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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended
June 30,
2022
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from
to
Commission File Number:
001-36247
Meta Materials Inc.
(Exact Name of Registrant as Specified in its Charter)
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Nevada
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74-3237581
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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1 Research Drive
Dartmouth,
Nova Scotia
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B2Y 4M9
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
(902)
482-5729
Securities registered pursuant to Section 12(b) of the
Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange
on which registered
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Common Stock, par value $0.001 per share
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MMAT
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Nasdaq Capital
Market
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Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes
☒ No ☐
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files).
Yes
☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer,
smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☒
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Emerging growth company
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☐
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If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
☒
As of August 9, 2022, the registrant had
360,837,343
shares of common stock, $0.001 par value per share,
outstanding.
TABLE OF CONTENTS
2
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking
statements within the meaning of the federal securities laws, which
statements involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or our
future financial or operating performance. In some cases, you can
identify forward-looking statements because they contain words such
as “may,” “will,” “should,” “expect,” “plan,” “anticipate,”
“could,” “intend,” “target,” “project,” “contemplate,” “believe,”
“estimate,” “predict,” “potential” or “continue” or the negative of
these words or other similar terms or expressions that concern our
expectations, strategy, plans or intentions. Forward-looking
statements contained in this Quarterly Report on Form 10-Q include
statements about:
•
our strategy for protecting its intellectual property;
•
our ability to obtain necessary funding on favorable terms or at
all;
•
our plan and ability to secure revenues;
•
the risk of competitors entering the market;
•
our ability to hire and retain skilled staff;
•
our ability to obtain financing to fund future expenditures and
capital requirements;
•
our plans with respect to its new facility; and
•
the impact of adoption of new accounting standards.
We caution you that the foregoing list may not contain all of the
forward-looking statements made in this Quarterly Report on Form
10-Q.
You should not rely upon forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this Quarterly Report on Form 10-Q primarily on our
current expectations and projections about future events and trends
that we believe may affect our business, financial condition,
results of operations and prospects. The outcome of the events
described in these forward-looking statements is subject to risks,
uncertainties and other factors, including those described in the
section titled “Risk Factors” and elsewhere in this Quarterly
Report on Form 10-Q. Moreover, we operate in a very competitive and
rapidly changing environment. New risks and uncertainties emerge
from time to time and it is not possible for us to predict all
risks and uncertainties that could have an impact on the
forward-looking statements contained in this Quarterly Report on
Form 10-Q. We cannot assure you that the results, events and
circumstances reflected in the forward-looking statements will be
achieved or occur, and actual results, events or circumstances
could differ materially from those described in the forward-looking
statements.
The forward-looking statements made in this Quarterly Report on
Form 10-Q relate only to events as of the date on which the
statements are made. We undertake no obligation to update any
forward-looking statements made in this Quarterly Report on Form
10-Q to reflect events or circumstances after the date of this
Quarterly Report on Form 10-Q or to reflect new information or the
occurrence of unanticipated events, except as required by law. We
may not actually achieve the plans, intentions or expectations
disclosed in our forward-looking statements and you should not
place undue reliance on our forward-looking statements. Our
forward-looking statements do not reflect the potential impact of
any future acquisitions, mergers, dispositions, joint ventures or
investments we may make.
In addition, statements that “we believe” and similar statements
reflect our beliefs and opinions on the relevant subject. These
statements are based upon information available to us as of the
date of this Quarterly Report on Form 10-Q, and while we believe
such information forms a reasonable basis for such statements, such
information may be limited or incomplete, and our statements should
not be read to indicate that we have conducted an exhaustive
inquiry into, or review of, all potentially available relevant
information. These statements are inherently uncertain and
investors are cautioned not to unduly rely upon these
statements.
3
SUMMARY
OF RISK FACTORS
Below is a summary of the principal factors that could materially
harm our business, operating results and/or financial condition,
impair our future prospects or cause the price of our common stock
to decline. This summary does not address all of the risks that we
face. Additional discussion of the risks summarized in this risk
factor summary, and other risks that we face, can be found below
under the heading “Risk Factors” and should be carefully
considered, together with other information in this Form 10-Q and
our other filings with the Securities and Exchange Commission
("SEC") before making an investment decision regarding our common
stock.
