusing on infectious diseases and oncology pre-clinical drug candidates and clinical research. From July 2018 to April 2019, Mr. Tan was the President of Avillion Berhad, a publicly listed travel and hospitality group with hotels, commercial property, and inbound/outbound travel services. The Company believes Mr. Tan is qualified to serve as the Company's Chief Executive Officer and a member of the Board due to his extensive experience with biotech and pharmaceutical companies.

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*Muhammad Azrul bin Abdul Hamid* has been a director of the Company since December 11, 2023. He is a member of the Audit Committee and is Chairman of the Nominating and Corporate Governance Committee, and the Compensation Committee. He has more than 20 years of experience as a lawyer in a range of matters at the Malaysian High Court and the Malaysian Court of Appeal involving IP claims, contractual matters, debt collection and tortious claims. Mr. Azrul also has experience in providing advisory services for the technology industry, providing advice on intellectual property protection and enforcement matters. Mr. Azrul has advised clients on the multiple facets of public policy and government engagement, including dealing with government agencies and local authorities in relation to business related issues for start-ups, small and medium enterprises, and multinational corporations. Mr. Azrul is a member of the Malaysian Eurocham IP Committee, Kuala Lumpur Bar Committee IT Committee, and Bar Council Cyberlaw Committee. He is a contributor and regular speaker for the South East Asia EU-SME IPR Helpdesk. The Company believes Mr. Hamid is qualified to serve as a member of the Board due to his extensive experience with legal matters.

*Chee Keong Yap* has been a Director of the Company since March 2022, serving as the Audit Committee Chairman, a member of the Compensation Committee, and is a Member of The Institute of Chartered Accountants of Scotland. In the past he was Managing Director & Executive Director at Niche Capital Emas Holdings Bhd and Chief Executive Officer & Executive Director at Bumiputra Merchant Bankers Bhd. Mr. Yap holds a Bachelor of Arts (First Class Honours) degree in Economics from the University of Leeds, United Kingdom (1978). He has auditing experience in England from 1978 to 1981. He has gained extensive financial experience gained from his career in merchant banking and brings his considerable experience to the role and as a result, the Company believes he is qualified to be a member of the Board.

*Jook Yuen Low* has been a Director of the Company since November 5, 2024, and also is a member of the Audit Committee and the Nominating and Corporate Governance Committee. She holds a Bachelor of Laws (LLB) and a Master of Business in Public Relations from the Queensland University of Technology, Australia. She was called to the Bar as an Advocate & Solicitor of the High Court of Malaya in 2004. Currently, Ms. Low is a partner at the law firm Azura Mokhtar & Low. Her legal career spans over 20 years, during which she has gained substantial experience in conveyancing, corporate law, and wealth management consulting. Her expertise includes advising on property, real estate, banking transactions, and corporate agreements such as shareholders' agreements, joint ventures, and power of attorney and as a result, the Company believes she is qualified to be a member of the Board.

**Employment Agreements**

Effective as of August 15, 2023, the Company entered into an employment agreement with Mr. Su-Leng Tan Lee. The agreement provides for an annual base salary. Mr. Tan Lee's employment will terminate two years from the effective date of the agreement, and such term shall be automatically extended for a one-year term thereafter at the Company's request. The agreement further provides that either party to the agreement may terminate Mr. Tan Lee's employment upon one month's prior written notice. Additionally, the agreement provides that Mr. Tan Lee shall not, during the term of the agreement and for 24 months after cessation of employment, carry on business in competition with the Company.

Effective as of June 17, 2025, the Board of Directors of BGLC appointed Ms Chong Set Fui (Angeline) as the Company's Chief Financial Officer and Principal Financial Officer, effective immediately. Ms. Chong will concurrently serve as Chief Financial Officer of the Company's wholly owned subsidiary, MRNA Scientific Sdn. Bhd. and will perform the responsibilities of the Principal Financial Officer of BioNexus Gene Lab Corp. in accordance with U.S. federal securities laws and Nasdaq rules.

Concurrent with the new appointment, Mr. Su-Leng Tan Lee ceased his role as acting Chief Financial Officer and Principal Financial Officer of the Company.

**Terms of Directors and Officers**

Our officers are elected by and serve at the discretion of the Board of Directors. Our directors are elected by our shareholders in accordance with our organizational documents and applicable law.

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**Compensation of Directors and Executive Officers**

For the year ended December 31, 2025, we paid an aggregate of approximately $529,884, in cash and benefits to directors and executive officers. In December 2025, our shareholders approved our 2025 Stock Incentive Plan. As of the date of this filing, no stock awards or stock options have been granted under the plan. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our executive officers and directors. We have no service contracts with any of our directors providing for benefits upon termination of employment.

**Board Committees and Director Independence**

***Director Independence***

Our Board of Directors has affirmatively determined that Chee Keong Yap, Muhammad Azrul bin Abdul Hamid, and Jook Yuen Low are independent directors within the meaning of Nasdaq Listing Rule 5605(a)(2). Accordingly, a majority of our Board is independent.

In making these determinations, the Board considered all relevant facts and circumstances, including the absence of any relationship that, in the opinion of the Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

The Board has also determined that each member of the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee satisfies the applicable independence requirements of Nasdaq and, where applicable, Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

***Board Committees***

Our Board has established three standing committees – Audit, Compensation, and Nominating and Corporate Governance. All standing committees operate under a written charter approved by the Board.

***Audit Committee***

Our Audit Committee consists of Chee Keong Yap, Muhammad Azrul bin Abdul Hamid, and Ms. Jook Yuen Low. All members are independent directors as defined in accordance with Rule 10A-3 of the Exchange Act and the Nasdaq Listing Rules. Mr. Yap serves as Chairman of the committee. The Board has also reviewed their financial literacy and concluded that all Audit Committee members are "financially literate" and that Mr. Yap qualifies as the "Audit Committee Financial Expert" under Item 407(d)(5)(ii) of Regulation S-K.

Our Audit Committee oversees our corporate accounting, financial reporting practices and the audits of financial statements. For this purpose, the Audit Committee has a charter (which is reviewed annually) and performs several functions. The Audit Committee:

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| Evaluates the independence and performance of, and assesses the qualifications of, our independent auditor and engages such independent auditor; |
| Approves the plan and fees for the annual audit, quarterly reviews, tax and other audit related services and approves in advance any non-audit service and fees therefor to be provided by the independent auditor; |
| Monitors the independence of the independent auditor and the rotation of partners of the independent auditor as required by law; |
| Reviews the financial statements to be included in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and reviews with management and the independent auditors the results of the annual audit and reviews of our quarterly financial statements; |
| Oversees all aspects of our systems of internal accounting and financial reporting control and corporate governance functions on behalf of the Board; and |
| Provides oversight assistance in connection with legal, ethical and risk management compliance programs established by management and the Board, including compliance with requirements of Sarbanes Oxley and makes recommendations to the Board regarding corporate governance issues and policy decisions. |

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*Audit Committee Report*

<u>Review with Management.</u> The Audit Committee has reviewed and discussed our audit completion report and financial statements for Fiscal Year 2025 with management.

<u>Review and Discussions with Independent Auditors</u>. The Audit Committee discussed with the Company's auditor, JP Centurion & Partners PLT (the "Auditor") the matters required to be discussed by Statement on Auditing Standards No. 61, as amended (AICPA, Professional Standards, Vol. 1, AU section 380), as adopted by the Public Company Accounting Oversight Board ("PCAOB") in Rule 3200T.

The Audit Committee also received written disclosures and the letter from the Auditor required by applicable requirements of the PCAOB regarding the Auditor's communications with the Audit Committee concerning independence and has discussed with the Auditor their independence.

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*Nominating and Corporate Governance Committee*

Our Board of Directors has a Nominating and Corporate Governance Committee composed of Ms. Jook Yuen Low and Muhammad Azrul bin Abdul Hamid. Mr. Muhammad Azrul bin Abdul Hamid serves as the Chairman of the committee. The Nominating and Corporate Governance Committee is charged with the responsibility of reviewing our corporate governance policies and with proposing potential director nominees to the Board of Directors for consideration. The Nominating and Corporate Governance Committee has a charter which is reviewed annually. The Nominating and Corporate Governance Committee will consider director nominations made by shareholders so long as the nomination is validly made in accordance with applicable laws, rules, regulations, and the provisions of the Company's charter documents. Any shareholder who wants to recommend a candidate for the Nominating and Corporate Governance Committee to consider nominating as a director should submit a written request and related information to our Corporate Secretary.

In evaluating individual Board nominees, the Nominating and Corporate Governance Committee takes into account many factors, including:

· a general and diverse understanding of the global economy, capital markets, finance and other relevant disciplines including cybersecurity;

· a general understanding of the company's business and technology;

· a client experience orientation;

· the requirements under the Company's By-Laws;

· the individual's educational and professional background and personal accomplishments;

· diversity, including, but not limited to, factors such as gender, ethnicity, race, sexual orientation and geography; and

· an independent mindset

The Nominating and Corporate Governance Committee will identify new director candidates in the event of a vacancy in the Board through internal consultation and consultation with key stakeholders and shareholders. Subsequently the candidates will be evaluated to ensure they possess these key characteristics –

· a commitment to long-term value creation for our stockholders;

· an appreciation for stockholder feedback;

· high personal and professional ethics;

· a proven record of success;

· sound business judgment;

· a strategic vision and leadership experience;

· having no known history of misconduct or disrepute, especially in public or Corporate office; and

· knowledge of financial services;

The Company does not currently pay any third parties to aid it in identifying director candidates.

All members are independent directors in accordance with the Nasdaq Listing Rules.

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**Compensation Committee**

Our Board of Directors also has a Compensation Committee, which reviews or recommends the compensation arrangements for our management and employees and assists the Board of Directors in reviewing and approving matters such as company benefit and insurance plans, including monitoring the performance thereof. The Compensation Committee has a charter (which is reviewed annually) and is composed of two members: Chee Keong Yap and Muhammad Azrul bin Abdul Hamid. Mr. Muhammad Azrul bin Abdul Hamid serves as chairman of this committee. All members are independent in accordance with the Nasdaq Listing Rules.

The Compensation Committee is responsible for:

· evaluating the performance of our Chief Executive Officer in light of our company's corporate goals and objectives and, based on such evaluation: (i) Reviewing and approving the cash compensation of our Chief Executive Officer, and (ii) Reviewing and approving grants and awards to our Chief Executive Officer under equity-based plans;

· reviewing and recommending to the Board of Directors the cash compensation of our other executive officers;

· reviewing and establishing our overall management compensation, philosophy and policy;

· overseeing and administering our compensation and similar plans;

· reviewing and approving the retention or termination of any consulting firm or outside advisor to assist in the evaluation of compensation matters and evaluating and assessing potential and current compensation advisors in accordance with the independence standards identified in the applicable Nasdaq rules;

· retaining and approving the compensation of any compensation advisors;

· reviewing and approving our policies and procedures for the grant of equity-based awards;

· reviewing and recommending to the board of directors the compensation of our directors; and

· preparing the compensation committee report required by SEC rules, if and when required.

The Compensation Committee has the authority to delegate any of its responsibilities to one or more subcommittees as the Committee may from time to time deem appropriate. If at any time the Compensation Committee includes a member who is not independent as defined under the Nasdaq Listing Rules, a subcommittee comprised entirely of individuals who are independent in accordance with the Nasdaq Listing Rules may be formed by the Compensation Committee for the purpose of ratifying any grants of awards under any incentive or equity-based plan for the purposes of complying with the exemption requirements of Rule 16b-3 of the Exchange Act; provided that any such grants shall not be contingent on such ratification. No compensation consultants were used during fiscal year 2025.

*Board Leadership Structure and Role in Risk Oversight*

Our Board currently consists of four directors. The Board has not appointed a lead independent director. Due to the size of the Board, the independent directors are able to closely monitor the activities of our Company. In addition, the independent directors are able to meet independently with the Company's independent registered public accounting firm without management to discuss the Company's financial statements and related audits. Therefore, the Board has determined that a lead independent director is not necessary at this time. To the extent the composition of the Board changes and/or grows in the future, the Board may reevaluate the need for a lead independent director.

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Management is responsible for the day-to-day management of risks the Company faces, while the Board as a whole has ultimate responsibility for the Company's oversight of risk management. Our Board takes an enterprise-wide approach to risk oversight, designed to support the achievement of organizational objectives, including strategic objectives, to improve long-term organizational performance and enhance stockholder value. A fundamental part of risk oversight is not only understanding the risks a Company faces and what steps management is taking to manage those risks, but also understanding what level of risk is appropriate for the Company. As a critical part of this risk management oversight role, our Board encourages full and open communication between management and the Board. Our Board regularly reviews material strategic, operational, financial, compensation and compliance risks with management. In addition our management team regularly reports to the full Board regarding their areas of responsibility and a component of these reports is risk within the area of responsibility and the steps management has taken to monitor and control such exposures. Additional review or reporting on risk is conducted as needed or as requested by our Board.

*Attendance*

There were 4 meetings of the Board of Directors held during fiscal year 2025. During the fiscal year, all Directors attended at least 75% of the aggregate number of meetings of the Board.

