USBC Inc (USBC) 2025 Q1 法說會逐字稿

Greetings, and welcome to the Know Labs first quarter 2025 earnings conference call. Please note, this conference call is being recorded.

您好，歡迎參加 Know Labs 2025 年第一季財報電話會議。請注意，本次電話會議正在錄音。

I will now turn the conference over to Ron Erickson, Know Labs' Chairman and Chief Executive Officer. You may begin.

現在，我將會議交給 Know Labs 董事長兼執行長 Ron Erickson。你可以開始了。

Thank you, operator, and thank you, everyone, for joining us for this conference call today to review Know Lab's first quarter 2025 financial results and operating highlights.

謝謝接線員，也謝謝大家今天參加我們的電話會議，回顧 Know Lab 2025 年第一季的財務表現和營運亮點。

Joining me today is Pete Conley, our Chief Financial Officer and Senior Vice President of Intellectual Property, who will discuss our financial results. If you have not seen today's financial results, press release, and 10-Q filing, please visit the Investors page on the company's website at www.knowlabs.co.

今天與我一起討論我們的財務表現的是我們的財務長兼知識產權高級副總裁 Pete Conley。如果您還沒有看到今天的財務結果、新聞稿和 10-Q 文件，請訪問公司網站 www.knowlabs.co 上的投資者頁面。

Before providing an update on our activities, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. Any statements that are not historical facts are forward-looking statements. We encourage you to review the company's SEC filings, including, without limitation, the company's Form 10-K and 10-Qs, which identify specific risk factors that may cause actual results or events to differ materially from those described in these forward-looking statements.

在提供我們活動的最新進展之前，我想提醒您，在本次電話會議期間，公司將對未來事件做出預測和前瞻性陳述。任何非歷史事實的陳述都是前瞻性陳述。我們鼓勵您查看公司的 SEC 文件，包括但不限於公司的 10-K 表和 10-Q 表，這些文件確定了可能導致實際結果或事件與這些前瞻性陳述中描述的結果或事件存在重大差異的具體風險因素。

These factors may include, without limitation, risks inherent in the development or commercialization of potential diagnostic products, uncertainty in the results of clinical trials or regulatory approvals, the need to obtain third-party reimbursement for patients' used of any diagnostic products the company commercializes, our need and ability to obtain future capital and maintenance of IP rights, risks inherent in strategic transactions such as a failure to realize anticipated benefits, legal, regulatory or political changes in the applicable jurisdictions, accounting and quality controls, greater-than-estimated allocations of resources to develop and commercialize technologies or failure to main any laboratory accreditation or FDA certification.

這些因素可能包括但不限於潛在診斷產品的開發或商業化固有的風險、臨床試驗或監管部門批准結果的不確定性、患者使用公司商業化的任何診斷產品時獲得第三方報銷的需要、我們獲得未來資本和維護知識產權的需要和能力、戰略交易固有的風險（例如未能實現預期的收益）、適用司法管轄區的法律、監管或政治變化、批准或政治認證、超過 會計和金融技術認證或政治認證或 獲得商業認證的政治認證或政治認證。

Therefore, actual outcomes and results to differ materially from what is expressed or implied in these forward-looking statements. Know Labs expressly disclaims any intent or obligation to update these forward-looking statements, except as otherwise may be required under applicable law.

因此，實際結果與這些前瞻性陳述中所表達或暗示的內容有重大差異。Know Labs 明確表示不承擔任何更新這些前瞻性聲明的意圖或義務，除非適用法律另有規定。

This quarterly update is being recorded as I have a personal matter, a family funeral that I'll be attending tomorrow, hence, we will not be able to have a Q&A session at the end of this call.

