Smartkem Reports Fourth Quarter and Full Year 2024 Financial Results
PR Newswire
MANCHESTER, England, April 1, 2025
MANCHESTER, England, April 1, 2025 /PRNewswire/ -- Smartkem (Nasdaq: SMTK), which is seeking to change the world of electronics with a new class of transistor technology, today provides a business update and reports financial results for the three and twelve months ended December 31, 2024.
Smartkem Chairman and CEO, Ian Jenks, commented: "During the fourth quarter of 2024, Smartkem made bold strides towards commercializing our advanced semiconductor materials, which enable flexible, transparent and lightweight MicroLED displays, an industry projected to grow to over $4 billion by 2030.(1) We delivered on every key milestone during the quarter, and in December, we raised $7.65 million in equity financing and received a $1.1 million grant from Innovate UK -- critical funding to supercharge our momentum, expand our resources, and support our ongoing programs.
"Our commercialization strategy is built on three pillars: advancing our polymer materials, developing EDA tools, and establishing scalable manufacturing processes. Concentrating on executing this strategy, we established some key goals for 2025, which included:
-- Commencing development work on a rollable, transparent MicroLED display
with our partner, AUO;
-- Completing first sale of our TRUFLEX$(R)$ materials to Chip Foundation
under the terms of our co-development agreement;
-- Extending Technology Transfer Agreement with RiTdisplay to transfer
Smartkem's OTFT process from ITRI to RiTdisplay's Gen2.5 line;
-- Entering into a joint development agreement for a "chip-first" MicroLED
display;
-- Entering into additional collaboration and/or co-development agreements
that further advance our technology toward commercialization; and
-- Producing a demonstration of a MicroLED display using our OTFT
technology.
"Our early wins in 2025, including the project commencement with AUO and the first commercial sales of our TRUFLEX(R) advanced semiconductor materials show our focus on accelerating towards commercialization of our technology. We are well on our way to delivering further objectives set out including additional joint development agreements and product demonstrations at upcoming industry events. I look forward to updating you of our progress throughout the year as we continue to solidify our position as a global leader in organic transistor technology that has the potential to change the world of electronics," added Jenks.
Recent Business Highlights
-- Advanced strategic partnership with RiTdisplay Corporation, a leading
developer of optoelectronic solutions, visual displays and passive-matrix
OLED displays, in a new phase toward commercialization, including the
planned integration of Smartkem's OTFT process on to RiTdisplay's Gen 2.5
Pilot Line.
-- Positioned to unveil the first
MicroLED-in-a-Package (MiP) Backlight using Smartkem's unique and
proprietary technology at this year's Touch Taiwan conference in Taipei
City, Taiwan which runs from April 16-18th 2025.
-- Completed first sale of TRUFLEX(R) semiconductor materials to joint
development partner, Chip Foundation, a manufacturer of semiconductor and
integrated circuit devices, for use in the co-development of a new
generation of MicroLED-based backlight technology for Liquid Crystal
Displays.
-- Signed multi-year agreement with FlexiIC, a company providing innovation
in the design of flexible integrated circuits and systems, to begin a new
project to develop a new generation of CMOS for smart sensors.
-- Partnered with AUO, the largest display manufacturer in Taiwan, to
jointly develop the world's first advanced rollable, transparent MicroLED
display.
-- Appointed Jonathan Watkins as Chief Operating Officer $(COO)$, with
responsibility for global operations and strategic partnerships.
-- Participated at SEMICON(R) Korea 2025.
Full Year 2024 Financial Highlights:
-- Completed concurrent public and private offerings in December 2024 for
aggregate proceeds of $7.65 million.
-- Received and accepted a GBP900,000 (USD 1.1 million) grant from Innovate
UK for a project partnership with AUO to develop a rollable, transparent
MicroLED display.
-- Cash and cash equivalents were $7.1 million as of December 31, 2024,
compared to $8.8 million as of December 31, 2023.
-- Revenues were $82 thousand for the year ended December 31, 2024, up
compared to $27 thousand for the same period of 2023, primarily due to an
increase in the sale of demonstrator products to potential partners, as
the company sought to expand its marketing efforts.
-- Operating expenses were $11.5 million for the year ended December 31,
2024, compared to $10.8 million for the same period of 2023.
About Smartkem
Smartkem is seeking to change the world of electronics with a new class of transistor using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor.
