Release Date: May 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Know Labs Inc (KNW, Financial) announced the completion of a portable generation one prototype device for noninvasive glucose monitoring, showcasing significant progress in hardware development.
- The company has successfully tested and proven the stability and accuracy of its new Gen two device, which incorporates proprietary technology and sensor improvements.
- Know Labs Inc (KNW) has completed an IRB approved internal trial with promising results, demonstrating the sensor's accuracy across different glycemic ranges, which is crucial for FDA approval.
- The company has secured a funding agreement for an investment of up to $12 million to accelerate development across its core workstreams, enhancing its financial stability.
- Know Labs Inc (KNW) has expanded its intellectual property portfolio, with over 300 patents issued, pending, or in process, strengthening its market position in non-invasive blood glucose monitoring.
Negative Points
- Despite advancements, Know Labs Inc (KNW) reported an operating loss of $4.73 million in Q2 fiscal 2024, indicating ongoing financial challenges.
- The company experienced a decrease in cash and cash equivalents, from $8.02 million at the end of September 2023 to $4.71 million as of March 31, 2024, raising concerns about cash flow.
- Research and development expenses, although reduced from the previous year, remain high, reflecting the significant cost of product development and innovation.
- Know Labs Inc (KNW) faces the challenge of further miniaturization and adjustments of their device based on clinical trials and human factors testing, which could delay commercialization.
- The company's shareholder equity was negative $1.75 million for Q2 fiscal 2024, which could impact its ability to attract further investment and sustain long-term growth.
Q & A Highlights
Q: What is the status of joint development agreements with medical device manufacturers and other companies?
A: Ronald Erickson, President & CEO of Know Labs Inc, stated that the company continues to engage in dialogue with potential partners, including medical device manufacturers and big pharmaceutical companies. Specific details about these companies and transactions are not disclosed at this stage, but there is potential for significant developments in the future.
Q: Are you pursuing alternative financing to eliminate loans and obtain less dilutive terms?
A: Peter Conley, CFO and Senior VP - Intellectual Property, mentioned that Know Labs Inc is seeking additional equity financing and is highly sensitive to dilution. The company aims to avoid structured finance that could harm current investors and is in talks with institutional investors focused on long-term investments.
Q: What happened to the wrist-worn device similar to a smartwatch?
A: Ronald Erickson explained that the company is progressing through a phase of miniaturization. The Generation two device, "Know You," is significantly smaller than the first generation and is a wearable product that can be worn with an adhesive or wristband. Further miniaturization is expected before achieving a wrist-worn device.
Q: When can investors expect to see the results of the end-100 study?
A: Ronald Erickson clarified that the company collected satisfactory data from 30 participants, which was enough to shift focus to testing with the Generation two "Know You" device. Therefore, the full 100 participant study was not completed. Interim results have been presented at conferences, and further analysis will be published as it concludes.
Q: Is our noninvasive technology a trade secret or patent, and what countries is it patent pending in?
A: Peter Conley responded that Know Labs Inc has 332 patent assets, including issued and pending patents in 18 jurisdictions. The majority are in the United States, with global coverage through the PCT. The company also holds a significant body of trade secrets, which are a crucial part of their intellectual property strategy.
Q: What are the plans for international markets and intellectual property monetization?
A: Ronald Erickson announced the hiring of Chris Mog as President International, focusing on licensing the company's intellectual property in fields outside of diagnostics and securing strategic development partnerships globally.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