由於我有一些個人事務，明天要參加一個家庭葬禮，因此我們正在錄製本次季度更新，因此，我們將無法在本次通話結束時進行問答環節。

With that, I will continue the call by reviewing the operating highlights of our first quarter for fiscal year 2025. Since our last call, there have been a lot of activities at the company. Here today, I'll provide a brief update on those activities and the progress we've made and some detail regarding our newly announced Know Labs Technology licensing, which we refer to by the acronym KTL.

接下來，我將繼續回顧 2025 財年第一季的營運亮點。自從我們上次通話以來，公司已經發生了很多活動。今天，我將在這裡簡要介紹這些活動和我們取得的進展，以及有關我們新宣布的 Know Labs 技術許可（我們用首字母縮寫詞 KTL 來稱呼）的一些細節。

In May 2024, we created the Know Labs Skunkworks to pursue IP monetization and a global patent licensing program. We believe at that time, based upon unsolicited inbound inquiries that there is a large opportunity to work with potential strategic partners and customers and drive revenue from noncore fields of use of the Know Labs platform technology, both in the US and globally. As we studied those opportunities, it became clear that we needed to give them a more precise focus than provided by the informal Skunkworks. As a consequence, we put together during the past quarter, the comprehensive Know Labs Technology licensing program, which, as I say, we identified by the acronym KTL.

2024 年 5 月，我們創建了 Know Labs Skunkworks，以推行 IP 貨幣化和全球專利授權計畫。我們當時根據主動提出的來電詢問認為，在美國和全球範圍內，有很大機會與潛在的策略合作夥伴和客戶合作，並從 Know Labs 平台技術的非核心使用領域獲得收入。當我們研究這些機會時，我們清楚地認識到，我們需要給予它們比非正式的臭鼬工廠提供的更精確的關注。因此，我們在上個季度製定了全面的 Know Labs 技術許可計劃，正如我所說，我們用首字母縮寫 KTL 來表示。

First, some background for those of you unfamiliar with the company's work. We're an innovative leader in the field of diagnostic and analytical technologies inventing and pioneering the development of a groundbreaking sensor platform using Radio Frequency Dielectric Spectroscopy, which we refer to as RFDS. The Know Labs Technology licensing KTL program is designed to offer diverse industries access to this advanced sensor technology, enabling new applications and fostering collaboration in various sectors. RFDS is a cutting-edge technology that uses radio frequency to major dielectric properties of materials.

首先，向那些不熟悉該公司工作的人介紹一些背景。我們是診斷和分析技術領域的創新領導者，發明並率先開發使用射頻介電光譜的突破性感測器平台，我們稱之為 RFDS。Know Labs 技術授權 KTL 計畫旨在為不同產業提供這種先進感測器技術，實現新的應用並促進各個領域的合作。RFDS 是一種利用射頻來研究材料主要介電特性的尖端技術。

By analyzing the interaction between electromagnetic waves and materials, RFDS provides precise and noninvasive measurements, making it idle for various applications from medical diagnostics to industrial processes. RFDS operates on the principal of dialectic spectroscopy, where the dialectic properties of material are measured by exposing it to a range of radio frequencies. The interaction of these frequencies with the material creates a signature response, which can be analyzed to obtain detailed information about the materials composition and properties. This noninvasive method ensures high accuracy and reliability.

透過分析電磁波和材料之間的相互作用，RFDS 提供精確、非侵入性的測量，使其適用於從醫療診斷到工業過程的各種應用。RFDS 採用辯證光譜的原理進行操作，透過將材料暴露於一系列無線電頻率來測量材料的辯證特性。這些頻率與材料的相互作用產生了特徵響應，可以透過分析該響應來獲取有關材料成分和特性的詳細資訊。這種非侵入性方法確保了高準確性和可靠性。

As we performed research on our Skunkworks, we came to realize from that real experience that Know Labs RFDS sensor platform had the potential to revolutionize multiple industries. In the medical field, it could be used, as you know, for blood glucose monitoring, early disease detection and personalized health management. In the industrial sector, RFDS can optimize manufacturing processes, improve quality control, and ensure the safety and authenticity of products. RFDS can truly act as an authenticating watermark, providing certainty that the object or material is what it purports to be.

