1. Smartkem reports progress in semiconductor commercialization for MicroLED displays. 2. Raised $7.65 million in equity funding and received a $1.1 million grant. 3. Revenue increased to $82,000, reflecting strong operational growth in 2024. 4. Commercial production of TRUFLEX® begins, indicating milestones in their strategy. 5. Projected MicroLED market growth over $4 billion by 2030 supports Smartkem's vision.
Smartkem's advancements in semiconductor technology and funding boost investor confidence. Previous cases show that successful funding announcements can lead to stock price increases.
The focus on commercialization and substantial funding indicates potential growth, critical for investors. Advancements affect technology adoption, thus influencing market sentiment and stock performance.
The commercialization of MicroLED technology and associated revenue growth impacts long-term value. Historical examples of tech companies indicate sustained gains after successful product launches.
Smartkem, which is seeking to change the world of electronics with a new class of transistor technology, today provides a business update and reports financial results for the three and twelve months ended December 31, 2024.
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 $4 billion by 2030. We delivered on every key milestone during the quarter, and in December, we raised $7.65 million in equity financing and received a $1.1 million grant from Innovate UK – critical funding to supercharge our momentum, expand our resources, and support our ongoing programs.
"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:
"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.
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 Manchester, UK and provides prototyping services 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 138 granted patents across 17 patent families, 16 pending patents and 40 codified trade secrets. For more information, visit our website or follow us on LinkedIn.
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.
Selena Kirkwood
Head of Communications for Smartkem
T: +44 (0) 7971 460 364
info@smartkem.com
David Barnard, CFA
Alliance Advisors Investor Relations
T: 1 415 433 3777
info@smartkem.com
1 2024 Omdia Report
(in thousands, except number of shares and per share data)
| Assets | Current assets |
|---|---|
| Cash and cash equivalents | $7,141 |
| Accounts receivable | — |
| Research and development tax credit receivable | 519 |
| Prepaid expenses and other current assets | 849 |
| Total current assets | 8,509 |
| Property, plant and equipment, net | 269 |
| Right-of-use assets, net | 120 |
| Other assets, non-current | 6 |
| Total assets | $8,904 |
| Current liabilities | Total current liabilities |
|---|---|
| Accounts payable and accrued expenses | $1,791 |
| Lease liabilities, current | 47 |
| Other current liabilities | 450 |
| Total current liabilities | 2,288 |
| Lease liabilities, non-current | 25 |
| Warrant liability | — |
| Total liabilities | 2,313 |
| Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized, 856 and 13,765 shares issued and outstanding, at December 31, 2024 and December 31, 2023, respectively | — |
| Common stock, par value $0.0001 per share, 300,000,000 shares authorized, 3,590,217 and 889,668 shares issued and outstanding, at December 31, 2024 and December 31, 2023, respectively | — |
| Additional paid-in capital | 122,316 |
| Accumulated other comprehensive loss | (1,105) |
| Accumulated deficit | (114,620) |
| Total stockholders' equity | 6,591 |
| Total liabilities and stockholders' equity | $8,904 |
(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) |
SOURCE Smartkem