Know Labs Reports Q3 Loss, Eyes Future Growth

TL;DR

Know Labs Q3 loss $86.4M. Big warrant event Aug 7.

AI Summary

Know Labs, Inc. filed its 10-Q for the period ending June 30, 2024, reporting a net loss of $86,368,897. The company's fiscal year ends on September 30th. A significant subsequent event occurred on August 7, 2024, involving Boustead Securities, LLC and a Warrant to Purchase Common Stock.

Why It Matters

This filing provides insight into Know Labs' financial performance and potential future capital raises or stock-related activities, which could impact investors.

Risk Assessment

Risk Level: medium — The company reported a substantial net loss, indicating financial challenges and potential need for further funding.

Key Numbers

• $86.4B — Net Loss (Financial performance for the period ending June 30, 2024.)
• 0930 — Fiscal Year End (Indicates the end of the company's annual financial reporting cycle.)
• 2024-08-07 — Subsequent Event Date (Date of a significant event occurring after the reporting period.)

Key Players & Entities

• KNOW LABS, INC. (company) — Filer
• 20240630 (date) — Reporting Period End Date
• $86,368,897 (dollar_amount) — Net Loss
• Boustead Securities, LLC (company) — Party in Subsequent Event
• 2024-08-07 (date) — Subsequent Event Date

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share KNW NYSE American LLC In
• $14,400,000 — in the aggregate principal amount of up $14,400,000 for an aggregate purchase price equal t
• $12,000,000 — aggregate purchase price equal to up to $12,000,000 and common stock purchase warrants and
• $4,800,000 — tock purchase warrants and (b) issued a $4,800,000 Note and the warrant to the selling sto
• $4,000,000 — der in exchange for a purchase price of $4,000,000 and net proceeds of $3,805,699 . See No
• $3,805,699 — price of $4,000,000 and net proceeds of $3,805,699 . See Note 6. On March 20, 2024, the C
• $1.00 — ts common stock at the current price of $1.00 per share reserved and are issuable upo

Filing Documents

• knwn_10q.htm (10-Q) — 1020KB
• knwn_ex311.htm (EX-31.1) — 10KB
• knwn_ex312.htm (EX-31.2) — 13KB
• knwn_ex321.htm (EX-32.1) — 6KB
• knwn_ex322.htm (EX-32.2) — 5KB
• knwn_10qimg19.jpg (GRAPHIC) — 6KB
• 0001654954-24-010633.txt ( ) — 4774KB
• knwn-20240630.xsd (EX-101.SCH) — 50KB
• knwn-20240630_lab.xml (EX-101.LAB) — 303KB
• knwn-20240630_cal.xml (EX-101.CAL) — 40KB
• knwn-20240630_pre.xml (EX-101.PRE) — 268KB
• knwn-20240630_def.xml (EX-101.DEF) — 182KB
• knwn_10q_htm.xml (XML) — 599KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of June 30, 2024 and September 30, 2023 3 Consolidated Statements of Operations for the nine months ended June 30, 2024 and 2023 4 Consolidated Statements of Changes in Stockholders' (Deficit) Equity 5 Consolidated Statements of Cash Flows for the nine months ended June 30, 2024 and 2023 6 Notes to the Financial Statements 7 ITEM 2

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

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

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 ITEM 4

Controls and Procedures

Controls and Procedures 30 PART II OTHER INFORMATION ITEM 1A.

Risk Factors

Risk Factors 31 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 32 ITEM 3 Defaults upon Senior Securities 32 ITEM 4 Other Information 32 ITEM 6 Exhibits 32

SIGNATURES

SIGNATURES 33 2 Table of Contents

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS KNOW LABS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Unaudited June 30, 2024 September 30, 2023 (1) ASSETS (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 2,129,954 $ 8,023,716 Total current assets 2,129,954 8,023,716 PROPERTY AND EQUIPMENT, NET 88,668 81,325 OTHER ASSETS Other assets 159,244 15,766 Operating lease right-of-use asset 364,342 145,090 TOTAL ASSETS $ 2,742,208 $ 8,265,897 LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY CURRENT LIABILITIES: Accounts payable - trade $ 1,255,888 $ 1,292,861 Accrued expenses 116,666 94,062 Accrued expenses - related parties 99,692 218,334 Current portion of convertible notes payable, net 4,539,818 2,761,931 Current portion of operating lease right-of-use liability 105,653 154,797 Total current liabilities 6,117,717 4,521,985 NON-CURRENT LIABILITIES: Operating lease liability, net of current portion 280,714 - Non-current portion of convertible notes payable, net 945,258 - Total liabilities 7,343,689 4,521,985 COMMITMENTS AND CONTINGENCIES (Note 11) STOCKHOLDERS' (DEFICIT) 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 6/30/2024 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 6/30/2024 and 9/30/2023, respectively 1,015 1,015 Common stock - $ 0.001 par value, 200,000,000 shares authorized, 86,368,897 and 80,358,463 shares issued and outstanding at 6/30/2024 and 9/30/2023, respectively 86,369 80,358 Additional paid in capital 130,360,164 125,501,537 Accumulated deficit ( 135,050,819 ) ( 121,840,788 ) Total stockholders' (deficit) equity ( 4,601,

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View this 10-Q filing on SEC EDGAR