MANCHESTER, England, Nov. 12,
2024 /PRNewswire/ -- Smartkem (Nasdaq: SMTK),
positioned to power the next generation of displays using its
disruptive organic thin-film transistors (OTFTs), today provides a
business update and reports financial results for the three and
nine months ended September 30,
2024.
Smartkem Chairman and CEO, Ian
Jenks, commented:
"During the third quarter of 2024, we continued to gain traction
in our drive to commercialize our proprietary semiconductor
materials, which enable flexible, transparent and lightweight
microLED displays. In September, we entered into a joint
development agreement with Chip Foundation to develop
microLED-based backlight technology for LCDs, further expanding our
ongoing collaborations with leading display manufacturers. In
addition, ITRI has requested Smartkem apply our innovations to
develop packaging solutions for advanced computer and AI chips.
"Together with our developmental partners, our printable
semiconductor inks have the potential to solve a number of microLED
display manufacturing challenges using flexible plastic substrates
and low temperature processes. We believe our organic transistor
technology has the potential to catalyze the microLED display
industry, which is expected to grow from $150 million in revenue in 2024 to over
$4 billion by 2031[1].
"Looking into 2025, we are focused on delivering qualifications
and design wins on existing and new collaborations as we seek to
increase the adoption of advanced display technologies using our
technology," concluded Jenks.
Recent Business Highlights
- Signed a JDA with Shanghai Chip Foundation Semiconductor
Technology Co., to co-develop a new generation of microLED-Based
backlight technology for Liquid Crystal Displays
- Presented keynote at the PlayNitride 2024 MicroLED Technology
Forum, where we demonstrated the inherent advantages and
inevitability of microLED display mass adoption, including high
durability, extremely strong brightness, de-coupled production
processing, and high aperture ratio.
- Demonstrated our leadership in organic transistor technology:
- Exhibited at SEMICON® Taiwan 2024.
- Delivered presentation titled "Chip-First Active-Matrix
Fabrication Approach Improves Transistor Connectivity
to Micro-LEDs for Higher Yielding Displays" and exhibited at
the 24th International Meeting on Information Display
(IMID) 2024 in Korea.
- Presented "Developing Flexible Integrated Circuits Through
Customized Organic TFTs" at The International Conference on
Flexible and Printed Electronics (ICFPE) 2024.
- Exhibited at TechBlick: The Future of Electronics Reshaped
global conference in Berlin.
- Exhibited at the 6th National Conference on
Organic Field-Effect Transistors in Hangzhou, China.
[1] 2024 Omdia Report
Q3 2024 Financial Highlights:
- Cash and cash equivalents were $1.8 million as of September 30, 2024, compared to $8.8 million as of December 31, 2023.
- Operating expenses were $3.0
million for the three months ended September 30, 2024, compared $2.7 million for the same period of 2023.
- Revenues were nil for the three months ended
September 30, 2024, compared to
$3 thousand for the same period of
2023 in which the company sold OTFT backplanes and TRUFLEX
materials for customer assessment and development costs.
About Smartkem
Smartkem is seeking to reshape the world of electronics with its
disruptive organic thin-film transistors (OTFTs) that have the
potential to drive the next generation of displays. Smartkem's
patented TRUFLEX® liquid semiconductor polymers, can be used to
make a new type of transistor that can be used in a number of
display technologies, including next generation microLED displays.
Smartkem's inks enable low temperature printing processes that are
compatible with existing manufacturing infrastructure to deliver
low-cost displays that outperform existing models.
Smartkem develops its materials at its research and development
facility in Manchester, UK and its
semiconductor manufacturing processes at the Centre for Process
Innovation (CPI) at Sedgefield, UK. It has a field application
office in Taiwan. The company has
an extensive IP portfolio including 125 granted patents across 19
patent families and 40 codified trade secrets. For more
information, visit: www.smartkem.com and follow us on LinkedIn
www.linkedin.com/company/smartkem-limited.
Forward-Looking Statements
All statements in this press release that are not historical are
forward-looking statements, including, among other things,
statements relating to the Smartkem's expectations regarding its
market position and market opportunity, expectations and plans as
to its product development, manufacturing and sales, and relations
with its partners and investors. These statements are not
historical facts but rather are based on Smartkem Inc.'s current
expectations, estimates, and projections regarding its business,
operations and other similar or related factors. Words such as
"may," will," "could," "would," "should," "anticipate," "predict,"
"potential," "continue," "expect," "intend," "plan," "project,"
"believe," "estimate," and other similar or elated expressions are
used to identify these forward-looking statements, although not all
forward-looking statements contain these words. You should not
place undue reliance on forward-looking statements because they
involve known and unknown risks, uncertainties, and assumptions
that are difficult or impossible to predict and, in some cases,
beyond the Company's control. Actual results may differ materially
from those in the forward-looking statements as a result of a
number of factors, including those described in the Company's
filings with the Securities and Exchange Commission. The Company
undertakes no obligation to revise or update information in this
release to reflect events or circumstances in the future, even if
new information becomes available.
|
SMARTKEM,
INC.
