Know Labs Seeks $6 Million In Uplisting IPO To Nasdaq (OTCMKTS:KNWN)

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A Quick Take On Know Labs

Know Labs, Inc. (OTCQB:KNWN) (KNW) has filed to lift $6 million in an IPO of its widespread stock, in keeping with an S-1 registration assertion.

The agency is growing a non-invasive blood glucose monitoring and associated very important indicators gadget within the U.S.

While day merchants or different retail buyers could also be drawn to the extraordinarily low nominal worth per share for the IPO and create vital early buying and selling volatility, I’m on Hold for the corporate’s prospects.

Know Labs Overview

Seattle, Washington-based Know Labs was based to develop its KnowU and UBand units for exterior testing and monitoring of blood glucose ranges and probably different very important indicators in people.

Management is headed by Chief Executive Officer Phillip A. Bosua, who has been with the agency since 2017 and was beforehand founder and CEO of LIFX, a wise gentle bulb producer and previous to that was founder and CEO of LimeMouse Apps, a cell app developer on the iOS platform.

The firm is searching for to develop measurement applied sciences utilizing electromagnetic power to carry out sensing features (Bio-RFID) for customers.

Know Labs has booked truthful market worth funding of $100 million as of March 31, 2022, from buyers together with Clayton Struve and others.

The agency continues to be in improvement for its major units which would require U.S. FDA advertising and marketing clearance, and the corporate has undertaken comparability reference testing with present glucose monitoring merchandise as a part of that course of.

Know Labs generated income in Q1 2022 not from product gross sales, however from the sale of NFTs, or crypto Non-Fungible Tokens.

Know Labs’ Market & Competition

According to a 2022 market research report by Grand View Research, the worldwide market for blood glucose monitoring units was an estimated $11.7 billion in 2021 and is forecast to succeed in $21.7 billion by 2030.

This represents a forecast CAGR of 8.0% from 2022 to 2030.

The major drivers for this anticipated development are an growing consciousness by customers for monitoring their blood sugar stage and a rising variety of sufferers affected by diabetes or pre-diabetic circumstances.

Also, under is a chart exhibiting the U.S. blood glucose monitoring market historical past and projected future development trajectory from 2020 to 2030:

U.S. Blood Glucose Monitoring Devices Market

U.S. Blood Glucose Monitoring Devices Market (Grand View Research)

Major aggressive or different business contributors embody:

  • Abbott Laboratories (ABT)

  • Medtronic plc (MDT)

  • F. Hoffmann-La Roche Ltd.

  • Ascensia Diabetes Care

  • DexCom, Inc. (DXCM)

  • Sanofi (SNY)

  • Novo Nordisk (NVO)

  • Insulet Corporation (PODD)

  • Ypsomed Holding

  • Glysens Incorporated

Know Labs Financial Performance

The firm’s latest monetary outcomes might be summarized as follows:

  • Topline income from unrelated NFT gross sales

  • Continued working losses

  • Variable money utilized in operations

Below are related monetary outcomes derived from the agency’s registration assertion:

Total Revenue

Period

Total Revenue

% Variance vs. Prior

Six Mos. Ended March 31, 2022

$ 4,360,087

–%

FYE September 30, 2021

$ –

-100.0%

FYE September 30, 2020

$ 121,939

Gross Profit (Loss)

Period

Gross Profit (Loss)

% Variance vs. Prior

Six Mos. Ended March 31, 2022

$ 1,087,225

1982.3%

FYE September 30, 2021

$ –

–%

FYE September 30, 2020

$ –

Gross Margin

Period

Gross Margin

Six Mos. Ended March 31, 2022

24.94%

FYE September 30, 2021

0.00%

FYE September 30, 2020

0.00%

Operating Profit (Loss)

Period

Operating Profit (Loss)

Operating Margin

Six Mos. Ended March 31, 2022

$ (3,712,408)

-85.1%

FYE September 30, 2021

$ (10,446,148)

