Smartkem Reports Third Quarter 2024 Financial Results
Smartkem (SMTK) reports Q3 2024 financial results, highlighting progress in commercializing its organic thin-film transistors for microLED displays. The company signed a joint development agreement with Chip Foundation for microLED-based backlight technology and expanded collaboration with ITRI. Financial results show cash and equivalents at $1.8 million (down from $8.8 million in December 2023), operating expenses of $3.0 million (up from $2.7 million in Q3 2023), and no revenue compared to $3,000 in Q3 2023. The company targets the microLED display industry, projected to grow from $150 million in 2024 to over $4 billion by 2031.
Smartkem (SMTK) ha pubblicato i risultati finanziari del terzo trimestre 2024, evidenziando progressi nella commercializzazione dei transistor organici a film sottile per display microLED. L'azienda ha firmato un accordo di sviluppo congiunto con Chip Foundation per la tecnologia di retroilluminazione basata su microLED ed ha ampliato la collaborazione con ITRI. I risultati finanziari mostrano disponibilità liquide e equivalenti pari a 1,8 milioni di dollari (in calo rispetto agli 8,8 milioni di dollari di dicembre 2023), spese operative di 3,0 milioni di dollari (in aumento rispetto ai 2,7 milioni di dollari del terzo trimestre 2023) e nessun ricavo rispetto ai 3.000 dollari del terzo trimestre 2023. L'azienda punta all'industria dei display microLED, che si prevede crescerà da 150 milioni di dollari nel 2024 a oltre 4 miliardi di dollari entro il 2031.
Smartkem (SMTK) informa sobre los resultados financieros del tercer trimestre de 2024, destacando los avances en la comercialización de sus transistores orgánicos de película delgada para pantallas microLED. La compañía firmó un acuerdo de desarrollo conjunto con Chip Foundation para la tecnología de retroiluminación basada en microLED y amplió la colaboración con ITRI. Los resultados financieros muestran que el efectivo y equivalentes ascienden a 1,8 millones de dólares (una disminución desde los 8,8 millones de dólares en diciembre de 2023), gastos operativos de 3,0 millones de dólares (un aumento desde los 2,7 millones de dólares en el tercer trimestre de 2023) y sin ingresos comparados con los 3,000 dólares en el tercer trimestre de 2023. La empresa tiene como objetivo la industria de pantallas microLED, que se proyecta crecer de 150 millones de dólares en 2024 a más de 4 mil millones de dólares para 2031.
스마트켐 (SMTK)은 2024년 3분기 재무 결과를 발표하며, 마이크로LED 디스플레이용 유기 박막 트랜지스터 상용화의 진전을 강조했습니다. 이 회사는 마이크로LED 기반 백라이트 기술에 대해 칩 재단과 공동 개발 계약을 체결했으며, ITRI와의 협력을 확대했습니다. 재무 결과에 따르면 현금 및 현금성 자산은 180만 달러(2023년 12월 880만 달러에서 감소), 운영 비용은 300만 달러(2023년 3분기 270만 달러에서 증가), 2023년 3분기 3,000 달러에 비해 수익은 없었습니다. 이 회사는 2024년 1억 5천만 달러에서 2031년까지 40억 달러 이상으로 성장할 것으로 예상되는 마이크로LED 디스플레이 산업을 목표로 하고 있습니다.
Smartkem (SMTK) publie les résultats financiers du troisième trimestre 2024, mettant en avant les progrès réalisés dans la commercialisation de ses transistors organiques à film mince pour les affichages microLED. L'entreprise a signé un accord de développement conjoint avec Chip Foundation pour la technologie de rétroéclairage à base de microLED et a élargi sa collaboration avec ITRI. Les résultats financiers montrent une trésorerie et des équivalents de 1,8 million de dollars (en baisse par rapport à 8,8 millions de dollars en décembre 2023), des dépenses d'exploitation de 3,0 millions de dollars (en hausse par rapport à 2,7 millions de dollars au troisième trimestre 2023) et aucun revenu par rapport à 3 000 dollars au troisième trimestre 2023. L'entreprise cible l'industrie des affichages microLED, qui devrait passer de 150 millions de dollars en 2024 à plus de 4 milliards de dollars d'ici 2031.
Smartkem (SMTK) berichtet über die finanziellen Ergebnisse des dritten Quartals 2024 und hebt die Fortschritte bei der Kommerzialisierung seiner organischen Dünnschichttransistoren für MicroLED-Displays hervor. Das Unternehmen hat einen Joint Development Agreement mit der Chip Foundation für MikroLED-basierte Hintergrundbeleuchtungstechnologie unterzeichnet und die Zusammenarbeit mit ITRI ausgeweitet. Die finanziellen Ergebnisse zeigen liquide Mittel und Äquivalente in Höhe von 1,8 Millionen US-Dollar (ein Rückgang von 8,8 Millionen US-Dollar im Dezember 2023), Betriebsausgaben von 3,0 Millionen US-Dollar (ein Anstieg von 2,7 Millionen US-Dollar im dritten Quartal 2023) und keine Einnahmen im Vergleich zu 3.000 US-Dollar im dritten Quartal 2023. Das Unternehmen richtet sich an die MicroLED-Display-Industrie, die voraussichtlich von 150 Millionen US-Dollar im Jahr 2024 auf über 4 Milliarden US-Dollar bis 2031 wachsen wird.
- Signed strategic joint development agreement with Chip Foundation for microLED technology
- Expanded collaboration with ITRI for advanced computer and AI chip packaging solutions
- Operating in growing market projected to reach $4 billion by 2031
- Cash position decreased significantly from $8.8M to $1.8M
- Operating expenses increased to $3.0M from $2.7M year-over-year
- Zero revenue in Q3 2024 compared to $3,000 in Q3 2023
- Continuing cash burn with no revenue generation
Insights
The Q3 results highlight concerning financial metrics that demand immediate attention.
The lack of revenue generation despite multiple partnerships and development agreements is particularly worrying. While the targeted microLED display market shows promise, growing from
The joint development agreement with Chip Foundation for microLED backlight technology represents a strategic pivot into a high-potential market segment. The technology's application expansion into AI chip packaging solutions through ITRI collaboration demonstrates versatility beyond displays. However, the company's extensive conference participation and presentations, while building industry presence, haven't translated to commercial success.
The transition from research to revenue remains the critical challenge. Despite the compelling technical advantages of organic transistors for microLED displays - including flexibility, transparency and low-temperature processing - the absence of design wins or qualification milestones raises concerns about market readiness and commercial viability.
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
"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 .
- Exhibited at SEMICON®
[1] 2024 Omdia Report
Q3 2024 Financial Highlights:
- Cash and cash equivalents were
$1.8 million $8.8 million - Operating expenses were
$3.0 million $2.7 million - Revenues were nil for the three months ended September 30, 2024, compared to
$3 thousand
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
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 | — | — | ||||
Common stock, par value | — | — | ||||
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 | ||||||||||||
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SOURCE Smartkem
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