Meta Materials Announces Q1 FY 2022 Results

Rhea-AI Summary

Meta Materials Inc. (NASDAQ:MMAT) reported a remarkable 399% increase in total revenue for Q1 FY 2022, totaling $2,974,695 compared to $596,303 in Q1 FY 2021. Despite this growth, the company faced a net loss of $18,434,541, or $0.06 per share, an improvement from the $44,158,519 loss in Q1 FY 2021. Operating cash usage surged to $18,745,199, while capital expenditures reached $1,746,936. As of March 31, 2022, Meta held $30.2 million in cash, with no debt apart from interest-free loans totaling $3.3 million.

Positive

• Total revenue increased 399%, reaching $2,974,695 compared to $596,303 in Q1:21.
• Net loss decreased from $44,158,519 in Q1:21 to $18,434,541 in Q1:22.
• As of March 31, 2022, the company has $30.2 million in cash and equivalents.

Negative

• Net cash used in operating activities increased significantly to $18,745,199 from $2,393,475 in Q1:21.
• The company reported a net loss of $18,434,541 despite increased revenue.

HALIFAX, NS / ACCESSWIRE / May 10, 2022 / Meta Materials Inc. (the "Company" or "META®") (NASDAQ:MMAT), (FSE:MMAT) a developer of high-performance functional materials and nanocomposites, today announced first quarter FY 2022 results. Please visit the Investors section of our website to view the Q1 2022 Shareholder Letter. The Company will host a webcast on Wednesday, May 11, 2022, at 8:00 AM EDT.

The Q1 2022 financial statements and the associated management discussion and analysis for the quarter ended March 31, 2022 are available on the Investors section of our website as well as on Nasdaq.com or on the SEC EDGAR website at www.sec.gov.

In Q1:22, total revenue grew 399%, to $2,974,695, compared to $596,303 in Q1:21. The Q1:22 net loss was $18,434,541, or $0.06 per share on 285,224,469 weighted average shares, compared to a Q1:21 net loss of $44,158,519 (which included a $40 million, non-cash loss on financial instruments), or $0.26 per share on 168,864,762 weighted average shares.

Net cash used in operating activities during the quarter ended March 31, 2022, was $18,745,199, compared to $2,393,475 in Q1:21. In Q1:22, capital expenditures for purchases of property, plant, and equipment were $1,746,936. As of March 31, 2022, cash and cash equivalents totaled approximately $30.2 million, including about $0.5 million in restricted cash. The Company has no debt, except for approximately $3.3 million in various interest-free loans from ACOA (Atlantic Canada Opportunities Agency), and common shares outstanding were 296,614,994.

Webcast Details:
Date: May 11, 2022
Time: 8:00 AM EDT / 5:00 AM PDT
To register, please use the link below:
https://audience.mysequire.com/webinar-view?webinar_id=10e4bdaa-d8a2-4da2-a6fe-f7176d417a2c

About Meta Materials Inc.
META® delivers previously unachievable performance, across a range of applications, by inventing, designing, developing, and manufacturing sustainable, highly functional materials. Our extensive technology platform enables leading global brands to deliver breakthrough products to their customers in consumer electronics, 5G communications, health and wellness, aerospace, automotive, and clean energy. Our nano-optic technology provides anti-counterfeiting security features for government documents and currencies and authentication for brands. Our achievements have been widely recognized, including being named a Lux Research Innovator of the Year in 2021. Learn more at www.metamaterial.com.

