Financial Analysis

For the year ended December 31, December 31, 2025 2024 Revenue by product or service line: Trading of industrial chemicals 7,405,822 9,494,577 Screening services and related sales 19,089 16,069 Net revenue $ 7,424,911 $ 9,510,646 Revenue by geographic area Bangladesh 106,253 123,267 Malaysia 5,829,401 7,455,906 Maldives 680,994 762,144 Singapore 240,757 572,027 Sri Lanka 452,639 459,002 Indonesia 114,867 138,300 Net revenue $ 7,424,911 $ 9,510,646 Timing of recognition: At a point in time $ 7,424,911 $ 9,510,646

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NOTE 5 INCOME TAXES Loss before income taxes for the years ended December 31, 2025, and 2024 is summarized as follows: Year ended December 31, 2025 2024 Loss before income taxes: Local $ (1,709,197 ) $ (1,144,817 ) Foreign, representing Malaysia (1,275,410 ) (450,031 ) $ (2,984,607 ) $ (1,594,848 ) Provision for income taxes for the years ended December 31, 2025, and 2024 is summarized as follows: Year ended December 31, 2025 2024 Current (expense)/benefit: Federal $ - $ - Local - - Foreign, representing Malaysia - (15,799 ) Total current - (15,799 ) Deferred (expense)/benefit: Federal - - Local - - Foreign, representing Malaysia - 12,305 Total deferred - 12,305 Total deferred benefit $ - $ (3,494 ) The income taxes paid (net of refunds) by jurisdiction for the years ended December 31, 2025, and 2024, as reported in the Consolidated Statements of Cash Flows, are as follows: Year ended December 31, 2025 2024 U.S. federal $ - $ - Foreign, representing Malaysia $ (28,832 ) $ 40,380 Total income taxes paid/(refunded), net $ (28,832 ) $ 40,380 The reconciliation of the federal statutory income tax amount and rate to the Companys effective tax rate for the years ended December 31, 2025, and 2024 is as follows: Year ended December 31, 2025 2024 Amount % Amount % Loss before income taxes $ (2,984,607 ) $ (1,594,848 ) Federal statutory tax rate (626,767 ) 21.00 % (334,924 ) 21.00 % State and local income tax, net of federal income tax effect - - - - Foreign tax effects: Malaysia Forei …

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NOTE 6 OPERATING LEASE RIGHT OF USE ASSET AND LEASE LIABILITIES The Company has operating lease arrangements for office space, lab, and motor vehicles in Malaysia with a term between two and five years, generally with option to renew the lease after that date. The Company accounts for the lease and non-lease components of its leases as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The present value of the lease payments are discounted with rates ranging from 6.40% to 6.65% per annum. These rates are reference from base rate of Malayan Banking Berhad, the largest bank in Malaysia. As of December 31, 2025 and 2024 operating lease right-of-use assets as follows: As of December 31, December 31, 2025 2024 Balance as of December 31, 2024 $ 215,243 $ 141,544 Add: Addition of right of use assets (1) - 145,736 Less: amortization (2) (56,434 ) (48,983 ) Less: lease termination (3) - (25,093 ) Foreign translation differences 18,928 2,039 Balance as of December 31, 2025 $ 177,737 $ 215,243 As of December 31, 2025 and 2024 operating lease liabilities as follows: As of December 31, December 31, 2025 2024 Balance as of beginning of the year $ 210,557 $ 133,395 Add: addition of lease liabilities (1) - 145,736 Less: gross repayment (65,817 ) (56,598 ) Add: imputed interest (4) 12,677 …

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The Company has reviewed all recently issued, but not yet effective, considers the applicability and impact of all accounting standards updates (ASUs). Management periodically reviews new accounting standards that are issued. Accounting Standards Adopted in 2025 Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new standard was issued to improve transparency and decision usefulness of income tax disclosures by providing information that helps investors better understand how an entitys operations, tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this update primarily relate to requiring greater disaggregated disclosure of information in the rate reconciliation, income taxes paid, income (loss) from continuing operations before income tax expense (benefit), and income tax expense (benefit) from continuing operations. The ASU is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. The standard can be applied prospectively or retrospectively. The Company adopted this ASU prospectively in the fourth quarter of 2025, and the required disclosures are included in Note 15, Income Taxes. Accounting Standards not yet Adopted Accounting Standards Update 2024-03, Income Statement Reporting Comprehensiv …