–%

FYE September 30, 2020

$ (6,825,928)

-5597.8%

Net Income (Loss)

Period

Net Income (Loss)

Net Margin

Six Mos. Ended March 31, 2022

$ (11,497,357)

-263.7%

FYE September 30, 2021

$ (25,360,213)

-581.6%

FYE September 30, 2020

$ (13,562,641)

-311.1%

Cash Flow From Operations

Period

Cash Flow From Operations

Six Mos. Ended March 31, 2022

$ (1,022,019)

FYE September 30, 2021

$ (6,850,699)

FYE September 30, 2020

$ (3,913,803)

(Glossary Of Terms)

(Source – SEC)

As of March 31, 2022, Know Labs had $11.2 million in money and $5.9 million in whole liabilities.

Free money stream in the course of the twelve months ended March 31, 2022, was damaging ($5.7 million).

Know Labs, Inc. IPO Details

Know Labs intends to lift $6 million in gross proceeds from an IPO uplisting of its widespread stock, providing 3 million shares at a proposed worth of $2.00 per share.

No present shareholders have indicated an curiosity to buy shares on the IPO worth.

Assuming a profitable IPO, the corporate’s enterprise worth at IPO would approximate $77.7 million, excluding the results of underwriter over-allotment choices.

The float to excellent shares ratio (excluding underwriter over-allotments) shall be roughly 6.41%. A determine underneath 10% is mostly thought-about a ‘low float’ stock which might be topic to vital worth volatility.

Management says it’s going to use the online proceeds from the IPO as follows:

Proposed Use Of Proceeds

Proposed Use Of Proceeds (SEC EDGAR)

Management’s presentation of the corporate roadshow isn’t out there.

Regarding excellent authorized proceedings, administration mentioned the corporate isn’t presently a celebration to any authorized continuing ‘that’s not unusual routine litigation incidental to our enterprise.’

The sole listed bookrunner of the IPO is Boustead Securities.

Valuation Metrics For Know Labs

Below is a desk of related capitalization and valuation figures for the corporate:

Measure [TTM]

Amount

Market Capitalization at IPO

$93,653,562

Enterprise Value

$77,655,292

Price / Sales

21.48

EV / Revenue

17.81

EV / EBITDA

-5.48

Earnings Per Share

-$0.78

Operating Margin

-324.73%

Net Margin

-845.34%

Float To Outstanding Shares Ratio

6.41%

Proposed IPO Midpoint Price per Share

$2.00

Net Free Cash Flow

-$5,716,879

Free Cash Flow Yield Per Share

-6.10%

Debt / EBITDA Multiple

-0.03

CapEx Ratio

-4.24

(Glossary Of Terms)

(Source – SEC)

Commentary About Know Labs’ IPO

KNW is searching for public capital market funding to advance its medical gadget improvement plans.

The firm’s financials have produced income solely from unrelated NFT gross sales, appreciable working losses, and fluctuating money utilized in operations.

Free money stream for the twelve months ended March 31, 2022, was damaging ($5.7 million).

The agency presently plans to pay no dividends and intends to retain any future earnings to reinvest again into the enterprise.

The market alternative for improved blood glucose monitoring applied sciences is giant and anticipated to develop as the worldwide inhabitants ages and has a better incidence of diabetic-related circumstances.

Boustead Securities is the only real underwriter, and IPOs led by the agency during the last 12-month interval have generated a mean return of damaging (6.5%) since their IPO. This is a lower-tier efficiency for all main underwriters in the course of the interval.

The major threat to the corporate’s outlook is that its major product continues to be in improvement stage and its U.S. FDA approval is an unknown.

As for valuation, administration is asking buyers to pay an Enterprise Value of above $77 million for an organization with no accredited or commercialized product.

While day merchants or different retail buyers could also be drawn to the extraordinarily low nominal worth per share for the IPO and create vital early buying and selling volatility, I’m on Hold for the corporate’s prospects.

Expected IPO Pricing Date: To be introduced.



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