Know Labs, Inc. Reports First Quarter FY2024 Results
Financial Highlights:
-
In Q1 FY 2024,
Know Labs reported a net loss of$3.45 million dollars , compared to a net loss of$3.82 million dollars in Q1 FY 2023, a reduction in net loss of 9.8%. This translates to Earnings Per Share of a loss of$0.04 , better than the prior year quarter Earnings Per Share Loss of$0.08 , an improvement of 50%, before preferred stock dividends. -
Recorded a non-cash charge to earnings of
$792,000 principally related to stock-based compensation of$699,000 . -
Research and development expense for Q1 FY2024 was
$1.48 million dollars as compared to$1.74 million dollars in Q1 FY 2023, a decrease of 14.7% 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 Q1 FY 2024 was
$2.01 million , which was higher by$106,000 than the$1.91 million dollars in the year ago period, an increase of 5.6%. -
As of
December 31, 2023 , we had cash and cash equivalents of$4.82 million dollars , as compared to$8.02 million at the end ofSeptember 30, 2023 . Net cash used in operations for Q1 FY 2024 was$3.39 million dollars compared with$2.92 million in Q1 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 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 leastJune 30, 2024 . As we have stated in our Q1 FY 2024 10-Q, we expect to raise additional funds through the issuance of equity, preferred stock and convertible debentures. To that end, we filed an$18 million S-3 shelf registration statement onDecember 22, 2023 , which was subsequently declared effective onJanuary 11, 2024 . -
Shareholder equity for Q1 FY 2024 was
$1.23 million versus$3.74 million in fiscal year 2023, endingSeptember 30, 2023 .
As previously disclosed in its annual report on Form 10-K for the fiscal year ended
Conference Call:
Participant Dial-In: 877-514-3621 / +1 215-268-9856
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=u3gcCI6A
A copy of the form 10-Q filed with the
Income Statement:
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three Months Ended, | ||||||||
|
|
|||||||
OPERATING EXPENSES- | ||||||||
RESEARCH AND DEVELOPMENT EXPENSES | $ |
1,486,388 |
|
$ |
1,743,051 |
|
||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
2,011,246 |
|
1,905,071 |
|
||||
Total operating expenses |
3,497,634 |
|
3,648,122 |
|
||||
OPERATING LOSS |
(3,497,634 |
) |
(3,648,122 |
) |
||||
OTHER INCOME (EXPENSE), NET | ||||||||
Interest income |
51,010 |
|
- |
|
||||
Interest expense |
- |
|
(227,170 |
) |
||||
Other (expense) income, net |
- |
|
52,433 |
|
||||
Total other income (expense), net |
51,010 |
|
(174,737 |
) |
||||
LOSS BEFORE INCOME TAXES |
(3,446,624 |
) |
(3,822,859 |
) |
||||
Income tax expense |
- |
|
- |
|
||||
NET LOSS |
(3,446,624 |
) |
(3,822,859 |
) |
||||
Deemed dividends on Series C and D Preferred Stock |
(63,629 |
) |
- |
|
||||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ |
(3,510,253 |
) |
$ |
(3,822,859 |
) |
||
Basic and diluted loss per share | $ |
(0.04 |
) |
$ |
(0.08 |
) |
||
Weighted average shares of common stock outstanding- basic and diluted |
81,094,007 |
|
48,187,339 |
|
Balance Sheet:
|
||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
|
|
|||||||
ASSETS | Unaudited | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ |
4,821,477 |
|
$ |
8,023,716 |
|
||
Total current assets |
4,821,477 |
|
8,023,716 |
|
||||
PROPERTY AND EQUIPMENT, NET |
75,298 |
|
81,325 |
|
||||
OTHER ASSETS | ||||||||
Other assets |
18,767 |
|