In seeking to enable the adoption and mass commercialization of MicroLED displays, Smartkem's low temperature (80C) process allows its liquid transistors to be poured directly onto the MicroLEDs, eliminating many of the high-cost, low-yield manufacturing processes used in traditional production. This innovation reduces defects, enhances yield and integrates seamlessly into existing manufacturing infrastructure, making MicroLED displays more commercially viable across sectors including smartphones, wearables, automatives and digital signage.
Smartkem develops its materials at its research and development facility in Manchester, UK and provides prototyping services at the Centre for Process Innovation $(CPI.UK)$ at Sedgefield, UK. It has a field application office in Taiwan. The company has an extensive IP portfolio including 138 granted patents across 17 patent families, 16 pending patents and 40 codified trade secrets. For more information, visit our website or follow us on LinkedIn.
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things, 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.
Industry Representatives and Media
Selena Kirkwood
Head of Communications for Smartkem
T: +44 (0) 7971 460 364
s.kirkwood@smartkem.com
Analysts and Investors
David Barnard, CFA
Alliance Advisors Investor Relations
T: 1 415 433 3777
dbarnard@allianceadvisors.com
(1) 2024 Omdia Report
SMARTKEM, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except number of shares and per share data)
December 31, December 31,
2024 2023
----------------- -----------------
Assets
Current assets
Cash and cash
equivalents $ 7,141 $ 8,836
Accounts receivable -- 268
Research and
development tax
credit receivable 519 610
Prepaid expenses
and other current
assets 849 811
------ --------- ------- --------
Total current
assets 8,509 10,525
Property, plant and
equipment, net 269 455
Right-of-use
assets, net 120 285
Other assets,
non-current 6 7
------ --------- ------- --------
Total assets $ 8,904 $ 11,272
====== ========= ======= ========
Liabilities and
stockholders'
equity
Current liabilities
Accounts payable
and accrued
expenses $ 1,791 $ 1,178
Lease liabilities,
current 47 230
Other current
liabilities 450 360
------ --------- ------- --------
Total current
liabilities 2,288 1,768
Lease liabilities,
non-current 25 19
Warrant liability -- 1,372
------ --------- ------- --------
Total
liabilities 2,313 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
December 31, 2024
and December 31,
2023, respectively -- --
Common stock, par
value $0.0001 per
share, 300,000,000
shares authorized,
3,590,217 and
889,668 shares
issued and
outstanding, at
December 31, 2024
and December 31,
2023, respectively -- --
Additional paid-in
capital 122,316 104,757
Accumulated other
comprehensive
loss (1,105) (1,578)
Accumulated deficit (114,620) (95,066)
------ --------- ------- --------
Total
stockholders'
equity 6,591 8,113
------ --------- ------- --------
Total
liabilities
and
stockholders'
equity $ 8,904 $ 11,272
====== ========= ======= ========
SMARTKEM, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except number of shares and per share data)
Year Ended December 31,
---------------------------
2024 2023
-------------- -----------
Revenue $ 82 $ 27
Cost of revenue 32 23
---------- ----------
Gross profit 50 4
Other operating income 1,017 836
Operating expenses
Research and development 5,111 5,556
General and administrative 6,342 5,188
(Gain)/loss on foreign currency
transactions 78 87
---------- ----------
Total operating expenses 11,531 10,831
---------- ----------
Loss from operations (10,464) (9,991)
Non-operating income/(expense)
Gain/(loss) on foreign currency
transactions $(544.SI)$ 1,213
Transaction costs allocable to warrants -- (198)
Change in fair value of the warrant
liability 672 465
Interest income/(expense) 7 12
---------- ----------
Total non-operating income/(expense) 135 1,492
---------- ----------
Loss before income taxes (10,329) (8,499)
Income tax expense (1) --
---------- ----------
Net loss $ (10,330) $ (8,499)
Preferred stock deemed dividends (9,224) --
---------- ----------
Net loss attributed to common
stockholders $ (19,554) $ (8,499)
========== ==========
Weighted average shares outstanding -
basic and diluted 3,260,127 1,344,892
========== ==========
Basic and diluted net loss per common
share attributed to common stockholders $ (6.00) $ (6.32)
Net loss $ (10,330) $ (8,499)
Other comprehensive loss:
Foreign currency translation 473 (1,095)
---------- ----------
Total comprehensive loss $ (9,857) $ (9,594)
========== ==========
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SOURCE Smartkem
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April 01, 2025 07:00 ET (11:00 GMT)