Know Labs Is An Obvious Medical Device Scam, We’re Calling: “Theranos’ Retarded Cousin” – White Diamond Research
White Diamond Research exposes Know Labs (KNW) as a potential medical device scam, revealing zero revenue, unproven glucose monitoring technology, massive share dilution, and lack of scientific validation in devastating short-seller report.
White Diamond Research has released a scathing report on Know Labs (KNW), labeling the company's non-invasive glucose monitoring technology as "an obvious medical device scam" and comparing it to "Theranos' retarded cousin." The research firm details multiple red flags suggesting investors should be extremely cautious.
Stock info:
- Ticker: KNW (NYSE)
- Position: White Diamond Research is short KNW stock
Why it matters:
- Know Labs' Bio-RFID technology, which claims to non-invasively measure glucose without skin penetration, remains completely unproven with no peer-reviewed studies or independent verification
- The company has no doctors on its Board of Directors, and its leadership lacks relevant medical expertise
- Financial structure shows alarming dilution (shares increased from 280K in 2012 to 48M today) with potential for 60M more shares from convertible instruments
- CEO Phillip Bosua processed $4.35M in NFT sales through his personal Coinbase account, with $1.075M paid to an unnamed "consultant" - raising serious concerns about fund allocation
- Despite operating for over 20 years and burning through $100M+ in investor funds, the company has repeatedly failed across multiple business ventures
- Scientific experts indicate Bio-RFID's design fundamentally cannot work due to interference from skin's dielectric properties
Zoom in:
- The company has announced "validation" from a respected research institution but never named the institution or released verification reports
- No non-invasive glucose monitoring device has ever received FDA approval, highlighting the extraordinary nature of KNW's claims
- KNW's investor presentations show discrepancies in captured data, suggesting manipulation through algorithms rather than accurate readings
- The company's patents are described as "overly broad and vague," offering little practical protection
- Recent financial reports show zero revenue from actual products
- The company has pivoted through multiple failed business models over its 22-year history (cigars, digital color management, access control)
FAQs:
What is Know Labs claiming to have developed?
Know Labs claims to have developed Bio-RFID, a non-invasive technology that can measure blood glucose levels without requiring skin penetration or blood samples - something widely considered the "holy grail" of diabetes care.
Why does White Diamond Research believe Know Labs is a scam?
White Diamond Research believes Know Labs is a scam because the company has never produced peer-reviewed studies, independent clinical trials, or third-party verification of its technology despite promoting it since 2018. They also cite the lack of medical expertise in leadership, suspicious financial transactions, and a 22-year history of failed business ventures.
How does Bio-RFID supposedly work?
Bio-RFID supposedly uses radio frequency and low microwave techniques to detect glucose levels. However, the report cites experts who state that the dielectric constant of salty water in skin would overwhelm any glucose-specific signal, making the technology fundamentally flawed.
What red flags exist in Know Labs' financial structure?
Major financial red flags include: massive share dilution (150x increase since 2012), convertible instruments with prices as low as 25 cents per share, zero product revenue, $4.35M in NFT sales processed through the CEO's personal account, and over $100M in investor funds spent over two decades with no viable product.
Has Know Labs' technology been validated by any reputable medical institutions?
No. Despite claiming validation from a "respected research institution" in June 2021, Know Labs never named the institution or published any verification reports. The company relies solely on internal studies and has no partnerships with credible medical institutions.
What is Know Labs' history as a company?
Know Labs has a 22-year history of failed business ventures, including cigars, digital color management, fraud detection, and access control systems. The company has changed names multiple times and repeatedly pivoted to different industries without achieving commercial success in any field.
How does Know Labs compare to Theranos?
White Diamond Research compares Know Labs to "Theranos' retarded cousin," suggesting similar patterns of making extraordinary medical claims without scientific validation, lacking proper medical expertise in leadership, and promoting technology that experts believe fundamentally cannot work as claimed.
Who leads Know Labs and what are their qualifications?
CEO Phillip Bosua lacks medical background or relevant experience in medical devices. Founder and Chairman Ron Erickson has a history of unsuccessful ventures. The company's only medical professional, Dr. James H. Anderson Jr., is 76 years old with multiple other commitments and is not involved in daily operations.
Disclaimer
This summary is based on a report by White Diamond Research. For the full, detailed analysis, please refer to the original source material: https://whitediamondresearch.com/research/know-labs-is-an-obvious-medical-device-scam-we-call-it-theranos-retarded-cousin/
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