SEATTLE – May 15, 2023 – Know Labs, Inc. (NYSE American: KNW), an emerging developer of non-invasive medical diagnostic technology, today reported financial results for the second quarter ended March 31, 2023.
Know Labs reported a net loss of $4.93 million dollars in the second quarter of 2023, compared to a net loss of $6.14 million dollars in the year-ago period, which translates to Earnings Per Share of a loss of $0.10, an improvement over the year ago period of a loss of $0.16.
Research and development expense for the second quarter was $2.56 million dollars as compared to $1.25 million dollars in 2022. The increase in R&D expense was related to staff increases in engineering, third party technical services and expenditures related to the development of our Bio-RFID technology and Generation 1 device, as we continue to execute our path to FDA clinical trials and commercialization.
Selling, general and administrative expense for the quarter was $2.24 million dollars versus $1.49 million in 2022, which increased versus the prior year primarily to due to key additions to the executive team and increases in third party services.
As of March 31, 2023, we had cash and cash equivalents of $6.27 million dollars, as compared to $12.59 million at the end of September 30, 2022. Net cash used in operations for the six months ended March 31, 2023 was $6.34 million dollars compared with $1.02 million in the prior year. During the quarter ended March 31, 2023, the Company made adjustments to its staffing and the impact of those adjustments will significantly reduce our 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 February 2024.
Shareholder equity for the second quarter 2023 was $3.4 million versus $9.9 million as of September 30, 2022.
Know Labs will host an audio webcast to discuss its results and provide a business update today, May 15, 2023, at 4:30 pm ET (1:30 pm PT). The live webcast will be available on the Investors page of the Company’s website, www.knowlabs.co/investors, 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.
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 technology uses spectroscopy to direct electromagnetic energy through a substance or material to capture a unique molecular signature. The Company refers to its technology as Bio-RFID™. The Bio-RFID 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 our Bio-RFID technology will be in a product marketed as a non-invasive glucose monitor. It will provide the user with 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, 2022, 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:
Ph. (603) 494-6667
Know Labs, Inc. Contact:
Ph. (206) 629-6414