Revenue and Profit - Revenue for the three months ended March 31, 2022, was $30 thousand, a 100% increase compared to none in the same period of 2021[130] - Cost of revenue for the same period was $23 thousand, also a 100% increase from none in the prior year[130] - Gross profit for the three months ended March 31, 2022, was $7 thousand, marking a 100% increase from none in the same period of 2021[130] Operating Expenses - Total operating expenses decreased by $6.6 million, or 71%, to $2.7 million for the three months ended March 31, 2022, compared to $9.3 million in 2021[132] - Research and development expenses decreased by $2.6 million to $1.5 million for the quarter, representing 54% of total operating expenses[133] - Selling, general and administrative expenses decreased by $2.7 million to $1.2 million for the quarter, representing 46% of total operating expenses[134] - Other operating income was $284 thousand in the three months ended March 31, 2022, a decrease of $149 thousand, or 34%, from $433 thousand in the same period of 2021[131] Net Loss and Deficit - For the three months ended March 31, 2022, the net loss was $2.8 million, a decrease of $6.6 million, or 71%, compared to a net loss of $9.4 million for the same period in 2021[137] - The accumulated deficit as of March 31, 2022, was $77.8 million, primarily due to research and development expenses and general administrative costs[118] Cash Flow and Financing - Cash and cash equivalents as of March 31, 2022, were $10.6 million, down from $12.2 million as of December 31, 2021[138] - Net cash used in operating activities was $3.6 million for the three months ended March 31, 2022, compared to $3.7 million for the same period in 2021, a decrease of $172 thousand, or 5%[143] - Net cash provided by financing activities was $1.8 million for the three months ended March 31, 2022, a decrease of $20.4 million, or 92%, compared to $22.2 million in the first quarter of 2021[145] - The company raised net proceeds of $1.8 million through the sale of common stock in the three months ended March 31, 2022[150] - The company expects existing cash will be sufficient to fund operations through April 2023, but additional capital will be required thereafter[139] - The company is assessing options for financing working capital requirements through equity offerings, debt financings, and strategic alliances[141] Non-Operating Expenses - Non-operating expenses decreased by $135 thousand, or 28%, to $354 thousand for the three months ended March 31, 2022, compared to $489 thousand for the same period in 2021[136] - The company incurred transaction costs of $1.3 million associated with the Exchange during the three-month period ended March 31, 2021[135] Future Outlook - The company has experienced recurring losses since inception and expects to incur additional losses in the future related to research and development activities[149] - The company entered into a joint development agreement with Nanosys Inc. in February 2022 to develop low-cost solution printed micro-LED and quantum dot materials[120] - The company has an extensive intellectual property portfolio, including approximately 120 issued patents[116]
SmartKem, Inc.(SMTK) - 2022 Q1 - Quarterly Report