Know Labs Inc (NYSEAMERICAN:KNW), an emerging developer of non-invasive medical diagnostic technology, stock plunges 28.37% (As on December 20, 12:24:32 AM UTC-4, Source: Google Finance) after the company in the fourth quarter of FY 23 has reported the net loss of $15.29 million dollars in FY2023, compared to a net loss of $20.07 million dollars in FY2022, a reduction in net loss of 23.8%. This translates to Earnings Per Share of a loss of $0.41, better than FY2022 Earnings Per Share Loss of $0.50, an improvement of 18%, before preferred stock dividends. In FY2023, the company recorded a non-cash charge to earnings of $4.77 million principally related to the fair market value of dividends on our Series C and D preferred stock in the amount of $2.96 million, that were either paid or accrued in shares of common stock, and the remaining $1.81 million non-cash charge comprised of $310,000 in depreciation & amortization, $550,000 loss on the sale of assets, $507,000 loss on debt extinguishment, $350,000 from the modification of notes and warrants and $142,000 from the amortization of operating lease right of use during FY 2023.

Moreover, Research and development expense for FY2023 was $7.73 million dollars as compared to $5.39 million dollars in FY2022, an increase of 43.5% year over year. The increase in R&D expense was related to increases in engineering, third-party technical services, and expenditures related to the development of the Generation 1 device, which the company completed and announced on June 7^th, as the company continues to execute the path to FDA clinical trials and commercialization. As of September 30, 2023, we had cash and cash equivalents of $8.02 million dollars, as compared to $12.59 million at the end of September 30, 2022. Net cash used in operations for FY2023 was $10.35 million dollars compared with $6.92 million in the prior year.

During the year ended September 30, 2023, the Company made adjustments to its fixed expenses and the impact of those adjustments has significantly reduced the monthly burn rate. Given the significant reduction in fixed expenses, the Company believes that it has enough available cash and flexibility with its operating expenses to operate until at least June 30, 2024. As the Company have stated in the FY 2023 10-K, the Company expects to raise additional funds through the issuance of equity, preferred stock and convertible debentures. Shareholder equity for the fiscal year 2023 was $3.74 million versus $9.86 million in fiscal year 2022.