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Smartkem Reports Fourth Quarter and Full Year 2023 Financial ResultsMANCHESTER, England, March 28, 2024 /PRNewswire/ -- Smartkem (OTCQB: SMTK), the developer of a new class of semiconductor polymer transistors that have the capability of powering the next generation of displays, today provides a business update and reports financial results for the fourth quarter and full year ended December 31, 2023. Recent Business Highlights During and since 2023, Smartkem:
2023 Financial Highlights:
2023 Results: Smartkem's loss before income taxes was $8.5 million and $11.5 million for the year ended December 31, 2023 and 2022, respectively. As of December 31, 2023, its accumulated deficit was $95.1 million. Substantially all operating losses have resulted from expenses incurred in connection with research and development activities and from general and administrative costs associated with our operations. Research and development expense, which represents 51.3% and 53.4% of total operating expenses for the twelve months ended December 31, 2023 and 2022, respectively, decreased by $0.2 million to $5.6 million for the year ended December 31, 2023, compared to $5.8 million for the same period of 2022. The decrease is mainly due to lower personnel costs related to reductions in force effected in December 2022 and September 2023 and lower technical research and development costs, including consulting, testing and lab supplies. Selling, general and administrative expense, which represents 47.9% and 46.6% of total operating expenses for the twelve months ended December 31, 2023 and 2022, respectively, increased by $0.1 million to $5.2 million for the year ended December 31, 2023 compared to $5.1 million for the same period of 2022. There was an increase in personnel coss due to severance costs and the accrual of bonus payments in 2023. This was offset by a reduction in investor relations cost and other professional service fees. Operating expenses decreased by $0.1 million to $10.8 million for the year ended December 31, 2023, compared to $10.9 million for the comparable period of 2022. The loss before income taxes was $8.5 million for the year ended December 31, 2023, a decrease of $3.0 million, compared to a loss before income taxes of $11.5 million for the year ended December 31, 2022. The decrease in the 2023 period was attributable to increases in gains on foreign currency transactions and lower operating expenses as described in the preceding paragraphs. Revenues were $27.0 thousand for the year ended December 31, 2023, compared to $40.0 thousand for the same period of 2022. Cost of revenue was $23.0 thousand for the twelve months ended December 31, 2023, compared to $33.0 thousand for the same period of 2022. The decrease is mainly the results of less unit sales in 2023 compared to 2022, reflecting the largely one-off nature of these sales, consistent with our current stage of commercialization. Net cash flows provided by financing activities was $12.7 million for the year ended December 31, 2023, compared to $1.8 million for the year ended December 31, 2022, an increase of $10.9 million. CEO Outlook Commentary: Smartkem Chairman and CEO, Ian Jenks, comments, "2023 was an important year for Smartkem as we sought additional funding via a private placement for net proceeds of $12.4 million. We also effected a reverse stock split of 1:35 in order to advance our steps to uplist to a national stock exchange." "In the last quarter of 2023 we accelerated our efforts to secure strategic collaborations with partners to deliver against our commercialization strategy, involving continuous improvement of our proprietary materials, the development of electronic design automation (EDA) tools, and access to foundry services. We believe that our technology collaboration agreement with ITRI will be pivotal in enabling product prototyping on ITRI's Gen2.5 line, advancing our roadmap to mass commercialization of a product using Smartkem's technology." "As we continue at pace into 2024, Smartkem intends to increase its marketing efforts with exhibitions and keynote presentations at major technology conferences including Touch Taiwan, Display Week and TechBlick. We anticipate further announcements of collaborations with existing and new partners, an increase in revenue from the sale of our single layer materials, and we anticipate that we will announce the first commercially ready product using our technology." Smartkem's OTCQB information can be found on the OTC Markets website: www.otcmarkets.com/stock/SMTK/overview About Smartkem Smartkem develops its materials at its research and development facility in Manchester, UK and its semiconductor manufacturing processes at the Centre for Process Innovation (CPI) at Sedgefield, UK, It has a field application office in Taiwan. The company has an extensive IP portfolio including 125 granted patents across 19 patent families and 40 codified trade secrets. For more information, visit: www.smartkem.com and follow us on LinkedIn www.linkedin.com/company/smartkem-limited and Twitter @SmartkemOTFT. Forward-Looking Statements Contact Details: Barbra Keck, Chief Technology Officer, Smartkem Selena Kirkwood, Head of Communications, Smartkem View original content:https://www.prnewswire.com/apac/news-releases/smartkem-reports-fourth-quarter-and-full-year-2023-financial-results-302102379.html SOURCE Smartkem |