Know Labs Reports $3.6 Million Net Loss in Q2 FY 2025, Announces Strategic Licensing Program

Know Labs, Inc. has reported its financial results for the second quarter of fiscal year 2025, revealing a net loss of $3.6 million for the three months ended March 31, 2025, a decrease from a net loss of $5.4 million during the same period in the previous year. The company’s total operating expenses for the quarter were $2.2 million, down 53% from $4.7 million in the prior year, primarily due to significant reductions in research and development costs, which fell by 81% to $418,000. Selling, general, and administrative expenses also decreased by 29.8% to $1.8 million, reflecting the company's efforts to streamline operations.

In terms of liquidity, Know Labs reported cash and cash equivalents of $443,913 as of March 31, 2025, a significant decline from $3.1 million at the end of the previous fiscal year. The company has a net working capital deficit of approximately $6.2 million and anticipates that it will continue to incur losses for the foreseeable future. Management believes that the available cash will sustain operations until June 30, 2025, but there is substantial doubt about the company's ability to continue as a going concern without additional financing.

Strategically, Know Labs has initiated the Know Labs Technology Licensing (KTL) program, aimed at leveraging its intellectual property portfolio, which includes over 330 patents. This initiative is designed to license its proprietary radio frequency dielectric spectroscopy technology to various industries, potentially generating revenue outside of its core medical diagnostics focus. The company is also advancing its non-invasive glucose monitoring device, the KnowU™, which is currently undergoing internal testing and refinement.

Operationally, Know Labs has reduced its workforce, resulting in a headcount of six employees as of March 31, 2025. The company has also engaged in various financing activities, including a registered direct offering that raised approximately $300,000 and a Capital on Demand Sales Agreement with JonesTrading, which allowed for the issuance of additional shares. However, the company faces challenges related to its compliance with NYSE American listing standards, having previously received a notice of non-compliance due to low stockholder equity.

Looking ahead, Know Labs aims to continue refining its technology and pursuing FDA clearance for its glucose monitoring device while exploring additional funding options to support its operations. The company acknowledges the significant costs associated with FDA clinical trials and is actively seeking partnerships to mitigate these expenses.