There were 2 meetings each of the Nominating and Corporate Governance Committee and Compensation Committee held during fiscal year 2025.

There were 4 meetings held by the Audit Committee held during fiscal year 2025, and an additional 2 Executive Sessions of only the Independent Members of the Board of Directors.

**Family Relationships**

Except as stated herein above, there are no family relationships among our directors or officers.

**Involvement in Legal Proceedings**

To the best of our knowledge, none of our directors or executive officers, during the past ten years, had been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors, or had been a party to any judicial or administrative proceeding during the past five years that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of federal or state securities laws, except for matters that were dismissed without sanction or settlement. Except as set forth in our discussion below in "Related Party Transactions," none of our directors, director nominees or executive officers had been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which were required to be disclosed pursuant to the rules and regulations of the Securities and Exchange Commission.

**Code of Ethics**

In conjunction with our listing on Nasdaq on July 20, 2023, the Company has adopted a Code of Business Conduct and Ethics which is available from the Investor Relations section of our website at www.bionexusgenelab.com.

**Conflicts of Interest**

The Company is not aware of any other conflicts of interest of our Executive Officers and Directors, other than those already declared, investigated, or reviewed and accepted by the Audit Committee, and of which material matters have been disclosed.

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**Compliance with Section 16(a) of the Securities Exchange Act of 1934**

Based solely on a review of copies of reports filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, as amended, and written representations from the reporting persons, the Company believes that during the fiscal year ended December 31, 2025, Chee Keong Yap, Muhammad Azrul bin Abdul Hamid, Jook Yuen Low, Su-Leng Tan Lee, and Set Fui Chong did not timely file one Initial Statement of Beneficial Ownership on Form 3. The Company is in the process of coordinating the preparation and filing of the applicable reports. Other than the foregoing, the Company believes that all other applicable Section 16(a) filing requirements for the fiscal year ended December 31, 2025 were satisfied on a timely basis.

**Item 11. Executive Compensation.**

*Summary Executive Compensation Table*

The following table reflects the Summary Compensation for our named Executive Officers for fiscal years ended December 31, 2025 and 2024, respectively. For such periods, there were no bonus, non-equity plan compensation, nonqualified compensation earnings or other compensation other than as stated below for the named executive officers.

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Fee** | **Salary** | **Bonus** | **Stock Awards** | **Option Awards** | **Non-Equity Incentive Plan Compensation** | **Nonqualified Deferred Compensation Earnings** | **All Other Compensation** | **Total** |
|  |  | **($)** | **($)** | **($)** | **($)** | **($)** | **($)** | **($)** | **($)** | **($)** |
| Su-Leng Tan Lee  | 2025 | 12000 | 434019 |  |  |  |  |  |  | 446019 |
| Chief Executive Officer | 2024 | 12000 | 478126 | 1000 |  |  |  |  |  | 491126 |
| Set Fui Chong (1) <br>Chief Financial Officer  | 2025 |  | 22664 |  |  |  |  |  |  | 22664 |

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(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ms Set Fui Chong began her employment with the Company on June 17, 2025.

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***Employment Agreements***

**Employment Agreement between Mr. Su-Leng Tan Lee and the Company**

Effective as of August 15, 2023, the Company entered into an employment agreement with Mr. Su-Leng Tan Lee. The agreement provides for an annual base salary. Mr. Tan Lee's employment will terminate two years from the effective date of the agreement, and such term shall be automatically extended for a one-year term thereafter at the Company's request. The agreement has been extended by the Company through July, 2026. The agreement further provides that either party to the agreement may terminate Mr. Tan Lee's employment upon one month's prior written notice. Additionally, the agreement provides that Mr. Tan Lee shall not, during the term of the agreement and for 24 months after cessation of employment, carry on business in competition with the Company.

**Employment Agreement between Ms. Set Fui Chong and the Company**

Effective as of June 17, 2025, the Board of Directors of BGLC appointed Ms Chong Set Fui (Angeline) as the Company's Chief Financial Officer and Principal Financial Officer, effective immediately. Ms. Chong will concurrently serve as Chief Financial Officer of the Company's wholly owned subsidiary, MRNA Scientific Sdn. Bhd. and will perform the responsibilities of the Principal Financial Officer of BioNexus Gene Lab Corp. in accordance with U.S. federal securities laws and Nasdaq rules. Under the terms of her employment agreement, Ms. Chong will receive a monthly salary of RM15,000 (approximately USD $3,500), plus benefits including medical coverage, fuel allowance, and eligibility for discretionary bonus compensation. The agreement began on June 17, 2025 and terminates on June 16, 2027. Ms. Chong has over 25 years of Senior financial leadership experience, including serving as the Chief Financial Officer of Avillion Berhad from 2013 until November 2024. She is a member of the of the Malaysia Institute of Accountants (MIA) and Association of Chartered Certified Accountants (ACCA), and brings deep expertise in corporate financial reporting, internal controls, and regional operations oversight.

Concurrent with the new appointment, Mr. Su-Leng Tan Lee ceased his role as acting Chief Financial Officer and Principal Financial Officer of the Company.

**Grants of Plan-Based Awards**

As of December 31, 2025, there were no outstanding plan-based awards attributable to any executive officer.

**Outstanding Equity Awards at Fiscal Year End**

As of December 31, 2025 there were no outstanding equity awards attributable to any executive officer.

**Option Exercises and Stock Vested**

As of December 31, 2025, there were no option exercises or stock vesting attributable to any executive officer.

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**Pension Benefits**

As of December 31, 2025, there were no pension benefits attributable to any executive officer.

**Item 12. Security Ownership of Certain Beneficial Owners and Management**

The following table sets forth certain information, as of the date hereof, with respect to the beneficial ownership of the outstanding common stock by (i) any holder of more than five percent (5%); (ii) each of our executive officers and directors; and (iii) our directors and executive officers as a group. Except as otherwise indicated, each of the stockholders listed below has sole voting and investment power over the shares beneficially owned. The information is based on 2,417,314 shares of common stock issued and outstanding as of this filing.

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| | | |
|:---|:---|:---|
|  | **Amount and** | **Approximate** |
|  | **nature of** | **percentage of** |
|  | **beneficial** | **outstanding** |
|  | **ownership of** | **Common Stock** |
| **Name and address of beneficial owners** | **Common Stock** | **(1)** |
| **Directors and Named Executive Officers:** |  |  |
| Su-Leng Tan Lee (2) |  |  |
| Muhammad Azrul bin Abdul Hamid (3) |  |  |
| Chee Keong Yap (4) |  |  |
| Jook Yuen Low (5) | 1261 | 0.05% |
| Set Fui Chong (6) |  |  |
| All directors and executive officers as a group (5 persons) | 1261 | 0.05% |
| **5% or Greater Stockholders** |  |  |
| Fidelion Diagnostics Pte Ltd (7) | 392329 | 16.23% |
| ARC Group International Limited (8) | 175000 | 7.24% |
| Soo Kow Lai (9) | 124999 | 5.17% |
| Choong-Chin Liew (10) | 166666 | 6.89% |

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(1) Beneficial Ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Each of the beneficial owners listed above has ownership of and voting power and investment power with respect to our Common stock. For each beneficial owner above, any options exercisable within 60 days have been included in the denominator.

(2) The address for Su-Leng Tan Lee is A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia.

(3) The address for Muhammad Azrul bin Abdul Hamid is A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia.

(4) The address for Chee Keong Yap is A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia.

(5) The address for Jook Yuen Low is A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia.

(6) The address for Set Fui Chong is A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia.

(7) The address for Fidelion Diagnostics Pte Ltd is #13-09 International Plaza, Anson Road, 079903, Singapore.

(8) The address for ARC Group International Limited is 1539 Nanjing West Road Office Tower 2 Floor 43 Kerry Center Shanghai, 200040, China.

(9) The address for Soo Kow Lai is A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jln Bangsar Utama 1, Kuala Lumpur, Malaysia. Shares held in registered name.

(10) The address for Choong-Chin Liew is 81 Millersgrove Drive, Toronto, Ontario M2R 3S1, Canada. Shares held in registered name.

Mr. Tan Lee is the Chief Executive Officer of Fidelion Diagnostics Pte. Ltd., which holds 392,329 shares of the Company's common stock. Mr. Tan Lee is not a member of Fidelion's board, and the voting and dispositive decisions with respect to those shares are made by Fidelion's board. Accordingly, those shares are not included in Mr. Tan Lee's beneficial ownership reported in this table.

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**Item 13. Certain Relationships and Related Transactions, and Director Independence.**

Other than as stated herein, there have been no related party transactions, or any other transactions or relationships required to be disclosed pursuant to Item 404 of Regulation S-K.

1. Transactions with Fidelion Diagnostic Pte. Ltd.

Nature of relationship: Fidelion Diagnostics Pte. Ltd. is an entity with which the Company's Chief Executive Officer has a shareholding, and is also an officer.

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|:---|:---|:---|
| **Description** | **2025** <br>**(USD)** | **2024** <br>**(USD)** |
| Other assets - Fidelion | $83333 | $- |
| Other payables (Dec 31) | $83333 | $- |

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2. Transactions with Honkuk Material Sdn. Bhd.

Nature of relationship: Company affiliated with ex-directors of Chemrex

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|:---|:---|:---|
| **Description** | **2025 (USD)** | **2024 (USD)** |
| Sales to Honkuk | $- | $34060 |
| Purchases from Honkuk | $- | $288767 |
| Factory Rental | $4206 | $1969 |
| Trade Payables (Dec 31) | $- | $- |

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Audit Committee Review: The transactions were not previously submitted for Board approval. The Audit Committee reviewed them in 2025 and accepted them provisionally based on management representations. These transactions are under continuing observation for compliance with the Company's updated related party policy.

3. Transactions with RP Products Sdn. Bhd.

Nature of relationship: Entity controlled by an ex-director of Chemrex

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|:---|:---|:---|
| **Description** | **2025 (USD)** | **2024 (USD)** |
| Sales to RP Products | $68104 | $78496 |
| Purchases from RP Products | $9503 | $8969 |
| Trade Receivables (Dec 31) | $31420 | $47272 |

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These transactions were historically executed without centralized disclosure. They are now subject to updated oversight procedures.

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4. Amount owing to directors

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|:---|:---|:---|
| **Company** | **2025** <br>**(USD)** | **2024** <br>**(USD)** |
| MRNA Scientific | $1424 | $4004 |
| Holding Co. | $48055 | $13170 |
| **Total** | $**49479** | $**17174** |

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5. Directors and Ex-Directors Remuneration (Chemrex, MRNA Scientific and Holding Company)

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| | | |
|:---|:---|:---|
| **Compensation Type** | **2025** <br>**(USD)** | **2024** <br>**(USD)** |
| Bonus | $18692 | 25202 |
| Director Fees (HoldCo) | $73200 | 86600 |
| Salaries (HoldCo) | $420000 | 465000 |
| Salaries (Subsidiaries) | $1178610 | 1512206 |
| Contract of Services (Subsidiaries) | $163557 | 109385 |
| EPF Contributions | $99240 | 178686 |
| Other Contributions (SOCSO, EIS) | $1532 | 1389 |
| **Total** | $**1954831** | **2378468** |

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Audit Committee Review: The increases in Director's remuneration in 2024 were not previously submitted for Board approval. The Audit Committee has reviewed the approval process by the subsidiary in Q4 2024 and has resolved to submit the agenda to the upcoming Chemrex Annual Meeting for ratification or rejection. Should the approvals at the subsidiary level be rejected, the Company may demand that improperly approved amounts be returned.

**Related Party Review Policy (Regulation S-K 404(b))**

The Company has adopted a Related Party Transactions Policy, administered by the Audit Committee. This policy requires:

· Pre-approval of all related party transactions;

· Documentation of arm's-length terms;

· Ongoing monitoring and retrospective review if prior approval was not obtained.

The Audit Committee has conducted a comprehensive review of all transactions listed above and will update the Board and shareholders on any remediation actions or accounting impacts.

**Director Independence (Regulation S-K 407(a))**

The Company has determined that the following directors are independent under Nasdaq Rule 5605(a)(2):

· Chee Keong Yap

· Muhammad Azrul bin Abdul Hamid

· Jook Yuen Low

No independent director had a material interest in any of the related party transactions disclosed above.

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**Item 14. Principal Accountant Fees and Services.**

JP Centurion & Partners PLT is the Company's current independent registered public accounting firm.

**(1) Audit Fees**

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for our audit of annual financial statements and review of financial statements included in our quarterly reports or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were:

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|:---|:---|
| 2025 | $88357 |
| 2024 | $98023 |

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**(2) Audit-Related Fees**

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountants that are reasonably related to the performance of the audit or review of our financial statements and are not reported in the preceding paragraph:

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| 2025 | $- |
| 2024 | $- |

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**(3) Tax Fees**

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were:

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|:---|:---|
| 2025 | $16741 |
| 2024 | $30197 |

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**(4) All Other Fees**

The aggregate fees billed in each of the last two fiscal years for the products and services provided by the principal accountant, other than the services reported in paragraphs (1), (2), and (3) were:

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|:---|:---|
| 2025 | $- |
| 2024 | $- |

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The percentage of hours expended on the principal accountant's engagement to audit our financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full time, permanent employees was 0%.

