Company Overview - Smartkem is focused on revolutionizing the electronics industry with its disruptive organic thin-film transistors (OTFTs) and patented TRUFLEX® liquid semiconductor polymers, which enable low-temperature printing processes for cost-effective displays [6] - The company operates a research and development facility in Manchester, UK, and provides prototyping services at the Centre for Process Innovation (CPI) in Sedgefield, UK, with a field application office in Taiwan [8] - Smartkem holds an extensive IP portfolio, including 138 granted patents across 18 patent families and 40 codified trade secrets [8] 2024 Achievements - Smartkem raised $7.65 million in December 2024 and secured a $1.1 million grant for a project to develop the world's first rollable, transparent microLED display [2] - The company uplisted to Nasdaq, enhancing trading liquidity and investor access [2] - Smartkem entered multiple strategic partnerships with industry leaders, including AUO, FlexiIC, ITRI, Chip Foundation, Shanghai Tianma Microelectronics, and RiTdisplay, to advance its technology and product development [7] - The company increased its IP portfolio to 138 patents and 40 codified trade secrets, strengthening its competitive position in the organic materials electronics industry [7] - Smartkem exhibited and presented at key trade events, including Touch Taiwan 2024 and Display Week 2024, where CEO Ian Jenks delivered the DSCC / SID Business Conference keynote speech [7] 2025 Goals - Smartkem aims to achieve qualifications and design wins with existing and new collaborations, focusing on driving the adoption of advanced display technologies [2] - The company plans to complete the qualification of the Gen 2.5 ITRI process line and enter additional collaborations or co-development agreements to advance technology commercialization [7] - Smartkem is targeting the growing microLED industry, which is projected to expand from $150 million in 2024 to over $4 billion by 2031 [2] Industry Outlook - The microLED industry is expected to grow significantly, from $150 million in 2024 to over $4 billion by 2031, driven by advancements in display technologies [2] - Smartkem's technology is positioned to play a key role in the adoption of advanced display solutions, including microLED displays, packaging for AI chips, and CMOS for smart sensors [2]

Core Viewpoint - Smartkem has successfully completed concurrent public and private offerings, raising a total of $7.65 million to support its innovative organic thin-film transistors (OTFTs) aimed at transforming the electronics industry [1][5]. Group 1: Offerings Details - The company issued 1,449,997 registered shares of common stock and unregistered Class D warrants, priced at $3.00 per share, with each investor receiving one Class D warrant for each share purchased [2]. - In a separate private placement, Smartkem sold 169,784 unregistered shares of common stock and unregistered prefunded warrants to purchase up to 930,215 shares, with prices set at $3.00 per share and $2.9999 per pre-funded warrant [3]. - The Class D warrants are immediately exercisable at $3.00 per share and expire on December 31, 2025, while the pre-funded warrants are exercisable at $0.0001 per share [4]. Group 2: Use of Proceeds - The net proceeds from the offerings will be utilized for working capital and general corporate purposes [5]. Group 3: Company Background - Smartkem is focused on revolutionizing the electronics sector with its patented TRUFLEX® liquid semiconductor polymers, which can be used in next-generation display technologies, including microLED displays [10]. - The company has a robust intellectual property portfolio, consisting of 138 granted patents across 18 families, 16 pending patents, and 40 codified trade secrets [11].

Project in partnership with AUO starts on January 1, 2025 MANCHESTER, England, Dec. 18, 2024 /PRNewswire/ -- Smartkem (Nasdaq: SMTK), which is seeking to change the world of electronics using its disruptive organic thin-film transistors (OTFTs), has received and accepted a £900,000 (USD 1.1 million) grant from Innovate UK for its previously announced project partnership with AUO to develop a rollable, transparent microLED display. Part of the 2024 UK-Taiwan Collaborative R&D Initiative, the 2-year project w ...

MANCHESTER, England, Dec. 18, 2024 /PRNewswire/ -- Smartkem (Nasdaq: SMTK), which is seeking to change the world of electronics using its disruptive organic thin-film transistors (OTFTs), announced that it has priced concurrent public and private offerings of its securities, including shares of its common stock and common stock equivalents, for an aggregate offering price of $7.65 million to new and existing investors.1,449,997 registered shares of common stock and unregistered Class D warrants to purchase ...