|
|
Condensed Consolidated
Balance Sheets
|
|
(Unaudited)
|
|
(in thousands, except
number of shares and per share data)
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,783
|
|
$
|
8,836
|
|
Accounts
receivable
|
|
|
—
|
|
|
268
|
|
Research and
development tax credit receivable
|
|
|
1,163
|
|
|
610
|
|
Prepaid expenses and
other current assets
|
|
|
804
|
|
|
811
|
|
Total current
assets
|
|
|
3,750
|
|
|
10,525
|
|
Property, plant and
equipment, net
|
|
|
353
|
|
|
455
|
|
Right-of-use assets,
net
|
|
|
197
|
|
|
285
|
|
Other assets,
non-current
|
|
|
6
|
|
|
7
|
|
Total
assets
|
|
$
|
4,306
|
|
$
|
11,272
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
1,463
|
|
$
|
1,178
|
|
Lease liabilities,
current
|
|
|
165
|
|
|
230
|
|
Other current
liabilities
|
|
|
367
|
|
|
360
|
|
Total current
liabilities
|
|
|
1,995
|
|
|
1,768
|
|
Lease liabilities,
non-current
|
|
|
31
|
|
|
19
|
|
Warrant
liability
|
|
|
—
|
|
|
1,372
|
|
Total
liabilities
|
|
|
2,026
|
|
|
3,159
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 7)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred stock, par
value $0.0001 per share, 10,000,000 shares authorized,
856 and 13,765 shares issued and outstanding, at September 30, 2024
and
December 31, 2023, respectively
|
|
|
—
|
|
|
—
|
|
Common stock, par
value $0.0001 per share, 300,000,000 shares authorized,
1,780,472 and 889,668 shares issued and outstanding, at September
30, 2024
and December 31, 2023, respectively
|
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
113,374
|
|
|
104,757
|
|
Accumulated other
comprehensive loss
|
|
|
(1,297)
|
|
|
(1,578)
|
|
Accumulated
deficit
|
|
|
(109,797)
|
|
|
(95,066)
|
|
Total stockholders'
equity
|
|
|
2,280
|
|
|
8,113
|
|
Total liabilities
and stockholders' equity
|
|
$
|
4,306
|
|
$
|
11,272
|
|
SMARTKEM,
INC.
|
|
Condensed Consolidated
Statements of Operations and Comprehensive Loss
|
|
(Unaudited)
|
|
(in thousands, except
number of shares and per share data)
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
|
$
|
—
|
|
$
|
3
|
|
$
|
40
|
|
$
|
27
|
|
Cost of
revenue
|
|
|
—
|
|
|
1
|
|
|
32
|
|
|
23
|
|
Gross
profit
|
|
|
—
|
|
|
2
|
|
|
8
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income
|
|
|
287
|
|
|
257
|
|
|
725
|
|
|
695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
1,504
|
|
|
1,568
|
|
|
3,938
|
|
|
4,104
|
|
Selling, general and
administrative
|
|
|
1,578
|
|
|
1,268
|
|
|
4,784
|
|
|
4,025
|
|
(Gain)/loss on foreign
currency transactions
|
|
|
43
|
|
|
118
|
|
|
75
|
|
|
186
|
|
Total operating
expenses
|
|
|
3,125
|
|
|
2,954
|
|
|
8,797
|
|
|
8,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(2,838)
|
|
|
(2,695)
|
|
|
(8,064)
|
|
|
(7,616)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain/(loss) on foreign
currency transactions
|
|
|
—
|
|
|
(787)
|
|
|
(249)
|
|
|
248
|
|
Transaction costs
allocable to warrants
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(198)
|
|
Change in fair value of
the warrant liability
|
|
|
—
|
|
|
458
|
|
|
672
|
|
|
461
|
|
Interest
income/(expense)
|
|
|
(4)
|
|
|
2
|
|
|
5
|
|
|
8
|
|
Total non-operating
income/(expense)
|
|
|
(4)
|
|
|
(327)
|
|
|
428
|
|
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(2,842)
|
|
|
(3,022)
|
|
|
(7,636)
|
|
|
(7,097)
|
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
Net loss
|
|
$
|
(2,842)
|
|
$
|
(3,022)
|
|
$
|
(7,637)
|
|
$
|
(7,097)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,842)
|
|
$
|
(3,022)
|
|
$
|
(7,637)
|
|
$
|
(7,097)
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
125
|
|
|
850
|
|
|
281
|
|
|
(123)
|
|
Total comprehensive
loss
|
|
$
|
(2,717)
|
|
$
|
(2,172)
|
|
$
|
(7,356)
|
|
$
|
(7,220)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per
common share*
|
|
$
|
(0.86)
|
|
$
|
(1.78)
|
|
$
|
(2.49)
|
|
$
|
(5.82)
|
|
Diluted net loss per
common share*
|
|
$
|
(0.86)
|
|
$
|
(1.78)
|
|
$
|
(4.80)
|
|
$
|
(5.82)
|
|
Dividend per common
share
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(2.31)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of basic shares outstanding*
|
|
|
3,308,975
|
|
|
1,701,166
|
|
|
3,068,110
|
|
|
1,219,450
|
|
Weighted average number
of diluted shares outstanding*
|
|
|
3,308,975
|
|
|
1,701,166
|
|
|
3,068,110
|
|
|
1,219,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* reflects a
one-for-thirty-five (1:35) reverse stock split effected on
September 21, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.co.uk/news-releases/smartkem-reports-third-quarter-2024-financial-results-302301409.html