META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)

		As of March 31, 2022				As of December 31, 2021
Assets
Current assets
Cash and cash equivalents		$	29,749,773			$	46,645,704
Restricted cash			478,897				788,768
Short-term investments			-				2,875,638
Grants receivable			29,150				175,780
Accounts receivable			2,514,443				1,665,700
Inventory			366,959				265,718
Prepaid expenses and other current assets			3,843,663				3,451,367
Assets held for sale			72,000,000				75,500,000
Due from related parties			10,314				10,657
Total current assets			108,993,199				131,379,332
Intangible assets, net			28,306,272				28,971,824
Property, plant and equipment, net			29,977,784				27,018,114
Operating lease right-of-use assets			6,230,735				6,278,547
Goodwill			240,769,981				240,376,634
Total assets		$	414,277,971			$	434,024,451
Liabilities and stockholders' equity (deficit)
Current liabilities
Trade and other payables			9,944,822				13,335,470
Current portion of long-term debt			363,654				491,278
Current portion of deferred revenues			695,160				779,732
Current portion of deferred government assistance			858,942				846,612
Preferred stock liability			72,000,000				75,500,000
Current portion of operating lease liabilities			782,901				663,861
Asset retirement obligations			21,937				21,937
Total current liabilities			84,667,416				91,638,890
Deferred revenues			660,297				637,008
Deferred government assistance			-				3,038
Deferred tax liability			329,205				324,479
Long-term operating lease liabilities			3,676,258				3,706,774
Funding obligation			286,182				268,976
Long-term debt			2,920,931				2,737,171
Total liabilities			92,540,289				99,316,336
Stockholders' equity (deficit)
Common stock - $0.001 par value; 1,000,000,000 shares authorized, 286,927,265 shares issued and outstanding at March 31, 2022, and $Nil par value; unlimited shares authorized, 284,573,316 shares issued and outstanding at December 31, 2021			265,106				262,751
Additional paid-in capital			467,692,775				463,136,404
Accumulated other comprehensive income (loss)			608,446				(296,936	)
Accumulated deficit			(146,828,645	)			(128,394,104	)
Total stockholders' equity			321,737,682				334,708,115
Total liabilities and stockholders' equity		$	414,277,971			$	434,024,451

META MATERIALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

		Three months ended
		March 31,
		2022				2021
Revenue
Product sales			168,127				22,047
Development revenue			2,806,568				574,256
Total Revenue			2,974,695				596,303
Cost of goods sold			778,712				400
Gross Profit			2,195,983				595,903
Operating Expenses
Selling & Marketing			1,035,986				396,594
General & Administrative			14,597,913				2,592,885
Research & Development			3,971,139				1,779,256
Total operating expenses			19,605,038				4,768,735
Loss from operations			(17,409,055	)			(4,172,832	)
Other income (expense)
Interest expense, net			(164,434	)			(450,908	)
Gain (Loss) on foreign exchange, net			148,391				(166,444	)
Loss on financial instruments, net			-				(40,004,921	)
Other (loss) income, net			(1,009,443	)			591,907
Total other income (expenses)			(1,025,486	)			(40,030,366	)
Loss before income taxes			(18,434,541	)			(44,203,198	)
Income tax recovery			-				44,679
Net loss			(18,434,541	)			(44,158,519	)
Other Comprehensive Income net of tax
Foreign currency translation gain			905,382				21,128
Fair value gain on changes of own credit risk			-				671,600
Total Other Comprehensive Income			905,382				692,728
Comprehensive loss			(17,529,159	)			(43,465,791	)
Basic and diluted loss per share			(0.06	)			(0.26	)
Weighted average number of shares outstanding - basic and diluted			285,224,469				168,864,762

META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)

