Smartkem Reports Fourth Quarter and Full Year 2024 Financial Results
Smartkem (SMTK) has reported its Q4 and full-year 2024 financial results, highlighting significant progress in commercializing its advanced semiconductor materials for flexible, transparent MicroLED displays. The company raised $7.65 million in equity financing and secured a $1.1 million grant from Innovate UK in December 2024.
Key financial metrics include cash and equivalents of $7.1 million as of December 31, 2024, revenues of $82,000 (up from $27,000 in 2023), and operating expenses of $11.5 million (compared to $10.8 million in 2023).
Notable achievements include:
- Partnership with AUO for rollable, transparent MicroLED display development
- First commercial sale of TRUFLEX® materials to Chip Foundation
- Advanced partnership with RiTdisplay for Gen 2.5 Pilot Line integration
- New agreement with FlexiIC for CMOS smart sensor development
Smartkem (SMTK) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, evidenziando progressi significativi nella commercializzazione dei suoi materiali semiconduttori avanzati per display MicroLED flessibili e trasparenti. L'azienda ha raccolto $7,65 milioni in finanziamenti azionari e ha ottenuto un contributo di $1,1 milioni da Innovate UK nel dicembre 2024.
I principali indicatori finanziari includono disponibilità liquide e equivalenti di $7,1 milioni al 31 dicembre 2024, ricavi di $82.000 (in aumento rispetto a $27.000 nel 2023) e spese operative di $11,5 milioni (rispetto a $10,8 milioni nel 2023).
Tra i risultati notevoli ci sono:
- Partnership con AUO per lo sviluppo di display MicroLED trasparenti e arrotolabili
- Prima vendita commerciale dei materiali TRUFLEX® alla Chip Foundation
- Avanzata partnership con RiTdisplay per l'integrazione della linea pilota di Gen 2.5
- Nuovo accordo con FlexiIC per lo sviluppo di sensori smart CMOS
Smartkem (SMTK) ha informado sobre sus resultados financieros del cuarto trimestre y del año completo 2024, destacando avances significativos en la comercialización de sus materiales semiconductores avanzados para pantallas MicroLED flexibles y transparentes. La compañía recaudó $7.65 millones en financiamiento de capital y aseguró una subvención de $1.1 millones de Innovate UK en diciembre de 2024.
Los principales indicadores financieros incluyen efectivo y equivalentes de $7.1 millones al 31 de diciembre de 2024, ingresos de $82,000 (un aumento desde $27,000 en 2023) y gastos operativos de $11.5 millones (en comparación con $10.8 millones en 2023).
Logros notables incluyen:
- Asociación con AUO para el desarrollo de pantallas MicroLED transparentes y enrollables
- Primera venta comercial de materiales TRUFLEX® a Chip Foundation
- Avance en la asociación con RiTdisplay para la integración de la línea piloto de Gen 2.5
- Nuevo acuerdo con FlexiIC para el desarrollo de sensores inteligentes CMOS
Smartkem (SMTK)은 2024년 4분기 및 연간 재무 결과를 보고하며, 유연하고 투명한 MicroLED 디스플레이를 위한 고급 반도체 소재 상용화에서 중요한 진전을 강조했습니다. 회사는 2024년 12월에 Innovate UK로부터 $1.1백만의 보조금을 확보하고 $7.65백만의 자본 조달을 했습니다.
주요 재무 지표로는 2024년 12월 31일 기준 현금 및 현금성 자산이 $7.1백만, 수익이 $82,000 (2023년의 $27,000에서 증가)이며 운영 비용이 $11.5백만 (2023년의 $10.8백만과 비교)입니다.
주목할 만한 성과로는:
- AUO와의 투명한 롤러블 MicroLED 디스플레이 개발을 위한 파트너십
- Chip Foundation에 TRUFLEX® 소재의 첫 상업적 판매
- Gen 2.5 파일럿 라인 통합을 위한 RiTdisplay와의 고급 파트너십
- CMOS 스마트 센서 개발을 위한 FlexiIC와의 새로운 계약
Smartkem (SMTK) a publié ses résultats financiers pour le quatrième trimestre et l'année complète 2024, mettant en avant des progrès significatifs dans la commercialisation de ses matériaux semi-conducteurs avancés pour des affichages MicroLED flexibles et transparents. L'entreprise a levé 7,65 millions de dollars en financement par actions et a obtenu une subvention de 1,1 million de dollars d'Innovate UK en décembre 2024.
Les principaux indicateurs financiers incluent des liquidités et équivalents de 7,1 millions de dollars au 31 décembre 2024, des revenus de 82 000 dollars (en hausse par rapport à 27 000 dollars en 2023) et des dépenses d'exploitation de 11,5 millions de dollars (contre 10,8 millions de dollars en 2023).