New project builds on ongoing collaboration to develop custom circuits using Smartkem's organic transistor technologyMANCHESTER, England, Dec. 5, 2024 /PRNewswire/ -- Smartkem (NASDAQ: SMTK), which is seeking to change the world of electronics using its disruptive organic thin-film transistors (OTFTs), has signed a multi-year agreement with FlexiIC, a company providing innovation in the design of flexible integrated circuits and systems, to begin a new project to develop a new generation of CMOS for smart s ...

[Smartkem Q3 2024 Financial Results & Business Update](index=1&type=section&id=Smartkem_Q3_2024_Financial_Results_Business_Update) [Q3 2024 Overview and Strategic Focus](index=1&type=section&id=Q3_2024_Overview_Strategic_Focus) Smartkem's Q3 2024 results highlight progress in OTFT commercialization for microLED displays, strategic partnerships, and a focus on 2025 qualifications and design wins - Entered a joint development agreement (JDA) with Chip Foundation for microLED-based backlight technology for LCDs[2](index=2&type=chunk) - ITRI requested Smartkem to develop packaging solutions for advanced computer and AI chips[2](index=2&type=chunk) - The microLED display industry is projected to grow from **$150 million** in 2024 to over **$4 billion** by 2031[3](index=3&type=chunk) - Strategic focus for 2025 is on delivering qualifications and design wins to increase adoption of advanced display technologies[4](index=4&type=chunk) [Recent Business Highlights](index=1&type=section&id=Recent_Business_Highlights) Smartkem's recent business highlights include a JDA with Shanghai Chip Foundation and active participation in key industry forums and exhibitions - Signed a JDA with Shanghai Chip Foundation Semiconductor Technology Co. to co-develop microLED-based backlight technology for LCDs[5](index=5&type=chunk) - Presented a keynote at the PlayNitride 2024 MicroLED Technology Forum, highlighting advantages for microLED display mass adoption[5](index=5&type=chunk) - Exhibited and presented at multiple international conferences, including SEMICON® Taiwan 2024, IMID 2024, ICFPE 2024, and TechBlick[5](index=5&type=chunk) [Company Information](index=2&type=section&id=Company_Information) [About Smartkem](index=2&type=section&id=About_Smartkem) Smartkem develops patented TRUFLEX® liquid semiconductor polymers and OTFTs for next-generation microLED displays, leveraging low-temperature printing and an extensive IP portfolio - Smartkem develops disruptive organic thin-film transistors (OTFTs) and patented TRUFLEX® liquid semiconductor polymers for next-generation displays, including microLEDs[7](index=7&type=chunk) - Their inks enable low-temperature printing processes compatible with existing manufacturing infrastructure for cost-effective, high-performance displays[7](index=7&type=chunk) - The company holds an extensive IP portfolio, including **125 granted patents** across **19 patent families** and **40 codified trade secrets**[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking_Statements) This section contains cautionary forward-looking statements regarding Smartkem's future, subject to risks and uncertainties, with no obligation to update - All statements not historical are forward-looking, encompassing expectations for market position, product development, manufacturing, sales, and partnerships[9](index=9&type=chunk) - Forward-looking statements involve known and unknown risks, uncertainties, and assumptions, with actual results potentially differing materially[9](index=9&type=chunk) - The Company undertakes no obligation to revise or update this information to reflect future events or circumstances[9](index=9&type=chunk) [Financial Performance](index=1&type=section&id=Financial_Performance) [Q3 2024 Financial Highlights](index=1&type=section&id=Q3_2024_Financial_Highlights) Smartkem's Q3 2024 financial highlights show a significant decrease in cash, increased operating expenses, and negligible revenue Q3 2024 Financial Highlights (in millions, except revenue) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :------------------------ | :----------- | :----------- | | Cash and cash equivalents | $1.8 | $8.8 | | Operating expenses (Q3) | $3.0 | $2.7 | | Revenues (Q3) | Nil | $0.003 | [Condensed Consolidated Balance Sheets](index=3&type=section&id=SMARTKEM_INC_Condensed_Consolidated_Balance_Sheets) Smartkem's balance sheet as of September 30, 2024, shows decreased total assets, liabilities, and stockholders' equity, primarily due to reduced cash and warrant liability elimination Condensed Consolidated Balance Sheets (in thousands) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--------------------------- | :----------- | :----------- | | **Assets** | | | | Cash and cash equivalents | $1,783 | $8,836 | | Total current assets | $3,750 | $10,525 | | Total assets | $4,306 | $11,272 | | **Liabilities** | | | | Total current liabilities | $1,995 | $1,768 | | Warrant liability | $— | $1,372 | | Total liabilities | $2,026 | $3,159 | | **Stockholders' Equity** | | | | Total stockholders' equity | $2,280 | $8,113 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=SMARTKEM_INC_Condensed_Consolidated_Statements_of_Operations_and_Comprehensive_Loss) Smartkem reported nil revenue and increased operating expenses for Q3 and the nine months ended September 30, 2024, resulting in significant net and comprehensive losses Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :---------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenue | $— | $3 | $40 | $27 | | Gross profit | $— | $2 | $8 | $4 | | Operating expenses | $3,125 | $2,954 | $8,797 | $8,315 | | Loss from operations | $(2,838) | $(2,695) | $(8,064) | $(7,616) | | Net loss | $(2,842) | $(3,022) | $(7,637) | $(7,097) | | Total comprehensive loss | $(2,717) | $(2,172) | $(7,356) | $(7,220) | | Basic net loss per common share | $(0.86) | $(1.78) | $(2.49) | $(5.82) | | Weighted average basic shares outstanding | 3,308,975 | 1,701,166 | 3,068,110 | 1,219,450 | [Additional Information](index=3&type=section&id=Additional_Information) [Investor and Media Contacts](index=3&type=section&id=Investor_and_Media_Contacts) This section provides contact information for Smartkem's CFO, Head of Communications, and U.S. Investor Relations - Contact details provided for Smartkem's Chief Financial Officer (Barbra Keck), Head of Communications (Selena Kirkwood), and U.S. Investor Relations (David Barnard, Alliance Advisors)[10](index=10&type=chunk)