**Audit Committee's Pre-Approval Process**

The Audit Committee of the Company reviews fees proposed by our Independent Auditor, and accordingly, all services were pre-approved by the Audit Committee.

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**PART IV**

**Item 15. Exhibits, Financial Statement Schedules.**

**EXHIBIT INDEX**

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|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| [1.1\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex11.htm) | [Form of Underwriting Agreement](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex11.htm) |
| [3.1\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000155116319000018/ex3.1abionexus_gene_lab_corp.htm) | [Articles of Incorporation of the Registrant, as currently in effect](http://www.sec.gov/Archives/edgar/data/1737523/000155116319000018/ex3.1abionexus_gene_lab_corp.htm) |
| [3.2\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793224005537/bglc_ex31.htm) | [Bylaws of the Registrant, as currently in effect](http://www.sec.gov/Archives/edgar/data/1737523/000147793224005537/bglc_ex31.htm) |
| [3.3\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex33.htm) | [Certificate of Amendment filed with the Secretary of the State of Wyoming on June 7, 2017](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex33.htm) |
| [3.4\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex34.htm) | [Certificate of Amendment filed with the Secretary of the State of Wyoming on March 29, 2023](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex34.htm) |

---

---

| | |
|:---|:---|
| [3.5\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex35.htm) | [Certificate of Amendment filed with the Secretary of the State of Wyoming on June 5, 2023](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex35.htm) |
| [3.6\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793225001063/bglc_ex36.htm) | [Articles of Amendment filed with the Wyoming Secretary of State on February 11, 2025.](http://www.sec.gov/Archives/edgar/data/1737523/000147793225001063/bglc_ex36.htm) |
| [3.7\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002406/bglc_ex37.htm) | [Articles of Amendment filed with the Wyoming Secretary of State on April 1, 2025.](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002406/bglc_ex37.htm) |
| [4.1\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex41.htm) | [Registrant's Specimen Certificate for Common Stock](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex41.htm) |
| [4.2\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex42.htm) | [Form of Representative's Warrant](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex42.htm) |
| [10.1\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex101.htm) | [Share Exchange Agreement between BioNexus and Chemrex](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex101.htm) |
| [10.2\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex102.htm) | [Employment Agreement with Su-Leng Tan Lee](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex102.htm) |
| [10.3\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002725/bglc_ex103.htm) | [Director Offer Letter by and between the Registrant and Su-Leng Tan Lee](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002725/bglc_ex103.htm) |
| [10.4\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002725/bglc_ex104.htm) | [Director Offer Letter by and between the Registrant and Muhammad Azrul bin Abdul Hamid](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002725/bglc_ex104.htm) |
| [10.5\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002725/bglc_ex105.htm) | [Director Offer Letter by and between the Registrant and Jook Yuen Low](http://www.sec.gov/Archives/edgar/data/1737523/000147793225002725/bglc_ex105.htm) |
| [10.6\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex1011.htm) | [Director Offer Letter by and between the Registrant and Chee Keong Yap](http://www.sec.gov/Archives/edgar/data/1737523/000147793223004992/bion_ex1011.htm) |
| [10.7](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225004754/bglc_ex107.htm) | [The Service Contract between the Company and Ms. Chong Set Fui (Angeline)](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225004754/bglc_ex107.htm) |
| [10.8](http://www.sec.gov/Archives/edgar/data/1737523/000147793225007976/bglc_ex11.htm) | [Equity Distribution Agreement, dated November 7, 2025, between BioNexus Gene Lab Corp. and Maxim Group LLC (incorporated by reference to Exhibit 1.1 to the Registration Statement on Form S-3 (File No. 333-291379) filed with the SEC on November 7, 2025).](http://www.sec.gov/Archives/edgar/data/1737523/000147793225007976/bglc_ex11.htm) |

---

---

| |
|:---|
| 60 |
| *[**Table of Contents**](#toc)* |

---

---

| | |
|:---|:---|
| [10.9](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225008044/blgc_ex101.htm) | [Share Subscription and Shareholders' Agreement, dated November 12, 2025, by and among Fidelion Diagnostics Pte. Ltd., BioNexus Gene Lab Corp., and the other parties thereto.](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225008044/blgc_ex101.htm) |
| [10.10](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225008724/bglc_ex101.htm) | [Equity Purchase Agreement, dated November 28, 2025, by and between BioNexus Gene Lab Corp. and ARC Group International Ltd.](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225008724/bglc_ex101.htm) |
| [10.11](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225008724/bglc_ex102.htm) | [Exclusive Intellectual Property License Agreement (Southeast Asia), dated November 28, 2025, by and between BioNexus Gene Lab Corp. and Fidelion Diagnostics Pte. Ltd.](http://www.sec.gov/Archives/edgar/data/0001737523/000147793225008724/bglc_ex102.htm) |
| [19+](bglc_ex19.htm) | [Code of Business Conduct and Ethics](bglc_ex19.htm) |
| [21.1+](bglc_ex211.htm) | [List of Subsidiaries of the Registrant](bglc_ex211.htm) |
| [31.1](bglc_ex311.htm) | [Certification of the Company's Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002+](bglc_ex311.htm) |
| [31.2](bglc_ex312.htm) | [Certification of the Company's Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002+](bglc_ex312.htm) |
| [32.1](bglc_ex321.htm) | [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+](bglc_ex321.htm) |
| [32.2](bglc_ex322.htm) | [Certification of the Company's Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+](bglc_ex322.htm) |
| [97+](bglc_ex97.htm) | [Policy Relating to Recovery of Erroneously Awarded Compensation](bglc_ex97.htm) |
| [99.2\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex992.htm) | [Audit Committee Charter](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex992.htm) |
| [99.3\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex993.htm) | [Compensation Committee Charter](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex993.htm) |
| [99.4\*\*](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex994.htm) | [Nomination Committee Charter](http://www.sec.gov/Archives/edgar/data/1737523/000147793223005323/bion_ex994.htm) |
| 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)  |

---

---

| | |
|:---|:---|
| +  | Filed herewith.  |
| \*\*  | Previously filed. |

---

---

| |
|:---|
| 61 |
| *[**Table of Contents**](#toc)* |

---

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) 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 Corp.** |  |
| */s/ Su-Leng Tan Lee* | Dated: April 14, 2026 |
| Su-Leng Tan Lee |  |
| Chief Executive Officer |  |
| (Principal Executive Officer) |  |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| */s/ Su-Leng Tan Lee* | Dated: April 14, 2026 |
| Su-Leng Tan Lee |  |
| Chief Executive Officer and Director |  |
| (Principal Executive Officer) |  |
| */s/ Set Fui Chong* | Dated: April 14 2026 |
| Set Fui Chong |  |
| Chief Financial Officer<br>(Principal Financial and Accounting Officer) |  |
| */s/ Chee Keong Yap* | Dated: April 14, 2026 |
| Chee Keong Yap |  |
| Director |  |
| */s/ Jook Yuen Low* | Dated: April 14, 2026 |
| Jook Yuen Low |  |
| Director |  |
| */s/ Muhammad Azrul bin Abdul Hamid* | Dated: April 14, 2026 |
| Muhammad Azrul bin Abdul Hamid |  |
| Director |  |

---

---

| |
|:---|
| 62 |
| *[**Table of Contents**](#toc)* |

---

**PART I FINANCIAL INFORMATION**

---

| | |
|:---|:---|
|  | **Page** |
| ITEM FINANCIAL STATEMENTS: |  |
| 1. |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Report of Independent Registered Public Accounting Firm](#re) | F-2 to F-4  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Balance Sheets as of December 31, 2025 and 2024](#bs) | F-5 to F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statements of Operations and Comprehensive Income/(Loss) for the Year Ended December 31, 2025 and 2024](#soo) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statements of Changes in Stockholders' Equity for the Year Ended December 31, 2025 and 2024](#eqt) | F-9 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Consolidated Statements of Cash Flows for the Year Ended December 31, 2025 and 2024](#cf) | F-10 to F-11 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Notes to the Consolidated Financial Statements](#note) | F-12 to F-32 |

---

---

| |
|:---|
| F-1 |
| *[**Table of Contents**](#toc2)* |

---

![bglc_10kimg32.jpg](bglc_10kimg32.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**The Board of Directors and Stockholders of** 

**Bionexus Gene Lab Corp.**

Unit A-28-7, Level 28, Tower A

Menara UOA Bangsar

No. 5, Jalan Bangsar Utama 1

59000 Kuala Lumpur

Malaysia

<u>Opinion on the Financial Statements</u>

We have audited the accompanying consolidated balance sheets of Bionexus Gene Lab Corp. and subsidiaries (the Company) as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive income/(loss), consolidated statements of changes in stockholders' equity, and consolidated statements of cash flows for each of the years in the two-year period ended December 31, 2025 and 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025 and 2024, in conformity with accounting principles generally accepted in the United States of America.

<u>Substantial Doubt About the Entity's Ability to Continue as a Going Concern</u>

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, for the year ended December 31, 2025, the Company incurred continuous loss of $2,984,607 and negative cash outflow from operating activities of $1,838,382 and as of December 31, 2025, the Company incurred an accumulated deficit of $6,427,227. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

<u>Basis for Opinion</u>

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

---

| |
|:---|
| F-2 |
| *[**Table of Contents**](#toc2)* |

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<u>Critical Audit Matters</u>

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

*Valuation of Trade Receivables and Expected Credit Losses ("ECL")*

The identification and measurement of credit impairment under ASC 326 - Financial Instruments: Credit Losses require management to exercise significant judgment in determining whether a financial asset is credit-impaired and, if so, to measure the loss allowance. Specifically, the determination of Expected Credit Losses for trade receivables involves subjective assessments regarding the collectability of outstanding balances, the creditworthiness of customers, and the appropriateness of forecasted economic conditions.

Given the complexity and judgment involved, we identified the impairment of trade receivables as a critical audit matter. The calculation of the loss allowance significantly impacts the financial statements and requires careful evaluation of assumptions, estimates, and the adequacy of data used in the assessment process.

Our audit procedure in this area included the following, among others:

a) Obtained an understanding of the management's process in determining and calculating the expected credit loss;

b) Assessed significant assumptions, including recovery rates and impairment ratios and those relating to future economic events that are used to calculate the expected credit losses;

c) Tested the completeness and accuracy of data used in the ECL calculation including the customer's ageing reports;

d) Tested the mathematical accuracy of the ECL model;

e) Obtained an understanding of the latest development and the basis of measuring the impairment allowance for specific provisions and assessed management assumptions given the circumstances; and

f) Assessed the adequacy of the relevant disclosures included in the consolidated financial statements.

*Governance and Unusual Transactions in Subsidiary*

During the audit, we identified matters relating to the governance and conduct of former directors of Chemrex Corporation Sdn. Bhd. ("Chemrex"), a subsidiary of the Company. These matters included:

· Significant increases in directors' remuneration without evidence of appropriate authorization;

· Transactions involving counterparties with unclear or uncertain corporate standing;

· Recording of certain transactions without evidence of shareholder approval; and

· Subsequent resignation of key management and operational personnel

Although the underlying transactions primarily occurred in the prior year, these matters remained under investigation during the year ended December 31, 2025. Prior to the resignation of certain key personnel, the Company's management together with the Audit Committee, initiated an internal investigation to review these matters. Steps were taken to halt or mitigate certain transactions upon identification of the concerns. On December 19, 2025, the Company received notices of resignation from four officers and directors of Chemrex. These developments have led to ongoing assessments by management regarding the nature and implications of the underlying transactions, as well as the potential courses of action available to the Company and its subsidiaries.

As of the date of this report, no definitive conclusions have been reached in relation to these matters, and the assessments remain subject to further review.

We determined this matter to be a critical audit matter due to the significant judgment required in evaluating:

· The completeness and appropriateness of disclosures relating to the identified governance matters; and

· The extent of information to be disclosed given that assessments remain ongoing and no conclusions have been reached.

---

| |
|:---|
| F-3 |
| *[**Table of Contents**](#toc2)* |

---

Our audit procedures included, among others:

a) Reviewing available internal documentation relating to the identified matters;

b) Inquiring with management and those charged with governance regarding the status of ongoing assessments;

c) Obtaining and reading legal correspondence and external legal opinions, where available, to understand the status of management's assessment and any potential legal implications; and

d) Assessing the adequacy and neutrality of the related disclosures in the financial statements.

*Exclusive Intellectual Property License Agreement*

During the financial year, the Company entered into an Exclusive Intellectual Property License Agreement with Fidelion Diagnostics Pte. Ltd. ("the licensor"), which grants the Company exclusive rights to use, develop, manufacture, and commercialize products utilizing the VitaGuard minimal residual disease liquid biopsy platform within the ASEAN territory. The agreement includes total consideration of $2,000,000 payable in instalments and certain performance-related obligations.

We determined this matter to be a critical audit matter due to the significant judgment required in evaluating the timing of recognition of the license rights and the related financial obligations, including whether the criteria for recognition of an intangible asset had been met as of December 31, 2025.

