SEATTLE - Know Labs, Inc. (NYSE American: KNW), a developer of non-invasive diagnostics technology, has been notified of non-compliance with NYSE American continued listing standards, according to a notice dated September 27, 2024. The company's equity levels have fallen below the required thresholds due to reported losses over recent fiscal years. The notice does not immediately affect the trading of Know Labs' common stock, which will continue under the symbol "KNW" with an additional ".BC" designation indicating below compliance status.
The company is required to submit a compliance plan by October 27, 2024, outlining how it plans to meet the exchange's listing standards by March 27, 2026. If the NYSE American accepts the plan, Know Labs will remain listed during the plan's implementation and will undergo periodic reviews. Failure to submit or adhere to the plan could lead to delisting procedures.
Know Labs' plan is expected to include upcoming business progress and technological developments, with anticipated announcements about strategic and joint venture partnerships that may positively impact its stock valuation. However, there is no guarantee that these efforts will achieve compliance within the set timeframe.
The company's patented technology focuses on using spectroscopy to identify molecular signatures, with its first application expected to be a non-invasive glucose monitor. The product will require FDA clearance before it can enter the market.
The information in this article is based on a press release statement from Know Labs, Inc.
In other recent news, Know Labs, Inc. has reported a series of significant developments. The company disclosed a Q3 net loss of $4.1 million for fiscal year 2024, marking an improvement from the previous year, alongside a decrease in research and development expenses. In a recent financing round, Know Labs successfully raised $1.655 million, planning to use these funds for various corporate purposes, including product development and intellectual property.
The company also announced changes in its board of directors, with Timothy Londergan stepping down and Ichiro Takesako filling the vacancy in the Audit Committee. Additionally, Know Labs held its 2024 Annual Meeting of Stockholders, which resulted in the election of board members and the ratification of BPM, LLP as the company's independent auditor for the fiscal year ending September 30, 2024.
In terms of product development, Know Labs is making progress with its non-invasive glucose monitor, KnowU, currently in clinical trials and awaiting FDA clearance. The company is also actively pursuing intellectual property monetization and patent licensing, having identified over 600 proprietary elements for its platform technology.
Despite reporting negative shareholder equity for the quarter, Know Labs has completed a capital raise and is taking measures to improve this. Boustead Securities, LLC and The Benchmark Company, LLC, the advisors in the recent transaction, have been granted a right of first refusal for future equity offerings by Know Labs. These are recent developments, reflecting Know Labs' ongoing efforts to manage its financial challenges while working towards enhancing shareholder value and corporate visibility.
InvestingPro Insights
Recent financial data from InvestingPro sheds light on Know Labs' current market position and challenges. The company's market capitalization stands at $30.32 million, reflecting its small-cap status and the market's current valuation of its potential in the non-invasive diagnostics field.
Know Labs' financial health appears precarious, aligning with the NYSE American's compliance concerns. An InvestingPro Tip indicates that the company is "quickly burning through cash," which is particularly relevant given the exchange's notification about equity levels falling below required thresholds. This cash burn rate could be a significant factor in the company's plan to regain compliance.
Another InvestingPro Tip notes that Know Labs "suffers from weak gross profit margins." This insight is crucial as it underscores the financial challenges the company faces in developing and potentially commercializing its non-invasive glucose monitor. The weak margins could be attributed to high research and development costs typical in the medical technology sector.
The company's stock price has taken a substantial hit, with InvestingPro data showing a -55.63% total return over the past six months. This decline likely contributed to the NYSE American's compliance issues and highlights the urgency for Know Labs to demonstrate progress in its technology development and strategic partnerships.
Investors should note that InvestingPro offers 6 additional tips for Know Labs, providing a more comprehensive analysis of the company's financial situation and market position. These insights could be valuable for those closely following Know Labs' efforts to meet NYSE American's listing standards and its progress in the non-invasive diagnostics market.
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