Know Labs, Inc. Reports First Quarter 2023 Results
Know Labs, Inc. (NYSE American: KNW) reported its financial results for Q1 2023, revealing a net loss of $3.82 million, a decrease from a $5.36 million loss in Q1 2022. This translates to a loss per share of $0.08, compared to $0.15 the previous year. Research and development expenses surged to $1.74 million from $886,000, attributed to staffing and Bio-RFID technology development aimed at FDA trials. Cash and equivalents decreased to $9.68 million from $12.59 million. The company estimates it has sufficient cash to fund operations until February 14, 2024. Shareholder equity fell to $7.1 million from $9.9 million in the prior quarter.
- Reduced net loss from $5.36 million in Q1 2022 to $3.82 million in Q1 2023.
- Improvement in loss per share from $0.15 to $0.08.
- Increased investment in R&D for Bio-RFID technology indicates commitment to innovation.
- R&D expenses increased significantly to $1.74 million, highlighting potential overspending.
- Cash and cash equivalents decreased from $12.59 million to $9.68 million, indicating cash flow concerns.
- Shareholder equity declined from $9.9 million to $7.1 million, reflecting weakening financial health.
Financial Highlights:
-
Know Labs reported a net loss of in the first quarter of 2023, compared to a net loss of$3.82 million in the first quarter of 2022, which translates to Earnings Per Share of a loss of$5.36 million versus a loss of$0.08 in the year ago period.$0.15 -
Research and development expense for the first quarter ended
December 31, 2022 , was as compared to$1.74 million in the same year ago period. The increase in R&D expense was related to staff increases in engineering, third party technical services and expenditures related to the development of the Bio-RFID technology, as the company continues to execute its path to FDA clinical trials and commercialization.$886,000 -
Selling, general and administrative expense for the first quarter 2023 was
versus$1.91 million in the same year ago period, which increased versus the prior year primarily to due to key additions to the executive team and increases in third party services.$1.22 million -
As of
December 31, 2022 , cash and cash equivalents equaled , as compared with$9.68 million at the end of the fourth quarter ended$12.59 million September 30, 2022 . Net cash used in operations for the first quarter endedDecember 31, 2022 , was , as compared to$2.92 million in the prior year. The company believes its cash on hand will be sufficient to fund its operations through$1.91 million February 14, 2024 . -
Shareholder equity for the first quarter 2023 was
versus$7.1 million as of$9.9 million September 30, 2022 .
Income Statement:
Three Months Ended, | ||||||||
REVENUE- DIGITAL ASSET SALES | $ | - |
|
$ | 4,351,400 |
|
||
OPERATING EXPENSES- | ||||||||
RESEARCH AND DEVELOPMENT EXPENSES | 1,743,051 |
|
885,752 |
|
||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 1,905,071 |
|
1,216,947 |
|
||||
SELLING AND TRANSACTIONAL COSTS FOR DIGITAL ASSETS | - |
|
3,118,360 |
|
||||
Total operating expenses | 3,648,122 |
|
5,221,059 |
|
||||
OPERATING LOSS | (3,648,122 |
) |
(869,659 |
) |
||||
OTHER INCOME (EXPENSE): | ||||||||
Interest expense | (227,170 |
) |
(4,486,960 |
) |
||||
Other income | 52,433 |
|
- |
|
||||
Total other (expense), net | (174,737 |
) |
(4,486,960 |
) |
||||
LOSS BEFORE INCOME TAXES | (3,822,859 |
) |
(5,356,619 |
) |
||||
Income tax expense | - |
|
- |
|
||||
NET LOSS | $ | (3,822,859 |
) |
$ | (5,356,619 |
) |
||
Basic and diluted loss per share | $ | (0.08 |
) |
$ | (0.15 |
) |
||
