8-K 1 form_8-k.htm FORM 8-K CURRENT REPORT FOR 06-15-2018




Washington, D.C. 20549






Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934



Date of Report (Date of earliest event reported):       June 15, 2018    



         KNOW LABS, INC.         

(Exact name of registrant as specified in its charter)



    Nevada          000-30262          90-0273142    
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)



500 Union Street, Suite 810

    Seattle, Washington 98101    

(Address of principal executive office) (Zip Code)



Registrant’s telephone number, including area code:       (206) 903-1351    



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of registrant under any of the following provisions:


[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


Emerging growth company [  ]               


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]


Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.


CapitalSource Business Finance Group


Know Labs, Inc. (the “Company”) finances its TransTech operations from operations and a Secured Credit Facility with CapitalSource Business Finance Group. On June 15, 2018, TransTech entered into a Fifth Modification to the Loan and Security Agreement related to the $500,000 secured credit facility with CapitalSource to fund its operations. The Modification extended the maturity to December 12, 2018. The secured credit facility provides for a prime rate interest floor for prime interest of 4.5% plus 2.5%. The eligible borrowing is based on 80% of eligible trade accounts receivable, not to exceed $500,000. The secured credit facility is collateralized by the assets of TransTech, with a guarantee by Know Labs, including a security interest in all assets of Know Labs. The remaining balance on the accounts receivable must be repaid by the time the secured credit facility expires on December 12, 2018, unless the Company renews by automatic extension for the next successive term.


The foregoing description of the transaction is qualified in its entirety by reference to the complete terms and conditions of Fifth Modification to the Loan and Security Agreement, a copy of which are attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated by reference into this Item 2.03.


Item 9.01 Financial Statements and Exhibits.


(d)  Exhibits.


Exhibit No.   Description
10.1   Fifth Modification of Loan and Security Agreement dated June 6, 2017 by and between TransTech Systems, Inc. and CapitalSource Business Finance Group. Filed herewith.





Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



  Registrant:  KNOW LABS, INC.
Date:  June 26, 2018 By: /s/ Ronald P. Erickson
    Ronald P. Erickson
Chairman of the Board


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