META Announces Second Quarter and H1 2021 Results
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META Announces Second Quarter and H1 2021 Results

Thursday, August 12, 2021 10:30 PM
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Meta Materials Inc.

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 - $0.001 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: [email protected]

Media inquiries:

[email protected]

SOURCE: Meta Materials Inc.

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