Core Insights - Smartkem is advancing its proprietary organic thin-film transistors (OTFTs) aimed at revolutionizing display technologies, particularly microLED displays, which are projected to grow from $150 million in 2024 to over $4 billion by 2031 [3][6] Business Developments - In Q3 2024, Smartkem entered a joint development agreement with Chip Foundation to create microLED-based backlight technology for LCDs, enhancing collaborations with major display manufacturers [2][5] - The company showcased its innovations at various international forums, emphasizing the advantages of microLED displays, including durability and brightness [5] Financial Performance - As of September 30, 2024, Smartkem reported cash and cash equivalents of $1.8 million, a decrease from $8.8 million at the end of 2023 [6][10] - Operating expenses for Q3 2024 were $3.0 million, up from $2.7 million in the same period of 2023, while revenues were nil compared to $3,000 in Q3 2023 [6][12] - The net loss for Q3 2024 was $2.8 million, slightly improved from a loss of $3.0 million in Q3 2023 [12][13] Future Outlook - The company aims to secure qualifications and design wins in 2025 to boost the adoption of advanced display technologies [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-42115 SmartKem, Inc. (Exact name of registrant as specified in its charter) | --- | |-------| | | | | | | ...

Company Overview - Smartkem is focused on developing disruptive organic thin-film transistors (OTFTs) aimed at revolutionizing the display industry [3][4] - The company utilizes patented TRUFLEX® liquid semiconductor polymers to create new types of transistors suitable for various display technologies, including next-generation microLED displays [3] - Smartkem's inks allow for low-temperature printing processes that are compatible with existing manufacturing infrastructure, enabling the production of low-cost displays that outperform current technologies [3] Upcoming Conference - Smartkem will present at the 6th National Conference on Organic Field-Effect Transistors in Hangzhou, China on November 9, 2024 [1][2] - The presentation, titled "OTFT materials for emissive displays and low temperature logic circuitry on plastic substrates," will be delivered by Chief Technology Officer Dr. Simon Ogier from 13:30 to 13:50 local time [2] - The conference is organized by Beihang University and the Institute of Chemistry, Chinese Academy of Sciences, focusing on organic field-effect transistors and flexible printed optoelectronic materials and devices [2][5] Research and Development - Smartkem conducts its R&D at its facility in Manchester, UK, and offers prototyping services at the Centre for Process Innovation in Sedgefield, UK [4] - The company has a significant intellectual property portfolio, including 125 granted patents across 19 patent families and 40 codified trade secrets [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-42115 SmartKem, Inc. (Exact name of registrant as specified in its charter) Delaware 85-1083654 (State or othe ...