Specifically, judgment was required in assessing:

· Whether control of the license rights had transferred to the Company as of year end; and

· Whether the contractual payments represent a present obligation or are executory in nature.

Based on the audit evidence obtained, management concluded that the Company has not control the license rights in substance as of December 31, 2025, as such rights are contingent upon the satisfaction of certain conditions from licensor. Accordingly, no intangible asset has been recognized. Management further recognized a liability of $83,333 in respect of the initial instalment due, with the remaining commitments treated as executory.

Our audit procedures included, among others:

a) Reviewing the terms of the license agreement to assess the nature of rights and obligations, including conditions related to the transfer of license rights;

b) Evaluating management's assessment of the timing of transfer of control of the license rights;

c) Assessing whether the recognition of the initial liability and treatment of remaining commitments as executory are consistent with the substance of the agreement; and

d) Evaluating the adequacy of the related disclosures in the financial statements.

---

| |
|:---|
| ![bglc_10kimg33.jpg](bglc_10kimg33.jpg) |
| JP CENTURION & PARTNERS PLT (PCAOB: 6723) |
| <br>We have served as the Company's auditor since 2021.  |
| Kuala Lumpur, Malaysia |
| April 14, 2026 |

---

---

| |
|:---|
| F-4 |
| *[**Table of Contents**](#toc2)* |

---

---

| |
|:---|
| **BIONEXUS GENE LAB CORP.** |
| **CONSOLIDATED BALANCE SHEETS** |
| **AS OF DECEMBER 31, 2025 AND 2024** |
| **(Currency expressed in United States Dollars ("US$"))** |
| **(Audited)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of** | **As of** |
|  |<br>**Note** | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |  |
| CURRENT ASSETS |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and bank balances |  | 2383369 | 1583479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed deposits placed with financial institutions (including $1,553,322 and $1,490,461 of fixed deposits with original maturities more than 3 months as of December 31, 2025 and December 31, 2024 respectively) |  | 1656336 | 2793948 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade receivables, net of allowance for credit losses of $703,995 and $517,877 as of December 31, 2025 and December 31, 2024 respectively (including $31,420 and $47,272 of trade receivables from related party as of December 31, 2025 and December 31, 2024 respectively) | 3 | 505885 | 1376571 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other receivables, deposits and prepayments |  | 81728 | 203660 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 4 | 83333 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax recoverable | 5 | 61384 | 84167 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories (including goods in transit of $Nil and $188,797 as of December 31, 2025 and December 31, 2024 respectively) |  | 676703 | 1388624 |
| Total current assets |  | 5448738 | 7430449 |
| NON-CURRENT ASSETS |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 6 | 177737 | 215243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 7 | 1598769 | 1522990 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in equity securities | 8 | 2027540 | 1265166 |
| Total non-current assets |  | 3804046 | 3003399 |
| **TOTAL ASSETS** |  | $9252784 | $10433848 |

---

See accompanying notes to the consolidated financial statements.

---

| |
|:---|
| F-5 |
| *[**Table of Contents**](#toc2)* |

---

**PART I — FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS (CONT'D)**

---

| |
|:---|
| **BIONEXUS GENE LAB CORP.** |
| **CONSOLIDATED BALANCE SHEETS** |
| **AS OF DECEMBER 31, 2025 AND 2024** |
| **(Currency expressed in United States Dollars ("US$"))** |
| **(Audited)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of** | **As of** |
|  | <br><br>**Note** | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |  |
| CURRENT LIABILITIES |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade payables | 9 | 2335 | 1503326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other payables and accrued liabilities | 10 | 401611 | 284108 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 6 | 59147 | 50816 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advance payment from customer |  | 8385 | 95879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount owing to directors |  | 49479 | 17174 |
| Total current liabilities |  | 520957 | 1951303 |
| NON-CURRENT LIABILITY |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-current portion of operating lease liabilities | 6 | 116899 | 159741 |
| Total non-current liability |  | 116899 | 159741 |
| **TOTAL LIABILITIES** |  | $637856 | $2111044 |

---

See accompanying notes to the consolidated financial statements.

---

| |
|:---|
| F-6 |
| *[**Table of Contents**](#toc2)* |

---

**PART I — FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS (CONT'D)**

---

| |
|:---|
| **BIONEXUS GENE LAB CORP.** |
| **CONSOLIDATED BALANCE SHEETS** |
| **AS OF DECEMBER 31, 2025 AND 2024** |
| **(Currency expressed in United States Dollars ("US$"))** |
| **(Audited)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of** | **As of** |
|  | <br><br>**Note** | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **COMMITMENT AND CONTINGENCIES** |  |  |  |
| **STOCKHOLDERS' EQUITY** |  |  |  |
| As at December 31, 2025, common stock, no par value; 300,000,000 shares authorized and 2,417,314 shares outstanding, and preferred stock, no par value; 30,000,000 shares authorized and no shares outstanding. As at December 31, 2024, common stock, no par value; 300,000,000 shares authorized and 1,796,766 shares outstanding, and preferred stock, no par value; 30,000,000 share authorized and no shares outstanding (on a post-reverse stock split basis)\*. | 14 | $20174795 | $17332315 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital |  | (5011891) | (5011891) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit |  | (6427227) | (3442620) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive losses |  | (120749) | (555000) |
| TOTAL STOCKHOLDERS' EQUITY |  | 8614928 | 8322804 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** |  | $9252784 | $10433848 |

---

\* Issued and outstanding shares of common stock have been adjusted as below:

1) for the periods prior to April 7, 2025, to reflect the 1-for-10 reverse stock split effected on that date on a retroactive basis as described in Note 14.

2) for the periods prior to July 20, 2023, to reflect the 1-for-12 reverse stock split effected on that date on a retroactive basis as described in Note 14

See accompanying notes to the consolidated financial statements.

---

| |
|:---|
| F-7 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

---

| | | |
|:---|:---|:---|
| | **Year ended** | **Year ended** |
| | **December 31, (Audited)** | **December 31, (Audited)** |
| <br>**Consolidated** | **2025** | **2024** |
| REVENUE (including $68,104 and $112,556 of revenue from related party for the year ended December 31, 2025 and 2024 respectively) | $7424911 | $9510646 |
| COST OF REVENUE (including $9,503 and $297,736 of cost of revenue from related party for the year ended December 31, 2025 and 2024, respectively) | (6339694) | (8221125) |
| GROSS PROFIT | 1085217 | 1289521 |
| OTHER INCOME |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income  | 22112 | 68130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 83888 | 147641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value gain on investments in equity securities |  | 69476 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of investments in equity securities | 27201 | 38409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reversal of expected credit losses | 144767 | 1689412 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain from foreign exchange | 94664 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 59485 | 59405 |
| TOTAL OTHER INCOME | 432117 | 2072473 |
| OPERATING EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | (1736331) | (2030684) |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | (50670) | (47511) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative (including $4,206 and $1,969 of rental expenses to related party for the year ended December 31, 2025 and 2024, respectively) | (1535452) | (1832968) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | (794770) | (141000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value loss on investments in equity securities | (93965) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for expected credit losses  | (271211) | (883533) |
| TOTAL OPERATING EXPENSES | (4482399) | (4935696) |
| **LOSS FROM OPERATIONS** | **(2965065)** | **(1573702)** |
| FINANCE COSTS | (19542) | (21146) |
| **LOSS BEFORE TAXES** | (2984607) | (1594848) |
| Tax expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax |  | 12305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax | - | (15799) |
| Tax expense | - | (3494) |
| **NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS** | $**(2984607)** | $**(1598342)** |
| Other comprehensive income |  |  |
| Foreign currency translation gain | 434251 | 122294 |
| **COMPREHENSIVE LOSS** | $**(2550356)** | $**(1476048)** |
| Earnings per share - Basic and diluted | (1.607) | (0.897) |
| Weighted average number of common stocks outstanding, Basic and Diluted # | 1856680 | 1781848 |

---

# Weighted average shares outstanding and per share amount have been adjusted for the periods shown to reflect the 1-for-10 reverse stock split effected on April 7, 2025 and the 1-for-12 reverse stock split effected on July 20, 2023, on a retroactive basis as described in Note 14.

See accompanying notes to the consolidated financial statements.

---

| |
|:---|
| F-8 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock**  | **Common stock**  | | | | |
|  | **Number of**<br>**shares** | <br>**Amount** |<br>**Additional**<br>**paid in**<br>**capital** |<br>**Accumulated**<br>**deficit** | **Accumulated**<br>**other**<br>**comprehensive**<br>**losses** | <br>**Total**<br>**stockholders'**<br>**equity** |
| **Balance as of December 31, 2023 \*** | **1766766** | $**17191315** | $**(5011891)** | $**(1844278)** | $**(677294)** | $**9657852** |
| Net loss for the year |  |  |  | (1598342) |  | (1598342) |
| Issuance of shares \* | 30000 | 141000 |  |  |  | 141000 |
| Foreign currency translation gain | - | - | - | - | 122294 | 122294 |
| **Balance as of December 31, 2024 \*** | **1796766** | $**17332315** | $**(5011891)** | $**(3442620)** | $**(555000)** | $**8322804** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | | |
|  | **Number of**<br>**shares** | <br>**Amount** |<br>**Additional**<br>**paid in**<br>**capital** |<br>**Accumulated**<br>**deficit** | **Accumulated**<br>**other**<br>**comprehensive**<br>**losses** | <br>**Total**<br>**stockholders'**<br>**equity** |
| **Balance as of December 31, 2024 \*** | **1796766** | $**17332315** | $**(5011891)** | $**(3442620)** | $**(555000)** | $**8322804** |
| Net loss for the year |  |  |  | (2984607) |  | (2984607) |
| Issuance of shares | 620548 | 2842480 |  |  |  | 2842480 |
| Foreign currency translation gain | - | - | - | - | 434251 | 434251 |
| **Balance as of December 31, 2025 \*** | **2417314** | $**20174795** | $**(5011891)** | $**(6427227)** | $**(120749)** | $**8614928** |

---

\* Share activity (number of shares or both number and amount of shares) has been adjusted for the periods shown to reflect the 1-for-10 reverse stock split effected on April 7, 2025, on a retroactive basis

See accompanying notes to the consolidated financial statements.

---

| |
|:---|
| F-9 |
| *[**Table of Contents**](#toc2)* |

---

---

| |
|:---|
| **BIONEXUS GENE LAB CORP.** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024** |
| **(Currency expressed in United States Dollars ("US$"))** |
| **(Audited)** |

---

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| Net loss | $(2984607) | $(1598342) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 56434 | 48983 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowances for expected credit losses | 271211 | 883533 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries for expected credit losses | (144767) | (1689412) |
| &nbsp;&nbsp;&nbsp;&nbsp;Bad debts written off |  | 6344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property, plant and equipment | 111873 | 104160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income | (22112) | (68130) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value loss/(gain) on investments in equity securities | 93965 | (69476) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss arising from settlement of supplier contract dispute |  | 29534 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of investments in equity securities | (27201) | (38409) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on lease termination |  | 1384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment on property |  | 40173 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 794770 | 141000 |
| Operating loss before working capital changes | (1850434) | (2208658) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 711921 | (250854) |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade, other receivables and other assets | 782841 | 147760 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade and other payables | (1383488) | 204342 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advance payment from customer | (87494) | 95879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (34511) | (42895) |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax recoverable/(liabilities) | 22783 | (38834) |
| Net cash used in operating activities | (1838382) | (2093260) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investments in equity securities | (9159) | (492732) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 22112 | 68130 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fixed deposits placed with original maturities more than three months | (62860) | (78835) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of plant and equipment | (36971) | (226989) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of investments in equity securities | 1031629 | 1068777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from settlement of supplier contract dispute | - | 79851 |
| Net cash generated from investing activities | 944751 | 418202 |

---

---

| |
|:---|
| F-10 |
| *[**Table of Contents**](#toc2)* |

---

---

| |
|:---|
| **BIONEXUS GENE LAB CORP.** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024** |
| **(Currency expressed in United States Dollars ("US$"))(CONT'D)** |
| **(Audited)** |

---

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances from directors | 32305 | 3975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for fractional shares in reverse stock split  | (775) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share subscription | 267311 | - |
| Net cash generated from financing activities | 298841 | 3975 |
| Foreign currency translation adjustment | 194207 | 40339 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (400583) | (1630744) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR | 2886966 | 4517710 |
| **CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR** | $**2486383** | $**2886966** |
| CASH AND CASH EQUIVALENTS INFORMATION: |  |  |
| Fixed deposits placed with financial institutions with original maturities of three months or less | $103014 | $1303487 |
| Cash and bank balances | 2383369 | 1583479 |
| Cash and cash equivalents, end of financial year | 2486383 | 2886966 |
| Supplementary cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $(6865) | $(9351) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax refunded | 43655 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax paid | (14823) | (40380) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investment via share exchange | (1781174) | - |

---

See accompanying notes to the consolidated financial statements.

---

| |
|:---|
| F-11 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**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 BioNexus Gene Lab Sdn. Bhd., incorporated in Malaysia on April 7, 2015 which then subsequently changed its name to MRNA Scientific Sdn. Bhd. (MRNA Scientific) on September 19, 2023.

