Know Labs, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results
Know Labs (NYSE: KNW) reported its FY2024 financial results, showing a net loss of $16.58 million, an 8.4% increase from FY2023's loss of $15.29 million. The company's EPS loss improved to $0.20 from $0.41 in FY2023. R&D expenses decreased 21% to $6.11 million, while SG&A expenses increased to $9.11 million. Cash position declined to $3.11 million from $8.02 million year-over-year. The company expects its current cash to sustain operations through February 28, 2025, and plans to raise additional funds through equity, preferred stock, and convertible debentures.
Know Labs (NYSE: KNW) ha riportato i risultati finanziari per l'anno fiscale 2024, evidenziando una perdita netta di $16,58 milioni, con un incremento dell'8,4% rispetto alla perdita di $15,29 milioni del 2023. La perdita per azione (EPS) è migliorata, scendendo a $0,20 rispetto ai $0,41 del 2023. Le spese per ricerca e sviluppo sono diminuite del 21% a $6,11 milioni, mentre le spese generali e amministrative (SG&A) sono aumentate a $9,11 milioni. La posizione di cassa è calata a $3,11 milioni, rispetto agli $8,02 milioni dell'anno precedente. L'azienda prevede che la liquidità attuale sosterrà le operazioni fino al 28 febbraio 2025 e intende raccogliere fondi aggiuntivi attraverso azioni, azioni privilegiate e obbligazioni convertibili.
Know Labs (NYSE: KNW) informó sus resultados financieros del año fiscal 2024, mostrando una pérdida neta de $16,58 millones, un aumento del 8,4% respecto a la pérdida de $15,29 millones del año fiscal 2023. La pérdida por acción (EPS) mejoró a $0,20 desde $0,41 en 2023. Los gastos de I+D disminuyeron un 21% a $6,11 millones, mientras que los gastos SG&A aumentaron a $9,11 millones. La posición de efectivo se redujo a $3,11 millones desde $8,02 millones interanualmente. La compañía espera que su liquidez actual sostenga las operaciones hasta el 28 de febrero de 2025 y planea recaudar fondos adicionales a través de capital, acciones preferentes y bonos convertibles.
노랩스 (NYSE: KNW)는 2024 회계연도 재무 결과를 발표하였으며, $16.58백만의 순손실을 기록하여 2023 회계연도의 손실 $15.29백만에서 8.4% 증가하였습니다. 주당 손실(EPS)은 2023년 $0.41에서 $0.20으로 개선되었습니다. 연구 및 개발(R&D) 비용은 21% 감소하여 $6.11백만이 되었고, 판매 및 일반 관리(SG&A) 비용은 $9.11백만으로 증가했습니다. 현금 보유액은 전년 대비 $8.02백만에서 $3.11백만으로 감소하였습니다. 회사는 현재의 현금이 2025년 2월 28일까지 운영을 지속할 수 있을 것으로 예상하며, 자본, 우선주 및 전환 사채를 통해 추가 자금을 조달할 계획입니다.
Know Labs (NYSE: KNW) a annoncé ses résultats financiers pour l'exercice 2024, présentant une perte nette de 16,58 millions de dollars, représentant une augmentation de 8,4% par rapport à la perte de 15,29 millions de dollars de l'exercice 2023. La perte par action (EPS) s'est améliorée, passant de 0,41 $ à 0,20 $. Les dépenses de recherche et développement (R&D) ont diminué de 21 % pour atteindre 6,11 millions de dollars, tandis que les dépenses SG&A ont augmenté à 9,11 millions de dollars. La position de trésorerie a chuté à 3,11 millions de dollars, contre 8,02 millions de dollars l'année précédente. L'entreprise s'attend à ce que sa trésorerie actuelle soutienne les opérations jusqu'au 28 février 2025 et prévoit de lever des fonds supplémentaires par le biais d'équité, d'actions privilégiées et d'obligations convertibles.
Know Labs (NYSE: KNW) hat die Finanzzahlen für das Geschäftsjahr 2024 veröffentlicht, die einen Nettoverlust von 16,58 Millionen US-Dollar zeigen, was einem Anstieg von 8,4% im Vergleich zum Verlust von 15,29 Millionen US-Dollar im Geschäftsjahr 2023 entspricht. Der Verlust pro Aktie (EPS) verbesserte sich auf 0,20 US-Dollar von 0,41 US-Dollar im Geschäftsjahr 2023. Die F&E-Ausgaben sanken um 21% auf 6,11 Millionen US-Dollar, während die Vertriebs- und Verwaltungskosten (SG&A) auf 9,11 Millionen US-Dollar stiegen. Die Liquiditätslage fiel von 8,02 Millionen US-Dollar auf 3,11 Millionen US-Dollar im Jahresvergleich. Das Unternehmen erwartet, dass die derzeitige Liquidität die Betriebe bis zum 28. Februar 2025 aufrechterhalten kann und plant, zusätzliche Mittel durch Eigenkapital, Vorzugsaktien und wandelbare Anleihen zu beschaffen.
