Meta Materials(US:MMAT)2024-05-13 20:32Revenue Performance - Revenue for the first quarter ended March 31, 2024, increased by $0.9 million, or 40.9%, compared to the fourth quarter ended December 31, 2023, and increased by $1.9 million, or 131.7%, compared to the first quarter ended March 31, 2023[131]. - Product sales for Q1 2024 reached $85.2 million, a 45% increase from $58.7 million in Q1 2023[163]. - Development revenue surged to $3.1 million in Q1 2024, up 150% from $1.3 million in Q1 2023, primarily driven by lithography revenue[163][165]. - Total revenue for Q1 2024 was $3.3 million, reflecting a 132% increase from $1.4 million in Q1 2023[163]. Operating Expenses - Operating expenses during the first quarter ended March 31, 2024, decreased by $73.4 million, or 89.4%, compared to the fourth quarter ended December 31, 2023, primarily due to a $65.6 million impairment of long-term assets recorded in the previous quarter[132]. - Operating expenses decreased by 56% to $8.5 million in Q1 2024 from $19.2 million in Q1 2023[171]. - For the three months ended March 31, 2024, approximately 48.1% of operating expenses were recorded in entities with a functional currency other than the US Dollar[153]. - Restructuring expenses of $0.3 million were recorded in Q1 2024 related to the Realignment and Consolidation Plan[177]. Financial Position - Cash and cash equivalents as of March 31, 2024, were approximately $7.0 million, down from $10.3 million at the end of 2023[184]. - The company reported a decrease in cash, cash equivalents, and restricted cash of $3.2 million for the three months ended March 31, 2024, compared to a decrease of $5.3 million in the same period of 2023[193]. - The company experienced a net cash inflow from investing activities of $32,096 in the three months ended March 31, 2024, compared to a net cash outflow of $437,528 in the same period of 2023[193][198][199]. - Cash provided by financing activities was $2.7 million for the three months ended March 31, 2024, primarily from the issuance of common stock and warrants, compared to $10.7 million in the same period of 2023[200][201]. Net Loss and Cash Flow - The net loss for the three months ended March 31, 2024, was $7.5 million, down from a net loss of $18.7 million in the same period of 2023[194][195]. - The company reported a net cash used in operating activities of $5.9 million for the three months ended March 31, 2024, compared to $15.5 million for the same period in 2023, indicating a significant improvement[193][194][195]. - There was a $1.3 million cash used by working capital during the three months ended March 31, 2024, primarily due to a $3.6 million decrease in trade payables[194]. Strategic Initiatives - The company is exploring strategic alternatives, including asset divestiture and additional financing, to address financial hardships and avoid potential bankruptcy[134]. - A workforce reduction of approximately 80% of employees was approved on May 2, 2024, to preserve cash resources[133]. - The company is shifting capital toward core business units expected to contribute to near-term cash flow while scaling back investments in non-core areas[146]. - The company engaged in a strategic partnership with Panasonic Industry to enhance the production volume of NANOWEB® films during the year ended December 31, 2023[152]. Compliance and Future Outlook - A reverse stock split at a rate of 1-for-100 was executed on January 29, 2024, to regain compliance with Nasdaq listing standards[135]. - The company has substantial doubt about its ability to continue as a going concern for at least 12 months due to expected operating losses and negative cash flows[191][192]. - Future capital requirements will depend on various factors, including the timing and extent of spending on research and development efforts[189]. - The company plans to alleviate financial concerns through reduced spending and the pursuit of additional capital[191]. Intellectual Property - The company has over 455 active patent documents, with 346 patents issued and 124 patent families, of which 73 include at least one issued patent[128]. Foreign Exchange Impact - The company recorded a net unrealized foreign exchange loss of $1.5 million in Q1 2024, compared to a gain of $325.6 million in Q1 2023[178][181]. Off-Balance Sheet Arrangements - Off-balance sheet firm commitments related to an outstanding letter of credit amounted to approximately $0.5 million as of December 31, 2023[203]. - The company does not maintain any other off-balance sheet arrangements[203].