The principal office address is Unit A-28-7, Level 28, Tower A, Menara UOA Bangsar, No.5 Jalan Bangsar Utama 1, 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 December 31, 2025 is depicted below:

---

| | | |
|:---|:---|:---|
|  | BioNexus Gene Lab Corp.<br>a Wyoming company |  |
| 100% owned |  | 100% owned |
| MRNA Scientific Sdn. Bhd. |  | Chemrex Corporation Sdn. Bhd., |
| (formerly known as "BioNexus Gene Lab Sdn. Bhd."), |  | a Malaysian Company |
| a Malaysian company |  |  |

---

---

| |
|:---|
| F-12 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

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

☐ Basis of consolidation

The consolidated financial statements include the accounts of BioNexus Gene Lab Corp. and its subsidiaries. Acquired businesses are included in the consolidated financial statements from the dates of acquisition. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All inter-company accounts and transactions have been eliminated in consolidation.

☐ Going concern

The accompanying consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying consolidated financial statements, for the year ended December 31, 2025, the Company recorded a net loss of $2,984,607 and negative cash outflows from operating activities of $1,838,382 and as of December 31, 2025, the Company incurred an accumulated deficit of $6,427,227. These factors raise substantial doubt about the Company's ability to continue as a going concern within one year of the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Company's ability to continue as a going concern is dependent upon improving its profitability and the ability secure external financing and fundraising. Management believes the external financing or fundraising will provide additional cash to meet the Company's obligations as they become due. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company can obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing.

☐ Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to allowance for credit losses for financial assets and impairment analysis of long-lived assets. 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.

The Company maintains cash balances with multiple financial institutions in Malaysia as well as in the United States. Deposits placed with each institution in Malaysia are insured by the Malaysia Deposit Insurance Corporation (Perbadanan Insurans Deposit Malaysia, or PIDM) up to RM250,000 (approximately USD 58,000) per depositor. While for deposits placed with institution in the United States, it is insured by the Federal Deposit Insurance Corporation (FDIC) up to USD250,000 per depositor, per insured bank, for each account ownership category under the FDIC's general deposit insurance rules.

From time to time, the Company's cash balances may exceed these insured limits. As of December 31, 2025, cash balances exceeding the insured limit amounted to $2,050,790. However, the Company has not experienced any losses on such accounts and believes that its exposure to credit risk is not significant. The Company actively monitors its balances with these financial institutions and considers the risk of loss to be remote.

☐ Trade receivables

Trade receivables are recorded at the invoiced amount and are generally non-interest bearing. However, interest may be imposed on extended credit terms or overdue balances. The Company recognizes an allowance for credit losses in accordance with ASC 326, Financial Instruments – Credit Losses, using an expected credit loss (ECL) model.

The allowance for credit losses is measured based on historical collection experience, aging of receivables, customer-specific credit risk, and current and expected future economic conditions. The Company disaggregates its trade receivables by customer type, as management has determined that risk profiles vary based on the industry and nature of the customer. For each customer type, the Company applies a historical loss rate matrix, adjusted for forward-looking information and macroeconomic trends relevant to the industries in which customers operate.

In addition to the collective assessment, specific allowances are established for customers with known financial difficulties or higher risk of default, based on a review of individual outstanding invoices and relevant credit information.

Trade receivables are written off against the allowance when all reasonable collection efforts have been exhausted and recovery is considered remote. The allowance for credit losses is recorded as a contra-asset account to trade receivables in the consolidated balance sheets, and changes to the allowance are recognized in the consolidated statement of operations and comprehensive income/(loss).

---

| |
|:---|
| F-13 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

☐ Inventories

Inventories consisting of products available for sale are stated at the lower of cost or net realizable 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 net realizable 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 Consolidated Statement of Operations and Comprehensive Income/(Loss).

☐ Leases

The Company determines if a contract is or contains a lease at the inception of the contract or modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

Finance and operating lease right-of-use ("ROU") assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. As the implicit rate is not determinable in most of the Company's leases, management uses the Company's incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The expected lease term includes options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term.

The Company's lease arrangements have lease and non-lease components. Leases with an expected term of 12 months or less are not accounted for on the balance sheet and the related lease expense is recognized on a straight-line basis over the expected lease term.

☐ 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 the 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:

---

| | |
|:---|:---|
| <br>**Categories** | **Principal**<br>**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% |
| Solar PV System | 20% |
| Machinery | 10% |

---

Leasehold lands are depreciated over the period of 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 of, 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.

---

| |
|:---|
| F-14 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

☐ Investments in equity securities

The Company accounts for its investments that represent less than 20% ownership, and for which the Company does not have the ability to exercise significant influence, using ASC 321, Investments—Equity Securities. Equity securities with readily determinable fair values are measured at fair value, with changes in fair value recognized in net income. These investments are classified within "Investments in equity securities" on the consolidated balance sheets, and unrealized gains and losses are included in "Other income (expense), net" in the consolidated statement of operations and comprehensive income/(loss).

For equity securities without readily determinable fair values, the Company may elect the practicability exception to measure such investments at cost, less impairment, if any, plus or minus observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These securities are evaluated at each reporting period for impairment or observable price changes.

Realized gains and losses on sales of equity securities are determined based on the specific identification method and are also recorded in net income.

☐ 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 ang handling fees associated with inbound and outbound freight are expensed as incurred and included in selling and distribution expenses.

☐ 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.

---

| |
|:---|
| F-15 |
| *[**Table of Contents**](#toc2)* |

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**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

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.

☐ 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$") and the accompanying financial statements have been expressed in US$ as being the primary currency of the economic environment in which the Company operates. The functional currency of the subsidiaries is Malaysian Ringgit ("MYR") 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 translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income.

Translation of amounts from RM (MYR) into US$1.00 has been made at the following exchange rates for the respective years:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Year-end US$1.00: MYR exchange rate | 4.0610 | 4.4755 |

---

---

| | | |
|:---|:---|:---|
|  | **January 1,**<br>**2025 to**<br>**December 31,**<br>**2025** | **January 1,**<br>**2024 to**<br>**December 31,**<br>**2024** |
| Yearly average US$1.00: MYR exchange rate | 4.2799 | 4.5710 |

---

---

| |
|:---|
| F-16 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

☐ Related parties

Parties, which can be a corporation or individual, are 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.

☐ Fair value of financial instruments

The Company 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 three-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 |

---

The carrying value of the Company's financial instruments: cash and bank balances, fixed deposits placed with financial institutions, trade receivable, other receivables, deposits, trade payables, other payables and accrued liabilities, advance payment from customers and amount owing to directors approximate at their fair values because of the short-term nature of these financial instruments

As of December 31, 2025, and December 31, 2024, the Company did not have any non-financial 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, considers the applicability and impact of all accounting standards updates ("ASUs").

Management periodically reviews new accounting standards that are issued.

---

| |
|:---|
| F-17 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**Accounting Standards Adopted in 2025**

***Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures:***

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new standard was issued to improve transparency and decision usefulness of income tax disclosures by providing information that helps investors better understand how an entity's operations, tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this update primarily relate to requiring greater disaggregated disclosure of information in the rate reconciliation, income taxes paid, income (loss) from continuing operations before income tax expense (benefit), and income tax expense (benefit) from continuing operations. The ASU is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. The standard can be applied prospectively or retrospectively. The Company adopted this ASU prospectively in the fourth quarter of 2025, and the required disclosures are included in Note 15, Income Taxes.

**Accounting Standards not yet Adopted**

***Accounting Standards Update 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):***

***Disaggregation of Income Statement Expenses:***

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The new standard requires entities to disclose additional information about certain expenses, such as purchases of inventory, employee compensation, depreciation, intangible asset amortization, as well as selling expenses included in commonly presented expense captions on the income statement. The FASB further clarified the effective date in January 2025 with the issuance of ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Companies have the option to apply this guidance either on a retrospective or prospective basis, and early adoption is permitted.

The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements and related disclosures.

The Company does not expect that any other recently issued accounting pronouncements will have a significant effect on its consolidated financial statements.

---

| |
|:---|
| F-18 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 3 – TRADE RECEIVABLES**

The Company's trade receivables represent amounts due from customers that are unrelated parties and related parties of $31,420 and $47,272 for year 2025 and 2024 respectively. Trade receivables are initially recognized at the invoiced amount and subsequently measured at amortized cost, net of an allowance for expected credit losses. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Trade receivables are written off when they are determined to be uncollectible, and all reasonable collection efforts have been exhausted.

As of December 31, 2025, the Company performed an analysis of all outstanding trade receivables in accordance with the expected credit loss model under ASC 326. The Company considered historical collection trends, aging of balances, customer credit profiles, and current and forecasted economic conditions in estimating the allowance.

The Company's standard credit terms range from 30 to 90 days. Certain receivables are interest-bearing. Specifically, Intralink Techno was charged with interest at 6% per annum from May 2021 to June 2023. From July 2023 onwards, the Company increased its interest rate to 8.4%.

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Trade receivables | 1209880 | 1894448 |
| Allowances for expected credit losses  | (703995) | (517877) |
| Total trade receivables, net | $505885 | $1376571 |

---

Movement for trade receivables allowance for impairment accounts:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| At January 1, 2025 and January 1, 2024 | 517877 | 1307508 |
| Charge for the year |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowances for expected credit losses  | 225756 | 883533 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovered for expected credit losses  | (97203) | (1689412) |
| Foreign translation differences | 57565 | 16248 |
| At December 31, 2025 and 2024 | $703995 | $517877 |

---

---

| |
|:---|
| F-19 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 4 – OTHER ASSETS**

On November 28, 2025, the Company entered into an Exclusive Intellectual Property License Agreement (the "License Agreement") with Fidelion Diagnostics Pte. Ltd. ("Fidelion"), pursuant to which the Company received an exclusive, irrevocable license to use, develop, manufacture, market, distribute, and sell products utilizing the VitaGuard™ minimal residual disease ("MRD") liquid biopsy platform in the member states of the Association of Southeast Asian Nations ("Southeast Asia" or the "Territory").

In consideration for the license, the Company agreed to pay Fidelion a total license fee of $2,000,000 in 24 equal monthly instalments. Other Assets comprises the first instalment payment toward the licensing agreement.

**NOTE 5 – INCOME TAXES**

Loss before income taxes for the years ended December 31, 2025, and 2024 is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| Loss before income taxes: |  |  |
| Local | $(1709197) | $(1144817) |
| Foreign, representing Malaysia | (1275410) | (450031) |
|  | $(2984607) | $(1594848) |

---

Provision for income taxes for the years ended December 31, 2025, and 2024 is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| Current (expense)/benefit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Local | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign, representing Malaysia | - | (15799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current |  | (15799) |
| Deferred (expense)/benefit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Local | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign, representing Malaysia | - | 12305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred | - | 12305 |
| Total deferred benefit | $- | $(3494) |

---

The income taxes paid (net of refunds) by jurisdiction for the years ended December 31, 2025, and 2024, as reported in the Consolidated Statements of Cash Flows, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| U.S. federal | $- | $- |
| Foreign, representing Malaysia | $(28832) | $40380 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income taxes paid/(refunded), net | $(28832) | $40380 |

---

The reconciliation of the federal statutory income tax amount and rate to the Company's effective tax rate for the years ended December 31, 2025, and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Amount** | **%** | **Amount** | **%** |
| Loss before income taxes | $(2984607) |  | $(1594848) |  |
| Federal statutory tax rate | (626767) | 21.00% | (334924) | 21.00% |
| State and local income tax, net of federal income tax effect |  |  |  |  |
| Foreign tax effects: |  |  |  |  |
| Malaysia |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign rate difference | (38262) | 1.28% | (13494) | 0.85% |
| Non-taxable or non-deductible items | 186128 | -6.24% | (149821) | 9.39% |
| Prior year tax adjustment | - | - | 20531 | -1.29% |
| Changes in valuation allowances | 478902 | -16.05% | 481201 | -30.17% |
| Income tax expense and effective tax rate | $- | - | $3494 | -0.22% |

---

---

| |
|:---|
| F-20 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

The significant components of deferred taxes of the Company are as follows

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| <u>Deferred tax assets</u> |  |  |
| Property, plant and equipment | $(214436) | (179429) |
| Capital allowances | 315688 | 204398 |
| Net operating loss (NOL) carryforwards: |  |  |
| – United States of America | 8938122 | 8024108 |
| – Malaysia | 2567801 | 1354566 |
| Gross deferred tax assets | 11607175 | 9403642 |
| Less: Valuation allowance | (11607175) | (9403642) |
| Deferred tax assets, net of valuation allowance | - | - |

---

The table below summarizes changes in the valuation allowance for deferred tax assets for the years presented:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| <u>Valuation allowance</u> |  |  |
| Balance, beginning of year | $9403642 | $7267659 |
| Increases in (reversal of) valuation allowance during the year | 2203533 | 2135984 |
| Balance, end of year | $11607175 | $9403642 |

---

The Company believes that it is more likely than not that the deferred tax assets will not be fully realized in the future. Accordingly, the Company established a valuation allowance of 11,607,175 to offset deferred tax assets of $11,607,175 including deferred tax assets related to the net operating loss (NOL) carry forwards of $11,505,923 as of December 31, 2025.

