Know Labs, Inc. Announces Receipt of Audit Opinion with Going Concern Explanation

Rhea-AI Summary

Know Labs (NYSE American: KNW) announced that its audited financial statements for the fiscal year ended September 30, 2024, received an audit opinion containing a going concern explanation from its independent registered public accounting firm. This disclosure, previously included in the company's Annual Report on Form 10-K filed on November 14, 2024, raises questions about the company's ability to continue operations. The announcement complies with NYSE American Company Guide Section 610(b) requirements and does not represent any changes to the company's financial statements or Annual Report.

Positive

• None.

Negative

• Auditors expressed substantial doubt about the company's ability to continue as a going concern
• Financial stability concerns highlighted in the audit opinion may impact investor confidence
• Going concern warning indicates significant financial challenges and operational risks

Insights

Financial Analyst

The receipt of a going concern warning from auditors is a significant red flag for investors. This indicates serious doubts about Know Labs' ability to continue operations without additional funding or significant operational changes. With a small market cap of $23.2 million, the company's financial stability is particularly concerning.

The going concern statement suggests severe cash flow challenges and potential liquidity issues. For a company developing non-invasive diagnostics technology, which typically requires substantial R&D investment, this financial uncertainty could significantly impact their ability to bring products to market. Investors should carefully examine the company's cash burn rate, funding options and development timeline in the 10-K filing.

SEATTLE--(BUSINESS WIRE)-- Know Labs, Inc. (NYSE American: KNW), leading developer of non-invasive diagnostics technology, today announced that, as previously disclosed in its Annual Report on Form 10-K for the year ended September 30, 2024, which was filed on November 14, 2024 with the Securities and Exchange Commission, the audited financial statements contained an audit opinion from its independent registered public accounting firm that included an explanatory paragraph related to the Company’s ability to continue as a going concern. See further discussion in Note 2 to the Company’s financial statements included in the Company’s Annual Report on Form 10-K. This announcement is made pursuant to NYSE American LLC Company Guide Section 610(b), which requires public announcement of the receipt of an audit opinion containing a going concern paragraph. This announcement does not represent any change or amendment to the Company’s financial statements or to its Annual Report on Form 10-K for the year ended September 30, 2024.

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 is designed to able to integrate into a variety of wearable, mobile or bench-top form factors. The Company believes that 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 Company’s first expected application of the technology will be in a product marketed as a non-invasive glucose monitor. The device is designed to 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, 2024, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241115618005/en/

Know Labs, Inc. Contact:

Jordyn Hujar

jordyn@knowlabs.co

Ph. (206) 629-6414

Source: Know Labs, Inc.

FAQ

What did Know Labs' (KNW) audit opinion reveal in November 2024?

Know Labs' audit opinion included a going concern explanation, indicating substantial doubt about the company's ability to continue operations, as disclosed in their Annual Report on Form 10-K filed on November 14, 2024.

Why did Know Labs (KNW) make this going concern announcement?

The announcement was made to comply with NYSE American Company Guide Section 610(b), which requires public disclosure when a company receives an audit opinion containing a going concern paragraph.

Does the going concern announcement change Know Labs' (KNW) financial statements?

No, the announcement does not represent any change or amendment to Know Labs' financial statements or its Annual Report on Form 10-K for the year ended September 30, 2024.