Know Labs(KNW)2024-02-14 21:17Financial Performance - The company reported a net loss of $3,446,624 for the three months ended December 31, 2023, compared to a net loss of $3,822,859 for the same period in 2022, indicating an improvement of about 9.8%[12]. - Basic and diluted loss per share improved from $(0.08) in Q4 2022 to $(0.04) in Q4 2023[12]. - The company generated net cash used in operating activities of $3,392,647 for the three months ended December 31, 2023, compared to $2,917,417 for the same period in 2022, indicating an increase in cash outflow of about 16.3%[16]. - The company anticipates recording losses from operations for the foreseeable future and will need to raise additional funds to support its operations[24]. - The company has an accumulated deficit of $125,351,000 as of December 31, 2023[163]. Assets and Liabilities - Total current assets decreased from $8,023,716 as of September 30, 2023, to $4,821,477 as of December 31, 2023, representing a decline of approximately 40.5%[8]. - The company had total liabilities of $3,787,220 as of December 31, 2023, down from $4,521,985 as of September 30, 2023, representing a decrease of about 16.3%[8]. - Total stockholders' equity decreased from $3,743,912 as of September 30, 2023, to $1,225,889 as of December 31, 2023, a decline of approximately 67.3%[8]. - Cash and cash equivalents decreased from $8,023,716 at the beginning of the period to $4,821,477, a decrease of approximately 40.5%[8]. - Current liabilities decreased from $4,521,985 to $3,787,220, a reduction of about 16.3%[8]. Research and Development - Research and development expenses for the three months ended December 31, 2023, were $1,486,388, down from $1,743,051 in the same period of 2022, reflecting a decrease of approximately 14.7%[11]. - The company is focused on the development of a wearable device for non-invasive blood glucose monitoring, with a Generation 1 prototype already announced and work ongoing for Generation 2[23]. - Know Labs has developed a Generation 1 working prototype for a non-invasive blood glucose monitoring device, which is currently undergoing internal clinical testing[102]. - The company aims to achieve FDA clearance for its non-invasive blood glucose monitor, with ongoing studies comparing its technology to leading continuous glucose monitors showing a high degree of correlation[112]. - Recent studies have demonstrated the accuracy of Know Labs' Bio-RFID sensor technology, achieving a Mean Absolute Relative Difference (MARD) of 12.9% and 11.3% in quantifying blood glucose levels compared to established devices[117][118]. Capital and Financing - The company raised net proceeds of $5,472,791 from the sale of 28,000,000 shares of common stock at a price of $0.25 per share on September 29, 2023[165]. - The company has outstanding warrants that could potentially generate proceeds of up to $16,008,327 if exercised[27]. - The company is currently working on capital fundraising transactions to secure additional financing[26]. - The company believes it has enough cash to operate until at least June 30, 2024, but substantial doubt exists about its ability to continue as a going concern[25]. - The company has made staffing adjustments that have significantly reduced its monthly burn rate[24]. Stock and Equity - The weighted average shares of common stock outstanding increased from 48,187,339 in Q4 2022 to 81,094,007 in Q4 2023, an increase of approximately 68.3%[12]. - As of December 31, 2023, the company had 81,346,524 shares of common stock issued and outstanding, with various options and warrants outstanding that could dilute future earnings per share[42]. - The company issued 883,061 shares of common stock at a price of $0.25 per share, resulting in net proceeds of $203,105 after expenses[65]. - The company has a total of 28,220,473 stock options outstanding with an average exercise price of $0.907 as of December 31, 2023[75]. - The company recorded $699,246 in compensation expense related to stock options for the three months ended December 31, 2023[75]. Operational Efficiency - Total operating expenses decreased from $3,648,122 in Q4 2022 to $3,497,634 in Q4 2023, a reduction of about 4.1%[11]. - Selling, general and administrative expenses increased by $106,000 to $2,011,000 for the three months ended December 31, 2023, compared to $1,905,000 for the same period in 2022[158]. - The total depreciation expense for the three months ended December 31, 2023, was $18,724, a significant decrease of 81.9% compared to $103,160 for the same period in 2022[48]. - The company recognized total lease costs of $62,000 for the three months ended December 31, 2023, compared to $82,000 for the same period in 2022, reflecting a decrease of 24.4%[50]. - The company incurred expenses of $1,486,000 and $1,743,000 for development activities for the three months ended December 31, 2023, and 2022, respectively[132].