- Third quarter 2023 revenue up quarter over quarter, supported by stronger product mix and partnerships
- Operating expenses down 32% from the prior year comparable period
- $8.3 million in purchase orders in late August/September will be reflected in fourth quarter 2023 and 2024 results
- Technologies introduced at end of third quarter (QUANTUM™ stripe, VLEPSIS® system) expected to gain traction in the fourth quarter and early 2024
HALIFAX, NS / ACCESSWIRE / November 13, 2023 / Meta Materials Inc. (the “Company” or “META”) (Nasdaq:MMAT), an advanced materials and nanotechnology company, today reported financial results for the third quarter ended September 30, 2023. In the third quarter of 2023, total revenue was $2.2 million, favorably compared to $2.0 million in the second quarter of 2023. Third quarter results modestly lagged the $2.5 million in the third quarter of 2022.
“Incremental growth in revenues over consecutive quarters is a great start for META; these revenues don’t include the recent $8.3 million in new purchase orders or the projected pre-orders for VLEPSIS® system and QUANTUM™ stripe, all of which may be reflected in fourth quarter 2023 and early 2024 results,” noted Uzi Sasson, CEO of META.
META also has signed joint development agreements with a number of confidential partners, with terms toward commercialization. In addition to Panasonic Industry and the G10 bank referenced in prior press releases, META has signed deals with a large automotive OEM and a global consumer electronics company. Letters of intent have been received for VLEPSIS technology, while another four partnerships (for META’s core products) are expected to sign in the fourth quarter of 2023.
META’s restructuring strategy, which focuses on cost cutting efforts and business realignment, has started to reap rewards. Total operating expenses in the third quarter of 2023 were $16.3 million, which are 32% lower than the prior year comparable period that included $23.9 million in operating expenses. “Importantly, we have cut expenses everywhere with the exception of research & development. We will not compromise on the integrity of our products, our technology or the hundreds of patents at our disposal,” noted Mr. Sasson. “Allocating capital to our three core business lines is intended to promote our products, partnerships and most importantly, sales.”
Stemming the tide of net losses, META reports a third quarter net loss of $8.7 million or $0.02 per share (including a one-time gain of $6.8 million or $0.01 per share on the sale of NBH notes), on 477.8 million weighted average shares vs. the third quarter 2022 loss of $24.5 million, or $0.07 per share, on 362.3 million weighted average shares. For comparison purposes, the net loss decreased 64% when compared to the prior year period (or a 38% decrease excluding the gain on sale of NBH notes).
As of September 30, 2023, cash and equivalents totaled approximately $10.2 million, including $1.0 million in restricted cash. The Company has no debt, except for approximately $3.7 million in various interest-free, unsecured loans from ACOA (Atlantic Canada Opportunities Agency). At September 30, 2023, total stockholders’ equity was approximately $93.3 million. As of November 7, 2023, common shares outstanding were 490,414,607.
“We still have work to do in 2023 and beyond, but third quarter results are pointing in the right direction. We have identified the building blocks necessary to make the business more efficient. We’ve overcome many difficult challenges: product innovation, assessing market metrics and advanced product development efforts,” noted Mr. Sasson. “Now we need to translate that into sales across our core product lines, while continuing cost cutting efforts. Our remaining issues are addressable, and they have known solutions. It may take a little time, but our goal is clear.”
The Q3 2023 financial statements and associated management discussion and analysis 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 .
About Meta Materials Inc.
Meta Materials Inc. (META) is an advanced materials and nanotechnology company. We develop new products and technologies using innovative sustainable science. Advanced materials can improve everyday products that surround us, making them smarter and more sustainable. META® technology platforms enable global brands to develop new products to improve performance for customers in aerospace and defense, consumer electronics, 5G communications, batteries, authentication, automotive and clean energy. Learn more at www.metamaterial.com .
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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, which may include, but are not limited to, statements with respect to the business strategies, product development, restructuring plans and operational activities of the Company. Often but not always, forward-looking information can be identified by the use of words such as “pursuing”, “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, the capabilities of our facilities, research and development projects of the Company, the total available market and market potential of the products of the Company, the market position of the Company, the need to raise more capital and the ability to do so, 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 our employees, the technology industry, market strategic and operational activities, and management’s ability to manage and 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” and under the heading “Risk Factors” in the Company’s Form 10-K filed with the SEC on March 23, 2023, in the Company’s Form 10-K/A filed with the SEC on March 24, 2023, in the Company’s Form 10-Q filed with the SEC on November 13, 2023, 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.
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