Know Labs(US:KNW)2025-12-19 14:02Financial Performance - USBC reported a net loss of $22,123,000 for the year ended September 30, 2025, compared to a net loss of $16,582,000 for the previous year, reflecting an increase in operating expenses [206]. - Total operating expenses increased to $18,047,000 in 2025 from $15,223,000 in 2024, driven by a rise in selling, general, and administrative expenses [201]. - The adjusted EBITDA for the year ended September 30, 2025, was reported at $(8,923,000), an improvement from $(11,750,000) in 2024 [212]. - Net cash used in operating activities for fiscal year 2025 was $7,596,000, a decrease from $12,829,000 in 2024 [215]. - The net loss for fiscal year 2025 was $22,123,000, compared to a net loss of $16,582,000 in 2024 [216][217]. - Net cash provided by financing activities for fiscal year 2025 was $13,307,000, an increase from $7,983,000 in 2024 [220]. - The company expects to continue incurring operating losses while developing its tokenized deposit program, relying on additional capital to sustain operations [223]. Liquidity and Capital Resources - USBC's liquidity as of September 30, 2025, included cash and cash equivalents of $8,822,000 and working capital of $6,018,000, with an accumulated deficit of $163,090,000 [207]. - The company anticipates requiring additional equity or debt financing in the near term to support the development of the tokenized deposit program [210]. - Future capital needs will depend on various factors, including regulatory costs and potential acquisitions [232]. - The company has no substantial doubt about its ability to continue as a going concern for at least one year, based on current cash and expected cash flows [241]. - The total contractual cash obligations as of September 30, 2025, include $282,501 for operating leases [227]. - The company issued 3.9 million shares of common stock in connection with a private placement, indicating ongoing capital raising efforts [219]. Strategic Initiatives - A strategic partnership was announced with Uphold and Vast Bank to launch the USBC tokenized deposit program, aiming to provide global access to U.S. dollar-denominated tokenized deposits [198]. - The company is evaluating a potential divestiture of its legacy non-invasive sensor business to enhance strategic focus and shareholder value [225]. Digital Assets - The company held approximately 1,003 Bitcoin valued at approximately $115.0 million as of September 30, 2025, with a strategy to utilize Bitcoin as a primary treasury reserve asset [195]. - As of September 30, 2025, digital assets totaling approximately $34.5 million were pledged as collateral under certain agreements [228]. Research and Development - Research and development expenses decreased significantly by $4,361,000 to $1,753,000 in 2025, primarily due to reduced personnel and lower expenditures [203]. Compensation and Stock Options - The board approved the repricing of stock options, lowering the exercise price from $2.45 to $1.10 per share, reflecting adjustments to compensation strategies [197].