S-1: Know Labs Eyes Public Offering to Advance Non-Invasive Glucose Monitoring Technology

Know Labs files for a firm commitment public offering of units consisting of common stock and warrants to fund the development and commercialization of its non-invasive glucose monitoring technology.

Summary

• Know Labs, Inc., a Nevada-based company focused on non-invasive medical diagnostics, has filed a registration statement for a proposed public offering.
• The offering consists of units, each comprising one share of common stock and one warrant to purchase one share of common stock.
• The assumed offering price is $_____ per unit, approximating the last reported sale price of Know Labs' common stock on the NYSE American on June _____, 2024.
• The warrants will have an exercise price of $_____ per share, exercisable upon FDA clearance of the KnowU product or a change in control of the company, and will expire five years from issuance.
• The company intends to use the net proceeds for continuing operating expenses and working capital.
• Boustead Securities, LLC is acting as the sole book-running manager for the offering.
• The company is also registering the shares of common stock issuable from time to time upon the exercise of the warrants included in the units.
• The company has granted the underwriters an option exercisable within 30 days of the date of this prospectus to purchase from us an aggregate of _____ additional shares of common stock at an assumed purchase price of $_____ per share and/or _____ additional warrants at a purchase price of $_____ per warrant, less, in each case, the underwriting discounts and commissions.

Sentiment

Score: 6

Explanation: The document presents a mix of positive and negative aspects. The potential of the technology and the market opportunity are positives, but the company's financial situation and regulatory hurdles create uncertainty.

Positives

• The company's technology is non-invasive, using radio waves to identify and measure what is going on inside the body.
• The company's sensor technology platform can be integrated into a variety of wearable, mobile, or counter-top form factors, and we believe eventual interoperability with existing products from current market leaders.
• No needles nor invasive transmitters in your body, making our sensor convenient and pain-free.
• No expensive supplies, such as replaceable sensors, test strips and lancets or other disposables, are required to operate our device.
• A core focus on accessibility and affordability for the populations we will serve around the globe.
• Know Labs is the world intellectual property leader in non-invasive blood glucose monitoring, according to ipCG Capital and PatSnap Research.

Negatives

• The warrants are speculative in nature and there is not expected to be an active trading market for the warrants.
• The warrants will become exercisable only if we achieve FDA clearance of our KnowU product or our company completes a control prior to expiration of the warrants.
• The company has a history of operating losses and there can be no assurance that we can achieve or maintain profitability.
• The company may not be able to maintain a listing of our common stock on the NYSE American.

Risks

• The company might not be able to continue as a going concern.
• The company is still in the early stages of commercialization, refining its technology.
• The company is subject to extensive regulation by FDA, which could restrict the sales and marketing of our products and could cause us to incur significant costs.
• The market price of our common stock may fluctuate, and you could lose all or part of your investment.
• The company may be unable to achieve FDA clearance of our KnowU product and a change in control of our company may not occur prior to the expiration of the warrants, in which case the warrants will not become exercisable for shares of our common stock.

Future Outlook

The company plans to expand its sensor technology to other non-invasive medical diagnostic applications following FDA clearance of its blood glucose monitoring device and leverage its intellectual property portfolio to generate revenues through patent licensing.

Industry Context

The company operates in the competitive medical diagnostics market, specifically targeting the diabetes glucose monitoring segment, and aims to differentiate itself through non-invasive technology and potential for broader applications.

Comparison to Industry Standards

• The company's technology is compared to existing continuous glucose monitors from Abbott Labs (Freestyle Libre) and Dexcom (G6).
• The company aims to address the limitations of non-invasive optical technologies, whose diagnostic capacities may be inhibited by skin tones and other factors.
• The company's technology is differentiated from industry leaders as our technology completely non-invasively monitors blood glucose levels.

Stakeholder Impact

• Shareholders: Dilution from the offering, potential for long-term value creation if the technology is successful.
• Employees: Continued employment and potential for growth within the company.
• Customers: Potential access to a new, non-invasive glucose monitoring solution.
• Suppliers: Continued business relationships and potential for increased demand.
• Creditors: Potential for improved financial stability and ability to repay debts.

Next Steps

• Continue internal and external clinical testing of the KnowU device.
• Refine the device over time.
• Pursue FDA clearance for the non-invasive blood glucose monitoring device.
• Expand sensor technology to other non-invasive medical diagnostic applications.
• Leverage intellectual property portfolio for patent licensing opportunities.

Key Dates

Keywords

glucose monitoring, non-invasive, FDA clearance, public offering, warrants, common stock, Know Labs, diagnostics, sensor, AI, ML