HALIFAX, NS, Nov. 30, 2020 /CNW/ – Metamaterial Inc. (the “Company” or “META“) (CSE: MMAT) a developer of high-performance functional materials and nanocomposites, today released third quarter 2020 results. Please visit the Investors section of our website to view the Q3 2020 Shareholder Letter.

The interim financial statements and the associated management discussion and analysis for the quarter and nine months ended September 30, 2020 are available on the Investors section of our website as well as under the Company’s profile on SEDAR at www.sedar.com.

About Metamaterial Inc.

META is changing the way we use, interact with, and benefit from light and other forms of energy. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and electromagnetic waves. Metamaterials help support sustainability by doing more with less; they encompass lightweight, sustainable raw materials and processes which consume less energy. META is currently developing new materials with diverse applications in the automotive, aerospace, solar, consumer electronics and medical industries. META has a growing patent portfolio with three core technologies: holography, lithography, and wireless sensing. META is headquartered in Dartmouth, Nova Scotia and has offices in London, UK and Pleasanton, California.

The CSE has neither approved nor disapproved the contents of this news release.

Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Interim condensed consolidated statements of financial position (unaudited)
[expressed in Canadian dollars]
As at
September 30, 2020December 31, 2019
Cash and cash equivalents3,208,911528,691
Grants receivable487,771242,705
Other receivables76,07179,072
Prepaid expenses461,071365,602
HST receivable97,932262,512
Right-of-use assets6,70866,951
Total current assets4,953,6891,984,259
Intangible assets, net5,796,3026,404,812
Property and equipment, net3,065,9603,558,675
Total non-current assets8,862,2629,963,487
Total assets13,815,95111,947,746
Liabilities and shareholders’ equity (deficiency)
Trade payables1,706,7883,176,642
Due to related parties333,182345,033
Current portion of long-term debt249,168104,376
Current portion of deferred revenue1,900,3571,819,797
Derivative liability1,175,056
Promissory notes4,595,975
Current portion of lease liabilities7,61671,947
Total current liabilities4,197,11111,288,826
Deferred revenue2,527,0443,089,921
Deferred government assistance232,207369,221
Deferred tax liability512,461658,481
Unsecured convertible debenture1,494,958760,145
Unsecured convertible promissory notes657,448
Secured convertible debentures4,891,844
Funding obligation904,215808,298
Long-term debt3,107,0993,139,301
Total non-current liabilities14,327,2768,825,367
Total liabilities18,524,38720,114,193
Shareholders’ deficiency
Common shares34,296,4037,598,670
Preferred shares12,748,100
Contributed surplus5,290,9393,753,211
Accumulated other comprehensive loss(349,972)(159,512)
Total shareholders’ deficiency(4,708,436)(8,166,447)
Total liabilities and shareholders’ deficiency13,815,95111,947,746
Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Interim condensed consolidated statement of loss and comprehensive loss (unaudited)
[expressed in Canadian dollars]
Three months ended September 30Nine months ended September 30
Product sales6272,61511,315
Development revenue263,014215,8731,147,702664,078
Revenue, net263,014216,5001,150,317675,393
Cost of goods sold1,2402454,2014,268
Gross Profit261,774216,2551,146,116671,125
Expenses (income)
Salaries and benefits487,491719,6022,601,0772,203,035
Depreciation and amortization786,736838,3602,508,6362,312,811
Travel and entertainment1,44481,72289,629305,764
Other expenses213,825107,947523,402395,716
Listing expenses3,370,249
Stock exchange fees3,7507,500
Rent and utilities116,050141,594331,110346,252
Interest and bank charges350,815141,339785,228336,207
Investor related expense42,752111,579
Research and development159,143215,128384,270524,837
Professional fees305,876357,8561,148,823544,511
Non-cash interest accretion151,466121,416435,594152,306
Share-based compensation expense538,806676,4601,492,6371,319,362
Unrealized (gain) loss on FVTPL liabilities603,054145,977(505,194)381,998
Technology license fees12,13025,88537,962
Realized foreign currency exchange loss (gain)8,705(4,605)73,212758
Interest income(1,827)(236)(8,448)(726)
Unrealized foreign currency exchange (gain) loss235,865(95,741)(214,181)267,155
Government assistance(147,069)(45,671)(297,539)(767,280)
Net loss before tax(3,901,878)(3,294,114)(12,383,300)(8,013,157)
Income tax recovery44,16144,901147,950244,411
Net loss for the period(3,857,717)(3,249,213)(12,235,350)(7,768,746)
Other comprehensive loss, net of income taxes
Items that may be subsequently reclassified to income:
Unrealized foreign currency translation adjustment243,637(165,863)(190,460)(104,149)
Comprehensive loss for the period(3,614,080)(3,415,076)(12,425,810)(7,872,895)
Basic and diluted loss per share(0.05)(0.33)(0.15)(0.80)
Weighted average number of shares outstanding
– basic and diluted83,597,0929,724,47683,597,0929,724,476
Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Interim condensed consolidated statement of cash flows (unaudited)
[expressed in Canadian dollars]
Nine months ended September 3020202019
Operating activities
Net loss for the period(12,235,350)(7,768,746)
Add (deduct) items not affecting cash:
Government assistance(154,582)(767,280)
Deferred income tax recovery(147,950)(244,410)
Depreciation and amortization2,508,6362,359,308
Non-cash interest accretion435,594152,306
Unrealized foreign currency exchange (gain) loss(340,771)267,155
Interest expense392,936186,813
Share-based payment expense25,000
Listing expenses3,370,249
Unrealized loss on FVTPL liabilities(505,194)381,998
Change in deferred revenue(482,317)(669,533)
Share-based compensation expense1,578,1141,319,362
Net change in non-cash working capital items(1,832,955)408,028
Cash used in operating activities(7,413,590)(4,349,999)
Investing activities
Additions to intangible assets(124,519)(128,622)
Additions to property and equipment(1,106,870)(767,149)
Reverse takeover, net cash4,174,979
Cash used in investing activities2,943,590(895,771)
Financing activities
Proceeds from long-term debt50,7841,129,860
Repayment of long-term debt(262,258)(53,568)
Proceeds from unsecured convertible promissory notes666,9503,185,760
Proceeds from funding obligation325,000
Proceeds from units, net814,270470,083
Proceeds from unsecured convertible debentures950,000
Proceeds from secured convertible debentures5,000,000
Payment of lease liabilities(69,526)(54,526)
Cash provided by financing activities7,150,2205,002,609
Net (decrease) increase in cash and cash equivalents2,680,220(243,161)
Cash and cash equivalents, beginning of the period528,691850,623
Cash and cash equivalents, end of the period3,208,911607,462
Supplemental cash flow information
Interest on debt paid252,98715,609

SOURCE Metamaterial Inc.

For further information: Media inquiries: Graham Farrell, Harbor Access LLC, (416) 842 9003, [email protected]; Investor inquiries: Mark Komonoski, Director Capital Markets and IR, Metamaterial Inc., phone: 1-877-255-8483, [email protected]