0001477932-20-004715.txt : 20200811 0001477932-20-004715.hdr.sgml : 20200811 20200811094102 ACCESSION NUMBER: 0001477932-20-004715 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 52 CONFORMED PERIOD OF REPORT: 20200630 FILED AS OF DATE: 20200811 DATE AS OF CHANGE: 20200811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BioNexus Gene Lab Corp CENTRAL INDEX KEY: 0001737523 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] IRS NUMBER: 262124961 STATE OF INCORPORATION: WY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-229399 FILM NUMBER: 201091322 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: 60122126512 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 10-Q 1 bion_10q.htm FORM 10-Q bion_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended June 30, 2020

 

OR

 

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

 

For the transition period from _____________

 

Commission File Number: 333-229399

 

BIONEXUS GENE LAB CORP

(Exact name of registrant as specified in its charter)

 

Wyoming

 

35-2604830

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

Unit 02, Level 10 Tower B, Avenue 3, The Vertical

Business Suite II

Bangsar South

No. 8 Jalan Kerinchi

Kuala Lumpur, Malaysia

 

59200

(Address of Principal Executive Offices)

 

(Zip Code)

 

+60 1221-26512

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

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

 

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

 

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

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

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

 

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

 

As of August 3, 2020, there were 102,730,891 shares of common stock, no par value, outstanding.

     

 

 

TABLE OF CONTENTS

 

 

 

 

Page

 

PART I – FINANCIAL INFORMATION

 

 

 

Item 1.

Financial Statements

 

3

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

16

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

25

 

Item 4.

Controls and Procedures

 

25

 

 

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

 

27

 

Item 1A.

Risk Factors

 

27

 

Item 2.

Unregistered Sale of Equity Securities and Use of Proceeds

 

27

 

Item 3.

Defaults Upon Senior Securities

 

27

 

Item 4.

Mine Safety Disclosures

 

27

 

Item 5.

Other Information

 

27

 

Item 6.

Exhibits

 

28

 

 

 

 

 

 

SIGNATURES

 

29

 

   

 
2

Table of Contents

 

PART I — FINANCIAL INFORMATION

 

ITEM 1. Financial Statements

 

BIONEXUS GENE LAB CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2020 AND DECEMBER 31, 2019

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

 

 

 

 

 

 

As of

 

 

 

Note

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

 

 

 

(Unaudited)

 

 

(Audited)

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and bank balances

 

 

 

 

 

250,133

 

 

 

366,038

 

Fixed deposits placed with financial institutions

 

 

 

 

 

478,357

 

 

 

493,038

 

Other receivables and deposits

 

 

 

 

 

13,166

 

 

 

13,057

 

Tax recoverable

 

8

 

 

 

-

 

 

 

2,858

 

Inventories

 

 

 

 

 

21,097

 

 

 

7,580

 

Total current assets

 

 

 

 

$ 762,753

 

 

$ 882,571

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

Operating lease right of use asset, net

 

 

 

 

 

16,645

 

 

 

23,542

 

Plant and equipment, net

 

5

 

 

 

279,018

 

 

 

312,908

 

Other investment

 

 

 

 

 

1,825

 

 

 

12,215

 

Total non-current assets

 

 

 

 

 

297,488

 

 

 

348,665

 

TOTAL ASSETS

 

 

 

 

$ 1,060,241

 

 

$ 1,231,236

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 

 

 

 

934

 

 

 

-

 

Other payables and accrued liabilities

 

 

 

 

 

14,488

 

 

 

19,437

 

Current portion of obligation under finance lease

 

6

 

 

 

19,316

 

 

 

20,201

 

Current portion of operating lease liability

 

7

 

 

 

11,540

 

 

 

11,936

 

Tax payables

 

 

 

 

 

174

 

 

 

 -

 

Total current liabilities

 

 

 

 

 

46,452

 

 

 

51,574

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Non-current portion of obligation under finance lease

 

6

 

 

 

38,366

 

 

 

45,086

 

Non-current portion of operating lease liability

 

7

 

 

 

5,740

 

 

 

12,212

 

Total non-current liabilities

 

 

 

 

 

44,106

 

 

 

57,298

 

TOTAL LIABILITIES

 

 

 

 

$ 90,558

 

 

$ 108,872

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Common stock, no par value, authorized 300,000,000 shares and outstanding 102,730,891 shares; Preferred stock, no par value, 30,000,000 shares authorized and no shares outstanding

 

4

 

 

 

6,484,669

 

 

 

6,484,669

 

Additional paid in capital

 

 

 

 

 

(5,011,891 )

 

 

(5,011,891 )

Accumulated losses

 

 

 

 

 

(447,801 )

 

 

(333,311 )

Other comprehensive expense

 

 

 

 

 

(55,294 )

 

 

(17,103 )

TOTAL STOCKHOLDERS’ EQUITY

 

 

 

 

 

969,683

 

 

 

1,122,364

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

$ 1,060,241

 

 

$ 1,231,236

 

  

See accompanying notes to the condensed consolidated financial statements.

  

 
3

Table of Contents

 

BIONEXUS GENE LAB CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019

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

 

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

$ 6,541

 

 

$ 21,645

 

 

$ 6,541

 

 

$ 49,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF REVENUE

 

 

(17,315 )

 

 

(17,020 )

 

 

(30,308 )

 

 

(35,842 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS (LOSS) / PROFIT

 

 

(10,774 )

 

 

4,625

 

 

 

(23,767 )

 

 

13,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME

 

 

2,907

 

 

 

7,380

 

 

 

7,652

 

 

 

14,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

(58,183 )

 

 

(81,224 )

 

 

(97,028 )

 

 

(157,712 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

 

(66,050 )

 

 

(69,219 )

 

 

(113,143 )

 

 

(129,422 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(487 )

 

 

(1,179 )

 

 

(1,347 )

 

 

(2,443 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$ (66,537 )

 

$ (70,398 )

 

$ (114,490 )

 

$ (131,865 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain/ (loss)

 

 

3,486

 

 

 

(17,600 )

 

 

(38,191 )

 

 

(455 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE LOSS

 

 

(63,051 )

 

 

(87,998 )

 

 

(152,681 )

 

 

(132,320 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share - Basic and diluted

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding – Basic and diluted

 

 

103,012,345

 

 

 

74,663,734

 

 

 

103,012,345

 

 

 

74,663,734

 

 

See accompanying notes to the condensed consolidated financial statements.

 

 
4

Table of Contents

 

BIONEXUS GENE LAB CORP

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

AS OF JUNE 30, 2020 AND DECEMBER 31, 2019

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

 

 

 

Common stock

 

 

 Additional paid up

 

 

 

 

Accumulated other comprehensive

 

 

 

 

 

 

Number of shares

 

 

Share

capital

 

 

 share

capital

 

 

Accumulated

losses

 

 

  income/
(expense)

 

 

Total

Equity

 

Balance as of January 1, 2019

 

 

74,627,558

 

 

$ 6,647,636

 

 

$ (5,011,891 )

 

$ (86,842 )

 

$ (26,977 )

 

$ 1,521,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued shares

 

 

30,033,333

 

 

 

30,033

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

30,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancellation of Shares

 

 

(1,930,000 )

 

 

(193,000 )

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(193,000 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(246,469 )

 

 

-

 

 

 

(246,469 )

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,874

 

 

 

9,874

 

Balance as of December 31, 2019

 

 

102,730,891

 

 

$ 6,484,669

 

 

$ (5,011,891 )

 

$ (333,311 )

 

$ (17,103 )

 

$ 1,122,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(47,953 )

 

 

-

 

 

 

(47,953 )

Foreign currency translation loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(41,677 )

 

 

(41,677 )

Balance as of March 31, 2020

 

 

102,730,891

 

 

$ 6,484,669

 

 

$ (5,011,891 )

 

$ (381,264 )

 

$ (58,780 )

 

$ 1,032,734

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(66,537 )

 

 

-

 

 

 

(66,537 )

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,486

 

 

 

3,486

 

Balance as of June 30, 2020

 

 

102,730,891

 

 

$ 6,484,669

 

 

$ (5,011,891 )

 

$ (447,801 )

 

$ (55,294 )

 

$ 969,683

 

      

See accompanying notes to the condensed consolidated financial statements.

    

 
5

Table of Contents

  

BIONEXUS GENE LAB CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019

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

(Unaudited)

 

 

 

Six months ended
June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$ (114,490 )

 

$ (131,865 )

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net profit/(loss) to net cash generated from/(used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation of property, plant and equipment

 

 

20,259

 

 

 

20,954

 

Amortization of right of use asset

 

 

5,171

 

 

 

-

 

Loss on other investment

 

 

9,890

 

 

 

-

 

Operating loss before working capital changes

 

 

(79,170 )

 

 

(110,911 )

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Inventories

 

 

(13,517 )

 

 

9,360

 

Other receivables and deposits

 

 

(110 )

 

 

(1,637 )

Trade and other payables

 

 

(608 )

 

 

1,692

 

Operating lease liability

 

 

(4,536 )

 

 

-

 

Cash used in operating activities

 

 

(97,941 )

 

 

(101,496 )

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of plant and equipment

 

 

-

 

 

 

(9,204 )

Net cash used in investing activities

 

 

-

 

 

 

(9,204 )

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayment of finance lease

 

 

(7,604 )

 

 

(7,919 )

Repayments to Directors

 

 

(371 )

 

 

(782 )

Net cash used in financing activities

 

 

(7,975 )

 

 

(8,701 )

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(24,670 )

 

 

(451 )

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

(130,586 )

 

 

(119,852 )

CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR

 

 

859,076

 

 

 

1,260,239

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR

 

$ 728,490

 

 

$ 1,140,387

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS INFORMATION:

 

 

 

 

 

 

 

 

Fixed deposits placed with financial institutions

 

$ 478,357

 

 

$ 612,139

 

Cash at bank

 

 

250,133

 

 

 

528,248

 

Cash and cash equivalents, end of financial year

 

 

728,490

 

 

 

1,140,387

 

 

 

 

 

 

 

 

 

 

Supplementary cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$ (1,361 )

 

$ (1,491 )

Income taxes refunded/(paid)

 

 

3,214

 

 

 

(1,035 )

 

See accompanying notes to the condensed consolidated financial statements.

  

 
6

Table of Contents

 

BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

NOTE 1 - BASIS OF PREPARATION

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.

 

In the opinion of management, the consolidated balance sheet as of June 30, 2020 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the Six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2020 or for any future period.

 

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

 

NOTE 2 - ORGANIZATION AND BUSINESS BACKGROUND

 

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

 

The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. We also have a blood collection center located at 1st floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia.

 

The corporate structure is depicted below:

 

BioNexus Gene Lab Corp.,

a Wyoming company

100% owned

   

 

Bionexus Gene Lab Sdn. Bhd.,

a Malaysian company

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes.

 

Basis of presentation

 

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

   

 
7

Table of Contents

 

BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

Basis of consolidation

 

The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Use of estimates

 

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.

 

Cash and cash equivalents

 

Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of Six months or less as of the purchase date of such investments.

 

Plant and equipment

 

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:

 

Categories

 

Principal Annual Rates/Expected Useful Life

 

Furniture & fittings

 

 

20 %

Computer and software

 

 

33 %

Motor vehicle

 

 

10 %

Lab Equipment

 

 

10 %

Office equipment

 

 

20 %

Renovation

 

 

20 %

 

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

 

Trade receivables

 

Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

Inventories

 

Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Condensed Statements of Operations and Comprehensive Income.

  

 
8

Table of Contents

 

BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

Impairment of long-lived assets

 

Long-lived assets primarily include goodwill, intangible assets and property, plant and equipment. In accordance with the provision of ASC Topic 360, “Impairment or Disposal of Long-Lived Assets”, the Company generally conducts its annual impairment evaluation to its long-lived assets, usually in the fourth quarter of each fiscal year, or more frequently if indicators of impairment exist, such as a significant sustained change in the business climate. The recoverability of long-lived assets is measured at the lowest level group. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss is recognized for the difference between the fair value and carrying amount of the asset. There has been no impairment charge for the years presented.

 

Finance lease

 

Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”.

 

Revenue recognition

 

Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.

 

 

a.

Sales of goods or rendering of services

 

An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: -

 

 

i.

The amount of revenue can be measured reliably;

 

 

ii.

It is probable that the economic benefits associated with the transaction will flow to the entity;

 

 

iii.

The stage of completion of the transaction at the end of the reporting period can be measured reliably; and

 

 

iv.

The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

 

 

b.

Interest income

 

Interest is recognized on receipt basis.

 

Cost of revenues

 

Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

    

 
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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

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.

 

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 loss per share

 

The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share”. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

    

 
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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

Foreign currencies translation

 

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statement of operations.

 

The functional currency of the Company is the United States Dollars (“US$”) and the accompanying financial statements have been expressed in US$. In addition, the Company maintains its books and record in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the entity operates.

 

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 subsidiary are recorded as a separate component of accumulated other comprehensive income.

 

Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years:

 

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

 

 

 

 

 

Period-end US$1: MYR exchange rate

 

 

4.2800

 

 

 

4.0925

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2020

to

June 30, 2020

 

 

January 1, 2019

to

June 30, 2019

 

 

 

 

 

 

 

 

 

 

6 months average US$1: MYR exchange rate

 

 

4.2619

 

 

 

4.1191

 

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Fair value of financial instruments

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a Six-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

     

 
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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

·

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

 

·

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

 

·

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

 

As of June 30, 2020, and December 31, 2019, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis.

 

Recent accounting pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

NOTE 4 - SHAREHOLDERS’ EQUITY

 

As at June 30, 2020, the Company had 102,730,891 shares of common stock issued and outstanding.

 

NOTE 5 - PLANT AND EQUIPMENT

 

Plant and equipment consisted of the following:

  

 

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Furniture and fittings

 

$ 5,617

 

 

$ 5,617

 

Computer and software

 

 

1,372

 

 

 

1,372

 

Motor vehicle

 

 

112,344

 

 

 

112,344

 

Lab equipment

 

 

281,651

 

 

 

281,651

 

Office equipment

 

 

1,091

 

 

 

1,091

 

Renovation

 

 

2,916

 

 

 

2,916

 

 

 

 

404,991

 

 

 

404,991

 

(Less): Accumulated depreciation

 

 

(118,478 )

 

 

(98,219 )

Add: Foreign translation differences

 

 

(7,495 )

 

 

6,136

 

 Plant and equipment, net

 

$ 279,018

 

 

$ 312,908

 

 

Depreciation expense for the six month periods ended June 30, 2020 and 2019 was $20,259 and $20,954, respectively.

   

 
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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

NOTE 6 - FINANCE LEASE

 

The Company purchased motor vehicles under a finance lease agreement with the effective interest rate 5.99% of per annum due through January 2023, with principal and interest payable monthly. The obligation under the finance lease is as follows:

   

 

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Finance lease

 

$ 61,386

 

 

$ 69,863

 

Less: interest expense

 

 

(3,704 )

 

 

(4,576 )

Net present value of finance lease

 

$ 57,682

 

 

$ 65,287

 

 

 

 

 

 

 

 

 

 

Current portion

 

$ 19,316

 

 

$ 20,201

 

Non-current portion

 

 

38,366

 

 

 

45,086

 

Total

 

$ 57,682

 

 

$ 65,287

 

 

NOTE 7 - LEASE RIGHT OF USE ASSET AND LEASE LIABILITY

 

Operating lease right of use as follow:

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Initial recognition

 

$ 34,157

 

 

$ 35,313

 

Accumulated amortization

 

 

(17,512 )

 

 

(11,771 )

Balance

 

$ 16,645

 

 

$ 23,542

 

 

Operating lease liability as follow:

 

 

June 30,

2020

 

 

December 31,

2019

 

Initial recognition

 

$ 34,157

 

 

$ 35,313

 

Less: gross repayment

 

 

(19,010 )

 

 

(13,192 )

Add: imputed interest

 

 

2,134

 

 

 

2,027

 

Balance

 

$ 17,280

 

 

$ 24,148

 

Less: lease liability current portion

 

 

(11,540 )

 

 

(11,936 )

Lease liability non-current portion

 

 

5,740

 

 

 

12,212

 

 

The amortization of the operating lease right of use asset for the six month period ended June 30, 2020 and the year ended December 31, 2019 was $5,171 and $11,618, respectively.

 

Other information:

   

 

 

June 30,

2020

 

 

December 31,

2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flow from operating lease

 

$ 4,536

 

 

$ 11,012

 

Right of use assets obtained in exchange for operating lease liabilities

 

 

16,645

 

 

 

23,542

 

Remaining lease term for operating lease (years)

 

 

2

 

 

 

2

 

Weighted average discount rate for operating lease

 

$ 6.70 %

 

$ 6.70 %

 

Lease expenses for the six month period ended June 30, 2020 and the year ended December 31, 2019 were $687 and $2,001, respectively.

    

 
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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

NOTE 8 - INCOME TAXES

 

Provision for income taxes consisted of the following:

 

United States of America

 

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

 

Malaysia

 

Bionexus Gene Lab Sdn Bhd are subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range is 24% on its assessable income.

 

 

 

Asof

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Tax Recoverable

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

-

 

 

 

(2,858 )

Tax Recoverable

 

 

-

 

 

 

(2,858 )

 

 

 

 

 

 

 

 

 

Income tax liabilities:

 

 

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

174

 

 

 

-

 

Income tax liabilities

 

 

174

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Plant and equipment

 

 

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

-

 

 

 

-

 

Deferred tax liabilities

 

 

-

 

 

 

-

 

Total

 

 

174

 

 

 

(2,858 )

    

 
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BIONEXUS GENE LAB CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

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

(Unaudited)

 

NOTE 9 - SUBSEQUENT EVENTS

 

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2020 up through July 15, 2020 of these consolidated financial statements. During the period, the Company did not have any material recognizable subsequent events.

   

 
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Table of Contents

 

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

 

Forward-Looking Statements

 

Certain statements made in this quarterly report on Form 10-Q are “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) in regard to 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 quarterly 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 regarded as a representation by the registrant or any other person that the objectives and plans of the registrant will be achieved.

 

Substantial risks exist with respect to an investment in the Company. These risks include but are not limited to, those factors discussed in our Annual Report on Form 10-k filed with the Securities and Exchange Commission on June 30, 2020. More broadly, these factors include, but are not limited to:

 

 

We have limited operating history and limited business growth;

 

 

The efficacy of our blood screening process;

 

 

We may face product liability claims and we have no insurance to cover such claims; and

 

 

There are risks associated with our business operations in Malaysia, including enforcing judgements against our operating subsidiary and management.

     

 
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Table of Contents

 

Description of Business

 

We are an emerging molecular diagnostics company focused on the application of functional genomics to enable early disease diagnosis and personalized health management. Our focus is on developing and marketing safe, effective and non-invasive blood tests for early detection of diseases in order to minimize treatment cost and improve patient management. Our non-invasive blood tests analyse changes in ribonucleic acid (or RNA) to detect the risk potentiality of 11 different diseases. These diseases include eight cancers (nasopharyngeal, lung, liver, stomach, breast, cervical, prostate and colon), two bowel diseases (colitis and Crohn) and osteoarthritis. This unique blood based genomic biomarker approach is based on the scientific observation that circulating blood reflects, in a detectable way, what is occurring throughout the body in real time.

 

The Company believes that its blood based genomic screening protocol for the risk of disease detection can be utilized in conjunction with other medical procedures for disease detection including blood tests, imaging and biopsies. We market our blood based genomic screening process to health care providers, such as doctors, laboratories and hospitals, which began in July 2017.

 

We were incorporated in the State of Wyoming on May 12, 2017. On August 23, 2017, we acquired all of the outstanding capital stock of Bionexus Gene Lab Sdn Bhd., a Malaysian corporation (“Subsidiary”). The Subsidiary was incorporated in Malaysia on April 7, 2015. The Subsidiary owns algorithm software, technology and know-how related to the detection of common diseases through blood analysis which we use in our business.

 

Our principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. We also have a blood collection center located at 1st floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia. Our telephone number is (+60) 122126512 and currently, we do not have a web-site.

 

We commenced operations in Malaysia in July 2017. Our corporate structure is depicted below:

 

BioNexus Gene Lab Corp.,

a Wyoming company

100% owned

        

 

Bionexus Gene Lab Sdn. Bhd.,

a Malaysian company

      

 
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Table of Contents

 

Results of Operations

 

 Three Months Ended June 30, 2020 Compared with the Three Months Ended June 30, 2019.

 

The following table sets forth key selected financial data for the three months ended June 30, 2020 and 2019.

 

 

 

Three month periods

 

 

 

ended June 30,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

REVENUE

 

$ 6,541

 

 

$ 21,645

 

 

 

 

 

 

 

 

 

 

COST OF REVENUE

 

 

(17,315 )

 

 

(17,020 )

 

 

 

 

 

 

 

 

 

GROSS (LOSS) /PROFIT

 

 

(10,774 )

 

 

4,625

 

 

 

 

 

 

 

 

 

 

OTHER INCOME

 

 

2,907

 

 

 

7,380

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

General and administrative

 

 

(58,183 )

 

 

(81,224 )

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

 

(66,050 )

 

 

(69,219 )

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(487 )

 

 

(1,179 )

 

 

 

 

 

 

 

 

 

NET LOSS

 

$ (66,537 )

 

 

(70,398 )

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

Foreign currency translation gain/(loss)

 

 

3,486

 

 

 

(17,600 )

 

 

 

 

 

 

 

 

 

COMPREHENSIVE LOSS

 

 

(63,051 )

 

 

(87,998 )

 

Revenues. For the quarterly period ended June 30, 2020, we had revenue of $6,541 as compared to revenues of $21,645 for the quarterly period ended June 30, 2019, a decrease of approximately 70%. The decrease was due to the impact of Covid-19 pandemic on our business. Moreover, the revenues for this quarter were from Covid19 screening compared to last quarter which were from our blood-based gene (RNA) screening. In addition, our Covid testing generates substantially lower per ticket charges at $40-70 per test compared with $2,500 per customer for our RNA screening.

 

Our results for the current quarter have been adversely impacted by the onset of the Covid-19 pandemic, which commenced in late December 2019 in Malaysia. Our experience has been that most people are reluctant to visit hospitals and clinics for fear of transmission from other patients or medical staff. Furthermore, on March 18, 2020, the Malaysian government had declared Movement Control Order for the entire nation which restricted movement except for those people who were working for essential services. The gradual relaxation of the restrictions of the Order is expected to commence in September 2020 if the pandemic is under control. We cannot predict when we will be able to re-commence the use of our non-invasive blood testing. During the first quarter of 2020, we submitted our screening tests (rRT-PCR screening) to the Ministry of Health, which was approved on June 15, 2020. The Ministry of Health testing indicated our Covid test are 100% accurate in sensitivity and specificity .This rRT-PCR screening is meant for back to work employees after the Movement Control Order is lifted. In addition, we are promoting this rRT-PCR test through the Malaysian General & Life Insurance Association and certain small and medium enterprises in Malaysia. We do not have any indication as to response to our promotion.

 

Cost of revenues. For the quarterly period ended June 30, 2020, we had incurred $17,315 in cost of revenue, as compared to cost of revenues of $17,020 for the quarterly period ended June 30, 2019, an increase of approximately 1.7%. The cost of revenue for the current quarterly period reflects the costs attributable to Covid-19 screening kits and reagents which were imported from Korea.

 

Other Income. For the quarterly period ended June 30, 2020, we had other income consisting of interest on deposits of $2,907 compared $7,380 for the quarterly period ended June 30, 2019, a 60.6% reduction from the prior quarterly period due to lower interest rates on deposits and reduced amounts on deposit.

    

 
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Table of Contents

 

Operating Expenses. For the quarterly period ended June 30, 2020, we had operating expenses of $58,182 as compared to operating expenses of $81,224 for the quarterly period ended June 30, 2019, a decrease of approximately 28.4%. Operating expenses consists of general and administrative expenses which includes depreciation of fixed assets, employee compensation and benefits, professional fees and marketing and travel expenses.

