Know Labs, Inc. to Report First Quarter FY 2025 Results

Know Labs, Inc. (NYSE:KNW, now OTC Markets: KNWN)), a pioneering leader in the development and application of radio frequency dielectric spectroscopy (RFDS) for non-invasive medical diagnostic technology and diverse other fields of use through its newly initiated Know Labs Technology Licensing (KTL) initiative, today reported financial results for the first quarter of the fiscal year 2025.

Financial Highlights:

• In Q1 FY 2025, Know Labs reported a net loss of $4.67 million dollars, compared to a net loss of $3.45 million dollars in Q1 FY 2024, an increase in net loss of 35.4%. This translates to earnings per share of a loss of $0.04, unchanged from the prior year earnings per share loss of $0.04, before preferred stock dividends.
• Recorded a non-cash charge to earnings of $2.45 million dollars principally related to stock-based compensation of $551,000, loss on debt extinguishment of $728,000, interest expense for the repricing of warrants of $747,000, and amortization of debt issuance costs of $386,000.
• Research and development expense for Q1 FY 2025 was $802,000 as compared to $1.49 million dollars in Q1 FY 2024, a decrease of 46.1% year over year. The decrease was due primarily to the continued use of consultants to reduce the cost of product development.
• Selling, general and administrative expenses for Q1 FY 2025 was $1.97 million dollars, which was 2.0% lower than the $2.01 million dollars in the year ago period. The decrease in SG&A was due primarily to lower insurance and other expenses.
• As of December 31, 2024, Know Labs had cash and cash equivalents of $1.03 million dollars, as compared to $3.11 million dollars at the end of September 30, 2024. Net cash used in operations for the first quarter of FY 2025 was $1.89 million dollars compared with $3.39 million dollars in the year ago period of Q1 FY 2024.
• The Company continues to undertake initiatives to significantly reduce fixed expenses and monthly burn rate. Subsequent to the end of Q1 FY 2025, on December 12, 2024, Know Labs closed a registered direct offering of $300,000, which with the cash on hand, the Company believes that it has enough available cash and flexibility with its operating expenses to operate until April 30, 2025. As noted in the Q1 FY 2025 10-Q, the Company plans to seek additional funding via equity and debt offerings.
• Shareholder equity for Q1 FY 2025 was a negative $3.91 million dollars versus a negative $3.16 million dollars in FY 2024, ending September 30, 2024. The Company is actively taking steps to address its negative shareholder equity through the conversion of convertible debt to equity.

As previously disclosed in its Annual Report on Form 10-K for the year ended September 30, 2024, which was filed on November 14, 2024, with the Securities and Exchange Commission, the audited financial statements contained an audit opinion from its independent registered public accounting firm that included an explanatory paragraph related to the Company's ability to continue as a going concern. See further discussion in Note 2 to the Company's financial statements included in the Company's First Quarterly Report for FY 2025 on Form 10-Q. This announcement is made pursuant to NYSE American LLC Company Guide Section 610(b), which requires public announcement of the receipt of an audit opinion containing a going concern paragraph. This announcement does not represent any change or amendment to the Company's financial statements or to its Annual Report on Form 10-K for the year ended September 30, 2024, or its First Quarterly Report on Form 10-Q for the quarter ending December 31, 2024.

Conference Call:

Know Labs will host an audio webcast to discuss its results and provide a business update today, February 14, 2025, at 4:30 pm ET (1:30 pm PT). The webcast will be available on the Company's website, https://www.knowlabs.co/, and a replay will be available for six months.

Participant Listening Options

Participant Dial-In: 877-514-3621 / +1 215-268-9856

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=YGSi6C2S

For more information on Know Labs' diagnostic platform technology and its KTL initiative visit www.knowlabs.co.

About Know Labs Technology Licensing (KTL)

Know Labs Technology Licensing (KTL) is the dedicated licensing division of Know Labs, Inc. (OTC:KNWN), facilitating the global adoption of its patented Radio Frequency Dielectric Spectroscopy (RFDS) technology. With an extensive intellectual property portfolio, a structured licensing framework, and the proprietary e-RFDS^© digital watermark, KTL enables corporations, universities, and research institutions to innovate with confidence while securing their developments from counterfeiting and unauthorized use.

About Know Labs, Inc.

Know Labs, Inc.'s platform technology uses radio frequency spectroscopy to direct electromagnetic energy through a substance or material to capture a unique molecular signature. The technology is designed to be able to integrate into a variety of wearable, mobile or bench-top form factors. The Company believes that this patented and patent-pending technology makes it possible to effectively identify and monitor analytes that could only previously be performed by invasive and/or expensive and time-consuming lab-based tests. Among the Company's first expected applications of the technology will be in a product marketed as a non-invasive glucose monitor. The device is designed to provide the user with accessible and affordable real-time information on blood glucose levels. This product will require U.S. Food and Drug Administration (FDA) clearance prior to its introduction to the market. Other products, developed through KTL may not require such prior FDA approval.

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 Know Labs, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy; and (iv) performance of products. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," "potential," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Know Labs, Inc.'s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, Forms 10-Q and 8-K, and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Relations section of our website at www.knowlabs.co. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

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Know Labs, Inc. Contact:

Investor Relations

T: 206-903-1351

[email protected]