Smartkem Reports Third Quarter 2025 Financial Results

Rhea-AI Summary

Smartkem (Nasdaq: SMTK) reported third quarter 2025 results and a business update on Nov 13, 2025. Q3 revenue was $81,000 vs $40,000 in Q3 2024, driven by OTFT backplane and TRUFLEX materials sales. Operating expenses were $2.0M and loss from operations was $3.1M for Q3 2025. Cash and cash equivalents fell to $0.9M as of Sept 30, 2025 from $7.1M at Dec 31, 2024. On Oct 31, 2025 the company obtained $1.0M bridge financing via senior secured notes due Apr 30, 2026 plus warrants for 400,000 shares. The company announced several industry partnerships and conference presentations during Q3.

Positive

• Q3 revenue +103% year-over-year to $81,000
• Signed non-binding LOI with Jericho Energy Ventures
• Preliminary joint development agreement with Manz Asia
• Obtained $1.0M bridge financing on Oct 31, 2025

Negative

• Cash fell from $7.1M to $0.9M between Dec 31, 2024 and Sept 30, 2025
• Operating loss widened to $3.1M in Q3 2025
• Issued senior secured notes due Apr 30, 2026 with 400,000 warrants

MANCHESTER, England, Nov. 13, 2025 /PRNewswire/ -- Smartkem (Nasdaq: SMTK), which is seeking to change the world of electronics with a new class of transistor technology, today provides a business update and reports its financial results for the three and nine months ended September 30, 2025.

Third Quarter 2025 Highlights:

• Signed a non-binding Letter of Intent with Jericho Energy Ventures to create a U.S.-owned, AI-focused infrastructure company.
• Announced a preliminary joint development agreement with Manz Asia for advanced computer and AI chip packaging solutions.
• Delivered feature presentations at the 25^th International Meeting on Information Display (IMID) in Busan, Korea.
• Participated at the PlayNitride 2025 Technology Forum in Taiwan.
• Exhibited at SEMICON® Taiwan 2025.
• Presented and exhibited at MicroLED Connect 2025 in Eindhoven, The Netherlands.
• Presented and exhibited at TechBlick Berlin: The Future of Electronics RESHAPED 2025.

Summary Third Quarter 2025 Financial Results:

• Revenue was $81 thousand for the three months ended September 30, 2025, compared to $40 thousand for the same period of 2024, primarily as a result of sales of OTFT backplanes and TRUFLEX® materials for customer assessment and development purposes.
• Operating expenses were $2 million for the three months ended September 30, 2025, compared to $1.5 million for the same period of 2024.
• Loss from operations was $3.1 million for the three months ended September 30, 2025, compared to $2.8 million for the same period of 2024.
• Cash and cash equivalents were $0.9 million as of September 30, 2025, compared to $7.1 million as of December 31, 2024.
• On October 31, 2025 , the Company obtained $1,000,000 of bridge financing in exchange for the issuance of $1,100,000 principal amount of its Senior Secured Notes due April 30, 2026, 2026 and five-year warrants to purchase up to 400,000 shares of common stock at the exercise price of $2.75 per share. The Notes are secured by security interests on all of the assets of the Company and its subsidiaries.

About Smartkem

Smartkem is seeking to change the world of electronics with a new class of transistors developed using its proprietary advanced semiconductor materials. Our TRUFLEX® materials can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor.

Smartkem designs and develops its materials at its research and development facility in Manchester, UK and operates a field application office in Hsinchu, Taiwan, close to collaboration partner, The Industrial Technology Research Institute (ITRI), which provides product prototyping services. With its collaboration partners, Smartkem is developing a commercial-scale production process and Electronic Design Automation (EDA) tools to demonstrate the commercial viability of manufacturing a new generation of displays using its materials.

The company has an extensive IP portfolio including 140 granted patents across 17 patent families, 14 pending patents and 40 codified trade secrets. For more information, visit our website or follow us on LinkedIn.

Forward-Looking Statements

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.

