8-K: Know Labs Faces Delisting from NYSE American Due to Low Stock Price, Moves to OTC Market

Know Labs, Inc. is facing delisting from the NYSE American due to its low stock price and has begun trading on the OTC Pink Market while it appeals the decision.

Summary

• Know Labs, Inc. has received notice from NYSE American that it is commencing proceedings to delist the company's common stock due to the stock price falling below the required minimum.
• The company's stock has been suspended from trading on the NYSE American.
• Know Labs has requested a review of the delisting decision by the Listings Qualifications Panel of the NYSE American.
• The company's common stock began trading on the OTC Pink Market under the symbol KNWN on January 30, 2025.
• Know Labs intends to apply to have its stock quoted on the OTCQB market, but there is no guarantee of approval.
• The company is working on curative actions to regain compliance and maintain its listing.
• The delisting is due to the stock price falling below $0.10, violating Section 1003(f)(v) of the NYSE American Company Guide.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the delisting from the NYSE American, despite the company's efforts to appeal and move to the OTC market. The company's future is uncertain.

Positives

• Know Labs is actively appealing the delisting decision.
• The company has initiated a licensing program for its platform technology.
• Know Labs has received peer-reviewed recognition for its work.
• The company has successfully reduced overhead.
• Know Labs continues to advance its proprietary technology.
• The company is committed to delivering non-invasive diagnostics to the marketplace.

Negatives

• Know Labs' stock is being delisted from the NYSE American due to its low price.
• The company's stock has been suspended from trading on the NYSE American.
• There is no guarantee that the appeal against delisting will be successful.
• There is no assurance that the company's stock will be approved for trading on the OTCQB market.

Risks

• The company faces the risk of not being able to successfully appeal the delisting decision.
• There is a risk that the company's stock may not be approved for trading on the OTCQB market.
• The delisting could negatively impact investor confidence and the company's ability to raise capital.
• The company's stock price may continue to be volatile in the OTC market.

Future Outlook

Know Labs intends to appeal the delisting decision and apply to have its stock quoted on the OTCQB market. The company is also working on curative actions to regain compliance with NYSE listing requirements. They remain focused on their business plan and delivering non-invasive diagnostics.

Management Comments

• Know Labs' CEO, Ron Erickson, stated that it is unfortunate the company is facing delisting, especially after recent progress.
• Management believes the company has a bright future and is committed to strengthening relationships with shareholders and stakeholders.
• The company remains steadfast in its goal to deliver non-invasive diagnostics, with a focus on blood glucose monitoring.

Industry Context

The delisting of Know Labs highlights the challenges faced by companies with low stock prices, particularly in the current market environment. It also underscores the importance of maintaining compliance with exchange listing requirements. The company's move to the OTC market is a common step for companies facing delisting.

Comparison to Industry Standards

• Delisting due to low stock price is not uncommon, particularly for smaller companies or those in volatile sectors.
• Many companies facing delisting move to the OTC markets to continue trading.
• The process of appealing a delisting decision is standard practice, but success is not guaranteed.
• Other companies in the medical device and diagnostics space, such as Dexcom and Abbott, maintain listings on major exchanges and have significantly higher stock prices, highlighting the challenges Know Labs faces.

Stakeholder Impact

• Shareholders will be negatively impacted by the delisting and the move to the OTC market.
• Employees may experience uncertainty due to the company's financial challenges.
• Customers and suppliers may be concerned about the company's long-term viability.
• Creditors may be more cautious about extending credit to the company.

Next Steps

• Know Labs will request a review of the delisting decision by the Listings Qualifications Panel of the NYSE American.
• The company will continue trading on the OTC Pink Market.
• Know Labs intends to apply to have its stock quoted on the OTCQB market.
• The company will work on curative actions to regain compliance with NYSE listing requirements.

Key Dates

Keywords

delisting, NYSE American, OTC Pink Market, OTC Markets, stock price, compliance, appeal, KNWN, radio frequency dielectric spectroscopy, non-invasive diagnostics, blood glucose monitoring