		Three months ended
		March 31, 2022				March 31, 2021
			$				$
Cash flows from operating activities:
Net loss			(18,434,541	)			(44,158,519	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash finance income			(12,920	)			-
Non-cash interest expense			126,714				358,562
Non-cash lease expense			240,548				73,383
Deferred income tax			-				(44,679	)
Depreciation and amortization			1,672,969				590,201
Unrealized foreign currency exchange (gain) loss			(140,902	)			31,339
Loss on financial instruments, net			-				40,004,921
Change in deferred revenue			(79,146	)			565,801
Non-cash government assistance			(3,047	)			(348,650	)
Loss on debt settlement			-				19,253
Stock-based compensation			3,995,442				426,794
Non-cash consulting expense			196,541				-
Changes in operating assets and liabilities			(6,306,857	)			88,119
Net cash used in operating activities			(18,745,199	)			(2,393,475	)
Cash flows from investing activities
Purchases of intangible assets			-				(128,209	)
Purchases of property, plant and equipment			(1,746,936	)			(1,477,329	)
Proceeds from short-term investments			2,884,999
Net cash provided by (used in) investing activities			1,138,063				(1,605,538	)
Cash flows from financing activities
Proceeds from long-term debt			-				1,096,262
Repayments of long-term debt			(91,641	)			(12,098	)
Proceeds from government grants			-				223,384
Proceeds from unsecured promissory notes			-				13,963,386
Proceeds from stock option exercises			197,167				48,629
Proceeds from warrants exercises			169,575				47,839
Net cash provided by financing activities			275,101				15,367,402
Net (decrease) increase in cash, cash equivalents and restricted cash			(17,332,035	)			11,368,389
Cash, cash equivalents and restricted cash at beginning of the period			47,434,472				1,395,683
Effects of exchange rate changes on cash, cash equivalents and restricted cash			126,233				108,578
Cash, cash equivalents and restricted cash at end of the period			30,228,670				12,872,650
Supplemental cash flow information
Accrued purchases of property, equipment, and patents			1,772,821				127,456
Right-of-use assets obtained in exchange for lease liabilities			146,822				1,300,573
Settlement of liabilities in common stock			-				52,063,431
Interest paid on debt			-				64,528

Forward-Looking Information
This press release includes forward-looking information or statements within the meaning of Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, regarding the Company, which may include, but are not limited to, statements with respect to the business strategies, product development, expansion plans and operational activities of the Company . Often but not always, forward-looking information can be identified by the use of words such as "pursuing", "potential", "predicts", "projects", "seeks", "plans", "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "should", "would" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of the Company and are based on assumptions and subject to risks and uncertainties. Although the management of the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, the capabilities of our facilities and the expansion thereof, research and development projects of the Company, the market potential of the products of the Company , the market position of the Company, the scalability of the Company's production ability, capacity for new customer engagements, material selection programs timeframes, the ability to reduce production costs, enhance metamaterials manufacturing capabilities and extend market reach into new applications and industries, the ability to accelerate commercialization plans, the possibility of new customer contracts, the continued engagement of our employees, the technology industry, market strategic and operational activities, and management's ability to manage and to operate the business. More details about these and other risks that may impact the Company's businesses are described under the heading "Forward-Looking Information" and under the heading "Risk Factors" in the Company's Form 10-K filed with the SEC on March 1, 2022, with SEC filing date of March 2, 2022, in the Company's Form 10-Q filed with the SEC on May 10, 2022, and in subsequent filings made by Meta Materials with the SEC, which are available on SEC's website at www.sec.gov. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by law.

Media Inquiries
Rob Stone
Vice President, Corporate Development and Communications
Meta Materials Inc.
media@metamaterial.com

Investor Contact
Mark Komonoski
Senior Vice President
Integrous Communications
Phone: 1-877-255-8483
Email: ir@metamaterial.com

SOURCE: Meta Materials Inc.

View source version on accesswire.com:
https://www.accesswire.com/700822/Meta-Materials-Announces-Q1-FY-2022-Results

FAQ

What were the Q1 2022 results for Meta Materials Inc. (MMAT)?

In Q1 2022, Meta Materials reported a 399% increase in revenue to $2,974,695, with a net loss of $18,434,541.

How much cash did Meta Materials (MMAT) have as of March 31, 2022?

As of March 31, 2022, Meta Materials had approximately $30.2 million in cash and cash equivalents.

What was the net loss for MMAT in Q1 FY 2022?

In Q1 FY 2022, Meta Materials reported a net loss of $18,434,541 or $0.06 per share.

How does MMAT's Q1 2022 revenue compare to Q1 2021?

Meta Materials' Q1 2022 revenue was $2,974,695, a significant increase from $596,303 in Q1 2021.