- EPS loss improved by 51% to $0.20 from $0.41 year-over-year
- R&D expenses decreased by 21% to $6.11 million
- Completed Generation 2 device development in February 2024
- Net loss increased 8.4% to $16.58 million
- Cash position declined by 61% to $3.11 million from $8.02 million
- SG&A expenses increased by $2.54 million to $9.11 million
- Stockholders' equity turned negative to -$2.16 million from $3.74 million
- Monthly cash burn increased with net cash used in operations up to $12.83 million from $10.35 million
Insights
The financial results reveal significant concerns. Know Labs reported a widening
Most concerning is the negative stockholders' equity of
Financial Highlights:
-
Know Labs reported a net loss of
$16.58 million dollars$15.29 million dollars8.4% . This translates to Earnings Per Share of a loss of$0.20 $0.41 51% , before preferred stock dividends. -
In FY2024, recorded a non-cash charge to earnings of
$4.93 million $4.77 million $81,000 $2,958,000 $277,000 $189,000 $831,000 $594,000 -
Research and development expense for FY2024 was
$6.11 million dollars$7.73 million dollars21.0% year over year. The decrease in R&D expense was related to decreases in engineering, third-party technical services, and expenditures related to the development of our Generation 2 device, which we completed and announced on February 27, 2024, as we continue to execute our path to FDA clinical trials and commercialization. -
Selling, general and administrative expenses for the year ended September 30, 2024 increased
$2,538,000 $9,109,000 $6,571,000 $1,257,000 $669,000 $277,000 $335,000 $606,000 $305,000 -
As of September 30, 2024, we have cash and cash equivalents of
$3.11 million $8.02 million dollars$12.83 million dollars$10.35 million - During the year ended September 30, 2024, the Company made adjustments to its fixed expenses and the impact of those adjustments has significantly reduced 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 through February 28, 2025. As we have stated in our FY2024 10-K, we expect to raise additional funds through the issuance of equity, preferred stock and convertible debentures.
-
Shareholder equity for the fiscal year 2024 was -
$2.16 million $3.74 million
Income Statement: |
||||||
| Years Ended, | ||||||
| September 30, 2024 | September 30, 2023 | |||||
| OPERATING EXPENSES- | ||||||
| RESEARCH AND DEVELOPMENT EXPENSES | $ | 6,114,121 |
|
$ | 7,727,467 |
|
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 9,109,362 |
|
6,570,597 |
|
||
| SELLING AND TRANSACTIONAL COSTS FOR DIGITAL ASSETS | - |
|
(274,019 |
) |
||
| Total operating expenses | 15,223,483 |
|
14,024,045 |
|
||
| OPERATING LOSS | (15,223,483 |
) |
(14,024,045 |
) |
||
| OTHER INCOME (EXPENSE), NET | ||||||
| Interest income | 155,248 |
|
127,145 |
|
||
| Interest expense | (1,513,323 |
) |
(389,626 |
) |
||
| Loss on debt extinguishment | - |
|
(506,865 |
) |
||
| Other (expense) | - |
|
(495,776 |
) |
||
| Total other (expense), net | (1,358,075 |
) |
(1,265,122 |
) |
||
| LOSS BEFORE INCOME TAXES | (16,581,558 |
) |
(15,289,167 |
) |
||
| Income tax expense | - |
|
- |
|
||
| NET LOSS | (16,581,558 |
) |
(15,289,167 |
) |
||
| Deemed dividends on Series C and D Preferred Stock | (313,536 |
) |
(3,526,653 |
) |
||
| Common stock dividends on Series D Preferred Stock | - |
|
(1,627,230 |
) |
||
| NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (16,895,094 |
) |
$ | (20,443,050 |
) |
| Basic and diluted loss per share | $ | (0.20 |
) |
$ | (0.41 |
) |
| Weighted average shares of common stock outstanding- basic and diluted | 86,067,999 |
|
49,581,467 |
|
||
Balance Sheet: |
||||||
| September 30, 2024 | September 30, 2023 | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 3,110,755 |
|
$ | 8,023,716 |
|
| Total current assets | 3,110,755 |
|
8,023,716 |
|
||
| PROPERTY AND EQUIPMENT, NET | 66,796 |
|
81,325 |
|
||
| OTHER ASSETS | ||||||
| Other assets | 149,174 |
|
15,766 |
|
||
| Operating lease right-of-use asset | 337,703 |
|
145,090 |
|
||
| TOTAL ASSETS | $ | 3,664,428 |
|
$ | 8,265,897 |
|
| LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable - trade | $ | 552,680 |
|
$ | 1,292,861 |
|
| Accrued expenses | 101,582 |
|
94,062 |
|
||
| Accrued expenses - related parties | 84,573 |
|
218,334 |
|
||
| Current portion of convertible notes payable, net | 2,855,058 |
|
1,301,005 |
|
||
| Current portion of convertible notes payable - related parties | 1,460,926 |
