USBC (USBC) Q1 2025 earnings summary

Executive summary

• Launched the Know Labs Technology Licensing (KTL) program to monetize intellectual property and expand technology adoption across industries, focusing on RFDS sensor platform applications in medical and industrial sectors, leveraging over 300 patent assets.

• Focused on developing and commercializing proprietary non-invasive sensor technology for blood glucose monitoring, with a new wearable prototype and ongoing FDA clearance efforts.

• Responded to increased short selling and NYSE American delisting proceedings by accelerating efforts to generate near-term revenue and reduce capital needs; now trading on OTC Markets as of January 2025.

• Continued prioritization of FDA approval for the KnowU product and strategic collaborations to maximize shareholder value.

Financial highlights

• Reported Q1 FY2025 net loss of $4.67 million, compared to $3.45 million in Q1 FY2024.

• Non-cash GAAP-based derivative accounting expenses totaled $2.45 million, up 209% year-over-year.

• Cash net loss (excluding non-cash charges) was $2.45 million, an 8% improvement from $2.66 million in the prior year.

• Operating expenses decreased 20.9% year-over-year to $2.77 million, driven by lower R&D and SG&A costs.

• Cash and equivalents at quarter-end were $1.03 million, down from $3.11 million at prior quarter-end, with a net working capital deficit of $4.17 million.

• Accumulated deficit reached $143.43 million as of December 31, 2024.

• Net cash used in operations decreased 44% year-over-year to $1.89 million.

Outlook and guidance

• Company expects to operate through April 30, 2025, based on current cash and reduced burn rate; additional capital is being sought via equity, preferred stock, or convertible debentures.

• Management expects continued operating losses and negative cash flow for the foreseeable future.

• Focus remains on monetizing technology through licensing, strategic partnerships, and product development, including FDA clearance.