Know Labs(KNW)2025-05-14 20:24Financial Performance - Net loss attributable to common shareholders for the three months ended March 31, 2025, was $3,602,698, compared to a net loss of $5,496,273 for the same period in 2024, reflecting a reduction of approximately 34.4%[12] - The company reported a net loss of $3.446 billion for the quarter[16] - The net loss for the six months ended March 31, 2025, was $8,244,544, compared to a net loss of $8,844,288 for the same period in 2024, indicating a decrease in losses by approximately 6.8%[20] - The net loss for the three months ended March 31, 2025, was $3,579,000, a 33.7% improvement compared to a net loss of $5,398,000 for the same period in 2024[198] - The net loss for the six months ended March 31, 2025, was $8,245,000, a 6.8% improvement compared to a net loss of $8,844,000 for the same period in 2024[206] Assets and Liabilities - Total current assets decreased to $443,913 in 2025 from $3,110,755 in 2024, representing a decline of approximately 86.7%[9] - Total liabilities increased to $6,807,734 in 2025 from $5,820,629 in 2024, marking an increase of about 17%[9] - Total stockholders' deficit increased to $(5,883,549) in 2025 from $(2,156,201) in 2024, representing a decline of approximately 172.5%[9] - As of December 31, the balance sheet showed total assets of $17.858 billion, with liabilities of $16.161 billion[16] - The balance as of March 31 shows a total of $17.858 billion in assets, indicating stability in financial position[16] Expenses - Research and development expenses for the six months ended March 31, 2025, were $1,220,309, down from $3,661,633 in 2024, indicating a decrease of about 66.7%[12] - Selling, general and administrative expenses for the three months ended March 31, 2025, were $1,789,315, compared to $2,550,848 in 2024, a decrease of approximately 29.9%[12] - Interest expense for the six months ended March 31, 2025, was $2,557,844, compared to $740,251 in 2024, an increase of approximately 245.5%[12] - The company incurred advertising and marketing costs of $10,000 for the three months ended March 31, 2025, compared to $58,866 in the same period of the previous year[42] - The total depreciation expense for the three months ended March 31, 2025, was $7,162, compared to $19,643 for the same period in 2024[59] Stock and Equity - The basic and diluted loss per share for the three months ended March 31, 2025, was $(1.24), compared to $(2.69) for the same period in 2024, showing an improvement of about 54.9%[12] - The weighted average shares of common stock outstanding for the three months ended March 31, 2025, were 2,909,985, compared to 2,044,153 in 2024, an increase of approximately 42.3%[12] - The company issued options totaling 6.616 million shares, indicating ongoing employee incentives[16] - The total stock expenses were reported at $9.860 million, highlighting the company's commitment to shareholder value[16] - The company has a total of 5.594 million warrants outstanding, which could impact future equity dilution[16] Strategic Initiatives - The company is focusing on market expansion and new product development to drive future growth[16] - The company is exploring strategic acquisitions to enhance its market position and product offerings[16] - Know Labs announced the development of the KnowU™ non-invasive wearable continuous glucose monitor prototype, which is currently undergoing internal clinical testing[128] - The company is in discussions with potential biopharma, medical device, and consumer electronics partners regarding joint development agreements to accelerate development and commercial launch[159] - The KTL initiative aims to license Know Labs' intellectual property to corporate partners and academic institutions, fostering innovation across various industries[157] Compliance and Future Outlook - Future guidance suggests a cautious outlook due to current market conditions and competitive pressures[16] - The company has substantial doubt about its ability to continue as a going concern, as it may require additional financing to support its operations[34] - The NYSE American lifted the trading suspension of the company's common stock on March 5, 2025, after the stock traded above the low selling price threshold[189] - The company has a target completion date of March 27, 2026, to regain compliance with the NYSE American's continued listing standards[190] - Know Labs received notification from the NYSE American regarding non-compliance with minimum stockholders' equity requirements, and submitted a plan to regain compliance by March 27, 2026[186] Research and Development - The Company is focused on the development of a non-invasive blood glucose monitoring device, with a working prototype launched in the previous fiscal year[28] - The internal clinical research study showed a Mean Absolute Relative Difference (MARD) of 11.1% in measuring blood glucose levels using the proprietary RF dielectric sensor[139] - The sensor technology has demonstrated a high degree of correlation with leading continuous glucose monitors, providing a non-invasive alternative[138] - A study indicated that the technology achieved 93.37% accuracy in classifying glycemic status compared to venous blood glucose values[145] - The company is focused on refining its algorithms and expanding testing to ensure accurate glucose value estimation across diverse populations[147]