 

Loss from operations. We had a loss from operations of $66,537 for the quarterly period ended June 30, 2020 compared with a loss of $70,398 for the quarterly period ended June 30, 2019 for the reasons discussed above.

 

Income tax expense. For the quarterly period ended June 30, 2020, we had provision of income tax expense of $487 for the period as compared with $1,179 for the quarterly period ended June 30, 2019. The provision of income tax expenses is 17% for the bank interest earnings.

 

Foreign currency exchange gain/(loss). We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate will require us to recognize a transaction gain or loss on revaluation. For the quarterly period ended June 30, 2020, we experienced a foreign currency gain of $3,486 compared with a foreign currency loss of $17,600 for the quarter ended June 30, 2019.

 

Six Months Ended June 30, 2020 Compared with the Six Months Ended June 30, 2019.

 

The following table sets forth key selected financial data for the six months ended June 30, 2020 and 2019.

 

 

 

Six month periods

 

 

 

ended June 30,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

REVENUE

 

$ 6,541

 

 

$ 49,733

 

 

 

 

 

 

 

 

 

 

COST OF REVENUE

 

 

(30,308 )

 

 

(35,842 )

 

 

 

 

 

 

 

 

 

GROSS (LOSS) /PROFIT

 

 

(23,767 )

 

 

13,891

 

 

 

 

 

 

 

 

 

 

OTHER INCOME

 

 

7,652

 

 

 

14,399

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

General and administrative

 

 

(97,028 )

 

 

(157,712 )

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

 

(113,143 )

 

 

(129,422 )

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(1,347 )

 

 

(2,443 )

 

 

 

 

 

 

 

 

 

NET LOSS

 

$ (114,490 )

 

 

(131,865 )

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

Foreign currency translation gain/(loss)

 

 

(17,600 )

 

 

(455 )

 

 

 

 

 

 

 

 

 

COMPREHENSIVE LOSS

 

 

(87,998 )

 

 

(132,320 )

 

Revenues. For the six-month period ended June 30, 2020, we had revenue of $6,541 as compared to revenues of $49,733 for the same period ended June 30, 2019, a decrease of approximately 86.8%. The substantial decrease was due to the impact of Covid-19 pandemic on our business. Moreover, the revenues for this period were from Covid19 screening compared to the same period last year which were from our blood-based gene (RNA) screening. In addition, our Covid testing generates substantially lower per ticket charges at $40-70 per test compared with $2,500 per customer for our RNA screening.

      

 
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Our results for the current six-month period have been adversely impacted by the onset of the Covid-19 pandemic, which commenced in late December 2019 in Malaysia. Our experience has been that most people are reluctant to visit hospitals and clinics for fear of transmission from other patients or medical staff. Furthermore, on March 18, 2020, the Malaysian government had declared Movement Control Order for the entire nation which restricted movement except for those people who were working for essential services. The gradual relaxation of the restrictions of the Order is expected to commence in September 2020. We cannot predict when we will be able to re-commence the use of our non-invasive blood testing. During the first quarter of 2020, we submitted our screening tests (rRT-PCR screening) to the Ministry of Health, which was approved on June 15, 2020. The Ministry of Health testing indicated our Covid test are 100% accurate in sensitivity and specificity. This rRT-PCR screening is meant for back to work employees after the Movement Control Order is lifted. In addition, we are promoting this rRT-PCR test through the Malaysian General & Life Insurance Association and certain small and medium enterprises in Malaysia. We do not have any indication as to response to our promotion.

 

Cost of revenues. For the six-month period ended June 30, 2020, we had incurred $30,308 in cost of revenue, as compared to cost of revenues of $35,842 for the six-month period ended June 30, 2019, an increase of approximately 14.4%. The cost of revenue for the current quarterly period reflects the costs attributable to Covid-19 screening kits and reagents which were imported from Korea

 

Other Income. For the six-month period ended June 30, 2020, we had other income consisting of interest on deposits of $7,652 compared with $14,399 for the same period ended June 30, 2019, a 46.9% reduction from the prior quarterly period due to lower interest rates on deposits and reduced amounts on deposit.

 

Operating Expenses. For the six-month period ended June 30, 2020, total the operating expenses is $81,224 as compared to operating expenses of $97,028 for the six-month period ended June 30, 2019, a decrease of approximately 16.3%. Operating expenses consists of general and administrative expenses which includes depreciation of fixed assets, employee compensation and benefits, professional fees and marketing and travel expenses.

 

Loss from operations. We had a loss from operations of $70,398 for the six month period ended June 30, 2020 compared with a loss of $114,490 for the six month period ended June 30, 2019 for the reasons discussed above.

 

Income tax expense. For the six-month period ended June 30, 2020, we had provision of income tax expense of $1,347 for the period as compared with $2,443 for the six-month period ended June 30, 2019. The provision of income tax expenses is 17% of the bank interest earnings.

 

Foreign currency exchange gain/(loss). We are exposed to fluctuations in foreign exchange rates on the revaluation of monetary assets and liabilities denominated in currencies other than the US Dollar. Therefore, any change in the relevant exchange rate will require us to recognize a transaction gain or loss on revaluation. For the six-month period ended June 30, 2020, we experienced a foreign currency loss of $38,191 compared with a foreign currency loss of $455 for the six-month period ended June 30, 2019.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of June 30, 2020, we had working capital of $716,301 compared with working capital of $830,997 as of December 31, 2019. The decrease in working capital as of June 30, 2020 from December 31, 2019 is due principally to the monthly fixed cost in our operations.

 

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

 

 

·

Addition of administrative and marketing personnel as the business grows,

 

·

Development of a Company website,

 

·

Increases in advertising and marketing in order to attempt to generate more revenues, and

 

·

The cost of being a public company.

    

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

 

The following is a summary of the Company’s cash flows provided by (used in) operating, investing, and financing activities for the Six months ended June 30, 2020 and 2019:

 

 

 

Six Months

Ended

June 30, 2020

 

 

Six Months

Ended

June 30, 2019

 

Net Cash Used in Operating Activities

 

$ (97,941 )

 

$ (101,496 )

Net Cash Used in Investing Activities

 

 

-

 

 

 

(9,204 )

Net Cash Provided in Financing Activities

 

 

(7,975 )

 

 

(8,701 )

Net Change in Cash and Cash Equivalents

 

$ (130,586 )

 

$ (119,852 )

 

Operating Activities

 

During the six months ended June 30, 2020, the Company incurred a net loss of $114,490 which, after adjusting for depreciation, an increase in inventories, an increase in receivables and deposits, a reduction in trade payables, resulted in net cash of $97,941 being used in operating activities during the period. By comparison, during the six-months ended June 30, 2019, the Company had a net loss of $131,865 which, after adjusting for depreciation, a decrease in inventories, an increase in receivables and deposits, an increase in trade payables, resulted in net cash of $101,496 being used in operating activities during the period.

 

Investing Activities

 

During the six months ended June 30, 2020, the Company had no net cash used in investment activities. During the six months ended June 30, 2019, the Company had plant and equipment purchases, consisting mainly of equipment and computer purchases, resulting in net cash used in investment activities of $9,204. During the current quarter, we had no replacement of equipment and computers.

 

Financing Activities

 

Malaysian Prime Minister announced that individual borrowers and Small and Medium Enterprises (SMEs) would enjoy an automatic loan moratorium for six months, starting from 1st April 2020 onwards. This move is lauded to be in the right direction as many Malaysians are finding themselves out of jobs, put on unpaid leave or given a pay cut; while many SMEs are closing down. This loan holiday especially favorable for those who are in a financial bind due to loss in income. The freed-up money could be used to purchase necessities such as food and household items. The Company had a deferment of finance lease resulting in net cash used in financing activities of $7,975 with 6 months moratorium implemented by the banks in view of the Covid-19 pandemic. During the six months ended June 30, 2019, the Company had a repayment of a finance lease resulting in net cash used in financing activities of $8,701.

 

Summary of Significant Accounting Policies.

 

Basis of presentation

These accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

 

Basis of consolidation

 

The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Use of estimates

 

 
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In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.

 

Cash and cash equivalents

 

Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of Six months or less as of the purchase date of such investments.

 

Plant and equipment

 

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:

 

Categories

 

Principal Annual Rates/Expected Useful Life

 

Furniture & fittings

 

 

20 %

Computer and software

 

 

33 %

Motor vehicle

 

 

10 %

Lab Equipment

 

 

10 %

Office equipment

 

 

20 %

Renovation

 

 

20 %

  

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

 

Trade receivables

 

Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

Inventories

 

Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Condensed Statements of Operations and Comprehensive 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.

   

 
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Finance lease

 

Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”.

  

Revenue recognition

 

Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.

 

 

a.

Sales of goods or rendering of services

 

An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: -

 

 

i.

The amount of revenue can be measured reliably;

 

 

ii.

It is probable that the economic benefits associated with the transaction will flow to the entity;

 

 

iii.

The stage of completion of the transaction at the end of the reporting period can be measured reliably; and

 

 

 

 

iv.

The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

 

 

 

 

b.

Interest income

  

Interest is recognized on receipt basis.

  

Cost of revenues

  

Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

  

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.

     

 
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Income tax expense

  

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

 

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclosed in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax; the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”.

 

Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years:

 

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

 

 

 

 

 

Period-end US$1 : MYR exchange rate

 

 

4.2800

 

 

 

4.0925

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2020

to

June 30, 2020

 

 

January 1, 2019

to

June 30, 2019

 

 

 

 

 

 

 

 

 

 

6 months average US$1 : MYR exchange rate

 

 

4.2619

 

 

 

4.1191

 

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Fair value of financial instruments

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments.

   

 
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The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a Six-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

·

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

 

·

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

 

·

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

 

As of June 30, 2020, and December 31, 2019, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis.

 

Recent accounting pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

Off Balance Sheet Arrangements

 

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

 

Contractual Obligations

 

None.

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

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

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

In connection with the preparation of this quarterly report, an evaluation was carried out by the Company’s management, with the participation of the principal executive officer and the principal financial officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act (“Exchange Act”) as of June 30, 2020. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms, and that such information is accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

 

Based on that evaluation, the Company’s management concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were not effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commission’s rules and forms, and that such information was not accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

   

 
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Management’s Report on Internal Control over Financial Reporting

 

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

 

 

i)

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

 

 

ii)

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

 

 

iii)

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

 

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

 

The Company’s management conducted an assessment of the effectiveness of our internal control over financial reporting as of June 30, 2020, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, which assessment identified material weaknesses in internal control over financial reporting. A material weakness is a control deficiency, or a combination of deficiencies in internal control over financial reporting that creates a reasonable possibility that a material misstatement in annual or interim financial statements will not be prevented or detected on a timely basis. Since the assessment of the effectiveness of our internal control over financial reporting did identify a material weakness, management considers its internal control over financial reporting to be ineffective.

 

Management has concluded that our internal control over financial reporting had the following material deficiencies:

 

 

i)

We were unable to maintain segregation of duties within our business operations due to our reliance on a single individual fulfilling the role of sole officer and director.

 

 

ii)

Lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures.

 

While these control deficiencies did not result in any audit adjustments to our 2020 or 2019 interim or annual financial statements, it could have resulted in a material misstatement that might have been prevented or detected by a segregation of duties. Accordingly, we have determined that this control deficiency constitutes a material weakness.

 

To the extent reasonably possible, given our limited resources, our goal is, upon consummation of a merger with a private operating company, to separate the responsibilities of principal executive officer and principal financial officer, intending to rely on two or more individuals. We will also seek to expand our current board of directors to include additional individuals willing to perform directorial functions. Since the recited remedial actions will require that we hire or engage additional personnel, this material weakness may not be overcome in the near term due to our limited financial resources. Until such remedial actions can be realized, we will continue to rely on the advice of outside professionals and consultants.

