EX-99.3 4 bion_ex993.htm UNAUDITED PRO FORMA FINANCIAL INFORMATION bion_ex993.htm

EXHIBIT 99.3

 

BIONEXUS GENE LAB CORP.

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

AS OF SEPTEMBER 30, 2020

  

 

 

Historical

 

 

Pro Forma
Adjustments

 

 

Pro Forma

 

 

 

BGLC

 

 

CCSB

 

 

(Note 3)

 

 

Combined

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 687,203

 

 

 $ 1,502,869

 

 

 $ -

 

 

 $ 2,190,072

 

Other receivables and deposits

 

 

 13,847

 

 

 

 7,154

 

 

 

 -

 

 

 

 21,001

 

Trade receivables

 

 

 -

 

 

 

 3,568,699

 

 

 

 -

 

 

 

 3,568,699

 

Inventories

 

 

 19,165

 

 

 

 1,178,775

 

 

 

 -

 

 

 

 1,197,940

 

Total current assets

 

 

 720,215

 

 

 

 6,257,497

 

 

 

 -

 

 

 

 6,977,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

 

 14,258

 

 

 

 -

 

 

 

 -

 

 

 

 14,258

 

Property, plant and equipment, net

 

 

 276,866

 

 

 

 1,075,877

 

 

 

 -

 

 

 

 1,352,743

 

Other investments

 

 

 1,880

 

 

 

 229,129

 

 

 

 -

 

 

 

 231,009

 

Total non-current assets

 

 

 293,004

 

 

 

 1,305,006

 

 

 

 -

 

 

 

 1,598,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 $ 1,013,219

 

 

 $ 7,562,503

 

 

 $ -

 

 

 $ 8,575,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 $ -

 

 

 $ 1,924,495

 

 

 $ -

 

 

 $ 1,924,495

 

Other payables and accrued liabilities

 

 

 6,452

 

 

 

 17,905

 

 

 

 -

 

 

 

 24,357

 

Current portion of obligation under finance lease

 

 

 19,886

 

 

 

 5,940

 

 

 

 -

 

 

 

 25,826

 

Current portion of obligation under operating liabilities

 

 

 11,152

 

 

 

 -

 

 

 

 -

 

 

 

 11,152

 

Tax payables

 

 

 673

 

 

 

 304,091

 

 

 

 -

 

 

 

 304,764

 

Total current liabilities

 

 

 38,163

 

 

 

 2,252,431

 

 

 

 -

 

 

 

 2,290,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of obligation under finance lease

 

 

 39,500

 

 

 

 -

 

 

 

 -

 

 

 

 39,500

 

Non-current portion of obligation under operating liabilities

 

 

 3,966

 

 

 

 -

 

 

 

 -

 

 

 

 3,966

 

Deferred tax liabilities

 

 

 -

 

 

 

 3,061

 

 

 

 -

 

 

 

 3,061

 

Total non-current liabilities

 

 

 43,466

 

 

 

 3,061

 

 

 

 -

 

 

 

 46,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 81,629

 

 

 

 2,255,492

 

 

 

 -

 

 

 

 2,337,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 6,484,669

 

 

 

 395,306

 

 

 

 4,911,705

 

 

 

 11,791,680

 

Additional paid in capital

 

 

 (5,011,891 )

 

 

 -

 

 

 

 -

 

 

 

 (5,011,891 )

Accumulated (deficit)/surplus

 

 

 (507,836 )

 

 

 4,993,951

 

 

 

 (4,993,951 )

 

 

 (507,836 )

Accumulated other comprehensive (loss)/income

 

 

 (33,352 )

 

 

 (82,246 )

 

 

 82,246

 

 

 

 (33,352 )

Total stockholders’ equity

 

 

 931,590

 

 

 

 5,307,011

 

 

 

 -

 

 

 

 6,238,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

 $ 1,013,219

 

 

 $ 7,562,503

 

 

 $ -

 

 

 $ 8,575,722

 

  

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

 
1

 

 

BIONEXUS GENE LAB CORP.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2020

 

 

 

Historical

 

 

Pro Forma

 

 

Pro Forma

 

 

 

BGLC

 

 

CCSB

 

 

Adjustments

 

 

Combined

 

Revenue

 

 $ 30,012

 

 

 $ 7,234,543

 

 

 $ -

 

