SmartKem Inc (SMTK) Quarterly 10-Q Report

The report was filed on November 8, 2024

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SmartKem Inc (SMTK-2.44%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

The filing includes financial statements for the quarter, showing no revenue for the three months ended September 30, 2024, compared to $3,000 in the same period the previous year. Revenue for the nine months ended September 30, 2024, was $40,000, up from $27,000 in 2023.

Operating expenses for the quarter were $3.1 million, consistent with the same period in 2023. For the nine months ended September 30, 2024, operating expenses increased to $8.8 million from $8.3 million in 2023.

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Research and development expenses decreased slightly to $1.5 million for the quarter, while selling, general, and administrative expenses increased to $1.6 million.

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The company reported a net loss of $2.8 million for the quarter, compared to $3.0 million in the previous year. Net loss for the nine months ended September 30, 2024, was $7.6 million, compared to $7.1 million in the previous year.

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Cash and cash equivalents as of September 30, 2024, were $1.8 million, down from $8.8 million as of December 31, 2023. The company anticipates that this will not be sufficient to fund its operating expenses and capital expenditure requirements for the next 12 months.

SmartKem's future viability is dependent on its ability to raise additional capital to fund operations. The company plans to finance its working capital requirements through equity offerings, debt financings, collaborations, strategic alliances, and marketing, distribution, or licensing arrangements.

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The filing also details a material weakness in internal control over financial reporting related to the Consent, Conversion, and Amendment Agreement entered into on January 26, 2024. The company is taking steps to remediate this issue.

SmartKem's business strategy focuses on the development of organic thin-film transistors (OTFTs) and its TRUFLEX® liquid semiconductor polymers, with operations in the UK and Taiwan.

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The company does not anticipate cash dividend payments to stockholders in the foreseeable future.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the SmartKem Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.