|
1,460,926 |
|
||
| Current portion of operating lease right-of-use liability | 108,560 |
|
154,797 |
|
||
| Total current liabilities | 5,163,379 |
|
4,521,985 |
|
||
| NON-CURRENT LIABILITIES: | ||||||
| Operating lease liability, net of current portion | 249,728 |
|
- |
|
||
| Non-current portion of convertible notes payable, net | 407,522 |
|
- |
|
||
| Total liabilities | 5,820,629 |
|
4,521,985 |
|
||
| COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||
| STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||
| Preferred stock - |
||||||
| Series C Convertible Preferred stock |
1,790 |
|
1,790 |
|
||
| Series D Convertible Preferred stock |
1,015 |
|
1,015 |
|
||
| Common stock - |
108,021 |
|
80,358 |
|
||
| Additional paid in capital | 136,468,855 |
|
125,501,537 |
|
||
| Accumulated deficit | (138,735,882 |
) |
(121,840,788 |
) |
||
| Total stockholders' (deficit) equity | (2,156,201 |
) |
3,743,912 |
|
||
| TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ | 3,664,428 |
|
$ | 8,265,897 |
|
Cash Flow: |
||||||
| Years Ended, | ||||||
| September 30, 2024 | September 30, 2023 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net loss | $ | (16,581,558 |
) |
$ | (15,289,167 |
) |
| Adjustments to reconcile net loss to net cash (used in) operating activities | ||||||
| Depreciation and amortization | 80,881 |
|
313,019 |
|
||
| Stock based compensation - stock option grants | 2,957,559 |
|
2,955,933 |
|
||
| Issuance of common stock for services | 277,011 |
|
- |
|
||
| Gain on debt settlement | - |
|
(50,000 |
) |
||
| Loss on disposal of assets | - |
|
549,431 |
|
||
| Loss on debt extinguishment | - |
|
506,865 |
|
||
| Amortization of operating lease right-of-use asset | 189,286 |
|
142,840 |
|
||
| Amortization of debt issuance costs | 830,948 |
|
- |
|
||
| Interest expense for extension of notes and warrants | 594,761 |
|
349,721 |
|
||
| Changes in operating assets and liabilities: | ||||||
| Other long-term assets | (133,408 |
) |
(1,999 |
) |
||
| Operating lease right-of-use liability | (178,408 |
) |
(147,719 |
) |
||
| Accounts payable - trade and accrued expenses | (866,422 |
) |
317,085 |
|
||
| NET CASH (USED IN) OPERATING ACTIVITIES | (12,829,350 |
) |
(10,353,991 |
) |
||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Purchase of research and development equipment | (66,352 |
) |
(80,797 |
) |
||
| NET CASH (USED IN) INVESTING ACTIVITIES: | (66,352 |
) |
(80,797 |
) |
||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Proceeds from debt offering | 3,764,129 |
|
- |
|
||
| Repayment of note payable | (720,000 |
) |
- |
|
||
| Proceeds from issuance of common stock offering, net | 5,193,262 |
|
5,472,791 |
|
||
| Payments of debt offering | (262,450 |
) |
- |
|
||
| Proceeds from issuance of common stock for warrant exercise | 7,800 |
|
387,334 |
|
||
| Proceeds from issuance of common stock for stock options exercise | - |
|
4,687 |
|
||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 7,982,741 |
|
5,864,812 |
|
||
| NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (4,912,961 |
) |
(4,569,976 |
) |
||
| CASH AND CASH EQUIVALENTS, beginning of period | 8,023,716 |
|
12,593,692 |
|
||
| CASH AND CASH EQUIVALENTS, end of period | $ | 3,110,755 |
|
$ | 8,023,716 |
|
| Supplemental disclosures of cash flow information: | ||||||
| Interest paid | $ | 241,000 |
|
$ | 140,000 |
|
| Taxes paid | $ | - |
|
$ | - |
|
| Supplemental disclosure of non-cash financing activity: | ||||||
| Deemed dividends on Series C and D Preferred Stock | $ | 313,536 |
|
$ | 3,526,653 |
|
| Common stock dividends on Series D Preferred Stock | $ | - |
|
$ | 1,627,230 |
|
| Warrants issued for debt offering | $ | 2,110,731 |
|
$ | - |
|
| Common stock issued for debt payment | $ | 240,000 |
|
$ | - |
|
| Issuance costs from common stock offering | $ | 670,149 |
|
$ | 1,527,209 |
|
A copy of the form 10-K filed with the SEC can also be downloaded from the Company’s website. All holders, including stockholders and bondholders, can request and receive a hard copy of the complete audited financial statements free of charge. Requests must be submitted to ask@knowlabs.co.
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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20241115257189/en/
Know Labs, Inc. Contact:
Jordyn Hujar
jordyn@knowlabs.co
Ph. (206) 629-6414
Source: Know Labs, Inc.
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