 

 $ 7,264,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

 

 (45,561

)

 

 

 (5,882,174

) 

 

 

 -

 

 

 

 (5,927,735

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross (loss)/profit

 

 

 (15,549

)

 

 

 1,352,369

 

 

 

 -

 

 

 

 1,336,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 10,548

 

 

 

 759,437

 

 

 

 -

 

 

 

 769,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses – general administrative

 

 

 (167,685

)

 

 

 (694,475 )

 

 

 -

 

 

 

 (862,160

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Profit from operations

 

 

 (172,686

)

 

 

 1,417,331

 

 

 

 -

 

 

 

 1,244,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 -

 

 

 

 (5,282

) 

 

 

 -

 

 

 

 (5,282

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/profit before taxation

 

 

 (172,686

)

 

 

 1,412,049

 

 

 

 -

 

 

 

 1,239,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 (1,839

)

 

 

 (354,610

 

 

 

 -

 

 

 

 (356,449

)

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

Net (loss)/income attributable to common shareholders

 

 $ (174,525

)

 

 $ 1,057,439

 

 

 $ -

 

 

 $ 882,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation (loss)/gain

 

 

 (16,249

)

 

 

 (45,333

)

 

 

 -

 

 

 

 (61,582

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss)/income per share attributable to common shareholders — basic and diluted

 

 $ (190,774

)

 

 $ 1,012,106

 

 

 $ -

 

 

 $ 821,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income per share of common stock

 

 $ -

 

 

 $ 0.66

 

 

 $ -

 

 

 $ 0.005

 

Weighted average number of shares of common stock outstanding *

 

 

 102,730,891

 

 

 

 1,600,000

 

 

 

 66,887,261

 

 

 

 171,218,152

 

 

* Proforma as adjusted shares are not weighted average and are actual shares issued and outstanding

 

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

 
2

 

  

BIONEXUS GENE LAB CORP.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2019

 

 

 

Historical

 

 

Pro Forma

 

 

Pro Forma

 

 

 

BGLC

 

 

CCSB

 

 

Adjustments

 

 

Combined

 

Revenue

 

 $ 126,955

 

 

 $ 15,417,992

 

 

 $ -

 

 

 $ 15,544,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of revenue

 

 

 (71,067

)

 

 

 (13,487,421

)

 

 

 -

 

 

 

 (13,558,489

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 55,888

 

 

 

 1,930,571

 

 

 

 -

 

 

 

 1,986,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 25,048

 

 

 

 89,504

 

 

 

 -

 

 

 

 114,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses – general administrative

 

 

 (356,641

)

 

 

 (1,277,055

)

 

 

 -

 

 

 

 (1,633,696

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Profit from operations

 

 

 (275,705

)

 

 

 743,020

 

 

 

 -

 

 

 

 467,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 -

 

 

 

 (26,571

)

 

 

 -

 

 

 

 (26,571

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/profit before taxation

 

 

 (275,705

)

 

 

 716,449

 

 

 

 -

 

 

 

 440,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 29,236

 

 

 

 (176,090

)

 

 

 -

 

 

 

 (146,854

) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/income attributable to common shareholders

 

 $ (246,469

)

 

 $ 540,359

 

 

 $ -

 

 

 $ 293,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

Foreign currency translation gain

 

 

 9,874

 

 

 

 45,507

 

 

 

 

 

 

 

 55,381

 

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 

 

 

Total comprehensive (loss)/income per share attributable to common shareholders — basic and diluted

 

 $ (236,595

)

 

 $ 585,866

 

 

 $

 

 

 $ 349,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income per share of common stock

 

 $ -

 

 

 $ 0.34

 

 

 $ -

 

 

 $ 0.002

 

Weighted average number of shares of common stock outstanding *

 

 

 102,730,891

 

 

 

 1,600,000

 

 

 

 66,887,261

 

 

 

 171,218,152

 

 

* Proforma as adjusted shares are not weighted average and are actual shares issued and outstanding

 

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

 
3

 

  

BIONEXUS GENE LAB CORP.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

The following unaudited pro forma condensed combined financial statements are based on the historical financial statements of Bionexus Gene Lab Corp. (“BGLC”) and Chemrex Corporation Sdn. Bhd. (“CCSB”) after giving effect to BGLC’s acquisition of CCSB (“the Acquisition”) and the assumptions and adjustments described in the accompanying notes to the unaudited pro forma condensed combined financial statements. The effective date of the Acquisition was December 31, 2020.