當我們對 Skunkworks 進行研究時，我們從真實的經驗中意識到 Know Labs RFDS 感測器平台有可能徹底改變多個產業。在醫療領域，如您所知，它可以用於血糖監測、早期疾病檢測和個人化健康管理。在工業領域，RFDS可以優化製造流程，改善品質控制，並確保產品的安全性和真實性。RFDS 確實可以充當認證浮水印，確保物體或材料確實如其所聲稱的那樣。

The versatility of RFDS opens endless possibilities for innovation. I'd like to say when asked about the most interesting or unique application of our technology. The most unique application is the one I cannot yet mention.

RFDS 的多功能性為創新開啟了無限的可能性。當被問到我們的技術最有趣或最獨特的應用時，我想說。最獨特的應用程式是我目前還不能提及的。

Now for some details on the KTL program. The primary objectives of the KTL program are to expand the reach, expand the application of our technology by partnering with industry leaders, researchers, and developers. We want to foster innovation. We want to encourage the development of new products and new solutions utilizing our technology. We want to create a network of collaborators by building collaborations with partners who can contribute to the advancement of our RFDS technology, and we want to enhance our market presence. We want to establish RFDS as a standard technology in various fields ensuring its wide spread recognition and adoption.

現在介紹一下 KTL 計劃的一些細節。KTL 計劃的主要目標是透過與行業領導者、研究人員和開發人員合作來擴大影響範圍並擴大我們技術的應用。我們希望促進創新。我們希望利用我們的技術來促進新產品和新解決方案的開發。我們希望透過與能夠為我們的 RFDS 技術進步做出貢獻的合作夥伴建立合作關係來創建一個合作者網絡，並且我們希望增強我們的市場影響力。我們希望將 RFDS 確立為各個領域的標準技術，確保其廣泛的認可和採用。

The KTL program offers numerous benefits to its licensees, obviously, access to our cutting-edge technology, comprehensive support from the Know Labs team, technical support, training, and other resources to help us integrate our technology into their operation, provides for collaborative development and it provides a market advantage. Licensees who adopt our technology can differentiate themselves in the market, offering unique and superior products and services.

KTL 計劃為其許可證持有者提供了許多好處，顯然，他們可以使用我們的尖端技術、Know Labs 團隊的全面支援、技術支援、培訓和其他資源，以幫助我們將我們的技術融入到他們的營運中，提供協作開發並提供市場優勢。採用我們技術的被授權人可以在市場上脫穎而出，提供獨特、優質的產品和服務。

Our licensing process at KTL is designed to be straightforward and efficient and involves basic steps. There's the initial consultation followed by technical evaluation, negotiation of agreement, implementation and ongoing collaboration. As the adoption of RFDS technology continues to grow, Know Labs is committed to expanding the KTL program and exploring new opportunities for collaboration.

KTL 的授權流程設計得簡單、高效，僅包含基本步驟。初步諮詢之後是技術評估、協議談判、實施和持續合作。隨著 RFDS 技術的應用不斷增長，Know Labs 致力於擴展 KTL 計劃並探索新的合作機會。

The company envisions a future where RFDS technology becomes a cornerstone in various industries, driving innovation and improving lives. Know Labs is dedicated to ongoing research and development to enhance the capabilities of its RFDS technology. We invest in cutting-edge research, collaborate with academic institutions and work to stay on the forefront of technological advancements to ensure that our sensor platform evolves and remain state-of-the-art.

該公司設想未來 RFDS 技術將成為各行業的基石，推動創新並改善生活。Know Labs 致力於持續研究和開發，以增強其 RFDS 技術的功能。我們投資尖端研究，與學術機構合作，努力保持技術進步的前沿，以確保我們的感測器平台不斷發展並保持領先地位。

At Know Labs, we aim to expand the reach of the KTL program on a global scale by partnering with international organizations and industry leaders, bringing the benefits of our technology to a wider audience, fostering global innovation and progress.

在 Know Labs，我們旨在透過與國際組織和產業領袖合作，擴大 KTL 計畫在全球的影響力，將我們技術的優勢帶給更廣泛的受眾，促進全球創新和進步。

Now for a corporate update. On the corporate side, we've had our hands full. Combined with existing work and the development of the KTL initiative, I told a long-term shareholder yesterday that I felt like the proverbial one-arm paper hanger. Much of what has happened on the corporate side has been publicly detailed. It is my opinion and the opinion of the others that the company over a period of time has been under ruthless attack by short sellers.

現在來介紹一下公司的最新動態。在公司方面，我們已經忙得不可開交。結合現有的工作和 KTL 計劃的發展，我昨天告訴一位長期股東，我感覺自己就像傳說中的獨臂裱糊匠。公司方面發生的許多事情都已公開。我和其他人都認為，該公司一段時間以來一直受到賣空者的無情攻擊。

That commenced during the middle of last year and continued unabated through the end of the year and accelerated in January. So the net impact of that activity made it difficult for the company to raise capital and ultimately led to the decision by the New York Stock Exchange, the American aspect of that exchange, to suspend trading in Know Labs stock and commence a delisting process, which we have appealed. As we move through the regulatory process with the NYSE American, we will continue to keep you, our shareholders, advised on developments.

這一趨勢始於去年年中，一直持續到年底，並在一月加速。因此，該活動的淨影響使公司難以籌集資金，並最終導致紐約證券交易所（該交易所的美國部分）決定暫停 Know Labs 股票交易並開始退市程序，我們已對此提出上訴。隨著我們與紐約證券交易所美國分部的監管程序不斷推進，我們將繼續向您（我們的股東）通報最新進展。

For my part, I only want to emphasize our aggressive activities with KTL to generate near-term revenues from our robust platform. That will obviate some of our need for capital and put short sellers on notice. We'll continue to focus on our core objectives, which is the successful development of the KnowU to obtain FDA approval. However, we believe we can achieve faster monetization of our technology through strategic collaboration with major players and the capitalization of our intellectual property assets.

就我而言，我只想強調我們與 KTL 的積極合作，以便從我們強大的平台產生短期收入。這將消除我們對資本的部分需求，並引起賣空者的注意。我們將繼續專注於我們的核心目標，即成功開發 KnowU 並獲得 FDA 批准。然而，我們相信，透過與主要參與者的策略合作以及智慧財產權資產的資本化，我們可以更快地實現技術貨幣化。

We've increased our efforts on this front, and we'll continue funneling resources into it. Meanwhile, KTL will help maximize shareholder value while bringing disruptive technology to the market that can have an impact on the lives of millions of people around the globe. I'm proud of our work this last quarter. We remain committed to bringing our technology into the marketplace and making a difference in the world.

我們已加大這方面的努力，並將繼續投入資源。同時，KTL 將有助於實現股東價值最大化，同時將顛覆性技術推向市場，對全球數百萬人的生活產生影響。我對我們上個季度的工作感到自豪。我們始終致力於將我們的技術推向市場並為世界帶來改變。

I encourage you all to visit our Investor Relations website -- on the website, knowlabs.co, and to stay updated with our progress.

我鼓勵大家造訪我們的投資者關係網站—網站 knowlabs.co，並了解我們的最新進展。

Now I'd like to turn the call over to Pete Conley, who can review our financials. Pete?

現在我想把電話轉給 Pete Conley，他可以審查我們的財務狀況。皮特？

Thank you, Ron. We detailed the financial results in today's first quarter of fiscal year 2025 earnings release, which you can find as Ron indicated on our website. But I will cover a few key line items. Before I do, I would like to briefly cover a topic we get questions on from our investors and shareholders, and there may be some confusion about our financials, namely the topic of GAAP-based derivative accounting.

謝謝你，羅恩。我們在今天的 2025 財年第一季財報中詳細介紹了財務結果，正如 Ron 在我們的網站上指出的那樣，您可以找到它。但我將介紹幾個關鍵項目。在此之前，我想簡要介紹一下投資者和股東向我們提出的一個問題，大家可能對我們的財務狀況有些困惑，即基於 GAAP 的衍生性商品會計。

Derivatives are financial instruments whose value is derived from another asset. Common examples are stock options and warrants. Under GAAP, derivatives must be recognized on the balance sheet at fair value. The changes in the fair value of the derivatives are then recorded on the income statement with an immediate impact on earnings. potentially causing significant volatility in our reported net income.

衍生性商品是價值源自另一項資產的金融工具。常見的例子是股票選擇權和認股權證。根據 GAAP，衍生性商品必須以公允價值在資產負債表上確認。衍生性商品公允價值的變動隨後記錄在損益表中，並直接影響收益，可能導致我們報告的淨收入大幅波動。

Another area is in executive compensation. Changes in the fair value of vested options are recorded as an expense and affects net income. For all the volatility, GAAP-based derivative account may cause, it is important to remember these changes are non-cash accounting adjustments and not actual cash impacts from operations.

另一個領域是高階主管薪酬。已歸屬選擇權的公允價值變動被記錄為費用並影響淨收入。對於基於 GAAP 的衍生性商品帳戶可能引起的所有波動，重要的是要記住這些變化是非現金會計調整，而不是營運產生的實際現金影響。

With that said, for Q1 fiscal year 2025, Know Labs reported a net loss of $4.67 million compared with a net loss of $3.45 million in Q1 fiscal 2024. As stated, it is important to note this quarter's results were substantially impacted by significantly higher non-cash expense of $2.45 million, or in other words, 52% of the total net loss in the quarter from the aforementioned GAAP base derivative accounting and that compares to $792,000 and the same accounting adjustment a year ago that's an increase of 209%.

話雖如此，Know Labs 報告 2025 財年第一季淨虧損 467 萬美元，而 2024 財年第一季淨虧損 345 萬美元。如上所述，值得注意的是，本季度的業績受到 245 萬美元非現金支出的大幅影響，換句話說，佔本季度上述 GAAP 基礎衍生品會計總淨虧損的 52%，而去年同期的非現金支出為 792,000 美元，且會計調整相同，增幅為 209%。

So this quarter's non-cash charge to earnings of $2.45 million, as stated, related principally to GAAP-based derivative accounting for stock-based compensation of $551,000, loss on debt extinguishment of $728,000, interest expense for the repricing of warrants of $747,000, and amortization of debt issuance costs of $386,000.

因此，本季的非現金收益費用為 245 萬美元，主要與基於 GAAP 的衍生性商品會計有關，包括股票薪酬 551,000 美元、債務清償損失 728,000 美元、認股權證重新定價利息費用 747,000 美元以及債務發行成本攤銷 386,000 美元。

Net of these non-cash charges, cash earnings for Q1 fiscal 2025 were a net loss of $2.45 million versus a net loss of $2.66 million in the year ago quarter. This is an 8% improvement year-over-year. This translates to GAAP earnings per share of a loss of $0.04, unchanged from a year ago of preferred stock dividends.

扣除這些非現金費用後，2025 財年第一季的現金收益為淨虧損 245 萬美元，而去年同期的淨虧損為 266 萬美元。與去年同期相比，這一數字提高了 8%。這意味著每股 GAAP 收益虧損 0.04 美元，與一年前的優先股股息相同。

Net of non-cash expense, cash EPS was a loss of $0.02 versus a loss of $0.03 in the year ago period, an improvement of 33%, Research and development expense for Q1 fiscal 2025 was $802,000 as compared to $1.49 million in the year ago quarter. That's a decrease of 46% year-over-year. The decrease was due principally to the continued use of consultants to reduce the cost of product development. Selling, general, and administrative, expense for Q1 fiscal 2025 was $1.97 million, which was 2% lower than the $2.01 million in the year ago period. The decrease in SG&A was due primarily to lower insurance and other expenses.