Parmi les réalisations notables, on trouve :
- Partenariat avec AUO pour le développement d'affichages MicroLED transparents et enroulables
- Première vente commerciale de matériaux TRUFLEX® à Chip Foundation
- Partenariat avancé avec RiTdisplay pour l'intégration de la ligne pilote Gen 2.5
- Nouvel accord avec FlexiIC pour le développement de capteurs intelligents CMOS
Smartkem (SMTK) hat seine Finanzzahlen für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht und erhebliche Fortschritte bei der Kommerzialisierung seiner fortschrittlichen Halbleitermaterialien für flexible, transparente MicroLED-Displays hervorgehoben. Das Unternehmen hat 7,65 Millionen Dollar an Eigenkapitalfinanzierung gesammelt und im Dezember 2024 einen 1,1 Millionen Dollar Zuschuss von Innovate UK gesichert.
Wichtige Finanzkennzahlen umfassen liquide Mittel und Äquivalente von 7,1 Millionen Dollar zum 31. Dezember 2024, Einnahmen von 82.000 Dollar (ein Anstieg von 27.000 Dollar im Jahr 2023) und Betriebskosten von 11,5 Millionen Dollar (im Vergleich zu 10,8 Millionen Dollar im Jahr 2023).
Bemerkenswerte Erfolge umfassen:
- Partnerschaft mit AUO zur Entwicklung von rollbaren, transparenten MicroLED-Displays
- Erster kommerzieller Verkauf von TRUFLEX®-Materialien an die Chip Foundation
- Fortgeschrittene Partnerschaft mit RiTdisplay zur Integration der Gen 2.5 Pilotlinie
- Neue Vereinbarung mit FlexiIC zur Entwicklung von CMOS-Smart-Sensoren
- Secured $8.75 million in total funding through equity financing and government grant
- Revenue increased 204% year-over-year to $82,000
- First commercial sale of TRUFLEX® materials achieved
- Multiple strategic partnerships established with industry leaders (AUO, RiTdisplay, Chip Foundation, FlexiIC)
- Cash position decreased from $8.8M to $7.1M year-over-year
- Operating expenses increased by $0.7M to $11.5M
- Revenue remains minimal at $82,000 despite growth
- Continued cash burn with significant operating losses
Insights
Smartkem's FY2024 results reveal a company making initial commercial strides while facing significant financial challenges. Revenue increased to
The cash position declined from
The first commercial sale of TRUFLEX® materials represents a crucial validation point, but the quantum leap from
Investors should closely monitor three key metrics through 2025: 1) additional revenue milestones beyond the initial materials sale, 2) cash burn rate relative to commercial progress, and 3) timeline clarity for reaching material revenue. While the December financing provides breathing room, the company will likely require additional capital before achieving profitability unless the commercialization timeline accelerates dramatically.
Smartkem's organic transistor technology is targeting the high-growth MicroLED market (projected
The partnership developments represent the most significant technical milestone from the report. The collaboration with AUO (Taiwan's largest display manufacturer) to develop the world's first rollable, transparent MicroLED display provides substantial technical validation. Similarly, the advancement with RiTdisplay to integrate Smartkem's OTFT process onto their Gen 2.5 pilot line creates a potential pathway to manufacturing scale.
From a product perspective, the planned MicroLED-in-a-Package (MiP) Backlight demonstration at Touch Taiwan (April 16-18, 2025) will be a critical proof point. The industry typically evaluates new display technologies based on visible working prototypes, making this upcoming demonstration a key indicator of technical maturity.
The multi-year agreement with FlexiIC to develop CMOS for smart sensors suggests application diversification beyond displays, potentially expanding the addressable market. However, the current emphasis remains on MicroLED displays where established players with greater resources are also competing aggressively.
The company's three-pillar commercialization strategy (materials advancement, EDA tools development, manufacturing process establishment) is comprehensive but execution-intensive. While partnerships can accelerate development, Smartkem still faces the classic challenge of specialized materials companies: crossing the valley between promising technology and profitable commercialization.
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
"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® 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® 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® 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®
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
£900,000 (USD 1.1 million ) grant from InnovateUK for a project partnership with AUO to develop a rollable, transparent MicroLED display. - Cash and cash equivalents were
as of December 31, 2024, compared to$7.1 million as of December 31, 2023.$8.8 million - Revenues were
for the year ended December 31, 2024, up compared to$82 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.$27 thousand - Operating expenses were
for the year ended December 31, 2024, compared to$11.5 million for the same period of 2023.$10.8 million
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
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 | — | — | |||||||||||
Common stock, par value | — | — | |||||||||||
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) | 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