Weighted average shares of common stock outstanding- basic and diluted | 48,187,339 |
|
35,479,073 |
|
Balance Sheet:
ASSETS | Unaudited | |||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 9,680,272 |
|
$ | 12,593,692 |
|
||
Total current assets | 9,680,272 |
|
12,593,692 |
|
||||
PROPERTY AND EQUIPMENT, NET | 770,663 |
|
862,977 |
|
||||
OTHER ASSETS | ||||||||
Other assets | 15,765 |
|
13,767 |
|
||||
Operating lease right of use asset | 243,526 |
|
287,930 |
|
||||
TOTAL ASSETS | $ | 10,710,226 |
|
$ | 13,758,366 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable - trade | $ | 404,619 |
|
$ | 526,968 |
|
||
Accrued expenses | 464,830 |
|
462,940 |
|
||||
Accrued expenses - related parties | 322,697 |
|
348,264 |
|
||||
Convertible notes payable, net | 2,255,066 |
|
2,255,066 |
|
||||
Current portion of operating lease right of use liability | 210,790 |
|
215,397 |
|
||||
Total current liabilities | 3,658,002 |
|
3,808,635 |
|
||||
NON-CURRENT LIABILITIES: | ||||||||
Operating lease right of use liability, net of current portion | 45,993 |
|
87,118 |
|
||||
Total non-current liabilities | 45,993 |
|
87,118 |
|
||||
COMMITMENTS AND CONTINGENCIES (Note 11) | - |
|
- |
|
||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock - |
||||||||
Series C Convertible Preferred stock |
1,790 |
|
1,790 |
|
||||
Series D Convertible Preferred stock |
1,015 |
|
1,015 |
|
||||
Common stock - |
48,209 |
|
48,158 |
|
||||
Additional paid in capital | 112,175,814 |
|
111,209,388 |
|
||||
Accumulated deficit | (105,220,597 |
) |
(101,397,738 |
) |
||||
Total stockholders' equity | 7,006,231 |
|
9,862,613 |
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 10,710,226 |
|
$ | 13,758,366 |
|
||
(1) Derived from audited consolidated balance sheet. |
Cash Flow:
Three Months Ended, | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (3,822,859 |
) |
$ | (5,356,619 |
) |
||
Adjustments to reconcile net loss to net cash (used in) operating activities | ||||||||
Depreciation and amortization | 103,160 |
|
41,672 |
|
||||
Stock based compensation- stock option grants | 744,640 |
|
204,170 |
|
||||
Right of use, net | (1,328 |
) |
(1,781 |
) |
||||
Interest expense for extension of notes and warrants | 206,994 |
|
- |
|
||||
Amortization of debt discount to interest expense | - |
|
4,184,657 |
|
||||
Changes in operating assets and liabilities: | ||||||||
Other long-term assets | (1,998 |
) |
- |
|
||||
Accounts receivable-related party | - |
|
(3,124,581 |
) |
||||
Accounts payable - trade and accrued expenses | (146,026 |
) |
2,144,665 |
|
||||
(2,917,417 |
) |
(1,907,817 |
) |
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of research and development equipment | (10,846 |
) |
(385,488 |
) |
||||
(10,846 |
) |
(385,488 |
) |
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of common stock for stock options exercise | 2,343 |
|
2,344 |
|
||||
Proceeds from issuance of common stock for warrant exercise | 12,500 |
|
766,486 |
|
||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 14,843 |
|
768,830 |
|
||||
(2,913,420 |
) |
(1,524,475 |
) |
|||||
CASH AND CASH EQUIVALENTS, beginning of period | 12,593,692 |
|
12,258,218 |
|
||||
CASH AND CASH EQUIVALENTS, end of period | $ | 9,680,272 |
|
$ | 10,733,743 |
|
Conference Call:
Participant Dial-In: 877-514-3621 / +1 215-268-9856
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=JBJkxLtD
A copy of the form 10-Q filed with the
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/20230214005302/en/
For Know Labs Media Inquiries Contact:
Linhart PR
mwest@linhartpr.com
Ph. (317) 439-3173
jordyn@knowlabs.co
Ph. (206) 629-6414
Source:
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