•
Our revenues may be concentrated in a few customers, and if we lose
any of these customers, or these customers do not pay us, our
revenues could be materially adversely affected.
•
Our agreements with various national governments and suppliers to
such governments subject us to unique risks.
•
We may experience delays in providing sufficient product for future
testing of our products due to the ongoing supply chain limitations
caused by COVID-19.
•
Our technologies may infringe on the intellectual property rights
of others, which could lead to costly disputes or
disruptions.
•
We may not be able to successfully complete the anticipated O&G
Asset dispositions on favorable terms or at all, which could
adversely affect our financial condition and results of
operations.
•
Continuing drilling obligations under our oil and gas related
leases may not be met, which could adversely affect our financial
condition and operations.
•
If we fail to comply with Nasdaq rules, our common stock may be
delisted from the Nasdaq Capital Market, which could eliminate the
trading market for our common stock.
•
Future sales and issuances of a substantial number of shares of our
common stock or rights to purchase common stock by our stockholders
in the public market could result in additional dilution of the
percentage ownership of our stockholders and cause our stock price
to fall.
•
We are a smaller reporting company. We cannot be certain whether
the reduced disclosure requirements applicable to smaller reporting
companies will make our common stock less attractive to investors
or otherwise limit our ability to raise additional
funds.
4
5
PART I—FINANCIAL
INFORMATION
Item 1. Financial
Statements
META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(UNAUDITED)
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As of
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As of
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June 30, 2022
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December 31, 2021
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Assets
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Current assets:
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Cash and cash equivalents
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$
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53,576,437
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$
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46,645,704
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Restricted cash
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463,909
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788,768
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Short-term investments
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1,253,782
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2,875,638
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Grants receivable
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48,882
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175,780
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Accounts receivable
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1,703,732
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1,665,700
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Inventory
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294,852
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265,718
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Prepaid expenses and other current assets
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4,102,783
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3,451,367
