from Meta Materials Inc. (NASDAQ:MMAT)
Meta Materials Announces Q4 and FY 2022 Results
HALIFAX, NS / ACCESSWIRE / March 23, 2023 / Meta Materials Inc. (the "Company" or "META®") (NASDAQ:MMAT)(FSE:MMAT), a developer of high-performance functional materials and nanocomposites, today announced fourth quarter and FY 2022 results.
The complete Q4 and FY 2022 financial statements, updated risk factors, going concern discussion, summary of progress made on identifying and addressing remaining material weaknesses in META's internal controls and associated management discussion and analysis for the quarter and year ended December 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 Q4:22, total revenue was $1.4MM, compared to $2.3MM in Q4:21. FY 2022 revenue grew 150%, to $10.2MM, compared to $4.1MM in FY 2021. Total operating expenses were $24.8MM, vs. $18.9MM in Q4:21. FY 2022 operating expenses totaled $90.4MM, vs. $41.5MM in FY 2021. The Q4:22 net loss was $15.2MM, or 4c per share on 362.5 million weighted average shares and including a one-time gain of $4.0MM resulting from the deconsolidation of the Next Bridge Hydrocarbons, Inc. assets and liabilities and the recording of the net estimated collectible value of notes receivable of $2.2MM due from Next Bridge Hydrocarbons, Inc., compared to the Q4:21 net loss of $29.5MM, or 13c per share on 232.9 million weighted average shares. The FY 2022 net loss was $79.1MM or $0.24 per share on 328.3 million weighted average shares and including a one-time gain of $4.0MM resulting from the deconsolidation of the Next Bridge Hydrocarbons, Inc. assets and liabilities and the recording of the net estimated collectible value of notes receivable of $2.2MM due from Next Bridge Hydrocarbons, Inc. compared to a FY 2021 net loss of $91.0MM, or $0.39 per share on 232.9 million weighted average shares.
On December 31, 2022, cash and cash equivalents totaled $11.8MM, including $1.7MM in restricted cash. In Q4:22, net cash used in operations totaled $13.7MM, and non-cash expenses were $7.8MM, including $3.9MM in depreciation and amortization and $3.4MM in stock-based compensation. In Q4:22, changes in working capital contributed $4.4MM and capital expenditures were $7.6MM. In FY 2022, net cash used in operations totaled $62.2MM.
META has identified factors that raise substantial doubt about the Company's ability to continue to operate as a going concern and to achieve compliance with NASDAQ continued listing requirements. META anticipates that it needs to implement expense reduction measures under its control and immediately raise additional capital to expand the commercialization of its products, fund its operations, further its research and development activities and ensure that it can continue to operate as a going concern. META may pursue sources of additional capital through various financing transactions or arrangements, including the sale/leaseback of certain properties, joint venturing of projects, debt financing, equity financing, or other means. Meta may not be successful in identifying suitable financing transactions in the time period required or at all, and it may not obtain the capital it requires by other means.
Future capital requirements may vary materially from period to period and will depend on many factors, including the timing and extent of spending on research and development efforts, and capital expenditures. On November 9, 2022, META filed a registration statement (the "Prospectus") no. 333-268282 on form S-3 allowing it to issue securities with aggregate offering price not to exceed $250 million. The Prospectus was declared effective by the SEC on November 18, 2022.
On February 10, 2023, META entered into a sales agreement (the "ATM Agreement") with an investment bank with the establishment of an "at-the-market" offering program under which the Company may sell up to an aggregate of $100 million of shares of common stock (the "ATM Shares") from time to time. The sales agents are entitled to compensation at a fixed commission rate of 3.0% of the gross proceeds of each sale of shares of our common stock.
About Meta Materials Inc.
META® delivers previously unachievable performance, across a range of applications, by inventing, designing, developing, and manufacturing sustainable, high-performance, functional materials, components and systems. 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 metamaterial 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.
