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Know Labs, Inc. Reports Second Quarter FY 2024 Results


SEATTLE – May 15, 2024 Know Labs, Inc. (NYSE American: KNW), a leading developer of non-invasive medical diagnostic technology, today reported financial results for the second quarter of the fiscal year 2024 ended March 31, 2024.


Financial Highlights:

  • In Q2 FY 2024, Know Labs reported an operating loss of $4.73 million dollars, compared to an operating loss of $4.81 million dollars in Q2 FY 2023, a reduction in operating loss of 1.7%. This translates to Earnings Per Share of a loss of $0.07, better than the prior year quarter Earnings Per Share Loss of $0.10, an improvement of 30%, before preferred stock dividends.

  • Recorded a non-cash charge to earnings of $976,000 principally related to stock-based compensation of $617,000 and issuance of common stock for services of $251,000.

  • Research and development expense for Q2 FY 2024 was $2.18 million dollars as compared to $2.56 million dollars in Q2 FY 2023, a decrease of 15.1% year over year. The decrease in R&D expense was related to decreased personnel and the use of external consultants to reduce the cost of product development.

  • Selling, general and administrative expenses for Q2 FY 2024 was $2.55 million, which was higher by $308,000 than the $2.24 million dollars in the year ago period, an increase of 13.7%, reflecting key hires made in the quarter, as well as an increase in legal expenses related to IP and financing activities.

  • As of March 31, 2024, Know Labs had cash and cash equivalents of $4.71 million dollars, as compared to $8.02 million at the end of September 30, 2023.  Net cash used in operations for the first six months of FY 2024 was $7.05 million dollars compared with $6.34 million in the six-month period of FY 2023.    

  • During the year ended September 30, 2023, the Company made adjustments to its fixed expenses and the impact of those adjustments has significantly reduced the monthly burn rate. Given the significant reduction in fixed expenses, the Company believes that it has enough available cash and flexibility with its operating expenses to operate until at least October 31, 2024. As stated in its Q1 FY 2024 10-Q, the Company expects to raise additional funds through the issuance of equity, preferred stock, and convertible debentures. To that end, on March 20, 2024, the Company entered into an At the Market Offering Agreement with The Benchmark Company, LLC pursuant to which the Company may, from time to time, offer and sell shares of its common stock through or to The Benchmark Company, LLC as its sales agent or manager in an aggregate amount of up to $5,000,000. In addition, the Company has an $18 million S-3 shelf registration statement which was subsequently declared effective on January 11, 2024 to facilitate liquidity needs.

  • Shareholder equity for Q2 FY 2024 was a negative $1.75 million versus $3.74 million in FY 2023, ending September 30, 2023. The Company is actively taking steps to address its negative shareholder equity through the conversion of convertible debt to equity, as well as new equity issuance as previously mentioned.

 

As previously disclosed in its annual report on Form 10-K for the fiscal year ended September 30, 2023, which was filed with the Securities and Exchange Commission on December 19, 2023, the audit opinion contained a going concern qualification from the Company's independent registered public accounting firm. This announcement is being made solely to comply with the New York Stock Exchange's Company Guide Sections 401(h) and 610(b), which require separate disclosure of receipt of an audit opinion that contains a going concern qualification. This announcement does not represent any change or amendment to the Company's 2023 audited financial statements or to its 2023 annual report on Form 10-K.



Conference Call:


Know Labs will host an audio webcast to discuss its results and provide a business update today, May 15, 2024, at 4:30 pm ET (1:30 pm PT). The live webcast will be available on the Investors page of the Company’s website, https://ir.knowlabs.co/, and a replay will be available for six months.

 

Participant Dial-In: 877-514-3621 / +1 215-268-9856

 

A copy of the form 10-Q filed with the SEC can also be downloaded from the Company’s website.




Income Statement:



Balance Sheet:



Cash Flow:


About Know Labs, Inc.

Know Labs, Inc. is a public company whose shares trade on the NYSE American Exchange under the stock symbol “KNW.” The Company’s platform technology uses spectroscopy to direct electromagnetic energy through a substance or material to capture a unique molecular signature. The technology can be integrated into a variety of wearable, mobile or bench-top form factors. This patented and patent-pending technology makes it possible to effectively identify and monitor analytes that could only previously be performed by invasive and/or expensive and time-consuming lab-based tests. The first application of the technology will be in a product marketed as a non-invasive glucose monitor. The device will provide the user with accessible and affordable real-time information on blood glucose levels. This product will require U.S. Food and Drug Administration clearance prior to its introduction to the market.


Safe Harbor Statement

This release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Know Labs, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy; and (iv) performance of products. You can identify these statements by the use of the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Know Labs, Inc.’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. These risks and uncertainties also include such additional risk factors as are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2023, Forms 10-Q and 8-K, and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Relations section of our website at www.knowlabs.co. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

 

For Know Labs Media Inquiries Contact:

Matter Health

Abby Mayo

Ph. (617) 272-0592

 

Know Labs, Inc. Contact:

Jordyn Hujar

Ph. (206) 629-6414

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