 

Note 1. Basis of Pro Forma Presentation

 

The unaudited pro forma condensed combined financial statements are not intended to represent or be indicative of the results of operations or financial position of BGLC that would have been reported had the Acquisition been completed as of the dates presented, and should not be taken as representative of the future results of operations or financial position of BGLC. The unaudited pro forma financial statements, including the notes thereto, do not reflect any potential operating efficiencies and cost savings that BGLC may achieve with respect to the combined companies. The unaudited pro forma condensed combined financial statements and notes thereto should be read in conjunction with the historical financial statements of BGLC included in the annual report on Form 10-K for the year ended December 31, 2019 had been filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2020 and the subsequent quarterly report on Form 10-Q for the nine months ended September 30, 2020 filed with the SEC on November 9, 2020, and in conjunction with the historical financial statements of CCSB included in this Form 8-K.

 

The unaudited pro forma condensed combined balance sheet as of September 30, 2020 is presented as if the Acquisition occurred on September 30, 2020. The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2020 is presented as if the Acquisition had taken place on January 1, 2020. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2019 is presented as if the Acquisition had taken place on January 1, 2019.

 

Note 2. CCSB Acquisition

 

On December 31, 2020, BGLC, a Wyoming corporation consummated its acquisition of CCSB, pursuant to a Share Exchange Agreement (the “SEA”) by BGLC and CCSB. BioNexus desires to acquire all of the issued and outstanding shares of capital stock of CCSB from the CCSB Shareholders in exchange for 68,487,261 shares of BGLC, and, similarly, the CCSB Shareholders desire to acquire 68,487,261 shares of common stock of BGLC in exchange for all of their shares of common stock of the Acquired Corporation, all in a transaction that qualifies under Section 354 and 368(a)(1)(b) of the Internal Revenue Code of 1986, as amended (“Exchange”). The transfer of CCSB’s shares to BGLC was completed on February 9, 2021.

 

The acquisition of CCSB has been accounted for as a common control transaction as there is no change in the control over the assets acquired and liabilities assumed. The net assets are derecognized by the transferring entity (i.e. CCSB) and recognized by the receiving entity (i.e. BGLC). The difference between the consideration transferred and the carrying amounts of the net assets is recognized in equity.

 

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

 
4

 

 

BIONEXUS GENE LAB CORP.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

Note 3. Pro Forma Adjustments

 

The following pro forma adjustments are included in the unaudited pro forma condensed combined balance sheet:

 

(A) To record the following adjustments to common stocks:

 

Increase in common stocks via shares exchange

 

 $ 157,520,700

 

Recognition of difference between the consideration and net assets acquired

 

 

 (152,213,689 )

Effect of shares exchange with CCSB

 

 

 5,307,011

 

Elimination of common stocks of CCSB

 

 

 (395,306 )

Pro Forma adjustments

 

 $ 4,911,705

 

 

Balance as of September 30, 2020 (Unaudited) - BGLG

 

 $ 6,484,669

 

- CCSB

 

 

 395,306

 

Pro Forma adjustments

 

 

 4,911,705

 

Pro Forma Combined as of September 30, 2020

 

 $ 11,791,680

 

 

(B) To record the following adjustments to accumulated (deficit)/surplus:

 

Balance as of September 30, 2020 (Unaudited)

 

 $ (507,836 )

 

 

 

 

 

Effect of acquisition of CCSB

 

 

 4,993,951

 

Elimination of pre-acquisition equity account of CCSB

 

 

 (4,993,951 )

 

 

 

 

 

Pro Forma Combined as of September 30, 2020

 

 $ (507,836 )

 

(C) To record the following adjustments to accumulated other comprehensive (loss)/income:

 

Balance as of September 30, 2020 (Unaudited)

 

 $ (33,352 )

 

 

 

 

 

Effect of acquisition of CCSB

 

 

 82,246

 

Elimination of pre-acquisition equity account of CCSB

 

 

 (82,246 )

 

 

 

 

 

Pro Forma Combined as of September 30, 2020

 

 $ (33,352 )

 

See accompanying notes to unaudited pro forma condensed combined financial statements.

 

 
5