Know Labs, Inc. 2024 10-K Report Review

Introduction

Know Labs, Inc. is an emerging leader in non-invasive medical diagnostics, focusing on the development and commercialization of proprietary sensor technology utilizing radio and microwave dielectric spectroscopy. This technology aims to identify and measure various materials or analytes using electromagnetic energy. The company's primary focus is on medical diagnostics, particularly non-invasive blood glucose monitoring.

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Business Overview

Know Labs, Inc. is developing a non-invasive wearable continuous glucose monitor, the KnowU, which is currently in the prototype stage. The company plans to expand its sensor technology to other medical diagnostic applications following FDA clearance. The technology is designed to be a platform with applications beyond medical diagnostics, potentially identifying numerous analytes in the human body.

Financial Performance

For the fiscal year ended September 30, 2024, Know Labs reported a net loss of $16.58 million, compared to a net loss of $15.29 million in the previous year. The company has an accumulated deficit of $138.74 million. Research and development expenses decreased to $6.11 million from $7.73 million, while selling, general, and administrative expenses increased to $9.11 million from $6.57 million.

Cash Flow and Liquidity

Know Labs has cash and cash equivalents of $3.11 million as of September 30, 2024, with a net working capital deficit of $2.05 million. The company anticipates recording losses from operations for the foreseeable future and believes it has enough cash to operate until February 28, 2025. The company is seeking additional financing through equity and debt offerings.

Risk Factors

The company faces several risks, including the need for additional financing, regulatory challenges, and competition in the medical diagnostics market. Know Labs is currently operating at a loss and requires additional funding to continue its operations and maintain ownership of its intellectual property. The company is also subject to extensive FDA regulation, which could restrict sales and marketing of its products.

Competitive Landscape

Know Labs faces competition from large global technology companies, legacy providers of blood glucose monitoring technology, and new entrants seeking non-invasive solutions. The company believes its technology offers competitive advantages, such as non-invasive monitoring and real-time data collection.

Conclusion

Know Labs, Inc. is at a critical juncture in its development, with promising technology but significant financial and regulatory challenges. The company's success will depend on its ability to secure additional funding, achieve FDA clearance, and effectively compete in the medical diagnostics market. Investors should weigh these factors carefully when considering an investment in Know Labs.

Investment Score

Based on the analysis of Know Labs' 10-K filing, the company receives an investment score of 5.5 out of 10. This score reflects the potential of its innovative technology balanced against the financial and regulatory risks it faces.