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
META MATERIALS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of | As of | |||||||
| December 31, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 10,090,858 | $ | 46,645,704 | ||||
Restricted cash | 1,720,613 | 788,768 | ||||||
Short-term investments | - | 2,875,638 | ||||||
Grants receivable | - | 175,780 | ||||||
Accounts and other receivables | 902,718 | 1,665,700 | ||||||
Notes receivable | 2,211,900 | - | ||||||
Inventory | 468,027 | 265,718 | ||||||
Prepaid expenses and other current assets | 7,202,099 | 3,451,367 | ||||||
Assets held for sale | - | 75,500,000 | ||||||
Due from related parties | 8,461 | 10,657 | ||||||
Total current assets | 22,604,676 | 131,379,332 | ||||||
Intangible assets, net | 56,313,317 | 28,971,824 | ||||||
Property, plant and equipment, net | 42,674,699 | 27,018,114 | ||||||
Operating lease right-of-use assets | 5,576,824 | 6,278,547 | ||||||
Goodwill | 281,748,466 | 240,376,634 | ||||||
Total assets | $ | 408,917,982 | $ | 434,024,451 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Trade and other payables | 16,694,211 | 13,335,470 | ||||||
Current portion of long-term debt | 483,226 | 491,278 | ||||||
Current portion of deferred revenues | 730,501 | 779,732 | ||||||
Current portion of deferred government assistance | 799,490 | 846,612 | ||||||
Preferred stock liability | - | 75,500,000 | ||||||
Current portion of operating lease liabilities | 967,126 | 663,861 | ||||||
Asset retirement obligations | - | 21,937 | ||||||
Total current liabilities | 19,674,554 | 91,638,890 | ||||||
Deferred revenues | 479,808 | 637,008 | ||||||
Deferred government assistance | 319,017 | 3,038 | ||||||
Deferred tax liability | 3,253,985 | 324,479 | ||||||
Long-term operating lease liabilities | 3,375,031 | 3,706,774 | ||||||
Funding obligation | 180,705 | 268,976 | ||||||
Long-term debt | 3,070,729 | 2,737,171 | ||||||
Total liabilities | 30,353,829 | 99,316,336 | ||||||
Stockholders' equity | ||||||||
Common stock - $0.001 par value; 1,000,000,000 shares authorized, 362,247,867 shares issued and outstanding at December 31, 2022, and $.001 par value; unlimited shares authorized, 284,573,316 shares issued and outstanding at December 31, 2021 | 340,425 | 262,751 | ||||||
Additional paid-in capital | 590,962,866 | 463,136,404 | ||||||
Accumulated other comprehensive income (loss) | (5,242,810 | ) | (296,936 | ) | ||||
Accumulated deficit | (207,496,328 | ) | (128,394,104 | ) | ||||
Total stockholders' equity | 378,564,153 | 334,708,115 | ||||||
Total liabilities and stockholders' equity | $ | 408,917,982 | $ | 434,024,451 | ||||
META MATERIALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| Three months ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue | ||||||||||||||||
Product sales | 277,447 | 86,484 | 1,211,746 | 407,915 | ||||||||||||
Development revenue | 1,168,286 | 2,202,798 | 8,988,421 | 3,674,602 | ||||||||||||
Total Revenue | 1,445,733 | 2,289,282 | 10,200,167 | 4,082,517 | ||||||||||||
Cost of goods sold | 682,797 | 529,764 | 3,036,190 | 675,973 | ||||||||||||
Gross Profit | 762,936 | 1,759,518 | 7,163,977 | 3,406,544 | ||||||||||||
Operating Expenses | ||||||||||||||||
Selling & Marketing | 3,053,932 | 1,144,885 | 6,244,883 | 2,267,354 | ||||||||||||
General & Administrative | 15,801,181 | 13,483,954 | 61,543,282 | 29,699,602 | ||||||||||||
Research & Development | 5,944,871 | 4,266,606 | 22,640,495 | 9,497,427 | ||||||||||||
Total operating expenses | 24,799,984 | 18,895,445 | 90,428,660 | 41,464,383 | ||||||||||||
Loss from operations | (24,037,048 | ) | (17,135,927 | ) | (83,264,683 | ) | (38,057,839 | ) | ||||||||
Other income (expense) | ||||||||||||||||
Interest expense, net | 266,460 | (12,612 | ) | (174,234 | ) | (1,106,445 | ) | |||||||||
Loss on foreign exchange, net | 992,508 | 564,660 | (2,054,447 | ) | (205,882 | ) | ||||||||||
Gain on deconsolidation of wholly-owned subsidiary | 3,990,737 | - | 3,990,737 | |||||||||||||
Loss on financial instruments, net | - | - | (40,540,091 | ) | ||||||||||||
Other (loss) income, net | (2,109,229 | ) | (13,612,192 | ) | (3,433,757 | ) | (11,939,067 | ) | ||||||||
Total other expense, net | 3,140,476 | (13,060,144 | ) | (1,671,701 | ) | (53,791,485 | ) | |||||||||
Loss before income taxes | (20,896,572 | ) | (30,196,071 | ) | (84,936,384 | ) | (91,849,324 | ) | ||||||||
Income tax recovery | 5,686,967 | 665,880 | 5,834,160 | 852,063 | ||||||||||||
Net loss | (15,209,605 | ) | (29,530,191 | ) | (79,102,224 | ) | ||||||||||