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Assets held for sale
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71,700,000
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75,500,000
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Due from related parties
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9,527
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10,657
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Total current assets
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133,153,904
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131,379,332
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Intangible assets, net
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54,145,467
|
|
|
|
28,971,824
|
|
|
Property, plant and equipment, net
|
|
|
33,707,147
|
|
|
|
27,018,114
|
|
|
Operating lease right-of-use assets
|
|
|
5,839,481
|
|
|
|
6,278,547
|
|
|
Goodwill
|
|
|
281,529,180
|
|
|
|
240,376,634
|
|
|
Total assets
|
|
$
|
508,375,179
|
|
|
$
|
434,024,451
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Trade and other payables
|
|
$
|
11,454,381
|
|
|
$
|
13,335,470
|
|
|
Current portion of long-term debt
|
|
|
976,393
|
|
|
|
491,278
|
|
|
Current portion of deferred revenues
|
|
|
675,591
|
|
|
|
779,732
|
|
|
Current portion of deferred government assistance
|
|
|
832,946
|
|
|
|
846,612
|
|
|
Preferred stock liability
|
|
|
71,700,000
|
|
|
|
75,500,000
|
|
|
Current portion of operating lease liabilities
|
|
|
836,683
|
|
|
|
663,861
|
|
|
Asset retirement obligations
|
|
|
21,937
|
|
|
|
21,937
|
|
|
Total current liabilities
|
|
|
86,497,931
|
|
|
|
91,638,890
|
|
|
Deferred revenues
|
|
|
554,739
|
|
|
|
637,008
|
|
|
Deferred government assistance
|
|
|
—
|
|
|
|
3,038
|
|
|
Deferred tax liability
|
|
|
210,207
|
|
|
|
324,479
|
|
|
Long-term operating lease liabilities
|
|
|
3,445,167
|
|
|
|
3,706,774
|
|
|
Funding obligation
|
|
|
291,034
|
|
|
|
268,976
|
|
|
Long-term debt
|
|
|
2,250,969
|
|
|
|
2,737,171
|
|
|
Total liabilities
|
|
$
|
93,250,047
|
|
|
$
|
99,316,336
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
Common stock - $0.001 par
value;
1,000,000,000 shares
authorized,
360,810,014 shares
issued and outstanding at June 30, 2022, and $0.001 par
value;
unlimited shares
authorized,
284,573,316 shares
issued and outstanding at December 31, 2021
|
|
|
338,987
|
|
|
|
262,751
|
|
|
Additional paid-in capital
|
|
|
585,045,778
|
|
|
|
463,136,404
|
|
|
Accumulated other comprehensive loss
|
|
|
(2,448,230
|
)
|
|
|
(296,936
|
)
|
|
Accumulated deficit
|
|
|
(167,811,403
|
)
|
|
|
(128,394,104
|
)
|
|
Total stockholders’ equity
|
|
|
415,125,132
|
|
|
|
334,708,115
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
508,375,179
|
|
|
$
|
434,024,451
|
|
Commitments and contingencies (note 20)
Subsequent events (note 21)
The accompanying notes are an integral part of these condensed
consolidated interim financial statements
6
META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
|
Six months ended
June 30,
|
|
|
|
|
2022
|
|
|
(Recast
- note 10)
2021
|
|
|
2022
|
|
|
(Recast
- note 10)
2021
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales
|
|
$
|
334,113
|
|
|
$
|
1,953
|
|
|
$
|
502,240
|
|
|
$
|
24,000
|
|
|
Development revenue
|
|
|
2,989,614
|
|
|
|
622,367
|
|
|
|
5,796,182
|
|
|
|
1,196,623
|
|
|
Total Revenue
|
|
|
3,323,727
|
|
|
|
624,320
|
|
|
|
6,298,422
|
|
|
|
1,220,623
|
|
|
Cost of goods sold
|
|
|
877,951
|
|
|
|
706
|
|
|
|
1,656,663
|
|
|
|
1,106
|
|
|
Gross Profit
|
|
|
2,445,776
|
|
|
|
623,614
|
|
|
|
4,641,759
|
|
|
|
1,219,517
