Smartkem Reports Third Quarter 2025 Financial Results

MANCHESTER, England, Nov. 13, 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 nine months ended September 30, 2025.

Third Quarter 2025 Highlights:

Summary Third Quarter 2025 Financial Results:

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® materials can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor.

Smartkem designs and develops its materials at its research and development facility in Manchester, UK and operates a field application office in Hsinchu, Taiwan, close to collaboration partner, The Industrial Technology Research Institute (ITRI), which provides product prototyping services. With its collaboration partners, 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.

SMARTKEM, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

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

September 30,

December 31,

2025

2024

Assets

Current assets

Cash and cash equivalents

$

881

$

7,141

Research and development tax credit receivable

404

519

Prepaid expenses and other current assets

1,079

849

Total current assets

2,364

8,509

Property, plant and equipment, net

221

269

Right-of-use assets, net

663

120

Other assets, non-current

—

6

Total assets

$

3,248

$

8,904

Liabilities and stockholders' (deficit) / equity

Current liabilities

Accounts payable and accrued expenses

$

4,890

$

1,791

Lease liabilities, current

274

47

Other current liabilities

660

450

Total current liabilities

5,824

2,288

Lease liabilities, non-current

376

25

Total liabilities

6,200

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 September 30,

2025 and December 31, 2024, respectively

—

—

Common stock, par value $0.0001 per share, 300,000,000 shares

authorized, 5,605,043 and 3,590,217 shares issued and outstanding, at

September 30, 2025 and December 31, 2024, respectively

1

—

Additional paid-in capital

123,495

122,316

Accumulated other comprehensive loss

(3,374)

(1,105)

Accumulated deficit

(123,074)

(114,620)

Total stockholders' (deficit) / equity

(2,952)

6,591

Total liabilities and stockholders' (deficit) / equity

$

3,248

$

8,904

SMARTKEM, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenue

$

81

$

—

$

136

$

40

Cost of revenue

5

—

34

32

Gross profit

76

—

102

8

Other operating income

181

287

711

725

Operating expenses

Research and development

2,056

1,504

5,979

3,938

General and administrative

1,331

1,578

5,700

4,784

(Gain) / loss on foreign currency transactions

59

43

(167)

75

Total operating expenses

3,446

3,125

11,512

8,797

Loss from operations

(3,189)

(2,838)

(10,699)

(8,064)

Non-operating income / (expense)

Gain / (loss) on foreign currency transactions

(732)

—

2,207

(249)

Change in fair value of the warrant liability

—

—

—

672

Interest income / (expense)

1

(4)

14

5

Total non-operating income / (expense)

(731)

(4)

2,221

428

Loss before income taxes

(3,920)

(2,842)

(8,478)

(7,636)

Income tax refund / (expense)

—

—

24

(1)

Net loss

$

(3,920)

$

(2,842)

$

(8,454)

$

(7,637)

Preferred stock deemed dividends

—

—

—

(7,094)

Net loss attributed to common stockholders

$

(3,920)

$

(2,842)

$

(8,454)

$

(14,731)

Weighted average shares outstanding - basic and diluted

8,782,766

3,308,975

7,842,215

3,068,110

Common share data:

Basic net loss per common share

$

(0.45)

$

(0.86)

$

(1.08)

$

(2.49)

Diluted net loss per common share

(0.45)

(0.86)

(1.08)

(4.80)

Dividend per common share

—

—

—

(2.31)

Net loss

$

(3,920)

$

(2,842)

$

(8,454)

$

(7,637)

Other comprehensive loss:

Foreign currency translation

800

125

(2,269)

281

Total comprehensive loss

$

(3,120)

$

(2,717)

$

(10,723)

$

(7,356)

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SOURCE SmartKem