For the year ended December 31, 2025, a valuation allowance was increased by $2,203,533, this increase was primarily due to an increase of NOL carryforwards of $1,213,235 from the Company's Malaysia subsidiaries.

**United States of America**

The Company is registered in the State of Wyoming and is subject to United States of America tax law.

For the years ended December 31, 2025, and 2024, the operations in the United States of America incurred a net operating loss (NOL) of $1,709,197 and $1,144,817, respectively.

As of December 31, 2025, the cumulative net operating losses (NOLs) were $8,938,122 which can be carried forward to offset future taxable income. The NOL carryforwards begin to expire in 2041, if unutilized.

**Malaysia**

The Company's subsidiaries operating in Malaysia are subject to the Malaysia Corporate Tax Laws at a standard income tax rate of 24% on their assessable income for the tax year.

For the years ended December 31, 2025, and 2024, the subsidiaries in Malaysia incurred an aggregate net operating loss (NOL) of $1,275,410 and $450,031, respectively

As of December 31, 2025, the operations in Malaysia had incurred the aggregate amount of cumulative net operating losses (NOLs) of $2,567,801 which can be carried forward carried forward indefinitely to offset taxable income in the future. The NOL carryforwards begins to expire in 2029, if unutilized.

---

| |
|:---|
| F-21 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 6 – OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES**

The Company has operating lease arrangements for office space, lab, and motor vehicles in Malaysia with a term between two and five years, generally with option to renew the lease after that date. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term.

The present value of the lease payments are discounted with rates ranging from 6.40% to 6.65% per annum. These rates are reference from base rate of Malayan Banking Berhad, the largest bank in Malaysia.

As of December 31, 2025 and 2024 operating lease right-of-use assets as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Balance as of December 31, 2024 | $215243 | $141544 |
| Add: Addition of right of use assets (1) |  | 145736 |
| Less: amortization (2) | (56434) | (48983) |
| Less: lease termination (3) |  | (25093) |
| Foreign translation differences | 18928 | 2039 |
| Balance as of December 31, 2025 | $177737 | $215243 |

---

As of December 31, 2025 and 2024 operating lease liabilities as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Balance as of beginning of the year | $210557 | $133395 |
| Add: addition of lease liabilities (1) |  | 145736 |
| Less: gross repayment | (65817) | (56598) |
| Add: imputed interest (4) | 12677 | 11795 |
| Less: lease termination (3) |  | (25679) |
| Foreign translation differences | 18629 | 1908 |
| Balance as of end of the year | 176046 | 210557 |
| Less: lease liability current portion | (59147) | (50816) |
| Lease liability non-current portion | $116899 | $159741 |

---

---

| |
|:---|
| F-22 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

As of December 31, 2025 and 2024, the maturities of the operating lease liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Years ending December 31 and December 31: |  |  |
| 2025 |  | 62939 |
| 2026 | 68671 | 62311 |
| 2027 | 61058 | 55403 |
| 2028 | 49776 | 45166 |
| 2029 | 14159 | 12848 |
| Total undiscounted cash flows | 193664 | 238667 |
| Less: Interest imputed on lease liabilities | (17618) | (28110) |
| Present value of lease liabilities  | $176046 | $210557 |

---

(1) During the year ended December 31, 2024, the Company entered into a new operating lease of office space in Malaysia for 5 years. Additional right-of-use assets at $131,581 and lease liabilities at $131,581 were recognised upon the commencement of lease term. The Company also renewed the lease for the lab in Penang, Malaysia, for 2 years, with additional right-of-use assets of $14,155 and lease liabilities of $14,155 recognised upon the commencement of lease term.

(2) The amortization of the operating lease right-of-use asset for the year ended December 31, 2025 and 2024 were $56,434 and $48,983, respectively.

(3) The Company agreed to terminate its operating lease arrangement for office space in Malaysia, effective August 31, 2024. Accordingly, at the date of termination of the operating lease, the Company expensed a right-of-use-asset, net of accumulated depreciation, of $25,094 and recorded a write-off of lease liability of $25,679, with a loss on lease termination recorded for $1,384.

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **Supplemental Cash Flow Disclosures:**  |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Lease payment – operating leases | $(65817) | $(56598) |
| Operating lease liabilities obtained in exchange for operating lease assets |  | 145736 |
| **Other information:**  |  |  |
| Weighted average remaining lease term for operating lease (years) | 3.42 | 4.42 |
| Weighted average discount rate for operating lease | 6.65% | 6.65% |

---

(4) Lease expenses for the year ended December 31, 2025 and 2024 were $69,111 and $60,778 respectively.

Other information:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Operating cash flow from operating lease | $(34511) | $(42895) |
| Right of use assets obtained in exchange for operating lease liabilities | 177737 | 215243 |
| Remaining lease term for operating lease (years) | 3.42 | 4.42 |
| Weighted average discount rate for operating lease | 6.65% | 6.65% |

---

---

| |
|:---|
| F-23 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 7 – PROPERTY, PLANT AND EQUIPMENT**

Property, plant and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Air conditioner  | $1124 | $1124 |
| Computer and software | 7262 | 5880 |
| Equipment | 65360 | 65214 |
| Furniture and fittings | 98883 | 98883 |
| Lab equipment | 320102 | 320102 |
| Land and buildings | 1506969 | 1506969 |
| Motor vehicle | 161148 | 161148 |
| Office equipment | 41108 | 37604 |
| Renovation | 111519 | 101137 |
| Signboard | 806 | 806 |
| Solar PV System | 16935 | 16935 |
| Machinery | 211898 | 190341 |
|  | 2543114 | 2506143 |
| (Less): Accumulated depreciation | (868849) | (756976) |
| (Less): Accumulated impairment | (40173) | (40173) |
| Add: Foreign translation differences | (35323) | (186004) |
| Property, plant and equipment, net | $1598769 | $1522990 |

---

During the year ended December 31, 2025 and 2024, the Company recorded depreciation of $111,873 and $104,160, respectively.

---

| |
|:---|
| F-24 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 8 – INVESTMENTS IN EQUITY SECURITIES**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| As of beginning of the year | $1265166 | $1699831 |
| Addition during the year | 1790333 | 492732 |
| Disposal during the year | (1004428) | (1030368) |
| Fair value (loss)/gain | (93965) | 69476 |
| Foreign exchange translation  | 70434 | 33495 |
| As of end of the year | $2027540 | $1265166 |

---

For the year ended December 31, 2025 and 2024, the net fair value (loss)/gains on the investments in equity securities were $(93,965) and $69,476 recorded in other income of the Consolidated Statements of Operations and Comprehensive Income/(Loss).

**The investments in equity securities consist of the following shares:**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Investment in equity securities with readily determined fair value: |  |  |
| Malaysia |  | 863810 |
| Singapore | - | 177808 |
|  | $- | $1041618 |
| Investment in equity securities without readily determined fair value: |  |  |
| Malaysia | 246366 | 223548 |
| Singapore | 1781174 | - |
|  | $2027540 | $1265166 |

---

<u>Equity Securities With Readily Determinable Fair Value</u>

The Company's investment in equity securities total of $Nil and$1,041,618 as of December 31, 2025 and 2024 respectively, are measured at fair value on a recurring basis. These equity securities are classified as Level 1 in the fair value hierarchy, as the fair value is determined using quoted market prices in active markets for identical assets. Specifically, the stock prices of these securities are readily available on the stock exchange, providing a reliable and observable input to the fair value measurement.

As these securities are actively traded, the quoted prices in the market are considered to be the most reliable indicator of fair value. No significant adjustments are made to these prices, as they reflect current market conditions at the measurement date.

<u>Equity Securities Without Readily Determinable Fair Values</u>

The Company's investments in equity securities without readily determinable fair values consist of investments in privately held companies and totaled $2,027,540 and $223,548 as of December 31, 2025 and 2024, respectively.

These investments are accounted for in accordance with ASC 321, *Investments—Equity Securities*, using the measurement alternative, under which such securities are measured at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.

The Company evaluates these investments for impairment on a quarterly basis by performing a qualitative assessment to determine whether the fair value of an investment is less than its carrying amount. If an impairment is identified, the investment is written down to its fair value, with the loss recognized in earnings. In addition, the carrying value of these investments is adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer.

Because these investments are in privately held companies and lack observable market prices, the determination of fair value for impairment assessments requires significant judgment. When such investments are remeasured due to impairment or observable price changes, the resulting fair value measurements are classified within Level 3 of the fair value hierarchy.

For year 2025, the Company issued 392,329 shares of common stock at value of $1,781,174 to Fidelion Diagnostics Pte. Ltd ("Fidelion") as consideration for the Company's subscription of Fidelion shares. This form part of the condition under the Share Subscription and Shareholders' Agreement "SSSA" entered into with Fidelion and TongShu Biotechnology (Hong Kong) Co., Limited ('Tongshu")

---

| |
|:---|
| F-25 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 9 – 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 10 – OTHER PAYABLES AND ACCRUED LIABILITIES**

Other payables comprised mainly amounts owing to service provider and first instalment payment due to Fidelion relating the licensing agreement at $83,333. All amounts have short payment terms.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
|  | $ | $ |
| Other payables  | 275574 | 115356 |
| Accrued liabilities | 126036 | 168752 |
|  | 401611 | 284108 |

---

**NOTE 11 – REVENUE**

The following table shows disaggregated net revenue from contracts with customers by product or service line and geographic area for the year ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **For the year ended** | **For the year ended** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Revenue by product or service line: |  |  |
| Trading of industrial chemicals | 7405822 | 9494577 |
| Screening services and related sales | 19089 | 16069 |
| Net revenue  | $7424911 | $9510646 |
| Revenue by geographic area |  |  |
| Bangladesh | 106253 | 123267 |
| Malaysia | 5829401 | 7455906 |
| Maldives | 680994 | 762144 |
| Singapore | 240757 | 572027 |
| Sri Lanka | 452639 | 459002 |
| Indonesia | 114867 | 138300 |
| Net revenue | $7424911 | $9510646 |
| Timing of recognition:  |  |  |
| At a point in time  | $7424911 | $9510646 |

---

Revenue is derived from the sale of industrial chemicals and the provision of genomic screening services. Revenue from the sale of goods is recognized at a point in time when control of the goods is transferred to the customer. Credit terms are generally from 30 to 90 days. The Company allows returns only for exchanges with new goods. No warranties are given on the sale of goods.

Revenue from services is recognized at a point in time when the final report is delivered to the customer. Credit terms for these services are generally from 30 days to 60 days. No warranties are given on the services rendered.

In applying ASC 606, the Company does not exercise significant judgment in determining whether revenue from the sale of goods and services should be recognized at a point in time. The criteria for recognizing revenue at a point in time, such as the transfer of control of goods or completion of services, are clear and are based on established contract terms. Therefore, no significant judgment is required in determining the timing of revenue recognition.

---

| |
|:---|
| F-26 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 12 – RELATED PARTY TRANSACTIONS**

The following table provides details of the total revenue earned and expenses incurred from all related party transactions:

---

| | | |
|:---|:---|:---|
|  | **For the year ended** | **For the year ended** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| **Entities in which certain directors of a subsidiary have substantial financial interests** |  |  |
| Sales of goods | $68104 | $112556 |
| Purchases | (9503) | (297736) |
| Rental of factory | (4206) | (1969) |

---

The balances related to the above transactions with related parties are as disclosed in the Consolidated Balance Sheets which are interest-free, unsecured and subject to normal credit terms.

The related party being companies in which former directors have substantial financial interests.

**NOTE 13 – CONCENTRATION OF RISKS**

a) Major customers

There are no major customers who accounted for 10% or more of the Company's revenue for the financial year ended December 31, 2025 and December 2024.

b) Major suppliers

For year ended December 31, 2025 and 2024, 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:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
|  | **Purchase** | **Purchase** | **Percentage of purchases** | **Percentage of purchases** | **Accounts payable trade** | **Accounts payable trade** |
| Vendor A | $1508422 | $1635124 | 23.83% | 19.89% | $- | $512811 |
| Vendor B | $950001 | $1321889 | 15.01% | 16.08% | $- | $168302 |
| Vendor C | $- | $1138814 | - | 13.85% | $- | $160521 |
|  | $**2458423** | $**4095827** | **38.84%** | **49.82%** | $**-** | $**841634** |

---

**NOTE 14 – STOCKHOLDERS' EQUITY**

As at December 31, 2025 and 2024, the Company issued and outstanding, common stock of 2,417,314 and 1,796,766 shares respectively.

In August 2024, 300,000 shares of common stock were issued to professional parties or service providers in lieu of cash for services rendered.

<u>Reverse Stock Split</u>

On March 19, 2025, the Company held a Special Meeting of Shareholders which, among other items, approved of an amendment to the Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company's outstanding shares of common stock, with a ratio ranging from one-for-five (1:5) to one-for-ten (1:10), with the exact ratio to ratio to be set at the discretion of the Board of Directors.