15,766 |
|
||||
Operating lease right-of-use asset |
97,567 |
|
145,090 |
|
||||
TOTAL ASSETS | $ |
5,013,109 |
|
$ |
8,265,897 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable - trade | $ |
627,058 |
|
$ |
1,292,861 |
|
||
Accrued expenses |
95,952 |
|
94,062 |
|
||||
Accrued expenses - related parties |
196,241 |
|
218,334 |
|
||||
Convertible notes payable, net |
2,761,931 |
|
2,761,931 |
|
||||
Current portion of operating lease right-of-use liability |
106,038 |
|
154,797 |
|
||||
Total current liabilities |
3,787,220 |
|
4,521,985 |
|
||||
COMMITMENTS AND CONTINGENCIES (Note 11) |
- |
|
- |
|
||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock - |
||||||||
and outstanding as follows: | ||||||||
Series C Convertible Preferred stock |
||||||||
17,858 shares issued and outstanding at |
1,790 |
|
1,790 |
|
||||
Series D Convertible Preferred stock |
||||||||
10,161 shares issued and outstanding at |
1,015 |
|
1,015 |
|
||||
Common stock - |
||||||||
shares issued and outstanding at |
81,347 |
|
80,358 |
|
||||
Additional paid in capital |
126,492,778 |
|
125,501,537 |
|
||||
Accumulated deficit |
(125,351,041 |
) |
(121,840,788 |
) |
||||
Total stockholders' equity |
1,225,889 |
|
3,743,912 |
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
5,013,109 |
|
$ |
8,265,897 |
|
Cash Flow:
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Three Months Ended, | ||||||||
|
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ |
(3,446,624 |
) |
$ |
(3,822,859 |
) |
||
Adjustments to reconcile net loss to net cash (used in) | ||||||||
operating activities | ||||||||
Depreciation and amortization |
18,724 |
|
103,160 |
|
||||
Stock based compensation - stock option grants |
699,246 |
|
744,640 |
|
||||
Issuance of common stock for services |
26,250 |
|
- |
|
||||
Amortization of operating lease right-of-use asset |
47,523 |
|
44,404 |
|
||||
Interest expense for extension of notes and warrants |
- |
|
206,994 |
|
||||
Changes in operating assets and liabilities: | ||||||||
Other long-term assets |
(3,001 |
) |
(1,998 |
) |
||||
Operating lease right-of-use liability |
(48,759 |
) |
(45,732 |
) |
||||
Accounts payable - trade and accrued expenses |
(686,006 |
) |
(146,026 |
) |
||||
|
(3,392,647 |
) |
(2,917,417 |
) |
||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of research and development equipment |
(12,697 |
) |
(10,846 |
) |
||||
|
(12,697 |
) |
(10,846 |
) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of common stock offering, net |
203,105 |
|
- |
|
||||
Proceeds from issuance of common stock for stock options exercise |
- |
|
2,343 |
|
||||
Proceeds from issuance of common stock for warrant exercise |
- |
|
12,500 |
|
||||
NET CASH PROVIDED BY FINANCING ACTIVITIES |
203,105 |
|
14,843 |
|
||||
|
(3,202,239 |
) |
(2,913,420 |
) |
||||
CASH AND CASH EQUIVALENTS, beginning of period |
8,023,716 |
|
12,593,692 |
|
||||
CASH AND CASH EQUIVALENTS, end of period | $ |
4,821,477 |
|
$ |
9,680,272 |
|
||
Supplemental disclosures of cash flow information: | ||||||||
Interest paid | $ |
- |
|
$ |
- |
|
||
Taxes paid | $ |
- |
|
$ |
- |
|
||
Supplemental disclosure of non-cash financing activity: | ||||||||
Deemed dividends on Series C and D Preferred Stock | $ |
63,629 |
|
$ |
- |
|
About
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214439657/en/
For Know Labs Media Inquiries Contact:
Knowlabs@matternow.com
Ph. (617) 272-0592
jordyn@knowlabs.co
Ph. (206) 629-6414
Source: