Greetings, and welcome to the Know Labs Fiscal Year 2023 First Quarter Earnings Conference Call and Webcast. Please note, this conference call is being recorded. I will now turn the conference call over to Jordyn Hujar, Know Labs’ Chief of Staff. You may begin.

Thank you, operator. Thank you, everyone, for joining us for today’s conference call to discuss Know Labs first quarter of fiscal year 2023 financial results and recent operating highlights. If you have not seen today’s financial results, press release and 10-Q filings, please visit the Investors page on the Company’s website. Before turning the call over to Ron Erickson, Know Labs’ Chairman and Chief Executive Officer, I would 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 limitations, the Company’s Form 10-K and 10-Q, which identify specific risk factors that may cause actual results or events to differ materially from those described in these forward-looking statements. These factors may include, without limitation, risks inherent in the development and/or commercialization of potential diagnostic products; uncertainty and the results of clinical trials or regulatory approvals; the need to obtain third-party reimbursement for patients use 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 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 maintain any laboratory accreditation or FDA certification; and uncertainties associated with the COVID-19 pandemic and its possible effects on our operations. Therefore, actual outcomes and results may differ materially from what is expressed or implied by 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. Today’s call will be followed by a Q&A session. Your questions can be submitted through the webcast portal, which can be accessed through our website. Due to the large number of participants on today’s call, we will not be taking questions over the phone. With that, I’ll turn the call over to Ron Erickson, Know Labs’ CEO. Ron?

Thanks, Jordyn, and welcome, everyone, to our conference call to discuss our first quarter 2023 financial results and operating highlights. Joining me today is Pete Conley, our Chief Financial Officer, who will discuss our financial results. Today, I’m going to walk through our progress against our strategic milestones, provide an overview of our achievements for the fiscal quarter ending on December 31, 2022, and preview our goals for the balance of fiscal year 2023. Our team continues to work to bring the first FDA-cleared, non-invasive glucose monitoring device to the market. We have made significant changes to our leadership team to accelerate our execution. As disclosed on January 26, Phil Bosua will step down as an Executive Officer of the company and Board member, and I was named Chief Executive Officer by the company’s Board of Directors while continuing as Chairman of the Board. Phil remains engaged with Know Labs in a consulting capacity, which will allow him to pursue his passion for new discoveries in science, software and artificial intelligence, while providing as needed technical guidance to our product development team. We welcomed new members to the executive team and redistributed core responsibilities. These leadership changes were detailed in a press release issued on January 27. This new structure should accelerate product development and testing, while work towards the FDA clearance process for medical devices is being executed in parallel. I believe we put an aggressive and results oriented plan in place, which I’ll review with you this afternoon. We also recently disclosed on February 2nd strategic partners in data science, sensor technology, product design and regulatory affairs, who we’ve been engaging with over the past few years and are continuing and they are supportive in the Labs’ team. We are fortunate to have world-class respected experts working alongside…

Thank you, Ron. We detailed the financial results in today’s first quarter earnings release, which, as noted by Jordyn, you can find on our website. But I’ll share a few key line items with you now. Know Labs reported a net loss of $3.82 million in the first quarter of 2023 compared to a net loss of $5.36 million in the year-ago period, which translates to earnings per share of a loss of $0.08, an improvement over the year-ago period of $0.15. I would note the net loss for the first quarter of $3.82 million included non-cash expense of $1.05 million, comprised primarily of stock-based compensation, warrant expense and depreciation and amortization. Research and development expense for the first quarter was $1.74 million as compared to $886,000 in 2022. The increase in R&D expense was related to staff increases in engineering, third-party technical services and expenditures related to the development of our Bio-RFID technology as we continue to execute our path to FDA clinical trials and commercialization. Selling, general and administrative expense for the quarter was $1.91 million versus $1.22 million in 2022, which increased versus the prior year, primarily due to key additions to the executive team and increases in third-party services. Turning now to the balance sheet. As of December 31, 2022, we had cash and cash equivalents of $9.68 million as compared to $12.5 million at the end of September 30, 2022. Net cash used in operations for the quarter was $2.92 million, compared to $1.91 million in the prior year. We believe our cash on hand will be sufficient to fund our operations through February 15, 2024. That concludes my review of our financial highlights. And I’ll return the call back to Ron.

Thanks, Pete. We now like to dedicate the next few minutes to questions submitted through the webcast portal. And I believe we have some. So the first question, when will Know Labs apply for FDA approval? Our intent and this – there are several parts to this. And I’ve talked to many of you independently regarding how this process works. When you go to the FDA, obviously, you have to go with a product that’s complete, that’s ready to go in the market place. It has to have the final form factor. It has to have the final operating algorithms. It has to have all of those elements come together. So as we do this and as we work to get toward the FDA, please understand that there are a number of pieces to this that have to come together simultaneously in order for us to go to the FDA with credibility. It is our expectation that those pieces will come together and we’ll be able during the course of the year to announce many of those elements that we will be able to go to the FDA for submission during the course of 2023. So that should be your expectation by the end of 2023 that all of those elements will coalesce to allow us to do that. One of the things is sort of an admonition. As we do this, a lot of what we do is it involves third parties. And as we found over the last couple of years, sometimes third parties are not as responsive as you’d like to have them be. So I’d like to throw that out and indicate that that we are dealing with third parties and we encourage them to work as rapidly and as – and it’s such a focused…

Ron, I can take that. In both the 10-Q on our website, I would direct investors to Page 34 in the index of exhibits, on item 10.8 is the link to Phil’s separation agreement. So I invite all of you that want to delve into that to read the agreement. But I can just summarize at a high level some of the key points under the terms of the separation and the lease agreement. Phil was paid one-year severance, and then we hired Phil as a consultant for a period of one-year at a rate of $10,000 a month. The company transferred to Phil certain assets related to AI Mind, which is a subsidiary we have established to pursue certain AI activities. AI has really filled passion and we felt it was appropriate to let Phil continue to do his work in AI. Additionally, the company will have an exclusive perpetual and royalty free right to any patents or other IP that Phil develops for anyone working with or under Phil relating to Bio-RFID for a period of five years, following his separation on January 26th. And lastly, Phil executed a lock-up with our agreement as pertains to his 3 million shares of the common stock that he owns. Outside of that, he forfeited – Phil forfeited stock options totaling approximately 7.4 million shares and all of that, again, is reflected in the separation agreement, which you can find linked to the 10-Q.

There’s a follow-on question. With Phil in a different position with Know Labs, but your progress slowed down. And I would say the short answer is no. Phil will continue to be a consultant with the company. We’ve got a great team in place. Phil was the inventor of the foundational IP that underscores and supports Bio-RFID. We’ve got very precise roadmap and path that we’re following to accelerate the progress of the company based upon Phil’s invention. And so, no, I think progress will not slow down and we’re also supported by Phil and his consulting capacity. So I think it’s full speed ahead. That’s how the team feels. That’s how I feel. And so we’ve got a big head of steam and excited to see the year unfold. Another question that just came in, I think this relates to as we get ready to go to the FDA, only go to the market. One of the questioners wanted to know if Racer – if we still have a relationship with Racer Technology, if they will still be our manufacturing partner? Yes, they will. We’re still working with them. In fact, we have a call with them later today. They’ve been to Seattle, we’ve been to Singapore. They are very renowned in their capacity to build world-class medical devices. We continue to work with them and expect we will do so for the long haul. Another question that just came in, because we’re a platform technology, people often ask us about other things we can do with this technology in addition to glucose. And the question is whether or not we’re going to seek some of those other opportunities as we go through the process to obtain FDA clearance for our technology for blood glucose monitoring. The short answer…

Thanks, Ron. The conference call replay will be available on our website in the coming days. Thank you, everyone, for your participation.

Thank you. That does conclude today’s teleconference and webcast. You may now disconnect.