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling & Marketing
|
|
|
1,127,079
|
|
|
|
298,871
|
|
|
|
2,163,065
|
|
|
|
695,465
|
|
|
General & Administrative
|
|
|
14,469,879
|
|
|
|
3,847,278
|
|
|
|
29,067,792
|
|
|
|
6,440,162
|
|
|
Research & Development
|
|
|
6,490,800
|
|
|
|
1,633,653
|
|
|
|
10,461,939
|
|
|
|
3,412,909
|
|
|
Total operating expenses
|
|
|
22,087,758
|
|
|
|
5,779,802
|
|
|
|
41,692,796
|
|
|
|
10,548,536
|
|
|
Loss from operations
|
|
|
(19,641,982
|
)
|
|
|
(5,156,188
|
)
|
|
|
(37,051,037
|
)
|
|
|
(9,329,019
|
)
|
|
Interest expense, net
|
|
|
(142,055
|
)
|
|
|
(427,809
|
)
|
|
|
(306,489
|
)
|
|
|
(878,717
|
)
|
|
Loss on foreign exchange, net
|
|
|
(971,713
|
)
|
|
|
(163,941
|
)
|
|
|
(823,322
|
)
|
|
|
(330,385
|
)
|
|
Loss on financial instruments, net
|
|
|
—
|
|
|
|
(535,170
|
)
|
|
|
—
|
|
|
|
(40,540,091
|
)
|
|
Other (loss) income, net
|
|
|
(336,993
|
)
|
|
|
341,958
|
|
|
|
(1,346,436
|
)
|
|
|
933,864
|
|
|
Total other expense, net
|
|
|
(1,450,761
|
)
|
|
|
(784,962
|
)
|
|
|
(2,476,247
|
)
|
|
|
(40,815,329
|
)
|
|
Loss before income taxes
|
|
|
(21,092,743
|
)
|
|
|
(5,941,150
|
)
|
|
|
(39,527,284
|
)
|
|
|
(50,144,348
|
)
|
|
Income tax recovery
|
|
|
109,985
|
|
|
|
57,847
|
|
|
|
109,985
|
|
|
|
102,526
|
|
|
Net loss
|
|
$
|
(20,982,758
|
)
|
|
$
|
(5,883,303
|
)
|
|
$
|
(39,417,299
|
)
|
|
$
|
(50,041,822
|
)
|
|
Other Comprehensive Income net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation (loss) gain
|
|
|
(3,056,676
|
)
|
|
|
87,087
|
|
|
|
(2,151,294
|
)
|
|
|
108,648
|
|
|
Fair value gain on changes of own credit risk
|
|
|
—
|
|
|
|
9,011
|
|
|
|
—
|
|
|
|
680,178
|
|
|
Total Other Comprehensive (Loss) Income
|
|
|
(3,056,676
|
)
|
|
|
96,098
|
|
|
|
(2,151,294
|
)
|
|
|
788,826
|
|
|
Comprehensive loss
|
|
$
|
(24,039,434
|
)
|
|
$
|
(5,787,205
|
)
|
|
$
|
(41,568,593
|
)
|
|
$
|
(49,252,996
|
)
|
|
Basic and diluted loss per share
(1)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.13
|
)
|
|
$
|
(0.27
|
)
|
|
Weighted average number of shares outstanding - basic and
diluted
(1)
|
|
|
301,488,660
|
|
|
|
197,911,144
|
|
|
|
293,481,943
|
|
|
|
183,485,933
|
|
(1)
Retroactively restated for the six months ended June 30, 2021
for
the Torchlight RTO (“Reverse Acquisition”) as described in Note
3
The accompanying notes are an integral part of these condensed
consolidated interim financial statements
7
META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY (UNAUDITED)
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
Other
|
|
|
|
|
|
Total
|
|
|
|
|
Common Stock
|
|
|
Paid-in
|
|
|
Comprehensive
|
|
|
Accumulated
|
|
|
Stockholders’
|
|
|
|
|
Shares
(1)
|
|
|
Amount
|
|
|
Capital
|
|
|
Income (Loss)
|
|
|
Deficit
|
|
|
Equity
|
|
|
Balance, April 1, 2022
|
|
|
286,927,265
|
|
|
$
|
265,106
|
|
|
$
|
467,692,775
|
|
|
$
|
608,446
|
|
|
$
|
(146,828,645
|
)
|
|
$
|
321,737,682
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(20,982,758
|
)
|
|
|
(20,982,758
|
)
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,056,676
|
)
|
|
|
—
|
|
|
|
(3,056,676
|
)
|
|
Issuance of common stock and warrants
|
|
|
37,037,039
|
|
|
|
37,037
|
|
|
|
49,962,963
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,000,000
|
|
|
Stock issuance costs
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,680,666
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,680,666
|
)
|
|
Exercise of stock options
|
|
|
402,028
|
|
|
|
402
|
|
|
|
107,750
|
|
|
|
—
|
|
|
|
—
|
|
|
|
108,152
|
|
|
Issuance of stock in connection with acquisitions
|
|
|
36,443,684
|
|
|
|
36,442
|
|
|
|
67,086,069
|
|
|
|
—
|
|
|
|
—
|
|
|