扣除非現金支出後，現金每股收益虧損 0.02 美元，而去年同期虧損 0.03 美元，改善 33%，2025 財年第一季研發費用為 802,000 美元，去年同期為 149 萬美元。與去年同期相比下降了 46%。成本下降的主要原因是繼續聘用顧問來降低產品開發成本。2025 財年第一季的銷售、一般及行政費用為 197 萬美元，比去年同期的 201 萬美元下降 2%。銷售、一般及行政費用的減少主要是由於保險和其他費用的減少。

Turning now to the balance sheet. As of December 31, 2024, Know Labs had cash and cash equivalents of $1.03 million as compared to $3.11 million at the end of September 30, 2024. Net cash used in operations for the first quarter of fiscal '25 was $1.89 million compared with $3.39 million in the year ago period, a decrease in our cash burn rate of 44%.

現在來看資產負債表。截至 2024 年 12 月 31 日，Know Labs 的現金及現金等價物為 103 萬美元，而 2024 年 9 月 30 月底為 311 萬美元。25 財年第一季營運中使用的淨現金為 189 萬美元，去年同期為 339 萬美元，現金消耗率下降了 44%。

During the quarter, the company continued to make adjustments to its fixed expenses and the impact of those adjustments have significantly reduced our monthly burn rate. Given the significant reduction in fixed expenses, the company believes that it has enough cash and flexibility in operating expenses to operate until April 30, 2025.

本季度，公司繼續對固定支出進行調整，這些調整的影響顯著降低了我們的月度消耗率。鑑於固定費用的大幅減少，該公司認為其擁有足夠的現金和營運費用彈性，可營運至2025年4月30日。

As we have stated in our Q1 fiscal '25 10-Q, we expect to raise additional funds through the issuance of equity, preferred stock and/or convertible debentures. Finally, shareholder equity for Q1 fiscal 2025 was a negative $3.91 million versus a negative $3.16 million in fiscal 2024 ending September 30, 2024. We're taking steps to address our negative shareholder equity through the conversion of convertible debt to equity as well as new equity issuances, as previously mentioned.

正如我們在 2025 財年第一季 10-Q 報告中所述，我們預計透過發行股票、優先股和/或可轉換債券來籌集更多資金。最後，2025 財年第一季的股東權益為負 391 萬美元，而截至 2024 年 9 月 30 日的 2024 財年股東權益為負 316 萬美元。如同前面所提到的，我們正在採取措施，透過將可轉換債務轉換為股權以及發行新股權來解決我們的負股東權益問題。

That concludes my review of our financial highlights, and I'll return the call to Ron for closing remarks. Ron?

這就是我對我們財務亮點的回顧，我會回電給羅恩做最後發言。羅恩？

Thanks, Pete. As already mentioned, we won't have a Q&A session as this earnings call is prerecorded. The conference call replay will be available on our website in the coming days. In the meantime, thanks to all of you for joining us today.

謝謝，皮特。如同前面提到的，我們不會有問答環節，因為這次的收益電話會議是預先錄製。電話會議重播將在未來幾天內在我們的網站上提供。同時，感謝大家今天的參加。

There's a lot to look forward to in 2025, and we're excited to report on our progress. We appreciate your support, you, our shareholders, and the efforts of our employees, Board members, advisers and strategic partners. I want to thank all of you, and have a great day. All the very best.

2025 年有很多值得期待的事情，我們很高興能報告我們的進展。我們感謝您、我們的股東的支持，以及我們的員工、董事會成員、顧問和策略夥伴的努力。我想感謝你們所有人，祝你們有美好的一天。祝一切順利。