META Announces Second Quarter and H1 2021 Results
08/12/2021 - 10:30 PM
HALIFAX, NS / ACCESSWIRE / August 12, 2021 / Meta Materials Inc. (the "Company" or "META®") (NASDAQ:MMAT) a developer of high-performance functional materials and nanocomposites, today announced second quarter 2021 results. Please visit the Investors section of our website to view the Q2 2021 Shareholder Letter .
The interim financial statements and the associated management discussion and analysis for the quarter ended June 30, 2021 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 Q2 2021, total revenue grew 197% , to $624,320 , compared to $210,344 in Q2 2020. For H1 2021, total revenue increased by 88% , to $1,220,623 , versus $650,683 in H1 2020. The Q2 2021 net loss was $5,181,392 , 3c per share on 197,911,144 weighted average shares, compared to a net loss of $1,816,741 , 1c per share on 155,931,625 weighted average shares in Q2 2020. For H1 2021, the net loss was $49,339,912 , 27c per share on 183,485,933 weighted average shares, compared to a loss of $3,234,029 , 3c per share on 120,093,443 weighted average shares in H1 2020.
The H1 2021 net loss included a one-time, non-cash loss of $40,540,091 on financial instruments. Net cash used in operating activities during H1 2021 was $5,607,851 , compared to $4,461,287 in H1 2020. Capital expenditures for purchases of property, plant, and equipment and intangible assets totaled $3,314,875. As of June 30, 2021, cash and cash equivalents totaled $154,634,423 , and common shares outstanding were 279,782,854.
About Meta Materials Inc.
META® delivers previously unachievable performance, across a range of applications, by inventing, designing, developing, and manufacturing sustainable, highly functional materials. 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 achievements have been widely recognized, including being named a Global Cleantech 100 company. Learn more at www.metamaterial.com .
META MATERIALS INC. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
As of June 30, 2021 As of December 31, 2020
ASSETS
Current assets
Cash and cash equivalents
$ 154,634,423 $ 1,395,683 Restricted cash
433,627 - Grants receivable
407,523 327,868 Accounts receivable
207,760 22,833 Inventory
368,293 463,382 Prepaid expenses and other current assets
1,604,710 514,204 Assets held for sale
72,797,392 - Due from related parties
57,658 - Total current assets
230,511,386 2,723,970 Intangible assets, net
4,389,607 4,476,614 Property, plant and equipment, net
5,382,196 2,761,171 Operating lease right-of-use assets
2,994,424 270,581 Goodwill
217,613,966 - Total assets
$ 460,891,579 $ 10,232,336
Liabilities and stockholders' equity (deficit)
Current liabilities
Trade and other payables
5,377,375 2,940,452 Due to related party
- 245,467 Current portion of long-term debt
1,349,274 290,544 Current portion of deferred revenue
1,453,556 1,239,927 Current portion of deferred government assistance
866,011 779,578 Preferred stock liability
77,906,354 Current portion of operating lease liabilities
279,832 150,802 Asset retirement obligations
21,937 Unsecured convertible promissory notes
- 1,203,235 Secured convertible debentures
- 5,545,470 Total current liabilities
87,254,339 12,395,475 Deferred revenue
681,625 804,143 Deferred government assistance
76,807 146,510 Deferred tax liability
219,962 318,054 Unsecured convertible debentures
- 1,825,389 Long-term operating lease liabilities
1,145,049 119,779 Funding obligation
859,828 776,884 Long-term debt
2,739,620 2,743,504 Total liabilities
92,977,230 19,129,738
Stockholders' equity (deficit)
Common stock - $0.00 1 par value; 1,000,000,000 shares authorized, 279,782,854 shares issued and outstanding at June 30, 2021, and $Nil par value; unlimited shares authorized, 154,236,692 shares issued and outstanding at December 31, 2020
257,966 132,347 Additional paid-in capital
454,259,192 29,021,974 Accumulated other comprehensive income (loss)
133,946 (654,880 ) Accumulated deficit
(86,736,755 ) (37,396,843 ) Total stockholders' equity (deficit)
367,914,349 (8,897,402 ) Total liabilities and stockholders' equity (deficit)
$ 460,891,579 $ 10,232,336
META MATERIALS INC. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended June 30, Six months ended June 30,
2021 2020 2021 2020
Revenue
Product sales
1,953 - 24,000 1,922 Development revenue
622,367 210,344 1,196,623 648,761 Total Revenue
624,320 210,344 1,220,623 650,683 Cost of goods sold
706 1,336 1,106 2,160 Gross Profit
623,614 209,008 1,219,517 648,523 Operating Expenses
Selling & Marketing
298,871 153,962 695,465 324,528 General & Administrative
3,145,367 1,553,118 5,738,252 3,157,652 Research & Development
1,633,653 960,430 3,412,909 1,892,601 Total operating expenses
5,077,891 2,667,510 9,846,626 5,374,781 Other income (expense)
Interest expense, net
(427,809 ) (324,421 ) (878,717 ) (516,225 ) (Loss) Gain on foreign exchange, net
(163,941 ) (323,172 ) (330,385 ) 256,673 (Loss) Gain on financial instruments, net
(535,170 ) 1,042,928 (40,540,091 ) 1,285,765 Other income, net
341,958 236,001 933,864 411,669 Total other income (expenses)
(784,962 ) 631,336 (40,815,329 ) 1,437,882 Loss before income taxes
(5,239,239 ) (1,827,166 ) (49,442,438 ) (3,288,376 ) Income tax recovery
57,847 10,425 102,526 54,347 Net loss
(5,181,392 ) (1,816,741 ) (49,339,912 ) (3,234,029 ) Other Comprehensive Income (Loss) net of tax
Foreign currency translation gain (loss)
87,087 160,012 108,648 (159,248 ) Fair value gain (loss) on changes of own credit risk