 

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

 

Changes in Internal Controls over Financial Reporting

 

During the quarter ended June 30, 2020, there has been no change in internal control over financial reporting that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

  

 
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PART II OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

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

 

Item 1A. Risk Factors.

 

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

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable to our Company.

 

Item 5. Other Information.

 

None

  

 
27

Table of Contents

 

Item 6. Exhibits.

 

Exhibit

 

Description

31.1

 

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

 

 

 

31.2

 

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

 

 

 

32.1

 

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

 

 

 

101.INS

 

XBRL INSTANCE DOCUMENT*

 

 

 

101.SCH

 

XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT*

 

 

 

101.CAL

 

XBRL TAXONOMY CALCULATION LINKBASE DOCUMENT*

 

 

 

101.DEF

 

XBRL TAXONOMY DEFINITION LINKBASE DOCUMENT*

 

 

 

101.LAB

 

XBRL TAXONOMY LABEL LINKBASE DOCUMENT*

 

 

 

101.PRE

 

XBRL TAXONOMY PRESENTATION LINKBASE DOCUMENT*

__________ 

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

 

*

Filed herewith.

   

 
28

Table of Contents

 

SIGNATURES

 

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

 

BIONEXUS GENE LAB CORPORATION

 

 

 

/s/ Chan Chong Wong

 

Chan Chong Wong

 

Chief Executive Officer and Director

 

(Principal Executive Officer)

 

 

 

/s/ Wei Li Leong

 

Wei Li Leong

 

Chief Financial Officer

 

(Principal Financial and Accounting Officer)

 

 

 

August 11, 2020

 

 

29

EX-31.1 2 bion_ex311.htm CERTIFICATION bion_ex311.htm

EXHIBIT 31.1

 

CERTIFICATION

 

I, Chief Executive Officer of Bionexus Gene Lab Corporation (the “Registrant”), certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of the Registrant for the fiscal quarter ended June 30, 2020;

 

 

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, in light of 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, fairly 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)

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; and

 

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.

 

August 11, 2020

 

/s/ Chan Chong Wong                                                      

Chan Chong Wong

Chief Executive Officer and Director

(Principal Executive Officer)

EX-31.2 3 bion_ex312.htm CERTIFICATION bion_ex312.htm

EXHIBIT 31.2

 

CERTIFICATION

 

I, Chief Financial Officer Bionexus Gene Lab Corporation (the “Registrant”), certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of the Registrant for the fiscal quarter ended June 30, 2020;

 

 

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, in light of 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, fairly 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)

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; and

 

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.

 

August 11, 2020

 

/s/ Wei Li Leong                                                                     

Wei Li Leong

Chief Financial Officer 

(Principal Financial and Accounting Officer)

EX-32.1 4 bion_ex321.htm CERTIFICATION bion_ex321.htm

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

 

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officers of the registrant certify, to the best of their knowledge, that the registrant's Quarterly Report on Form 10-Q for the period ended June 30, 2020 (the "Form 10-Q") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Form 10-Q, fairly presents, in all material respects, the financial condition and results of operations of the registrant.

 

Bionexus Gene Lab Corporation

 

Dated: August 11, 2020

 

/s/ Chan Chong Wong                                                                         

Chan Chong Wong

Chief Executive Officer and Director

(Principal Executive Officer)

 

/s/ Wei Li Leong                                                                                  

Wei Li Leong

Chief Financial Officer 

(Principal Financial and Accounting Officer)