|
67,122,511
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
3,876,887
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,876,887
|
|
|
Balance, June 30, 2022
|
|
|
360,810,016
|
|
|
|
338,987
|
|
|
|
585,045,778
|
|
|
|
(2,448,230
|
)
|
|
|
(167,811,403
|
)
|
|
|
415,125,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, April 1, 2021
|
|
|
194,700,061
|
|
|
$
|
172,883
|
|
|
$
|
81,568,131
|
|
|
$
|
37,848
|
|
|
$
|
(81,555,362
|
)
|
|
$
|
223,500
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5,883,303
|
)
|
|
|
(5,883,303
|
)
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
96,098
|
|
|
|
—
|
|
|
|
96,098
|
|
|
Exercise of stock options
|
|
|
235,199
|
|
|
|
235
|
|
|
|
64,291
|
|
|
|
—
|
|
|
|
—
|
|
|
|
64,526
|
|
|
Exercise of warrants
|
|
|
156,709
|
|
|
|
157
|
|
|
|
62,252
|
|
|
|
—
|
|
|
|
—
|
|
|
|
62,409
|
|
|
Effect of reverse acquisition
|
|
|
82,813,994
|
|
|
|
82,814
|
|
|
|
369,548,188
|
|
|
|
—
|
|
|
|
—
|
|
|
|
369,631,002
|
|
|
Shares issued in lieu of operating lease liability
|
|
|
1,832,989
|
|
|
|
1,833
|
|
|
|
2,780,135
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,781,968
|
|
|
Stock-based compensation (Recast - note 10)
|
|
|
43,902
|
|
|
|
44
|
|
|
|
938,105
|
|
|
|
—
|
|
|
|
—
|
|
|
|
938,149
|
|
|
Balance, June 30, 2021 (Recast - note 10)
|
|
|
279,782,854
|
|
|
$
|
257,966
|
|
|
$
|
454,961,102
|
|
|
$
|
133,946
|
|
|
$
|
(87,438,665
|
)
|
|
$
|
367,914,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
Other
|
|
|
|
|
|
Total
|
|
|
|
|
Common Stock
|
|
|
Paid-in
|
|
|
Comprehensive
|
|
|
Accumulated
|
|
|
Stockholders’
|
|
|
|
|
Shares
(1)
|
|
|
Amount
|
|
|
Capital
|
|
|
(Loss) Income
|
|
|
Deficit
|
|
|
Equity
|
|
|
Balance, January 1, 2022
|
|
|
284,573,316
|
|
|
$
|
262,751
|
|
|
$
|
463,136,404
|
|
|
$
|
(296,936
|
)
|
|
$
|
(128,394,104
|
)
|
|
$
|
334,708,115
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(39,417,299
|
)
|
|
|
(39,417,299
|
)
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,151,294
|
)
|
|
|
—
|
|
|
|
(2,151,294
|
)
|
|
Issuance of common stock and warrants
|
|
|
37,037,039
|
|
|
|
37,037
|
|
|
|
49,962,963
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50,000,000
|
|
|
Stock issuance costs
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,680,666
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,680,666
|
)
|
|
Exercise of stock options
|
|
|
1,132,277
|
|
|
|
1,133
|
|
|
|
304,187
|
|
|
|
—
|
|
|
|
—
|
|
|
|
305,320
|
|
|
Exercise of warrants
|
|
|
1,623,700
|
|
|
|
1,624
|
|
|
|
167,950
|
|
|
|
—
|
|
|
|
—
|
|
|
|
169,574
|
|
|
Issuance of stock in connection with acquisitions
|
|
|
36,443,684
|
|
|
|
36,442
|
|
|
|
67,086,069
|
|
|
|
—
|
|
|
|
—
|
|
|
|
67,122,511
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
8,068,871
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,068,871
|
|
|
Balance, June 30, 2022
|
|
|
360,810,016
|
|
|
$
|
338,987
|
|
|
$
|
585,045,778
|
|
|
$
|
(2,448,230
|
)
|
|
$
|
(167,811,403
|
)
|
|
$
|
415,125,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2021
|
|
|
154,163,975
|
|
|
$
|
132,347
|
|
|
$
|
29,021,974
|
|
|
$
|
(654,880
|
)
|
|
$
|
(37,396,843
|
)
|
|
$
|
(8,897,402
|
)
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(50,041,822
|
)
|
|
|
(50,041,822
|
)
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
788,826
|
|
|
|
—
|
|
|
|
788,826
|
|
|
Conversion of promissory notes
|
|
|
20,391,239
|
|
|
|
20,391
|
|
|
|
23,635,974
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,656,365
|
|
|
Conversion of secured debentures
|
|
|
14,155,831
|
|
|
|
14,156
|
|
|
|
22,104,626
