Smartkem Reports Third Quarter 2024 Financial Results
07.08.2025 - 18:03:14Forward-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
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