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Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">In the opinion of management, the consolidated balance sheet as of June 30, 2020 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the Six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2020 or for any future period.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management&#8217;s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">BioNexus Gene Lab Corp 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 BGS Lab Sdn. Bhd., a Malaysian corporation (&#8220;Subsidiary&#8221;). The Subsidiary was incorporated in Malaysia on April 7, 2015 which it then subsequently changed its name to Bionexus Gene Lab Sdn. Bhd.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. We also have a blood collection center located at 1st floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia. </p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">The corporate structure is depicted below:</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td colspan="3" style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:center;">BioNexus Gene Lab Corp.,</p><p style="MARGIN: 0px; text-align:center;">a Wyoming company</p></td></tr> <tr style="height:15px"> <td style="width:48%;vertical-align:top;"> <p style="MARGIN: 0px; text-align:right;">100% owned</p></td> <td style="width:4%;"> <p style="margin:0px">&nbsp;&nbsp;&nbsp; </p></td> <td style="width:48%;"> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p></td></tr> <tr style="height:15px"> <td colspan="3" style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:center;">Bionexus Gene Lab Sdn. Bhd., </p><p style="MARGIN: 0px; text-align:center;">a Malaysian company</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="text-align:justify;margin:0px">The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Basis of presentation</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (&#8220;US GAAP&#8221;).</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Basis of consolidation</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Use of estimates</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Cash and cash equivalents</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">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 Six months or less as of the purchase date of such investments.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Plant and equipment</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">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:</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="BORDER-BOTTOM: #000000 1px solid;vertical-align:bottom;"> <p style="margin:0px"><strong>Categories</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: black 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="margin:0px"><strong>Principal Annual Rates/Expected Useful Life</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Furniture &amp; fittings</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Computer and software</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">33</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Motor vehicle</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">10</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Lab Equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">10</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Office equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Renovation</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Trade receivables</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer&#8217;s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.</p><p style="text-align:justify;margin:0px">&nbsp; </p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Inventories</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Condensed Statements of Operations and Comprehensive Income.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Impairment of long-lived assets</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Long-lived assets primarily include goodwill, intangible assets and property, plant and equipment. In accordance with the provision of ASC Topic 360, &#8220;Impairment or Disposal of Long-Lived Assets&#8221;, 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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Finance lease</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company&#8217;s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, &#8220;Imputation of Interest&#8221;.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Revenue recognition </p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">a.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">Sales of goods or rendering of services</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: -</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">i.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">The amount of revenue can be measured reliably;</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="text-align:justify;margin:0px">ii.</p></td> <td style="vertical-align:top;"> <p style="text-align:justify;margin:0px">It is probable that the economic benefits associated with the transaction will flow to the entity;</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">iii.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">The stage of completion of the transaction at the end of the reporting period can be measured reliably; and</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">iv.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">The costs incurred for the transaction and the costs to complete the transaction can be measured reliably. </p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">b.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">Interest income</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Interest is recognized on receipt basis. </p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Cost of revenues</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues. </p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Shipping and handling fees</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Comprehensive income</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">ASC Topic 220, &#8220;<em>Comprehensive Income</em>&#8221; 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&#8217; 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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Income taxes</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Income taxes are determined in accordance with the provisions of ASC Topic 740, &#8220;<em>Income Taxes</em>&#8221; (&#8220;ASC Topic 740&#8221;). 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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Net loss per share</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The Company calculates net loss per share in accordance with ASC Topic 260 <em>&#8220;Earnings per share&#8221;</em>. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic 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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Foreign currencies translation</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">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.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The functional currency of the Company is the United States Dollars (&#8220;US$&#8221;) and the accompanying financial statements have been expressed in US$. In addition, the Company maintains its books and record in a local currency, Malaysian Ringgit (&#8220;MYR&#8221; or &#8220;RM&#8221;), which is functional currency as being the primary currency of the economic environment in which the entity operates.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">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, &#8220;<em>Translation of Financial Statement&#8221;</em>, 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 subsidiary are recorded as a separate component of accumulated other comprehensive income.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: remove line above December 31</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>June 30,</strong></p><p style="text-align:center;margin:0px"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>December 31,</strong></p><p style="text-align:center;margin:0px"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Period-end US$1: MYR exchange rate</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.2800</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.0925</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;" colspan="2"> <p style="text-align:center;margin:0px"><strong>January 1, 2020</strong></p><p style="text-align:center;margin:0px"><strong>to</strong></p><p style="text-align:center;margin:0px"><strong>June 30, 2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="BORDER-BOTTOM: 1px solid;" colspan="2"> <p style="text-align:center;margin:0px"><strong>January 1, 2019</strong></p><p style="text-align:center;margin:0px"><strong>to</strong></p><p style="text-align:center;margin:0px"><strong>June 30, 2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">6 months average US$1: MYR exchange rate</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.2619</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.1191</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Related parties</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Fair value of financial instruments</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The carrying value of the Company&#8217;s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments.</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The Company also follows the guidance of the ASC Topic 820-10, &#8220;<em>Fair Value Measurements and Disclosures</em>&#8221; (&#8220;ASC 820-10&#8221;), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a Six-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:</p><p style="text-align:justify;margin:0px">&nbsp;&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183; </font></p></td> <td style="vertical-align:top;"> <p style="margin:0px"><em>Level 1 </em>: Observable inputs such as quoted prices in active markets; </p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183; </font></p></td> <td style="vertical-align:top;"> <p style="margin:0px"><em>Level 2 </em>: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and </p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183; </font></p></td> <td style="vertical-align:top;"> <p style="margin:0px"><em>Level 3 </em>: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions </p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">As of June 30, 2020, and December 31, 2019, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-size:14pt">&#8226;</font></p></td> <td style="vertical-align:top;"> <p style="margin:0px">Recent accounting pronouncements</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.</p></div> <div style="TEXT-ALIGN:justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">As at June 30, 2020, the Company had 102,730,891 shares of common stock issued and outstanding.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="text-align:justify;margin:0px">Plant and equipment consisted of the following:</p><p style="text-align:justify;margin:0px">&nbsp;&nbsp; </p><table style="border-spacing:0;width:100%;text-align:left;font:10pt times new roman" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="6"> <p style="margin:0px"><strong>As of</strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="margin:0px"><strong>June 30,</strong></p><p style="margin:0px"><strong>2020</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="margin:0px"><strong>December 31,</strong></p><p style="margin:0px"><strong>2019</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Furniture and fittings</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">5,617</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">5,617</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Computer and software</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">1,372</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">1,372</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Motor vehicle</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">112,344</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">112,344</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Lab equipment</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">281,651</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">281,651</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Office equipment</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">1,091</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">1,091</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Renovation</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">2,916</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">2,916</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">404,991</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">404,991</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">(Less): Accumulated depreciation</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">(118,478</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">)</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">(98,219</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">)</td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Add: Foreign translation differences</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">(7,495</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;">)</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">6,136</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">&nbsp;Plant and equipment, net</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">279,018</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">312,908</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="margin:0px">&nbsp;</p></td></tr></table> <p style="margin:0px">&nbsp;</p><p style="margin:0px">Depreciation expense for the <font style="mso-bidi-font-weight:bold">six month periods ended June 30,</font> 2020 and 2019 was $20,259 and $20,954, respectively.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="text-align:justify;margin:0px">The Company purchased motor vehicles under a finance lease agreement with the effective interest rate 5.99% of per annum due through January 2023, with principal and interest payable monthly. The obligation under the finance lease is as follows:</p><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="6"> <p style="text-align:center;margin:0px"><strong>As of </strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>June 30,</strong></p><p style="text-align:center;margin:0px"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>December 31,</strong></p><p style="text-align:center;margin:0px"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="text-align:justify;margin:0px">Finance lease</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">61,386</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">69,863</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="text-align:justify;margin:0px">Less: interest expense</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(3,704</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(4,576</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="text-align:justify;margin:0px">Net present value of finance lease</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">57,682</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">65,287</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="text-align:justify;margin:0px">Current portion</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">19,316</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20,201</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="text-align:justify;margin:0px">Non-current portion</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">38,366</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">45,086</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="text-align:justify;margin:0px">Total</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">57,682</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">65,287</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;width:100%;text-align:left;font:10pt times new roman" cellpadding="0"> <tr style="height:15px"> <td style="VERTICAL-ALIGN: bottom;"> <p style="margin:0px">Operating lease right of use as follow:</p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="6"> <p style="text-align:center;margin:0px"><strong>As of </strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>June 30,</strong></p><p style="text-align:center;margin:0px"><strong>2020</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>December 31,</strong></p><p style="text-align:center;margin:0px"><strong>2019</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Initial recognition </p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">34,157</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">35,313</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Accumulated amortization</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">(17,512</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;">)</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">(11,771</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;">)</td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Balance </p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">16,645</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">23,542</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="margin:0px">&nbsp;</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Operating lease liability as follow:</p><table style="border-spacing:0;width:100%;text-align:left;font:10pt times new roman" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>June 30,</strong></p><p style="text-align:center;margin:0px"><strong>2020</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>December 31,</strong></p><p style="text-align:center;margin:0px"><strong>2019</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Initial recognition </p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">34,157</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">35,313</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Less: gross repayment</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">(19,010</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">)</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">(13,192</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">)</td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Add: imputed interest</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">2,134</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">2,027</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Balance </p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">17,280</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">24,148</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Less: lease liability current portion</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">(11,540</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;">)</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 1px solid;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: right;">(11,936</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;">)</td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Lease liability non-current portion</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">5,740</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">12,212</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;"> <p style="margin:0px">&nbsp;</p></td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The amortization of the operating lease right of use asset for the six month period ended June 30, 2020 and the year ended December 31, 2019 was $5,171 and $11,618, respectively. </p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Other information:</p><p style="text-align:justify;margin:0px">&nbsp;&nbsp;&nbsp; </p><table style="border-spacing:0;width:100%;text-align:left;font:10pt times new roman" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>June 30,</strong></p><p style="text-align:center;margin:0px"><strong>2020</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="WHITE-SPACE: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 1px solid; TEXT-ALIGN: center;" colspan="2"> <p style="text-align:center;margin:0px"><strong>December 31,</strong></p><p style="text-align:center;margin:0px"><strong>2019</strong></p></td> <td style="WHITE-SPACE: nowrap; PADDING-BOTTOM: 1px;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Cash paid for amounts included in the measurement of lease liabilities: </p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%;" colspan="2"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%;" colspan="2"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Operating cash flow from operating lease</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">4,536</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">11,012</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Right of use assets obtained in exchange for operating lease liabilities</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">16,645</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">23,542</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(204,238,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Remaining lease term for operating lease (years)</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">2</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; TEXT-ALIGN: right;">2</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:rgb(255,255,255)"> <td style="VERTICAL-ALIGN: top;"> <p style="margin:0px">Weighted average discount rate for operating lease</p></td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">6.70</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;">%</td> <td style="WIDTH: 1%; WHITE-SPACE: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; BORDER-BOTTOM: 3px double;">$</td> <td class="ffcell" style="WIDTH: 9%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: 3px double; TEXT-ALIGN: right;">6.70</td> <td style="WIDTH: 1%; VERTICAL-ALIGN: bottom; WHITE-SPACE: nowrap; PADDING-BOTTOM: 3px;">%</td></tr></table> <p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Lease expenses for the six month period ended June 30, 2020 and the year ended December 31, 2019 were $687 and $2,001, respectively. </p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="text-align:justify;margin:0px">Provision for income taxes consisted of the following:</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">United States of America</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">The Company is registered in the State of Wyoming and is subject to the tax laws of the United States of America. </p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Malaysia</p><p style="text-align:justify;margin:0px">&nbsp;</p><p style="text-align:justify;margin:0px">Bionexus Gene Lab Sdn Bhd are subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range is 24% on its assessable income.</p><p style="text-align:justify;margin:0px">&nbsp;</p><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="6"><strong>Asof</strong></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>June 30,</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>December 31,</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: black 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: black 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="vertical-align:top;"> <p style="margin:0px">Tax Recoverable</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Local</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Foreign, representing:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Malaysia</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(2,858</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Tax Recoverable</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(2,858</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Income tax liabilities:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Local</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Foreign, representing:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Malaysia</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">174</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Income tax liabilities</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">174</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Deferred tax liabilities:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Plant and equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Local</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Foreign, representing:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Malaysia</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Deferred tax liabilities</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Total </p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">174</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">(2,858</td> <td style="PADDING-BOTTOM: 3px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="text-align:justify;margin:0px">In accordance with ASC Topic 855, &#8220;Subsequent Events&#8221;, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2020 up through July 15, 2020 of these consolidated financial statements. During the period, the Company did not have any material recognizable subsequent events. </p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (&#8220;US GAAP&#8221;).</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">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 Six months or less as of the purchase date of such investments.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">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:</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="BORDER-BOTTOM: 1px solid;vertical-align:bottom;"> <p style="margin:0px"><strong>Categories</strong></p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>Principal Annual Rates/Expected Useful Life</strong></p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Furniture &amp; fittings</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">20</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px 0px 0px 0in">%</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Computer and software</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">33</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px 0px 0px 0in">%</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Motor vehicle</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">10</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px 0px 0px 0in">%</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Lab Equipment</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">10</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px 0px 0px 0in">%</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Office equipment</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">20</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px 0px 0px 0in">%</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Renovation</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">20</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px 0px 0px 0in">%</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">Fully depreciated plant and equipment are retained in the financial statements until they are no longer in use.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer&#8217;s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Condensed Statements of Operations and Comprehensive Income.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Long-lived assets primarily include goodwill, intangible assets and property, plant and equipment. In accordance with the provision of ASC Topic 360, &#8220;Impairment or Disposal of Long-Lived Assets&#8221;, 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.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company&#8217;s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, &#8220;Imputation of Interest&#8221;.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">a.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">Sales of goods or rendering of services</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: -</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">i.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">The amount of revenue can be measured reliably;</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">ii.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">It is probable that the economic benefits associated with the transaction will flow to the entity;</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">iii.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">The stage of completion of the transaction at the end of the reporting period can be measured reliably; and</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:12%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">iv.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">The costs incurred for the transaction and the costs to complete the transaction can be measured reliably. </p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:4%;vertical-align:top;"> <p style="margin:0px">b.</p></td> <td style="vertical-align:top;"> <p style="margin:0px">Interest income</p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">Interest is recognized on receipt basis.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">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.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">ASC Topic 220, &#8220;<em>Comprehensive Income</em>&#8221; 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&#8217; 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.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Income taxes are determined in accordance with the provisions of ASC Topic 740, &#8220;<em>Income Taxes</em>&#8221; (&#8220;ASC Topic 740&#8221;). 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.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">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.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">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.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">The Company calculates net loss per share in accordance with ASC Topic 260 <em>&#8220;Earnings per share&#8221;</em>. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic 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.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">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.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">The functional currency of the Company is the United States Dollars (&#8220;US$&#8221;) and the accompanying financial statements have been expressed in US$. In addition, the Company maintains its books and record in a local currency, Malaysian Ringgit (&#8220;MYR&#8221; or &#8220;RM&#8221;), which is functional currency as being the primary currency of the economic environment in which the entity operates.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, &#8220;<em>Translation of Financial Statement&#8221;</em>, 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 subsidiary are recorded as a separate component of accumulated other comprehensive income.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: remove line above December 31</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>June 30,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>December 31,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Period-end US$1: MYR exchange rate</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">4.2800</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">4.0925</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>January 1, 2020</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>to</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>June 30, 2020</strong></p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>January 1, 2019</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>to</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>June 30, 2019</strong></p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">6 months average US$1: MYR exchange rate</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">4.2619</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px 0px 0px 0in; text-align:right;">4.1191</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">The carrying value of the Company&#8217;s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments.</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">The Company also follows the guidance of the ASC Topic 820-10, &#8220;<em>Fair Value Measurements and Disclosures</em>&#8221; (&#8220;ASC 820-10&#8221;), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a Six-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:</p><p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183; </font></p></td> <td style="vertical-align:top;"> <p style="margin:0px"><em>Level 1 </em>: Observable inputs such as quoted prices in active markets; </p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183; </font></p></td> <td style="vertical-align:top;"> <p style="margin:0px"><em>Level 2 </em>: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and </p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="width:4%;vertical-align:top;"> <p style="margin:0px"><font style="font-family:symbol">&#183; </font></p></td> <td style="vertical-align:top;"> <p style="margin:0px"><em>Level 3 </em>: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions </p></td></tr></table> <p style="MARGIN: 0px; text-align:justify;">&nbsp;</p><p style="MARGIN: 0px; text-align:justify;">As of June 30, 2020, and December 31, 2019, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><p style="MARGIN: 0px; text-align:justify;">The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.</p></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="BORDER-BOTTOM: #000000 1px solid;vertical-align:bottom;"> <p style="margin:0px"><strong>Categories</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: black 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="margin:0px"><strong>Principal Annual Rates/Expected Useful Life</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Furniture &amp; fittings</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Computer and software</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">33</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Motor vehicle</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">10</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Lab Equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">10</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Office equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Renovation</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>June 30,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>December 31,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Period-end US$1: MYR exchange rate</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.2800</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.0925</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>January 1, 2020</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>to</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>June 30, 2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="BORDER-BOTTOM: 1px solid;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>January 1, 2019</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>to</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>June 30, 2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">6 months average US$1: MYR exchange rate</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.2619</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4.1191</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="6"> <p style="margin:0px"><strong>As of</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="margin:0px"><strong>June 30,</strong></p><p style="margin:0px"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="margin:0px"><strong>December 31,</strong></p><p style="margin:0px"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Furniture and fittings</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">5,617</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">5,617</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Computer and software</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,372</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,372</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Motor vehicle</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">112,344</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">112,344</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Lab equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">281,651</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">281,651</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Office equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,091</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">1,091</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Renovation</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">2,916</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">2,916</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">404,991</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">404,991</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">(Less): Accumulated depreciation</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(118,478</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(98,219</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Add: Foreign translation differences</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(7,495</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">6,136</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">&nbsp;Plant and equipment, net</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">279,018</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">312,908</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="6"> <p style="MARGIN: 0px; text-align:center;"><strong>As of </strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>June 30,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>December 31,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:justify;">Finance lease</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">61,386</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">69,863</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:justify;">Less: interest expense</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(3,704</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(4,576</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:justify;">Net present value of finance lease</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">57,682</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">65,287</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:justify;">Current portion</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">19,316</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">20,201</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:justify;">Non-current portion</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">38,366</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">45,086</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="MARGIN: 0px; text-align:justify;">Total</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">57,682</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">65,287</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;font-size:10pt;width:100%" cellpadding="0"> <tr style="height:15px"> <td style="vertical-align:bottom;"> <p style="margin:0px">Operating lease right of use as follow:</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;" colspan="6"> <p style="MARGIN: 0px; text-align:center;"><strong>As of </strong></p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>June 30,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>December 31,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Initial recognition </p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px">$</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px; text-align:right;">34,157</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px">$</p></td> <td style="width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px; text-align:right;">35,313</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Accumulated amortization</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px; text-align:right;">(17,512</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px">)</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px; text-align:right;">(11,771</p></td> <td style="width:1%;vertical-align:bottom;"> <p style="margin:0px">)</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Balance </p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;"> <p style="margin:0px">$</p></td> <td style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px; text-align:right;">16,645</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;"> <p style="margin:0px">$</p></td> <td style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;"> <p style="MARGIN: 0px; text-align:right;">23,542</p></td> <td style="width:1%;"> <p style="margin:0px">&nbsp;</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>June 30,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>December 31,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Initial recognition </p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">34,157</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">35,313</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Less: gross repayment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(19,010</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(13,192</td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Add: imputed interest</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">2,134</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">2,027</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Balance </p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">17,280</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">24,148</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Less: lease liability current portion</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(11,540</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(11,936</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Lease liability non-current portion</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">5,740</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">12,212</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>June 30,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="MARGIN: 0px; text-align:center;"><strong>December 31,</strong></p><p style="MARGIN: 0px; text-align:center;"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="vertical-align:top;"> <p style="margin:0px">Cash paid for amounts included in the measurement of lease liabilities: </p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Operating cash flow from operating lease</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">4,536</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">11,012</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Right of use assets obtained in exchange for operating lease liabilities</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">16,645</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">23,542</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Remaining lease term for operating lease (years)</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">2</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">2</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Weighted average discount rate for operating lease</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">6.70</td> <td style="PADDING-BOTTOM: 3px;width:1%;vertical-align:bottom;white-space: nowrap;">%</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">6.70</td> <td style="PADDING-BOTTOM: 3px;width:1%;vertical-align:bottom;white-space: nowrap;">%</td></tr></table></div> <div style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN"><table style="border-spacing:0;text-align:left;font:10pt times new roman;width:100%" cellpadding="0"> <tr style="height:15px"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="hdcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="6"><strong>Asof</strong></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>June 30,</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" colspan="2" style="width:9%;vertical-align:bottom;text-align:center;"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>December 31,</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td></tr> <tr style="height:15px"> <td> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: black 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>2020</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td style="white-space: nowrap;"> <p style="margin:0px"><strong>&nbsp;</strong></p></td> <td class="hdcell" style="BORDER-BOTTOM: black 1px solid;width:9%;vertical-align:bottom;text-align:center;" colspan="2"> <p style="text-align:center;margin:0px 0px 0px -0.7pt"><strong>2019</strong></p></td> <td style="PADDING-BOTTOM: 1px;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px"> <td style="vertical-align:top;"> <p style="margin:0px">Tax Recoverable</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" colspan="2" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Local</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Foreign, representing:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Malaysia</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(2,858</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Tax Recoverable</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">(2,858</td> <td style="PADDING-BOTTOM: 1px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr> <tr style="height:15px;background-color:#cceeff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Income tax liabilities:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Local</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Foreign, representing:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Malaysia</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">174</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Income tax liabilities</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">174</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px">Deferred tax liabilities:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Plant and equipment</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Local</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td> <td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Foreign, representing:</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="width:9%;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Malaysia</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#cceeff"> <td style="vertical-align:top;"> <p style="margin:0px">Deferred tax liabilities</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td> <td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td></tr> <tr style="height:15px;background-color:#ffffff"> <td style="vertical-align:top;"> <p style="margin:0px;text-indent:10pt">Total </p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">174</td> <td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;"> <p style="margin:0px">&nbsp;</p></td> <td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">(2,858</td> <td style="PADDING-BOTTOM: 3px;width:1%;vertical-align:bottom;white-space: nowrap;">)</td></tr></table></div> 1 2017-08-23 The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia 0.2 0.33 0.1 0.1 0.2 0.2 4.2800 4.0925 4.2619 4.1191 0.5 The lease term exceeding 75% of the estimated economic life of the leased asset 0.9 102730891 102730891 404991 404991 118478 98219 -7945 6136 5617 5617 1372 1372 112344 112344 281651 281651 1091 1091 2916 2916 61386 69863 -3704 -4576 57682 65287 57682 65287 0.0599 January 2023 34157 35313 17152 11771 16645 23542 34157 35313 -19010 -13192 2134 2027 17280 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EQUITY CURRENT LIABILITIES Trade payables Other payables and accrued liabilities Current portion of obligation under finance lease Current portion of operating lease liability Tax payables Total current liabilities [Liabilities, Current] NON-CURRENT LIABILITIES Non-current portion of obligation under finance lease Non-current portion of operating lease liability Total non-current liabilities [Liabilities, Noncurrent] TOTAL LIABILITIES [Liabilities] STOCKHOLDERS' EQUITY Common stock, no par value, authorized 300,000,000 shares and outstanding 102,730,891 shares; Preferred stock, no par value, 30,000,000 shares authorized and no shares outstanding Additional paid in capital Accumulated losses Other comprehensive expense TOTAL STOCKHOLDERS' EQUITY [Stockholders' Equity Attributable to Parent] TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY [Liabilities and Equity] STOCKHOLDERS' EQUITY Preferred stock, shares par value Preferred stock, shares authorized Common Stock, Shares outstanding Preferred stock, shares outstanding Common Stock, Shares authorized Common Stock, Par value CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS REVENUE COST OF REVENUE [Cost of Revenue] GROSS (LOSS) / PROFIT [Gross Profit] OTHER INCOME OPERATING EXPENSES General and administrative [General and Administrative Expense] LOSS FROM OPERATIONS Income tax expense [Income Tax Expense (Benefit)] NET LOSS [Net Income (Loss) Attributable to Parent] Other comprehensive income: Foreign currency translation gain/ (loss) COMPREHENSIVE LOSS Net loss per share - 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BASIS OF PREPARATION NOTE 2 - ORGANIZATION AND BUSINESS BACKGROUND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES STOCKHOLDERS EQUITY NOTE 4 - STOCKHOLDERS' EQUITY PLANT AND EQUIPMENT NOTE 5 - PLANT AND EQUIPMENT FINANCE LEASE NOTE 6 - FINANCE LEASE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY NOTE 7 - LEASE RIGHT OF USE ASSET AND LEASE LIABILITY INCOME TAXES NOTE 8 - INCOME TAXES SUBSEQUENT EVENTS NOTE 9 - SUBSEQUENT EVENTS Basis of presentation Basis of consolidation Use of estimates Cash and cash equivalents Plant and equipment Trade receivables Inventories Inventory, Policy [Policy Text Block] Impairment of long-lived assets Finance lease Revenue recognition Cost of revenues Shipping and handling fees Comprehensive income Income taxes Net loss per share Foreign currencies translation Related parties Fair value of financial instruments Recent accounting pronouncements Schedule of principal annual rates Schedule of exchange rates Schedule of Plant and equipment Schedule of finance lease Schedule of the operating lease right Schedule of the operating lease liability Schedule of other information Schedule of Deferred Tax Assets And Liabilities Related Party [Axis] BGS Lab Sdn. Bhd [Member] Business Acquisition, Percentage of Voting Interests Acquired Business Acquisition, Effective Date of Acquisition Business acquisition, business operation description Property Plant And Equipment By Type Axis Furniture and fittings [Member] Computer and software [Member] Motor vehicle [Member] Lab Equipment [Member] Office equipment [Member] Renovation [Member] Principal Annual Rates/Expected Useful Life Period-end US$1 : MYR exchange rate Six months average US$1 : MYR exchange rate Range Axis Minimum [Member] Tax benefits rate Description of finance lease term Lease payment exceeding fair value Common stock, issued Common stock, outstanding Furniture and fittings [Member] Computer and software [Member] Motor vehicle [Member] Lab Equipment [Member] Office equipment [Member] Renovation [Member] Plant and equipment [Property, Plant and Equipment, Gross] (Less): Accumulated depreciation [Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment] Add: Foreign translation differences Plant and equipment, net Depreciation expense Finance lease [Finance lease] Less: interest expense Net present value of finance lease Current portion Non-current portion Finance lease, Total Finite Lived Intangible Assets By Major Class Axis Lease Agreements [Member] Interest rate, Annually Expiration date Aircraft Type Axis Operating Lease Right of Use [Member] Initial recognition Balance Operating lease liability [Member] Initial recognition [Initial recognition] Less: gross repayment Add: imputed interest Balance [Operating Lease, Liability] Less: lease liability current portion Lease liability non-current portion Operating cash flow from operating lease Right of use assets obtained in exchange for operating lease liabilities Remaining lease term for operating lease (years) Weighted average discount rate for operating lease Amortization of right of use asset Lease expenses Statement Geographical Axis Local [Member] Malaysia [Member] Tax Recoverable Income tax liabilities Plant and equipment [Property, Plant and Equipment, Other, Gross] Deferred tax liabilities Total [Total] Malaysia [Member] Statutory income tax rate EX-101.CAL 8 bion-20200630_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.PRE 9 bion-20200630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE EX-101.DEF 10 bion-20200630_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE GRAPHIC 11 bion_10qimg3.jpg begin 644 bion_10qimg3.jpg M_]C_X 02D9)1@ ! 0$ 8 !@ #_VP!# 4$! 0$ P4$! 0&!04&" T(" <' M"! +# D-$Q 4$Q(0$A(4%QT9%!8<%A(2&B,:'!X?(2$A%!DD)R0@)AT@(2#_ MVP!# 04&!@@'" \(" \@%1(5(" @(" @(" @(" @(" @(" @(" @(" @(" @ M(" @(" @(" @(" @(" @(" @(" @("#_P 1" 8 \# 2( A$! 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Cover - shares
6 Months Ended
Jun. 30, 2020
Aug. 03, 2020
Cover [Abstract]    
Entity Registrant Name BioNexus Gene Lab Corp  
Entity Central Index Key 0001737523  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company true  
Entity Current Reporting Status Yes  
Document Period End Date Jun. 30, 2020  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2020  
Entity Ex Transition Period false  
Entity Common Stock Shares Outstanding   102,730,891
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2020
Dec. 31, 2019
CURRENT ASSETS    
Cash and bank balances $ 250,133 $ 366,038
Fixed deposits placed with financial institutions 478,357 493,038
Other receivables and deposits 13,166 13,057
Tax recoverable 0 2,858
Inventories 21,097 7,580
Total current assets 762,753 882,571
NON-CURRENT ASSETS    
Operating lease right of use asset, net 16,645 23,542
Plant and equipment, net 279,018 312,908
Other investment 1,825 12,215
Total non-current assets 297,488 348,665
TOTAL ASSETS 1,060,241 1,231,236
CURRENT LIABILITIES    
Trade payables 934 0
Other payables and accrued liabilities 14,488 19,437
Current portion of obligation under finance lease 19,316 20,201
Current portion of operating lease liability 11,540 11,936
Tax payables 174  
Total current liabilities 46,452 51,574
NON-CURRENT LIABILITIES    
Non-current portion of obligation under finance lease 38,366 45,086
Non-current portion of operating lease liability 5,740 12,212
Total non-current liabilities 44,106 57,298
TOTAL LIABILITIES 90,558 108,872
STOCKHOLDERS' EQUITY    
Common stock, no par value, authorized 300,000,000 shares and outstanding 102,730,891 shares; Preferred stock, no par value, 30,000,000 shares authorized and no shares outstanding 6,484,669 6,484,669
Additional paid in capital (5,011,891) (5,011,891)
Accumulated losses (447,801) (333,311)
Other comprehensive expense (55,294) (17,103)
TOTAL STOCKHOLDERS' EQUITY 969,683 1,122,364
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,060,241 $ 1,231,236
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2020
Dec. 31, 2019
STOCKHOLDERS' EQUITY    
Preferred stock, shares par value $ 0 $ 0
Preferred stock, shares authorized 30,000,000 30,000,000
Common Stock, Shares outstanding 102,730,891 102,730,891
Preferred stock, shares outstanding 0 0
Common Stock, Shares authorized 300,000,000 300,000,000
Common Stock, Par value $ 0 $ 0
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS        
REVENUE $ 6,541 $ 21,645 $ 6,541 $ 49,733
COST OF REVENUE (17,315) (17,020) (30,308) (35,842)
GROSS (LOSS) / PROFIT (10,774) 4,625 (23,767) 13,891
OTHER INCOME 2,907 7,380 7,652 14,399
OPERATING EXPENSES        
General and administrative (58,183) (81,224) (97,028) (157,712)
LOSS FROM OPERATIONS (66,050) (69,219) (113,143) (129,422)
Income tax expense (487) (1,179) (1,347) (2,443)
NET LOSS (66,537) (70,398) (114,490) (131,865)
Other comprehensive income:        
Foreign currency translation gain/ (loss) 3,486 (17,600) (38,191) (455)
COMPREHENSIVE LOSS $ (63,051) $ (87,998) $ (152,681) $ (132,320)
Net loss per share - Basic and diluted $ 0 $ 0 $ 0 $ 0
Weighted average number of common shares outstanding - Basic and diluted 103,012,345 74,663,734 103,012,345 74,663,734
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.20.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($)
Total
Common Stock
Additional paid up share capital
Accumulated Losses
Accumulated other comprehensive income/(expense)
Balance, shares at Dec. 31, 2018   74,627,558      
Balance, amount at Dec. 31, 2018 $ 1,521,926 $ 6,647,636 $ (5,011,891) $ (86,842) $ (26,977)
Issued shares, shares   30,033,333      
Net loss for the period (246,469) $ 0 0 (246,469) 0
Issued shares, amount 30,033 30,033 0 0 0
Foreign currency translation gain/loss 9,874 $ 0 0 0 9,874
Cancellation of Shares, shares   (1,930,000)      
Cancellation of Shares, amount (193,000) $ (193,000) 0 0 0
Balance, shares at Dec. 31, 2019   102,730,891      
Balance, amount at Dec. 31, 2019 1,122,364 $ 6,484,669 (5,011,891) (333,311) (17,103)
Net loss for the period (47,953) 0 0 (47,953) 0
Foreign currency translation gain/loss (41,677) $ 0 0 0 (41,677)
Balance, shares at Mar. 31, 2020   102,730,891      
Balance, amount at Mar. 31, 2020 1,032,734 $ 6,484,669 (5,011,891) (381,264) (58,780)
Balance, shares at Dec. 31, 2019   102,730,891      
Balance, amount at Dec. 31, 2019 1,122,364 $ 6,484,669 (5,011,891) (333,311) (17,103)
Net loss for the period (114,490) 0 0 (114,490) 0
Foreign currency translation gain/loss (38,191) $ 0 0 0 (38,191)
Balance, shares at Jun. 30, 2020   102,730,891      
Balance, amount at Jun. 30, 2020 969,683 $ 6,484,669 (5,011,891) (447,801) (55,294)
Balance, shares at Mar. 31, 2020   102,730,891      
Balance, amount at Mar. 31, 2020 1,032,734 $ 6,484,669 (5,011,891) (381,264) (58,780)
Net loss for the period (66,537) 0 0 (66,537) 0
Foreign currency translation gain/loss 3,486 $ 0 0 0 3,486
Balance, shares at Jun. 30, 2020   102,730,891      
Balance, amount at Jun. 30, 2020 $ 969,683 $ 6,484,669 $ (5,011,891) $ (447,801) $ (55,294)
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Cash flows from operating activities:            
Net loss $ (66,537) $ (47,953) $ (70,398) $ (114,490) $ (131,865) $ (246,469)
Adjustments to reconcile net profit/(loss) to net cash generated from/(used in) operating activities:            
Depreciation of property, plant and equipment       20,259 20,954  
Amortization of right of use asset       5,171 0 11,618
Loss on other investment       9,890 0  
Operating loss before working capital changes       (79,170) (110,911)  
Changes in operating assets and liabilities:            
Inventories       (13,517) 9,360  
Other receivables and deposits       (110) (1,637)  
Trade and other payables       (608) 1,692  
Operating lease liability       (4,536) 0  
Cash used in operating activities       (97,941) (101,496)  
Cash flows from investing activities:            
Purchase of plant and equipment       0 (9,204)  
Net cash used in investing activities       0 (9,204)  
Cash flows from financing activities:            
Repayment of finance lease       (7,604) (7,919)  
Repayments to Directors       (371) (782)  
Net cash used in financing activities       (7,975) (8,701)  
Foreign currency translation adjustment       (24,670) (451)  
NET CHANGE IN CASH AND CASH EQUIVALENTS       (130,586) (119,852)  
CASH AND CASH EQUIVALENTS, BEGINNING OF FINANCIAL YEAR   $ 859,076   859,076 1,260,239 1,260,239
CASH AND CASH EQUIVALENTS, END OF FINANCIAL YEAR $ 728,490   $ 1,140,387 728,490 1,140,387 $ 859,076
CASH AND CASH EQUIVALENTS INFORMATION:            
Fixed deposits placed with financial institutions       478,357 612,139  
Cash at bank       250,133 528,248  
Cash and cash equivalents, end of financial year       728,490 1,140,387  
Supplementary cash flow information:            
Interest paid       (1,361) (1,491)  
Income taxes refunded/(paid)       $ 3,214 $ (1,035)  
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.20.2
BASIS OF PREPARATION
6 Months Ended
Jun. 30, 2020
BASIS OF PREPARATION  
NOTE 1 - BASIS OF PREPARATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.

