MANCHESTER, England, Aug. 12, 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 six months ended June 30, 2025.

Second quarter 2025 and recent highlights included:

Introducing a 12.3-inch MicroLED Smart Backlight demonstration targeting next-generation automotive LCD displays.
Signing a preliminary joint development agreement with Manz Asia to co-develop inkjet dielectric inks for advanced chip packaging.
Forming a collaboration with Manz Asia to showcase inkjet-printed dielectric solutions for AI chip packaging at SEMICON Southeast Asia.
Securing a new UK patent for a MicroLED manufacturing process that enables wafer reuse and supports its expanding IP portfolio.
Presenting and exhibiting Smarkem's MicroLED technologies at Display Week 2025, with CEO Ian Jenks speaking on commercialization opportunities.

Second Quarter 2025 Financial Highlights:

Cash and cash equivalents were $1.2 million as of June 30, 2025, compared to $7.1 million as of December 31, 2024. The company believes the cash balance at June 30, 2025 will be sufficient to fund operations through September 30, 2025.
Revenue was $32 thousand for the three months ended June 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 $4.7 million for the three months ended June 30, 2025, compared to $3.0 million for the same period of 2024. The increase in operating expenses in Q2 2025 was due to a $1.5 million increase in R&D expenses primarily resulting from a $0.8 million increase in costs in the second quarter of 2025 pursuant to the terms of the extension of the CPI Framework agreement and higher personnel expenses as well as $0.6 million higher G&A expenses related to professional services, including $0.3 million in non-cash expenses.
Loss from operations was $4.4 million for the three months ending June 30, 2025, compared to $2.8 million for the same period of 2024.

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® semiconductor polymers enable low temperature printing processes that are compatible with existing manufacturing infrastructure to deliver low-cost, high-performance displays. Our semiconductor platform can be used in a range of display technologies including MicroLED, LCD and AMOLED, as well as in applications in advanced computer and AI chip packaging, sensors, and logic.

Smartkem designs and develops its materials at its research and development facility in Manchester, UK and provides prototyping services at the Centre for Process Innovation (CPI) in Sedgefield, UK. It operates a field application office in Hsinchu, Taiwan, close to collaboration partner, The Industrial Technology Research Institute (ITRI). 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.

Contacts:

Selena Kirkwood
Head of Communications for Smartkem
T : +44 (0) 7971 460 364
s.kirkwood@smartkem.com

U.S. Investors
David Barnard, CFA
Alliance Advisors Investor Relations
T: 1 415 433 3777
dbarnard@allianceadvisors.com

                                                                           
            
              SMARTKEM, INC. AND SUBSIDIARIES


                                                                             
            
              Consolidated Balance Sheets


                                                                                     
            
              (Unaudited)


                                                                   
            (in thousands, except number of shares and per share data)


                                                                                                                                               June 30,             December 31,


                                                                                                                                             2025            2024



            
              Assets



            Current assets



            Cash and cash equivalents                                                                                                 $
         1,152     $
          7,141



            Research and development tax credit receivable                                                                                     842               519



            Prepaid expenses and other current assets                                                                                        1,436               849



            Total current assets                                                                                                             3,430             8,509



            Property, plant and equipment, net                                                                                                 174               269



            Right-of-use assets, net                                                                                                           678               120



            Other assets, non-current                                                                                                                             6



            
              Total assets                                                                                                   $
         4,282     $
          8,904





            
              Liabilities and stockholders' (deficit) / equity



            Current liabilities



            Accounts payable and accrued expenses                                                                                     $
         3,071     $
          1,791



            Lease liabilities, current                                                                                                         243                47



            Other current liabilities                                                                                                          674               450



            Total current liabilities                                                                                                        3,988             2,288



            Lease liabilities, non-current                                                                                                     421                25



            Total liabilities                                                                                                                4,409             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 June 30, 2025
    and December 31, 2024, respectively



            Common stock, par value $0.0001 per share, 300,000,000 shares
    authorized, 4,441,165 and 3,590,217 shares issued and outstanding, at
    June 30, 2025 and December 31, 2024, respectively



            Additional paid-in capital                                                                                                     123,201           122,316



            Accumulated other comprehensive loss                                                                                           (4,174)          (1,105)



            Accumulated deficit                                                                                                          (119,154)        (114,620)



            Total stockholders' (deficit) / equity                                                                                           (127)            6,591



            
              Total liabilities and stockholders' (deficit) / equity                                                         $
         4,282     $
          8,904

                                                                  
            
                SMARTKEM, INC. AND SUBSIDIARIES


                                                       
            
             Consolidated Statements of Operations and Comprehensive Loss


                                                                          
              
                (Unaudited)


                                                              
         (in thousands, except number of shares and per share data)




                                                                                                                                       Three Months Ended June 30,                 Six Months Ended June 30,


                                                                                                                                  2025                            2024            2025                         2024



     Revenue                                                                                                             $
              32                    $
              40     $
             55                 $
              40



     Cost of revenue                                                                                                                 28                                32                29                             32



     Gross profit                                                                                                                     4                                 8                26                              8





     Other operating income                                                                                                         279                               236               530                            438





     Operating expenses



     Research and development                                                                                                     2,426                             1,158             3,923                          2,434



     General and administrative                                                                                                   2,360                             1,844             4,369                          3,206



     (Gain) / loss on foreign currency transactions                                                                               (131)                               19             (226)                            32



     Total operating expenses                                                                                                     4,655                             3,021             8,066                          5,672





     Loss from operations                                                                                                       (4,372)                          (2,777)          (7,510)                       (5,226)





     Non-operating income / (expense)



     Gain / (loss) on foreign currency transactions                                                                               1,970                             (243)            2,939                          (249)



     Change in fair value of the warrant liability                                                                                                                  (81)                                            672



     Interest income / (expense)                                                                                                      3                                 3                13                              9



     Total non-operating income / (expense)                                                                                       1,973                             (321)            2,952                            432





     Loss before income taxes                                                                                                   (2,399)                          (3,098)          (4,558)                       (4,794)



     Income tax refund / (expense)                                                                                                  (1)                              (1)               24                            (1)



     Net loss                                                                                                       $
              (2,400)              $
              (3,099)  $
          (4,534)               $
          (4,795)



     Preferred stock deemed dividends                                                                                                                                                                           (7,094)



     Net loss attributed to common stockholders                                                                     $
              (2,400)              $
              (3,099)  $
          (4,534)              $
          (11,889)





     Weighted average shares outstanding - basic and diluted                                                                  8,070,836                         3,157,334         7,364,145                      2,946,354





     Common share data:



     Basic net loss per common share                                                                                 $
              (0.30)               $
              (0.98)   $
          (0.62)                $
          (1.63)



     Diluted net loss per common share                                                                                           (0.30)                           (0.98)           (0.62)                        (4.04)



     Dividend per common share                                                                                                                                                                                   (2.41)





     Net loss                                                                                                       $
              (2,400)              $
              (3,099)  $
          (4,534)               $
          (4,795)



     Other comprehensive loss:



     Foreign currency translation                                                                                               (2,064)                              174           (3,069)                           156



     Total comprehensive loss                                                                                       $
              (4,464)              $
              (2,925)  $
          (7,603)               $
          (4,639)

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