On April 1, 2025, the Company filed its Articles of Amendment with the Wyoming Secretary of State to effect a one for ten (1 for 10) reverse stock split of its issued and outstanding common stock. Immediately prior to the reverse stock split, the Company had 17,967,663 shares of common stock issued and outstanding and immediately after the reverse stock split, the Company had 1,796,597 shares of common stock issued and outstanding. No fractional shares were issued in connection with the reverse stock split. Instead, shareholders who would otherwise be entitled to receive a fractional share received a cash payment in lieu thereof based on the daily Volume Weighted Average Price (VWAP) of our common stock, calculated for ten (10) trading days immediately preceding the effective date of the Reverse Stock Split, multiplied by the fractional share.

The Revised Reverse Stock Split was approved and authorized by a majority of the Company's stockholder on March 19, 2025. Thereafter, on that same date, the Board of Directors set the reverse stock split ratio at 1 for 10. The Reverse Stock Split was approved by the Board at a ratio of one-for-ten (1:10), an amendment was filed with the Wyoming Secretary of State on April 1, 2025, and became market effective on April 7, 2025.

---

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|:---|
| F-27 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

***Shelf Filing***

On November 7, 2025, the Company filed a registration statement on Form S-3 with the U.S. Securities and Exchange Commission ("SEC") to register up to $100 million of securities that may be offered from time to time. The Company concurrently entered into an Equity Distribution Agreement (the "Agreement") with Maxim Group LLC (the "Agent"), pursuant to which the Company may offer and sell, from time to time, shares of its common stock, no par value (the "Common Stock"), having an aggregate offering price of up to $20,000,000 through the Agent, acting as the Company's exclusive sales agent (the "ATM Program").

Sales, if any, will be made in transactions deemed to be "at-the-market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended, which may be made directly on The Nasdaq Capital Market or otherwise at prevailing market prices, at prices related to prevailing market prices, or at negotiated prices, as permitted by the Agreement. The Company is not obligated to sell any shares under the ATM Program, and the Agent is not required to purchase any shares. The Form S-3 became effective on November 27, 2025, and 53,478 shares have been sold for proceeds of $267,311 as of the date of filing of this Form 10-K.

In November 2025, the Company issued 175,000 shares of common stock to ARC Group Internation Ltd ('ARC") as consideration for ARC's commitment under the purchase agreement to purchase, from time to time at the Company discretion, up to $500,000,000 of the Company's common stock, no par value per share, over a 36-month period.

In November 2025, the Company issued 392,329 shares of common stock to Fidelion Diagnostics Pte. Ltd ("Fidelion") as consideration for the Company's subscription of Fidelion shares. This form part of the condition under the Share Subscription and Shareholders' Agreement "SSSA" entered into with Fidelion and TongShu Biotechnology (Hong Kong) Co., Limited ('TongShu")

**NOTE 15 – SEGMENT INFORMATION**

The Company determines its 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:

---

| |
|:---|
| F-28 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Provision for**<br>**genomic**<br>**screening**<br>**services** |<br>**Trading of**<br>**industrial**<br>**chemicals** |<br>**Investment**<br>**holding** |<br><br>**Total** |
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
| REVENUE | $16069 | $9494577 | $- | $9510646 |
| COST OF REVENUE | (7316) | (8213809) |  | (8221125) |
| GROSS PROFIT | 8753 | 1280768 | - | 1289521 |
| OTHER INCOME | 122951 | 1949522 |  | 2072473 |
| OPERATING EXPENSES |  |  |  |  |
| Sales and marketing | (125299) | (1861456) | (43929) | (2030684) |
| Research and development | (47511) |  |  | (47511) |
| General and administrative | (194038) | (679321) | (959609) | (1832968) |
| Share-base compensation | - | - | (141000) | (141000) |
| Provision for expected credit losses |  | (883533) |  | (883533) |
| TOTAL OPERATING EXPENSES | (366848) | (3424310) | (1144538) | (4935696) |
| **LOSS FROM OPERATIONS** | **(235144)** | **(194020)** | **(1144538)** | **(1573702)** |
| FINANCE COSTS | (11795) | (9072) | (279) | (21146) |
| **LOSS BEFORE TAXES** | **(246939)** | **(203092)** | **(1144817)** | **(1594848)** |
| Tax expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax |  | 12305 |  | 12305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax |  | (15799) |  | (15799) |
| Tax expense | - | (3494) | - | (3494) |
| **NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS** | $**(246939)** | $**(206586)** | $**(1144817)** | $**(1598342)** |

---

---

| |
|:---|
| F-29 |
| *[**Table of Contents**](#toc2)* |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Provision for genomic screening services** | **Trading of industrial chemicals** | **Investment holding** | **Total** |
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
| REVENUE | $19089 | $7405822 | $- | $7424911 |
| COST OF REVENUE | (9335) | (6330359) | - | (6339694) |
| GROSS PROFIT | 9754 | 1075463 |  | 1085217 |
| OTHER INCOME |  |  |  |  |
| Dividend income |  | 22112 |  | 22112 |
| Interest income | 73274 | 10614 |  | 83888 |
| Fair value gain on investments in equity securities |  |  |  |  |
| Gain on disposal of investments in equity securities |  | 27201 |  | 27201 |
| Reversal of expected credit losses |  | 144767 |  | 144767 |
| Gain from forex exchange | 94664 |  |  | 94664 |
| Others | 10514 | 48971 | - | 59485 |
| TOTAL OTHER INCOME | 178452 | 253665 |  | 432117 |
| OPERATING EXPENSES |  |  |  |  |
| Sales and marketing | (135714) | (1548420) | (52197) | (1736331) |
| Research and development | (50670) |  |  | (50670) |
| General and administrative | (211467) | (461943) | (862042) | (1535452) |
| Share-base compensation | - | - | (794770) | (794770) |
| Fair value loss on investments in equity securities |  | (93965) |  | (93965) |
| Provision for expected credit losses | - | (271211) | - | (271211) |
| TOTAL OPERATING EXPENSES | (397851) | (2375539) | (1709009) | (4482399) |
| **LOSS FROM OPERATIONS** | **(209645)** | **(1046411)** | **(1709009)** | **(2965065)** |
| FINANCE COSTS | (12709) | (6645) | (188) | (19542) |
| **NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS** | $**(222354)** | $**(1053056)** | $**(1709197)** | $**(2984607)** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Provision for**<br>**genomic**<br>**screening**<br>**services** | <br>**Trading of**<br>**industrial**<br>**chemicals** | <br><br>**Investment**<br>**holding** | <br><br>**Total** |
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
| **Segment assets** | $2652754 | $6788302 | $992792 | $10433848 |
| **Included in the measure of segment assets are:** |  |  |  |  |
| Addition to non-current assets other than financial instruments and deferred tax assets | 150881 | 221844 |  | 372725 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Provision for genomic screening services** | **Trading of industrial chemicals** | **Investment holding** | **Total** |
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| **Segment assets**  | $2281947 | $4577690 | $2393147 | $9252784 |
| **Included in the measure of segment assets are:**  |  |  |  |  |
| Addition to non-current assets other than financial instruments and deferred tax assets | 1382 | 35589 |  | 36971 |

---

The Company had no inter-segment sales for the years presented.

---

| |
|:---|
| F-30 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 16 – SIGNIFICANT EVENTS**

On February 11, 2025, the Company filed with the Wyoming Secretary of State Articles of Amendment to its Articles of Incorporation (a true and correct copy of which is attached hereto as Exhibit 3.6) ("Amendment"). The Amendment authorized the creation of one (1) share of the Series Z Convertible Preferred Stock. On February 10, 2025, the Company's Board of Directors approved the creation of the Series Z Preferred Stock and the filing of the Amendment with the Wyoming Secretary of State. On that same date, the Board of Directors approved the issuance of the Series Z Preferred Stock to Muhammad Azrul bin Abdul Hamid, a member of the Board of Directors and the Audit Committee.

The purpose of the Series Z Preferred Stock was to increase the likelihood of procuring the votes necessary to effectuate the Reverse Stock Split Proposal had a majority of the common stockholders voted in favor of the Reverse Stock Split Proposal in the Special Shareholders' Meeting. The Series Z Preferred Stock proportionately "mirrored" the votes placed by the common stockholders of the Company at the Special Shareholders' Meeting.

On March 5, 2025, the Company issued a press release announcing that its Board of Directors had formally approved a new treasury strategy focused exclusively on Ethereum (ETH) as a strategic treasury asset. This decision positioned the Company as a leader among Nasdaq-listed companies in prioritizing Ethereum for treasury management.

In connection with this announcement, the Company released an Ethereum Strategy Whitepaper, which provided detailed insight into the rationale for adopting Ethereum as a treasury asset. The whitepaper is publicly available on the Company's website at www.bionexusgenelab.com/ethstrategy.

On March 7, 2025, the Company issued a press release announcing a strategic partnership with ML Tech to optimize its Ethereum-based growth strategies. ML Tech, an AI-driven wealth management platform for digital assets regulated by the National Futures Association (NFA) and headquartered in Miami, Florida, will provide institutional-grade trading strategies to BGLC.

On March 19, 2025, the Company held a Special Meeting of Shareholders. Two proposals were voted on by the Shareholders and the results are as follows:

Proposal 1 (APPROVED) : Approval of an amendment to the Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company's outstanding shares of common stock, with a ratio ranging from one-for-five (1:5) to one-for-ten (1:10), with the exact ratio to be set at the discretion of the Board of Directors.

Proposal 2 (APPROVED): Approval of an adjournment of the Meeting, if necessary, to solicit additional proxies if there were insufficient votes in favor of Proposal 1.

On April 1, 2025, the Company's Articles of Amendment regarding the reverse stock split was filed with the Wyoming Secretary of State. At 12:01 a.m. Eastern Time on April 7, 2025, the Company effected a reverse stock split and the Company's common stock will began trading on a split-adjusted basis on The Nasdaq Capital Market under the existing ticker symbol "BGLC" on that same day, with the new CUSIP number for the Company 090628306.

No fractional shares were issued in connection with the reverse stock split. Instead, shareholders who would otherwise be entitled to receive a fractional share received a cash payment in lieu thereof based on the daily Volume Weighted Average Price (VWAP) of our common stock, calculated for the ten (10) trading days immediately preceding the effective date of the Reverse Stock Split, multiplied by the fractional share.

On November 12, 2025, the Company entered into a Share Subscription and Shareholders' Agreement (the "SSSA") by and among Fidelion, the Company, Tongshu Biotechnology (Hong Kong) Co., Limited ("Tongshu"), Mr. Su-Leng Tan Lee, Molecule Bio LLC and Rainy Morning Technology (Hong Kong) Limited.

Pursuant to the SSSA, the Company agreed to subscribe for newly issued ordinary shares of Fidelion such that the Company will hold at least 15.0% of Fidelion's enlarged share capital at completion, in exchange for the Company issuing to Fidelion restricted shares representing 19.9% of the Company's outstanding common stock (pre-issuance). Completion of the SSSA is subject to specified conditions precedent, including execution of a Southeast Asia intellectual property license between the Company and Fidelion and customary corporate and third-party consents.

On November 28, 2025, the Company entered into a Licensing Agreement with Fidelion. In consideration for the license, the Company agreed to pay Fidelion a total license fee of $2,000,000 in 24 equal monthly instalments and committed to purchase at least $500,000 in value of VitaGuard™ reagents and system component during the first 24 months following the effective date.

On November 28, 2025, the Company entered into an Equity Purchase Agreement (the "Purchase Agreement") with ARC Group International Ltd. ("ARC"), the parent of ARC Group Securities, a FINRA registered broker/dealer. Under the terms of the Purchase Agreement, ARC has committed to purchase, from time to time at the Company's discretion, up to $500,000,000 of the Company's common stock, no par value per share ("Common Stock"), over a 36-month period (the "Facility").

Under the Facility, the Company, in its sole discretion and subject to the terms and conditions of the Purchase Agreement, may direct ARC to purchase registered shares of Common Stock at a purchase price equal to a specified discount to the prevailing volume-weighted average price during an agreed pricing period, the discount being between 3.0% and 3.5%. ARC may not purchase shares under the Facility that would result in its beneficial ownership exceeding 9.99% of the Company's then-outstanding Common Stock and is prohibited from short selling or hedging transactions involving the Company's securities.

As consideration for ARC's commitment under the Facility, the Company issued to ARC 175,000 shares of Common Stock (the "Commitment Shares") on November 26, 2025.

On November 20, 2025, our Board of Directors has adopted the 2025 Equity Incentive Plan (the "Incentive Plan"), and later approved by our shareholders at our annual shareholders' meeting in December 2025. The Plan allocated approximately 403,000 shares of common stock for issuance, subject to an annual share increase.

On December 19, 2025, the Company received notices of resignation from 4 (four) officers and directors of Chemrex**.** These individuals did not serve as executive officers of the Company.As at the filing date, the Company continues to assess any potential courses of action available to the Company or its subsidiaries. No conclusions have been reached, and any such assessments remain subject to further review.

---

| |
|:---|
| F-31 |
| *[**Table of Contents**](#toc2)* |

---

**BIONEXUS GENE LAB CORP.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEAR ENDED DECEMBER 31, 2025 AND 2024**

**(Currency expressed in United States Dollars ("US$"))**

**(Audited)**

**NOTE 17 – 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 December 31, 2025 up through April 14, 2026 of these consolidated financial statements.