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22,118,782
|
|
|
Conversion of unsecured debentures
|
|
|
5,105,338
|
|
|
|
5,105
|
|
|
|
5,764,370
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,769,475
|
|
|
Conversion of long-term debt
|
|
|
124,716
|
|
|
|
125
|
|
|
|
221,718
|
|
|
|
—
|
|
|
|
—
|
|
|
|
221,843
|
|
|
Conversion of payable to related party
|
|
|
150,522
|
|
|
|
151
|
|
|
|
225,835
|
|
|
|
—
|
|
|
|
—
|
|
|
|
225,986
|
|
|
Exercise of stock options
|
|
|
413,919
|
|
|
|
414
|
|
|
|
112,741
|
|
|
|
—
|
|
|
|
—
|
|
|
|
113,155
|
|
|
Exercise of warrants
|
|
|
238,806
|
|
|
|
239
|
|
|
|
93,755
|
|
|
|
—
|
|
|
|
—
|
|
|
|
93,994
|
|
|
Exercise of broker warrants
|
|
|
61,331
|
|
|
|
61
|
|
|
|
16,194
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16,255
|
|
|
Effect of reverse acquisition
|
|
|
82,813,994
|
|
|
|
82,814
|
|
|
|
369,548,188
|
|
|
|
—
|
|
|
|
—
|
|
|
|
369,631,002
|
|
|
Shares issued in lieu of operating lease liability
|
|
|
1,832,989
|
|
|
|
1,833
|
|
|
|
2,780,135
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,781,968
|
|
|
Stock-based compensation (Recast - note 10)
|
|
|
330,194
|
|
|
|
330
|
|
|
|
1,435,592
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,435,922
|
|
|
Balance, June 30, 2021 (Recast - note 10)
|
|
|
279,782,854
|
|
|
$
|
257,966
|
|
|
$
|
454,961,102
|
|
|
$
|
133,946
|
|
|
$
|
(87,438,665
|
)
|
|
$
|
367,914,349
|
|
(1)
Retroactively restated from the earliest period presented for the
Torchlight RTO (“Reverse acquisition”) as described in Note
3
The accompanying notes are an integral part of these condensed
consolidated interim financial statements
8
META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
|
|
June 30, 2022
|
|
|
June 30, 2021
|
|
|
|
|
$
|
|
|
$
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(39,417,299
|
)
|
|
$
|
(50,041,822
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Non-cash finance income
|
|
|
(12,920
|
)
|
|
|
—
|
|
|
Non-cash interest expense
|
|
|
273,554
|
|
|
|
742,174
|
|
|
Non-cash lease expense
|
|
|
488,299
|
|
|
|
160,437
|
|
|
Deferred income tax
|
|
|
(109,985
|
)
|
|
|
(102,526
|
)
|
|
Depreciation and amortization
|
|
|
3,494,163
|
|
|
|
1,173,884
|
|
|
Unrealized foreign currency exchange loss
|
|
|
913,101
|
|
|
|
230,837
|
|
|
Loss on financial instruments, net
|
|
|
—
|
|
|
|
40,540,091
|
|
|
Change in deferred revenue
|
|
|
(165,466
|
)
|
|
|
18,302
|
|
|
Non-cash government assistance
|
|
|
(3,047
|
)
|
|
|
(472,499
|
)
|
|
Loss on debt settlement
|
|
|
—
|
|
|
|
19,253
|
|
|
Gain on sale of property, plant and equipment
|
|
|
(783
|
)
|
|
|
—
|
|
|
Stock-based compensation
|
|
|
7,623,207
|
|
|
|
651,718
|
|
|
Non-cash consulting expense
|
|
|
445,664
|
|
|
|
713,919
|
|
|
Changes in operating assets and liabilities
|
|
|
(2,531,889
|
)
|
|
|
758,381
|
|
|
Net cash used in operating activities
|
|
|
(29,003,401
|
)
|
|
|
(5,607,851
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of intangible assets
|
|
|
—
|
|
|
|
(274,579
|
)
|
|
Purchases of property, plant and equipment
|
|
|
(8,971,435
|
)
|
|
|
(3,040,296
|
)
|
|
Proceeds from sale of property, plant and equipment
|
|
|
39,140
|
|
|
|
—
|
|
|
Proceeds from short-term investments
|
|
|
1,620,281
|
|
|
|
—
|
|
|
Acquisition of business, net of cash acquired
|
|
|
(3,486,906
|
)
|
|
|
—
|
|
|
Proceeds from reverse takeover
|
|
|
—
|
|
|
|
146,954,733
|
|
|
Net cash (used in) provided by investing activities
|
|
|
(10,798,920
|
)
|
|
|
143,639,858
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock and warrants
|
|
|
50,000,000
|
|
|
|
—
|
|
|
Costs paid on the issuance of common stock and warrants
|
|
|