 

In the opinion of management, the consolidated balance sheet as of June 30, 2020 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the Six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2020 or for any future period.

 

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.20.2
ORGANIZATION AND BUSINESS BACKGROUND
6 Months Ended
Jun. 30, 2020
BASIS OF PREPARATION  
NOTE 2 - ORGANIZATION AND BUSINESS BACKGROUND

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

 

The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia. We also have a blood collection center located at 1st floor, Lifecare Medical Centre, Kuala Lumpur, Malaysia.

 

The corporate structure is depicted below:

 

BioNexus Gene Lab Corp.,

a Wyoming company

100% owned

   

 

Bionexus Gene Lab Sdn. Bhd.,

a Malaysian company

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes.

 

Basis of presentation

 

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

 

Basis of consolidation

 

The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

 

Use of estimates

 

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.

 

Cash and cash equivalents

 

Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of Six months or less as of the purchase date of such investments.

 

Plant and equipment

 

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:

 

Categories

 

Principal Annual Rates/Expected Useful Life

 

Furniture & fittings

 

 

20 %

Computer and software

 

 

33 %

Motor vehicle

 

 

10 %

Lab Equipment

 

 

10 %

Office equipment

 

 

20 %

Renovation

 

 

20 %

 

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

 

Trade receivables

 

Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

 

Inventories

 

Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Condensed Statements of Operations and Comprehensive 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.

 

Finance lease

 

Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”.

 

Revenue recognition

 

Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.

 

 

a.

Sales of goods or rendering of services

 

An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: -

 

 

i.

The amount of revenue can be measured reliably;

 

 

ii.

It is probable that the economic benefits associated with the transaction will flow to the entity;

 

 

iii.

The stage of completion of the transaction at the end of the reporting period can be measured reliably; and

 

 

iv.

The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

 

 

b.

Interest income

 

Interest is recognized on receipt basis.

 

Cost of revenues

 

Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

 

 

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.

 

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 loss per share

 

The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share”. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic 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$”) and the accompanying financial statements have been expressed in US$. In addition, the Company maintains its books and record in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the entity operates.

 

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 subsidiary are recorded as a separate component of accumulated other comprehensive income.

 

Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: remove line above December 31

 

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

 

 

 

 

 

Period-end US$1: MYR exchange rate

 

 

4.2800

 

 

 

4.0925

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2020

to

June 30, 2020

 

 

January 1, 2019

to

June 30, 2019

 

 

 

 

 

 

 

 

 

 

6 months average US$1: MYR exchange rate

 

 

4.2619

 

 

 

4.1191

 

 

Related parties

 

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Fair value of financial instruments

 

The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a Six-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

  

·

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

 

·

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

 

·

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

 

As of June 30, 2020, and December 31, 2019, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis.

 

Recent accounting pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.20.2
STOCKHOLDERS EQUITY
6 Months Ended
Jun. 30, 2020
STOCKHOLDERS EQUITY  
NOTE 4 - STOCKHOLDERS' EQUITY

As at June 30, 2020, the Company had 102,730,891 shares of common stock issued and outstanding.

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.20.2
PLANT AND EQUIPMENT
6 Months Ended
Jun. 30, 2020
PLANT AND EQUIPMENT  
NOTE 5 - PLANT AND EQUIPMENT

Plant and equipment consisted of the following:

  

 

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Furniture and fittings

 

$ 5,617

 

 

$ 5,617

 

Computer and software

 

 

1,372

 

 

 

1,372

 

Motor vehicle

 

 

112,344

 

 

 

112,344

 

Lab equipment

 

 

281,651

 

 

 

281,651

 

Office equipment

 

 

1,091

 

 

 

1,091

 

Renovation

 

 

2,916

 

 

 

2,916

 

 

 

 

404,991

 

 

 

404,991

 

(Less): Accumulated depreciation

 

 

(118,478 )

 

 

(98,219 )

Add: Foreign translation differences

 

 

(7,495 )

 

 

6,136

 

 Plant and equipment, net

 

$ 279,018

 

 

$ 312,908

 

 

Depreciation expense for the six month periods ended June 30, 2020 and 2019 was $20,259 and $20,954, respectively.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.20.2
FINANCE LEASE
6 Months Ended
Jun. 30, 2020
FINANCE LEASE  
NOTE 6 - FINANCE LEASE

The Company purchased motor vehicles under a finance lease agreement with the effective interest rate 5.99% of per annum due through January 2023, with principal and interest payable monthly. The obligation under the finance lease is as follows:

 

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Finance lease

 

$ 61,386

 

 

$ 69,863

 

Less: interest expense

 

 

(3,704 )

 

 

(4,576 )

Net present value of finance lease

 

$ 57,682

 

 

$ 65,287

 

 

 

 

 

 

 

 

 

 

Current portion

 

$ 19,316

 

 

$ 20,201

 

Non-current portion

 

 

38,366

 

 

 

45,086

 

Total

 

$ 57,682

 

 

$ 65,287

 

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.20.2
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY
6 Months Ended
Jun. 30, 2020
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY  
NOTE 7 - LEASE RIGHT OF USE ASSET AND LEASE LIABILITY

Operating lease right of use as follow:

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Initial recognition

 

$ 34,157

 

 

$ 35,313

 

Accumulated amortization

 

 

(17,512 )

 

 

(11,771 )

Balance

 

$ 16,645

 

 

$ 23,542

 

 

Operating lease liability as follow:

 

 

June 30,

2020

 

 

December 31,

2019

 

Initial recognition

 

$ 34,157

 

 

$ 35,313

 

Less: gross repayment

 

 

(19,010 )

 

 

(13,192 )

Add: imputed interest

 

 

2,134

 

 

 

2,027

 

Balance

 

$ 17,280

 

 

$ 24,148

 

Less: lease liability current portion

 

 

(11,540 )

 

 

(11,936 )

Lease liability non-current portion

 

 

5,740

 

 

 

12,212

 

 

The amortization of the operating lease right of use asset for the six month period ended June 30, 2020 and the year ended December 31, 2019 was $5,171 and $11,618, respectively.

 

Other information:

   

 

 

June 30,

2020

 

 

December 31,

2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flow from operating lease

 

$ 4,536

 

 

$ 11,012

 

Right of use assets obtained in exchange for operating lease liabilities

 

 

16,645

 

 

 

23,542

 

Remaining lease term for operating lease (years)

 

 

2

 

 

 

2

 

Weighted average discount rate for operating lease

 

$ 6.70 %

 

$ 6.70 %

 

Lease expenses for the six month period ended June 30, 2020 and the year ended December 31, 2019 were $687 and $2,001, respectively.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.20.2
INCOME TAXES
6 Months Ended
Jun. 30, 2020
INCOME TAXES  
NOTE 8 - INCOME TAXES

Provision for income taxes consisted of the following:

 

United States of America

 

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

 

Malaysia

 

Bionexus Gene Lab Sdn Bhd are subject to Malaysia Corporate Tax, which is charged at the statutory income tax rate range is 24% on its assessable income.

 

 

 

Asof

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Tax Recoverable

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

-

 

 

 

(2,858 )

Tax Recoverable

 

 

-

 

 

 

(2,858 )

 

 

 

 

 

 

 

 

 

Income tax liabilities:

 

 

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

174

 

 

 

-

 

Income tax liabilities

 

 

174

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Plant and equipment

 

 

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

-

 

 

 

-

 

Deferred tax liabilities

 

 

-

 

 

 

-

 

Total

 

 

174

 

 

 

(2,858 )
XML 26 R15.htm IDEA: XBRL DOCUMENT v3.20.2
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2020
SUBSEQUENT EVENTS  
NOTE 9 - SUBSEQUENT EVENTS

In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2020 up through July 15, 2020 of these consolidated financial statements. During the period, the Company did not have any material recognizable subsequent events.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Basis of presentation

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

Basis of consolidation

The condensed consolidated financial statements include the accounts of Bionexus Gene Lab Corp. and its subsidiaries. All significant inter-company balances and transactions within the Company have been eliminated upon consolidation.

Use of estimates

In preparing these condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the periods reported. Actual results may differ from these estimates.

Cash and cash equivalents

Cash and cash equivalents represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of Six months or less as of the purchase date of such investments.