During the period, the Company did not have any material recognizable subsequent events. During the year, there was no subsequent event that required recognition or disclosure, except for those previously disclosed.

## Ex-19

**EXHIBIT 19**

**BIONEXUS GENE LAB CORP.**

**Code of Ethics and Business Conduct**

1. <u>Introduction</u>.

1.1 The Board of Directors (the "**Board**") of BioNexus Gene Lab Corp. (the "**Company**") has adopted this Code of Ethics and Business Conduct (the "**Code**") in order to:

(a) promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest;

(b) promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the "**SEC**") and in other public communications made by the Company;

(c) promote compliance with applicable governmental laws, rules and regulations;

(d) promote the protection of Company assets, including corporate opportunities and confidential information;

(e) promote fair dealing practices;

(f) deter wrongdoing; and

(g) ensure accountability for adherence to the Code.

1.2 All directors, officers and employees are required to be familiar with the Code, comply with its provisions and report any suspected violations as described below in Section 10, Reporting and Enforcement.

2. <u>Honest and Ethical Conduct</u>.

2.1 The Company's policy is to promote high standards of integrity by conducting its affairs honestly and ethically.

2.2 Each director, officer and employee must act with integrity and observe the highest ethical standards of business conduct in his or her dealings with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job.

3. <u>Conflicts of Interest</u>.

---

| | |
|:---|:---|
| 3.1 | A conflict of interest occurs when an individual's private interest (or the interest of a member of his or her family) interferes, or even appears to interfere, with the interests of the Company as a whole. A conflict of interest can arise when an employee, officer or director (or a member of his or her family) takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest also arise when an employee, officer or director (or a member of his or her family) receives improper personal benefits as a result of his or her position in the Company. |
| 3.2 | Loans by the Company to, or guarantees by the Company of obligations of, employees or their family members are of special concern and could constitute improper personal benefits to the recipients of such loans or guarantees, depending on the facts and circumstances. Loans by the Company to, or guarantees by the Company of obligations of, any director or executive officer or their family members are expressly prohibited. |
| 3.3 | Whether or not a conflict of interest exists or will exist can be unclear. Conflicts of interest should be avoided unless specifically authorized as described in Section 3.4. |
| 3.4 | Persons other than directors and executive officers who have questions about a potential conflict of interest or who become aware of an actual or potential conflict should discuss the matter with, and seek a determination and prior authorization or approval from, their supervisor or the Chief Financial Officer. A supervisor may not authorize or approve conflict of interest matters or make determinations as to whether a problematic conflict of interest exists without first providing the Chief Financial Officer with a written description of the activity and seeking the Chief Financial Officer's written approval. If the supervisor is himself involved in the potential or actual conflict, the matter should instead be discussed directly with the Chief Financial Officer. |
|  | Directors and executive officers must seek determinations and prior authorizations or approvals of potential conflicts of interest exclusively from the Audit Committee. |

---

4. <u>Compliance</u>.

4.1 Employees, officers and directors should comply, both in letter and spirit, with all applicable laws, rules and regulations in the cities, states and countries in which the Company operates.

4.2 Although not all employees, officers and directors are expected to know the details of all applicable laws, rules and regulations, it is important to know enough to determine when to seek advice from appropriate personnel. Questions about compliance should be addressed to the Legal Department.

4.3 No director, officer or employee may purchase or sell any Company securities while in possession of material nonpublic information regarding the Company, nor may any director, officer or employee purchase or sell another company's securities while in possession of material nonpublic information regarding that company. It is against Company policies and illegal for any director, officer or employee to use material nonpublic information regarding the Company or any other company to:

(a) obtain profit for himself or herself; or

(b) directly or indirectly "tip" others who might make an investment decision on the basis of that information.

5. <u>Disclosure</u>.

5.1 The Company's periodic reports and other documents filed with the SEC, including all financial statements and other financial information, must comply with applicable federal securities laws and SEC rules.

5.2 Each director, officer and employee who contributes in any way to the preparation or verification of the Company's financial statements and other financial information must ensure that the Company's books, records and accounts are accurately maintained. Each director, officer and employee must cooperate fully with the Company's accounting and internal audit departments, as well as the Company's independent public accountants and counsel.

5.3 Each director, officer and employee who is involved in the Company's disclosure process must:

(a) be familiar with and comply with the Company's disclosure controls and procedures and its internal control over financial reporting; and

(b) take all necessary steps to ensure that all filings with the SEC and all other public communications about the financial and business condition of the Company provide full, fair, accurate, timely and understandable disclosure.

6. <u>Protection and Proper Use of Company Assets</u>.

6.1 All directors, officers and employees should protect the Company's assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Company's profitability and are prohibited.

6.2 All Company assets should be used only for legitimate business purposes. Any suspected incident of fraud or theft should be reported for investigation immediately.

6.3 The obligation to protect Company assets includes the Company's proprietary information. Proprietary information includes intellectual property such as trade secrets, patents, trademarks, and copyrights, as well as business and marketing plans, engineering and manufacturing ideas, designs, databases, records and any nonpublic financial data or reports. Unauthorized use or distribution of this information is prohibited and could also be illegal and result in civil or criminal penalties.

7. <u>Corporate Opportunities</u>. All directors, officers and employees owe a duty to the Company to advance its interests when the opportunity arises. Directors, officers and employees are prohibited from taking for themselves personally (or for the benefit of friends or family members) opportunities that are discovered through the use of Company assets, property, information or position. Directors, officers and employees may not use Company assets, property, information or position for personal gain (including gain of friends or family members). In addition, no director, officer or employee may compete with the Company.

8. <u>Confidentiality</u>. Directors, officers and employees should maintain the confidentiality of information entrusted to them by the Company or by its customers, suppliers or partners, except when disclosure is expressly authorized or is required or permitted by law. Confidential information includes all nonpublic information (regardless of its source) that might be of use to the Company's competitors or harmful to the Company or its customers, suppliers or partners if disclosed.

9. <u>Fair Dealing</u>. Each director, officer and employee must deal fairly with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job. No director, officer or employee may take unfair advantage of anyone through manipulation, concealment, abuse or privileged information, misrepresentation of facts or any other unfair dealing practice.

10. <u>Reporting and Enforcement</u>.

10.1 Reporting and Investigation of Violations.

(a) Actions prohibited by this Code involving directors or executive officers must be reported to the Audit Committee.

(b) Actions prohibited by this Code involving anyone other than a director or executive officer must be reported to the reporting person's supervisor or the Chief Financial Officer.

(c) After receiving a report of an alleged prohibited action, the Audit Committee, the relevant supervisor or the Chief Financial Officer must promptly take all appropriate actions necessary to investigate.

(d) All directors, officers and employees are expected to cooperate in any internal investigation of misconduct.

10.2 Enforcement.

(a) The Company must ensure prompt and consistent action against violations of this Code.

(b) If, after investigating a report of an alleged prohibited action by a director or executive officer, the Audit Committee determines that a violation of this Code has occurred, the Audit Committee will report such determination to the Board.

(c) If, after investigating a report of an alleged prohibited action by any other person, the relevant supervisor or the Chief Financial Officer determines that a violation of this Code has occurred, the supervisor or the Chief Financial Officer will report such determination to the Board.

(d) Upon receipt of a determination that there has been a violation of this Code, the Board will take such preventative or disciplinary action as it deems appropriate, including, but not limited to, reassignment, demotion, dismissal and, in the event of criminal conduct or other serious violations of the law, notification of appropriate governmental authorities.

10.3 Waivers.

(a) The Board may, in its discretion, waive any violation of this Code.

(b) Any waiver for a director or an executive officer shall be disclosed as required by SEC and Nasdaq rules.

10.4 Prohibition on Retaliation. <br>The Company does not tolerate acts of retaliation against any director, officer or employee who makes a good faith report of known or suspected acts of misconduct or other violations of this Code.

## Exhibit 21.1

**EXHIBIT 21.1**

<u>Subsidiaries</u>

MRNA Scientific Sdn. Bhd., a Malaysian corporation

Chemrex Corporation Sdn. Bhd., a Malaysian corporation

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION**

I, Su-Leng Tan Lee, certify that:

1. I have reviewed this Annual Report on **Form 10-K** of the Registrant for the fiscal year ended December 31, 2025;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, considering the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Concluded that the registrant's disclosure controls and procedures were not effective as of December 31, 2025 due to a material weakness in internal control over financial reporting, identified in the operations of Chemrex Corporation Sdn. Bhd., a wholly owned subsidiary; and

(e) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: April 14, 2026 | By: | */s/ Su-Leng Tan Lee* |
|  |  | Su-Leng Tan Lee |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION**

I, Set Fui Chong, certify that:

1. I have reviewed this Annual Report on **Form 10-K** of the Registrant for the fiscal year ended December 31, 2025;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, considering the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Concluded that the registrant's disclosure controls and procedures were not effective as of December 31, 2025 due to a material weakness in internal control over financial reporting, identified in the operations of Chemrex Corporation Sdn. Bhd., a wholly owned subsidiary; and

(e) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: April 14, 2026 | By: | */s/ Set Fui Chong* |
|  |  | Set Fui Chong |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of BioNexus Gene Lab Corp. (the "Company") on Form 10-K for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | **BioNexus Gene Lab Corp.** | **BioNexus Gene Lab Corp.** |
| Dated: April 14, 2026 | By: | */s/ Su-Leng Tan Lee* |
|  |  | Su-Leng Tan Lee |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of BioNexus Gene Lab Corp. (the "Company") on Form 10-K for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | **BioNexus Gene Lab Corp.** | **BioNexus Gene Lab Corp.** |
| Dated: April 14, 2026 | By: | */s/ Set Fui Chong* |
|  |  | Set Fui Chong |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

## Ex-97

**EXHIBIT 97**

**BIONEXUS GENE LAB CORP. (the "Company")**

**Policy on Recovery of Erroneously Awarded Compensation ("Clawback Policy")**

**1. Purpose**

This Policy is established to comply with Section 10D of the Securities Exchange Act of 1934 and Rule 10D-1 thereunder, as well as Nasdaq Listing Rule 5608. The Policy provides for the recovery of certain incentive-based compensation awarded to current and former executive officers in the event the Company is required to prepare an accounting restatement.

**2. Definitions**

· **Accounting Restatement**: A revision of previously issued financial statements due to material noncompliance with financial reporting requirements under federal securities laws.

· **Covered Executive Officers**: The Company's current or former "executive officers," as defined in Rule 10D-1 and Item 401(b) of Regulation S-K, including the CEO, CFO, principal accounting officer, and others designated by the Board.

· **Incentive-Based Compensation**: Any compensation granted, earned, or vested based wholly or in part upon the attainment of a financial reporting measure.

**3. Scope of Policy**

This Policy applies to:

· All incentive-based compensation awarded, earned, or vested on or after October 2, 2023.

· Compensation received during the three completed fiscal years immediately preceding the date the Company is required to prepare a restatement.

**4. Mandatory Recovery Requirement**

If the Company is required to restate its financial statements due to material noncompliance:

· The Company shall recover, reasonably promptly, from any Covered Executive Officer the amount of incentive-based compensation erroneously awarded.

· The recoverable amount is the excess of the incentive-based compensation paid over what would have been paid based on the restated results.

**5. Board Authority and Discretion**

· **No-Fault Standard**: Recovery is required without regard to whether the Covered Executive Officer engaged in misconduct or was at fault.

· **Limited Exceptions**: Recovery may be impracticable if:

o The Company determines, after attempting reasonable efforts, that recovery would impose undue costs or violate home country law (with SEC opinion required).

o Recovery would harm the Company's ability to operate as a going concern.

Any such exception must be documented and disclosed pursuant to SEC rules.

**6. Recovery Process**

The Board of Directors (or a designated committee) shall:

· Determine the amount of excess incentive compensation.

· Direct appropriate recovery actions, which may include repayment, cancellation, offset, or withholding.

The Company may pursue recovery through any means deemed appropriate under the circumstances, including legal action.

**7. Disclosure Requirements**

The Company shall:

· File this Policy as an exhibit to its Annual Report on Form 10-K.

· Disclose actions taken under this Policy, including:

o Names of executive officers subject to recovery,

o Amounts recovered,

o Any amounts outstanding,

o If recovery was not pursued and why.

**8. No Indemnification**

BGLC shall not indemnify any executive officer against the loss of any incentive-based compensation recovered pursuant to this Policy.

**G. Administration**

This Policy shall be administered by the Board or its designated committee, which shall have the authority to interpret and enforce the Policy in accordance with applicable law and regulations.

**10. Amendment or Termination**

This Policy may be amended or terminated at any time by the Board of Directors, subject to applicable laws, SEC rules, and Nasdaq regulations.

**11. Effective Date**

This Policy shall be effective as of the date it is adopted by the Board (the "**Effective Date**") and shall apply to all incentive compensation awarded, earned, or vested on or after October 2, 2023, in accordance with SEC Rule 10D-1

**12. Acknowledgment**

All Covered Executive Officers shall be provided a copy of this Policy and shall execute an acknowledgment agreeing to comply with its terms.