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NOTE 12 RELATED PARTY TRANSACTIONS The following table provides details of the total revenue earned and expenses incurred from all related party transactions: For the year ended December 31, December 31, 2025 2024 Entities in which certain directors of a subsidiary have substantial financial interests Sales of goods $ 68,104 $ 112,556 Purchases (9,503 ) (297,736 ) Rental of factory (4,206 ) (1,969 ) The balances related to the above transactions with related parties are as disclosed in the Consolidated Balance Sheets which are interest-free, unsecured and subject to normal credit terms. The related party being companies in which former directors have substantial financial interests. …

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NOTE 15 SEGMENT INFORMATION The Company determines its reportable segments based on its internal organization structure and internal management reporting used to assess and allocate resources. This information are regularly reviewed by the Companys Chief Executive Officer who is identified as the Chief Operating Decision Maker (CODM). The Company consists of three operating units, BioNexus Gene Lab Corp., MRNA Scientific Sdn. Bhd. and Chemrex Corporation Sdn. Bhd. which are determined as three reportable segments, as described below. These reportable segments offer different products and services, and are managed separately because they require different technology and marketing strategies. The following describes the operations in each of the Companys reportable segments: Trading of industrial chemicals - Includes trading of industrial chemicals Provision for genomic screening services - includes in commercializing proprietary blood-based diagnostic test for early disease detection Investment holding - Investment holding The CODM evaluates the performance of each reportable segment based on operating income and key segment-specific metrics. There are no inter-segment revenue transactions between reportable segments. Except for investment holding activities and the revenue to the overseas customers as disclosed in Note 9, the Companys revenue and principal operations are substantially confined within Malaysia. Pursuant to ASU 2023-07, Segment Reporting (Topic 280) - Improveme …

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"NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. Basis of presentation The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP). Basis of consolidation The consolidated financial statements include the accounts of BioNexus Gene Lab Corp. and its subsidiaries. Acquired businesses are included in the consolidated financial statements from the dates of acquisition. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. All inter-company accounts and transactions have been eliminated in consolidation. Going concern The accompanying consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying consolidated financial statements, for the year ended December 31, 2025, the Company recorded a net loss of $2,984,607 and negative cash outflows from operating activities of $1,838,382 and as of December 31, 2025, the Company incurred an accumulated deficit of $6,427,227. These fact …

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NOTE 14 STOCKHOLDERS EQUITY As at December 31, 2025 and 2024, the Company issued and outstanding, common stock of 2,417,314 and 1,796,766 shares respectively. In August 2024, 300,000 shares of common stock were issued to professional parties or service providers in lieu of cash for services rendered. Reverse Stock Split On March 19, 2025, the Company held a Special Meeting of Shareholders which, among other items, approved of an amendment to the Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Companys outstanding shares of common stock, with a ratio ranging from one-for-five (1:5) to one-for-ten (1:10), with the exact ratio to ratio to be set at the discretion of the Board of Directors. On April 1, 2025, the Company filed its Articles of Amendment with the Wyoming Secretary of State to effect a one for ten (1 for 10) reverse stock split of its issued and outstanding common stock. Immediately prior to the reverse stock split, the Company had 17,967,663 shares of common stock issued and outstanding and immediately after the reverse stock split, the Company had 1,796,597 shares of common stock issued and outstanding. No fractional shares were issued in connection with the reverse stock split. Instead, shareholders who would otherwise be entitled to receive a fractional share received a cash payment in lieu thereof based on the daily Volume Weighted Average Price (VWAP) of our common stock, calculated for ten (10) trading days immediately …

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NOTE 17 SUBSEQUENT EVENTS In accordance with ASC Topic 855, Subsequent Events, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after December 31, 2025 up through April 14, 2026 of these consolidated financial statements. During the period, the Company did not have any material recognizable subsequent events. During the year, there was no subsequent event that required recognition or disclosure, except for those previously disclosed. …

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