Plant and equipment

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:

 

Categories

 

Principal Annual Rates/Expected Useful Life

 

Furniture & fittings

 

 

20

%

Computer and software

 

 

33

%

Motor vehicle

 

 

10

%

Lab Equipment

 

 

10

%

Office equipment

 

 

20

%

Renovation

 

 

20

%

 

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

Trade receivables

Trade receivables are recorded at the invoiced amount and do not bear interest. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Trade balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

Inventories

Inventories consisting of products available for sell, are stated at the lower of cost or market value. Cost of inventory is determined using the first-in, first-out (FIFO) method. Inventory reserve is recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Write downs are recorded in cost of revenues in the Condensed Statements of Operations and Comprehensive 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.

Finance lease

Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, the Company as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to the Company, while the leased asset is depreciated in accordance with the Company’s depreciation policy if the title is to eventually transfer to the Company. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 835-30, “Imputation of Interest”.

Revenue recognition

Revenue recognized when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or receivable.

 

 

a.

Sales of goods or rendering of services

 

An entity shall recognize revenue associated with the transaction by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: -

 

 

i.

The amount of revenue can be measured reliably;

 

 

ii.

It is probable that the economic benefits associated with the transaction will flow to the entity;

 

 

iii.

The stage of completion of the transaction at the end of the reporting period can be measured reliably; and

 

 

iv.

The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

 

 

b.

Interest income

 

Interest is recognized on receipt basis.

Cost of revenues

Cost of revenue includes the purchase cost of retail goods for re-sale to customers and packing materials (such as boxes). It excludes purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs and other costs of distribution network in cost of revenues.

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.

 

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 loss per share

The Company calculates net loss per share in accordance with ASC Topic 260 “Earnings per share”. Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic 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$”) and the accompanying financial statements have been expressed in US$. In addition, the Company maintains its books and record in a local currency, Malaysian Ringgit (“MYR” or “RM”), which is functional currency as being the primary currency of the economic environment in which the entity operates.

 

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 subsidiary are recorded as a separate component of accumulated other comprehensive income.

 

Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates for the respective years: remove line above December 31

 

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

 

 

 

 

 

Period-end US$1: MYR exchange rate

 

 

4.2800

 

 

 

4.0925

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2020

to

June 30, 2020

 

 

January 1, 2019

to

June 30, 2019

 

 

 

 

 

 

 

 

 

 

6 months average US$1: MYR exchange rate

 

 

4.2619

 

 

 

4.1191

 

Related parties

Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

Fair value of financial instruments

The carrying value of the Company’s financial instruments: cash and cash equivalents, trade receivable, deposits and other receivables, amount due to related parties and other payables approximate at their fair values because of the short-term nature of these financial instruments.

 

The Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a Six-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

 

·

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

 

·

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

 

·

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

 

As of June 30, 2020, and December 31, 2019, the Company did not have any nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements, at least annually, on a recurring basis, nor did the Company have any assets or liabilities measured at fair value on a non-recurring basis.

Recent accounting pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Schedule of principal annual rates

Categories

 

Principal Annual Rates/Expected Useful Life

 

Furniture & fittings

 

 

20 %

Computer and software

 

 

33 %

Motor vehicle

 

 

10 %

Lab Equipment

 

 

10 %

Office equipment

 

 

20 %

Renovation

 

 

20 %
Schedule of exchange rates

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

 

 

 

 

 

Period-end US$1: MYR exchange rate

 

 

4.2800

 

 

 

4.0925

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2020

to

June 30, 2020

 

 

January 1, 2019

to

June 30, 2019

 

 

 

 

 

 

 

 

 

 

6 months average US$1: MYR exchange rate

 

 

4.2619

 

 

 

4.1191

 

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.20.2
PLANT AND EQUIPMENT (Tables)
6 Months Ended
Jun. 30, 2020
PLANT AND EQUIPMENT  
Schedule of Plant and equipment

 

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Furniture and fittings

 

$ 5,617

 

 

$ 5,617

 

Computer and software

 

 

1,372

 

 

 

1,372

 

Motor vehicle

 

 

112,344

 

 

 

112,344

 

Lab equipment

 

 

281,651

 

 

 

281,651

 

Office equipment

 

 

1,091

 

 

 

1,091

 

Renovation

 

 

2,916

 

 

 

2,916

 

 

 

 

404,991

 

 

 

404,991

 

(Less): Accumulated depreciation

 

 

(118,478 )

 

 

(98,219 )

Add: Foreign translation differences

 

 

(7,495 )

 

 

6,136

 

 Plant and equipment, net

 

$ 279,018

 

 

$ 312,908

 

XML 30 R19.htm IDEA: XBRL DOCUMENT v3.20.2
FINANCE LEASE (Tables)
6 Months Ended
Jun. 30, 2020
FINANCE LEASE  
Schedule of finance lease

 

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Finance lease

 

$ 61,386

 

 

$ 69,863

 

Less: interest expense

 

 

(3,704 )

 

 

(4,576 )

Net present value of finance lease

 

$ 57,682

 

 

$ 65,287

 

 

 

 

 

 

 

 

 

 

Current portion

 

$ 19,316

 

 

$ 20,201

 

Non-current portion

 

 

38,366

 

 

 

45,086

 

Total

 

$ 57,682

 

 

$ 65,287

 

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.20.2
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Tables)
6 Months Ended
Jun. 30, 2020
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY  
Schedule of the operating lease right

Operating lease right of use as follow:

 

As of

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Initial recognition

 

$

34,157

 

 

$

35,313

 

Accumulated amortization

 

 

(17,512

)

 

 

(11,771

)

Balance

 

$

16,645

 

 

$

23,542

 

Schedule of the operating lease liability

 

 

June 30,

2020

 

 

December 31,

2019

 

Initial recognition

 

$ 34,157

 

 

$ 35,313

 

Less: gross repayment

 

 

(19,010 )

 

 

(13,192 )

Add: imputed interest

 

 

2,134

 

 

 

2,027

 

Balance

 

$ 17,280

 

 

$ 24,148

 

Less: lease liability current portion

 

 

(11,540 )

 

 

(11,936 )

Lease liability non-current portion

 

 

5,740

 

 

 

12,212

 

Schedule of other information

 

 

June 30,

2020

 

 

December 31,

2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flow from operating lease

 

$ 4,536

 

 

$ 11,012

 

Right of use assets obtained in exchange for operating lease liabilities

 

 

16,645

 

 

 

23,542

 

Remaining lease term for operating lease (years)

 

 

2

 

 

 

2

 

Weighted average discount rate for operating lease

 

$ 6.70 %

 

$ 6.70 %
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.20.2
INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2020
INCOME TAXES  
Schedule of Deferred Tax Assets And Liabilities

 

 

Asof

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Tax Recoverable

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

-

 

 

 

(2,858 )

Tax Recoverable

 

 

-

 

 

 

(2,858 )

 

 

 

 

 

 

 

 

 

Income tax liabilities:

 

 

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

174

 

 

 

-

 

Income tax liabilities

 

 

174

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Plant and equipment

 

 

 

 

 

 

 

 

Local

 

$ -

 

 

$ -

 

Foreign, representing:

 

 

 

 

 

 

 

 

Malaysia

 

 

-

 

 

 

-

 

Deferred tax liabilities

 

 

-

 

 

 

-

 

Total

 

 

174

 

 

 

(2,858 )
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.20.2
ORGANIZATION AND BUSINESS BACKGROUND (Details Narrative) - BGS Lab Sdn. Bhd [Member]
6 Months Ended
Jun. 30, 2020
Business Acquisition, Percentage of Voting Interests Acquired 100.00%
Business Acquisition, Effective Date of Acquisition Aug. 23, 2017
Business acquisition, business operation description The principal office address is Unit 02 Level 10, Tower B, Vertical Business Suite, No. 8 Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Malaysia, our lab is located at Lab 353, Chemical Science Centre, University Science Malaysia, George Town, Penang, Malaysia
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
Jun. 30, 2020
Furniture and fittings [Member]  
Principal Annual Rates/Expected Useful Life 20.00%
Computer and software [Member]  
Principal Annual Rates/Expected Useful Life 33.00%
Motor vehicle [Member]  
Principal Annual Rates/Expected Useful Life 10.00%
Lab Equipment [Member]  
Principal Annual Rates/Expected Useful Life 10.00%
Office equipment [Member]  
Principal Annual Rates/Expected Useful Life 20.00%
Renovation [Member]  
Principal Annual Rates/Expected Useful Life 20.00%
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES      
Period-end US$1 : MYR exchange rate 4.2800   4.0925
Six months average US$1 : MYR exchange rate 4.2619 4.1191  
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)
6 Months Ended
Jun. 30, 2020
Tax benefits rate 50.00%
Description of finance lease term The lease term exceeding 75% of the estimated economic life of the leased asset
Minimum [Member]  
Lease payment exceeding fair value 90.00%
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.2
STOCKHOLDERS EQUITY (Details Narrative) - shares
Jun. 30, 2020
Dec. 31, 2019
STOCKHOLDERS EQUITY    
Common stock, issued 102,730,891 102,730,891
Common stock, outstanding 102,730,891 102,730,891
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.20.2
PLANT AND EQUIPMENT (Details) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Plant and equipment $ 404,991 $ 404,991
(Less): Accumulated depreciation (118,478) (98,219)
Add: Foreign translation differences (7,945) 6,136
Plant and equipment, net 279,018 312,908
Furniture and fittings [Member]    
Plant and equipment 5,617 5,617
Computer and software [Member]    
Plant and equipment 1,372 1,372
Motor vehicle [Member]    
Plant and equipment 112,344 112,344
Lab Equipment [Member]    
Plant and equipment 281,651 281,651
Office equipment [Member]    
Plant and equipment 1,091 1,091
Renovation [Member]    
Plant and equipment $ 2,916 $ 2,916
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.20.2
PLANT AND EQUIPMENT (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
PLANT AND EQUIPMENT    
Depreciation expense $ 20,259 $ 20,954
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.20.2
FINANCE LEASE (Details) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
FINANCE LEASE    
Finance lease $ 61,386 $ 69,863
Less: interest expense (3,704) (4,576)
Net present value of finance lease 57,682 65,287
Current portion 19,316 20,201
Non-current portion 38,366 45,086
Finance lease, Total $ 57,682 $ 65,287
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.20.2
FINANCE LEASE (Details Narrative) - Lease Agreements [Member]
6 Months Ended
Jun. 30, 2020
Interest rate, Annually 5.99%
Expiration date January 2023
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.20.2
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
(Less): Accumulated depreciation $ (118,478) $ (98,219)
Operating Lease Right of Use [Member]    
Initial recognition 34,157 35,313
(Less): Accumulated depreciation (17,152) (11,771)
Balance $ 16,645 $ 23,542
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.20.2
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details 1) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Lease liability non-current portion $ 5,740 $ 12,212
Operating lease liability [Member]    
Initial recognition 34,157 35,313
Less: gross repayment (19,010) (13,192)
Add: imputed interest 2,134 2,027
Balance 17,280 24,148
Less: lease liability current portion (11,540) (11,936)
Lease liability non-current portion $ 5,740 $ 12,212
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.20.2
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details 2) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY    
Operating cash flow from operating lease $ 4,536 $ 11,012
Right of use assets obtained in exchange for operating lease liabilities $ 16,645 $ 23,542
Remaining lease term for operating lease (years) 2 years 2 years
Weighted average discount rate for operating lease 6.70% 6.70%
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.20.2
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY (Details Narrative) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
LEASE RIGHT OF USE ASSET AND LEASE LIABILITY      
Amortization of right of use asset $ 5,171 $ 0 $ 11,618
Lease expenses $ 687   $ 2,001
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.20.2
INCOME TAXES (Details) - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Tax Recoverable $ 0 $ (2,858)
Income tax liabilities 174 0
Plant and equipment 0 0
Deferred tax liabilities 0 0
Total 174 (2,858)
Local [Member]    
Tax Recoverable 0 0
Income tax liabilities 0 0
Deferred tax liabilities 0 0
Malaysia [Member]    
Tax Recoverable   (2,858)
Income tax liabilities 174 0
Deferred tax liabilities $ 0 $ 0
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.20.2
INCOME TAXES (Details Narrative)
6 Months Ended
Jun. 30, 2020
Malaysia [Member]  
Statutory income tax rate 24.00%
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