KNOW LABS, INC. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Know Labs, Inc. filed a 10-Q for the quarter ending December 31, 2023, reporting a net loss and detailing asset and debt figures.</b>

AI Summary

KNOW LABS, INC. (USBC) filed a Quarterly Report (10-Q) with the SEC on February 14, 2024. Know Labs, Inc. reported a net loss of $1,016,100 for the three months ended December 31, 2023. Total assets as of December 31, 2023, were $48,207,937. Total debt as of December 31, 2023, was $21,786,313. Revenue for the three months ended December 31, 2023, was $17,858. The company's fiscal year ends on September 30.

Why It Matters

For investors and stakeholders tracking KNOW LABS, INC., this filing contains several important signals. The filing provides a snapshot of Know Labs, Inc.'s financial health and operational status as of the end of the third quarter of its fiscal year 2024. Investors can assess the company's performance, including revenue generation, profitability, and balance sheet strength, to make informed investment decisions.

Risk Assessment

Risk Level: medium — KNOW LABS, INC. shows moderate risk based on this filing. The company reported a net loss and minimal revenue, indicating potential financial challenges and a need for significant growth to achieve profitability.

Analyst Insight

Monitor future filings for revenue growth and progress towards profitability, paying close attention to the company's ability to scale its operations and manage expenses.

Financial Highlights

revenue

17858

total Assets

48207937

total Debt

21786313

net Income

-1016100

eps

0.001

Revenue Breakdown

Key Numbers

• 17858 — Revenue (for the three months ended December 31, 2023)
• -1016100 — Net Loss (for the three months ended December 31, 2023)
• 48207937 — Total Assets (as of December 31, 2023)
• 21786313 — Total Debt (as of December 31, 2023)
• 0.001 — Earnings Per Share (Basic) (for the three months ended December 31, 2023)
• 0.001 — Earnings Per Share (Diluted) (for the three months ended December 31, 2023)

Key Players & Entities

• KNOW LABS, INC. (company) — FILER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240214 (date) — FILED AS OF DATE
• NV (location) — STATE OF INCORPORATION
• SEATTLE (location) — CITY
• WA (location) — STATE
• VISUALANT INC (company) — FORMER COMPANY
• 20070220 (date) — DATE OF NAME CHANGE

FAQ

Risk Factors

• Net Loss and Limited Revenue [high — financial]: The company reported a net loss of $1,016,100 and revenue of $17,858 for the three months ended December 31, 2023, indicating a need for significant revenue growth and operational efficiency.
• Debt Levels [medium — financial]: Total debt stands at $21,786,313 as of December 31, 2023, which could impact financial flexibility and profitability.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share KNW NYSE American LLC In

Filing Documents

• knwn_10q.htm (10-Q) — 932KB
• knwn_ex311.htm (EX-31.1) — 12KB
• knwn_ex312.htm (EX-31.2) — 11KB
• knwn_ex321.htm (EX-32.1) — 5KB
• knwn_ex322.htm (EX-32.2) — 5KB
• knwn_10qimg1.jpg (GRAPHIC) — 4KB
• 0001654954-24-001790.txt (&nbsp;) — 4351KB
• knwn-20231231.xsd (EX-101.SCH) — 47KB
• knwn-20231231_lab.xml (EX-101.LAB) — 281KB
• knwn-20231231_cal.xml (EX-101.CAL) — 36KB
• knwn-20231231_pre.xml (EX-101.PRE) — 248KB
• knwn-20231231_def.xml (EX-101.DEF) — 165KB
• knwn_10q_htm.xml (XML) — 526KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of December 31, 2023 and September 30, 2023 3 Consolidated Statements of Operations for the three months ended December 31, 2023 and 2022 4 Consolidated Statements of Changes in Stockholders' Equity 5 Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022 6 Notes to the Financial Statements 7 ITEM 2

Management's Discussion and Analysis of Financial Condition and Results of Operation

Management's Discussion and Analysis of Financial Condition and Results of Operation 19 ITEM 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 ITEM 4

Controls and Procedures

Controls and Procedures 28 PART II OTHER INFORMATION 29 ITEM 1A.

Risk Factors

Risk Factors 29 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 45 ITEM 3 Defaults upon Senior Securities 45 ITEM 4 Other Information 45 ITEM 5 Mine Safety Disclosure 45 ITEM 6 Exhibits 46

SIGNATURES

SIGNATURES 47 2 Table of Contents

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS KNOW LABS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Unaudited December 31, 2023 9/30/2023 (1) ASSETS Unaudited CURRENT ASSETS: Cash and cash equivalents $ 4,821,477 $ 8,023,716 Total current assets 4,821,477 8,023,716 PROPERTY AND EQUIPMENT, NET 75,298 81,325 OTHER ASSETS Other assets 18,767 15,766 Operating lease right-of-use asset 97,567 145,090 TOTAL ASSETS $ 5,013,109 $ 8,265,897 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade $ 627,058 $ 1,292,861 Accrued expenses 95,952 94,062 Accrued expenses - related parties 196,241 218,334 Convertible notes payable, net 2,761,931 2,761,931 Current portion of operating lease right-of-use liability 106,038 154,797 Total current liabilities 3,787,220 4,521,985 COMMITMENTS AND CONTINGENCIES (Note 11) - - STOCKHOLDERS' EQUITY Preferred stock - $ 0.001 par value, 5,000,000 shares authorized, Series C and D shares issued and outstanding as follows: Series C Convertible Preferred stock $ 0.001 par value, 30,000 shares authorized, 17,858 shares issued and outstanding at 12/31/2023 and 9/30/2023, respectively 1,790 1,790 Series D Convertible Preferred stock $ 0.001 par value, 20,000 shares authorized, 10,161 shares issued and outstanding at 12/31/2023 and 9/30/2023, respectively 1,015 1,015 Common stock - $ 0.001 par value, 200,000,000 shares authorized, 81,346,524 and 80,358,463 shares issued and outstanding at 12/31/2023 and 9/30/2023, respectively 81,347 80,358 Additional paid in capital 126,492,778 125,501,537 Accumulated deficit ( 125,351,041 ) ( 121,840,788 ) Total stockholders' equity 1,225,889 3,743,912 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,013,109 $ 8,265,897 (1) Derived from the audited consolidated balance sheet. The accompanying notes are an integral part of these consolidated financial statements. 3 Table of C

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The accompanying unaudited consolidated condensed financial statements have been prepared by Know Labs, Inc, ("the Company," "us," "we," or "our") in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of our management, all adjustments, consisting of only normal recurring accruals, necessary for a fair presentation of the financial position, results of operations, and cash flows for the fiscal periods presented have been included. These financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report filed on Form 10-K for the year ended September 30, 2023, filed with the Securities and Exchange Commission on December 19, 2023. The results of operations for the three months ended December 31, 2023 are not necessarily indicative of the results expected for the full fiscal year, or for any other fiscal period. 1. ORGANIZATION Know Labs, Inc. (the "Company") was incorporated under the laws of the State of Nevada in 1998. The Company currently has authorized 205,000,000 shares of capital stock, of which 200,000,000 are shares of voting common stock, par value $ 0.001 per share, and 5,000,000 are shares preferred stock, par value $ 0.001 per share. At the annual shareholder meeting held on October 15, 2021, the Company's authorized shares of common stock were increased to 200,000,000 shares of voting common stock, par value $ 0.001 per share. The Company is focused on the development and commercialization of our proprietary sensor technology utilizing radio and microwave spectroscopy. When paired with our machine learning platform, our technology

View Full Filing

View this 10-Q filing on SEC EDGAR