 

 

SMARTKEM, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except number of shares and per share data)
		September 30,			December 31,
		2025			2024
Assets
Current assets
Cash and cash equivalents		$	881		$	7,141
Research and development tax credit receivable			404			519
Prepaid expenses and other current assets			1,079			849
Total current assets			2,364			8,509
Property, plant and equipment, net			221			269
Right-of-use assets, net			663			120
Other assets, non-current			—			6
Total assets		$	3,248		$	8,904
Liabilities and stockholders' (deficit) / equity
Current liabilities
Accounts payable and accrued expenses		$	4,890		$	1,791
Lease liabilities, current			274			47
Other current liabilities			660			450
Total current liabilities			5,824			2,288
Lease liabilities, non-current			376			25
Total liabilities			6,200			2,313
Contingencies (Note 7)			—			—
Stockholders' (deficit) / equity:
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized, 0 and 856 shares issued and outstanding, at September 30, 2025 and December 31, 2024, respectively			—			—
Common stock, par value $0.0001 per share, 300,000,000 shares authorized, 5,605,043 and 3,590,217 shares issued and outstanding, at September 30, 2025 and December 31, 2024, respectively			1			—
Additional paid-in capital			123,495			122,316
Accumulated other comprehensive loss			(3,374)			(1,105)
Accumulated deficit			(123,074)			(114,620)
Total stockholders' (deficit) / equity			(2,952)			6,591
Total liabilities and stockholders' (deficit) / equity		$	3,248		$	8,904

 

 

SMARTKEM, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(in thousands, except number of shares and per share data)
		Three Months Ended September 30,						Nine Months Ended September 30,
		2025			2024			2025			2024
Revenue		$	81		$	—		$	136		$	40
Cost of revenue			5			—			34			32
Gross profit			76			—			102			8
Other operating income			181			287			711			725
Operating expenses
Research and development			2,056			1,504			5,979			3,938
General and administrative			1,331			1,578			5,700			4,784
(Gain) / loss on foreign currency transactions			59			43			(167)			75
Total operating expenses			3,446			3,125			11,512			8,797
Loss from operations			(3,189)			(2,838)			(10,699)			(8,064)
Non-operating income / (expense)
Gain / (loss) on foreign currency transactions			(732)			—			2,207			(249)
Change in fair value of the warrant liability			—			—			—			672
Interest income / (expense)			1			(4)			14			5
Total non-operating income / (expense)			(731)			(4)			2,221			428
Loss before income taxes			(3,920)			(2,842)			(8,478)			(7,636)
Income tax refund / (expense)			—			—			24			(1)
Net loss		$	(3,920)		$	(2,842)		$	(8,454)		$	(7,637)
Preferred stock deemed dividends			—			—			—			(7,094)
Net loss attributed to common stockholders		$	(3,920)		$	(2,842)		$	(8,454)		$	(14,731)
Weighted average shares outstanding - basic and diluted			8,782,766			3,308,975			7,842,215			3,068,110
Common share data:
Basic net loss per common share		$	(0.45)		$	(0.86)		$	(1.08)		$	(2.49)
Diluted net loss per common share			(0.45)			(0.86)			(1.08)			(4.80)
Dividend per common share			—			—			—			(2.31)
Net loss		$	(3,920)		$	(2,842)		$	(8,454)		$	(7,637)
Other comprehensive loss:
Foreign currency translation			800			125			(2,269)			281
Total comprehensive loss		$	(3,120)		$	(2,717)		$	(10,723)		$	(7,356)

 

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SOURCE SmartKem

FAQ

What were Smartkem (SMTK) Q3 2025 revenue and operating loss?

Q3 2025 revenue was $81,000 and loss from operations was $3.1M.

How much cash did Smartkem (SMTK) have at Sept 30, 2025?

Cash and cash equivalents were reported at $0.9M as of Sept 30, 2025.

What financing did Smartkem (SMTK) obtain on Oct 31, 2025?

Smartkem obtained $1.0M bridge financing via senior secured notes due Apr 30, 2026 and issued warrants for 400,000 shares.

What commercial partnerships did Smartkem (SMTK) announce in Q3 2025?

The company signed a non-binding LOI with Jericho Energy Ventures and a preliminary joint development agreement with Manz Asia.

Will the Oct 31, 2025 notes for Smartkem (SMTK) affect shareholder dilution?

The financing included warrants to buy 400,000 shares at $2.75, which could dilute shareholders if exercised.