Know Labs, Inc. reports Q4 and fiscal year 2023 results

Know Labs, Inc. reported financial results for the fourth quarter and fiscal year ended September 30, 2023.

Financial highlights:

• Know Labs reported a net loss of $15.29 million dollars in FY2023, compared to a net loss of $20.07 million dollars in FY2022, a reduction in net loss of 23.8%. This translates to Earnings Per Share of a loss of $0.41, better than FY2022 Earnings Per Share Loss of $0.50, an improvement of 18%, before preferred stock dividends.
• In FY2023, recorded a non-cash charge to earnings of $4.77 million principally related to the fair market value of dividends on our Series C and D preferred stock in the amount of $2.96 million, that were either paid or accrued in shares of common stock, and the remaining $1.81 million non-cash charge comprised of $310,000 in depreciation & amortization, $550,000 loss on the sale of assets, $507,000 loss on debt extinguishment, $350,000 from the modification of notes and warrants and $142,000 from the amortization of operating lease right of use during FY 2023.
• Research and development expense for FY2023 was $7.73 million dollars as compared to $5.39 million dollars in FY2022, an increase of 43.5% year over year. The increase in R&D expense was related to increases in engineering, third-party technical services, and expenditures related to the development of our Generation 1 device, which we completed and announced on June 7^th, as we continue to execute our path to FDA clinical trials and commercialization.
• Selling, general and administrative expenses for FY2023 was $6.57 million, which was lower by $1.55 million than the $8.12 million dollars in FY 2022, an improvement of 19.1%, as we continue our initiatives to reduce our cash burn.
• As of September 30, 2023, we had cash and cash equivalents of $8.02 million dollars, as compared to $12.59 million at the end of September 30, 2022. Net cash used in operations for FY2023 was $10.35 million dollars compared with $6.92 million in the prior year.
• 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 least June 30, 2024. As we have stated in our FY 2023 10-K, we expect to raise additional funds through the issuance of equity, preferred stock and convertible debentures.
• Shareholder equity for the fiscal year 2023 was $3.74 million versus $9.86 million in fiscal year 2022.

MB Bureau