9,011 (388,332 ) 680,178 (365,208 ) Total Other Comprehensive Income (Loss)
96,098 (228,320 ) 788,826 (524,456 ) Comprehensive loss
(5,085,294 ) (2,045,061 ) (48,551,086 ) (3,758,485 ) Basic and diluted loss per share
(0.03 ) (0.01 ) (0.27 ) (0.03 ) Weighted average number of shares outstanding - basic and diluted
197,911,144 155,931,625 183,485,933 120,093,443
META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)
Six months ended
June 30, 2021 June 30, 2020
$ $
Cash flows from operating activities:
Net loss
(49,339,912 ) (3,234,029 ) Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash finance income
- (14,002 ) Non-cash interest expense
742,174 378,485 Non-cash lease expense
160,437 - Deferred income tax
(102,526 ) (54,347 ) Depreciation and amortization
1,173,884 1,197,123 Unrealized foreign currency exchange loss (gain)
230,837 (304,973 ) Loss (gain) on financial instruments, net
40,540,091 (1,285,765 ) Change in deferred revenue
18,302 (232,986 ) Non-cash government assistance
(472,499 ) (182,664 ) Loss on debt settlement
19,253 - Stock-based compensation
651,718 708,468 Non-cash consulting expense
12,009 43,673 Changes in operating assets and liabilities
758,381 (1,480,270 ) Net cash used in operating activities
(5,607,851 ) (4,461,287 ) Cash flows from investing activities
Purchases of intangible assets
(274,579 ) (46,977 ) Purchases of property, plant and equipment
(3,040,296 ) (538,893 ) Proceeds from reverse takeover
146,954,733 3,072,136 Net cash provided by investing activities
143,639,858 2,486,266 Cash flows from financing activities
Proceeds from long-term debt
1,127,151 25,783 Repayments of long-term debt
(53,331 ) (190,633 ) Proceeds from government grants
223,384 198,286 Proceeds from unsecured promissory notes
13,963,386 - Proceeds from secured convertible debentures
- 3,630,019 Proceeds from unsecured convertible debentures
- 693,784 Proceeds from issuance of common stock and warrants, net
- 598,546 Proceeds from stock option exercises
113,155 - Proceeds from warrants exercises
93,993 - Proceeds from broker warrants exercises
16,255 - Net cash provided by financing activities
15,483,993 4,955,785
Net increase in cash, cash equivalents and restricted cash
153,516,000 2,980,764 Cash, cash equivalents and restricted cash at beginning of the period
1,395,683 407,061 Effects of exchange rate changes on cash, cash equivalents and restricted cash
156,367 3,931 Cash, cash equivalents and restricted cash at end of the period
155,068,050 3,391,756
Supplemental cash flow information
Accrued purchases of property, equipment, and patents
297,345 35,724 Right-of-use assets obtained in exchange for lease liabilities
1,730,743 - Right-of-use assets and prepaid expenses recognized in exchange for common stock
2,149,381 - Settlement of liabilities in common stock
52,063,432 - Interest paid on debt
64,528 18,124
Forward Looking Information
This press release includes forward-looking information or statements within the meaning of Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, regarding the Company, Nanotech, their businesses and the proposed transaction, which may include, but are not limited to, statements with respect to the business strategies, product development, expansion plans and operational activities of the Company and Nanotech, and the benefits to the Company of the potential acquisition of Nanotech. Often but not always, forward-looking information can be identified by the use of words such as "potential," "predicts," "projects," "seeks," "plans," "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "should," "would" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of the Company and are based on assumptions and subject to risks and uncertainties. Although the management of the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including risks related to the potential benefits of the transaction with Nanotech, the capabilities of Nanotech's facility and the expansion thereof, research and development projects of the Company, the market potential of the products of the Company and Nanotech, the market position of the Company, the completion of the transaction, the scalability of the Company's production ability, capacity for new customer engagements, material selection programs timeframes, the ability to reduce production costs, enhance metamaterials manufacturing capabilities and extend market reach into new applications and industries, the ability to accelerate commercialization plans, the possibility of new customer contracts, the continued engagement of Nanotech's team, the technology industry, market strategic and operational activities, and management's ability to manage and to operate the business. More details about these and other risks that may impact the Company's businesses are described under the heading "Forward Looking Information" in the Company's Form 8-K filed with the SEC on July 23, 2021, and under the heading "Risk Factors" in the Company's Form 10-Q filed with the SEC on May 14, 2021, in the Company's Form 10-K filed with the SEC on March 18, 2021, and in subsequent filings made by Meta Materials with the SEC, which are available on SEC's website at www.sec.gov. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by law.
Contact
Mark Komonoski Senior Vice President Integrous Communications Phone: 1-877-255-8483 Email: ir@metamaterial.com
Media inquiries:
media@metamaterial.com
SOURCE: Meta Materials Inc.
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