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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
September 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 November 9, 2022, the registrant had
361,930,468
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 our 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 new facilities and the scaling of our
manufacturing capabilities; 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 Part
II, Item 1A “(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 Quarterly
Report on Form 10-Q and our other filings with the Securities and
Exchange Commission ("SEC") before making an investment decision
regarding our common stock.
•
We have a limited operating history, which can make it difficult
for investors to evaluate our operations and prospects and may
increase the risks associated with investing in us..
•
We have a history of net losses, and we expect to continue to incur
losses for the foreseeable future. If we ever achieve
profitability, we may not be able to sustain it.
•
We will need additional financing to execute our business plan and
fund operations, which additional financing may not be available on
reasonable terms or at all.
•
Our ability to obtain financing, if and when necessary, may be
impaired by such factors as the capital markets and our limited
operating history.
•
We may be unable to develop new products, applications, and end
markets for our products.
•
Our research and marketing development activities and investments
may not result in profitable, commercially viable or successfully
produced and marketed products.
•
Disruption in supply from our single source supplier of our
holographic raw materials may cause a material adverse effect on
our Holography-related products.
•
Material weaknesses or significant deficiencies in our internal
controls could materially and adversely affect our business,
results of operations and financial condition.
•
Impairment of our goodwill or other intangible assets could
materially and adversely affect our business, operating results,
and financial condition.
•
We depend on our OEM customers and system integrators to
incorporate our products into their systems.
•
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 are subject to governmental export and import controls that
could subject us to liability or impair our ability to compete in
international markets.
•
We may experience delays in providing sufficient product for future
testing of our products due to ongoing supply chain
limitations.
•
Change in laws, regulations or guidelines relating to our business
plan and activities could adversely affect our
business.
•
If we are unable to make acquisitions, or successfully integrate
them into our business, our results of operations and financial
condition could be adversely affected.
•
The regulatory approval process for our medical products in the
United States and other countries around the world is
time-consuming and complicated, and we may not obtain the approval
required to market a product within the timeline required, or at
all. Additionally, we may lose regulatory approval and/or our
products may become subject to new and anticipated foreign
regulations.
•
Development of medical devices and related operations are subject
to extensive government regulation and oversight both in the United
States and abroad, and our failure to comply with applicable
requirements could harm our business
•
Healthcare policy changes, including recently enacted legislation
reforming the U.S. healthcare system, could harm our business,
financial condition, and results of operations
•
If coverage and reimbursement from third-party payors for
procedures using our medical products significantly decline,
physicians, hospitals, and other healthcare providers may be
reluctant to use our products and our sales may
decline
4
•
If we or our contractors fail to comply with healthcare and other
governmental regulations, we could face substantial fines and
penalties and our business, results of operations and financial
condition could be adversely affected
•
If we fail to obtain and maintain necessary regulatory clearances,
approvals, or certifications for our products, or if clearances,
approvals or certifications for future products and indications are
delayed or not issued, our commercial operations would be
harmed
•
We are exposed to risks that our employees, consultants, or other
commercial partners may engage in misconduct or other improper
activities, including non-compliance with regulatory standards and
requirements.
•
Compliance with environmental laws and regulations could be
expensive, and failure to comply with these laws and regulations
could subject us to significant liability.
•
Our insurance coverage strategy may not be adequate to protect us
from all business risks.
•
The risk of loss of our intellectual property, trade secrets or
other sensitive business or customer confidential information or
disruption of operations due to cyberattacks or data breaches could
negatively impact our financial results.
•
Cybersecurity breaches and information technology failures could
harm our business by increasing our costs and negatively impacting
our business operations.
•
Changes in laws or regulations relating to privacy, information
security and data protection, or any actual or perceived failure by
us to comply with such laws and regulations or any other
obligations, could adversely affect our business.
•
The effects of health pandemics, such as the ongoing COVID-19
pandemic, have had, and could in the future have, an adverse impact
on our business, financial condition and results of
operations.
•
We are subject to taxation-related risks in multiple jurisdictions,
and the adoption and interpretation of new tax legislation, tax
regulations, tax rulings, or exposure to additional tax liabilities
could materially affect our business, financial condition and
results of operations.
•
Our ability to use our deferred tax assets to offset future taxable
income is subject to certain limitations, which may have a material
impact on our business, financial condition or results of
operations.
5
PART I—FINANCIAL
INFORMATION
Item 1. Financial
Statements
META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
As of
|
|
|
|
|
September 30, 2022
|
|
|
December 31, 2021
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
30,608,797
|
|
|
$
|
46,645,704
|
|
|
Restricted cash
|
|
|
436,123
|
|
|
|
788,768
|
|
|
Short-term investments
|
|
|
1,178,685
|
|
|
|
2,875,638
|
|
|
Grants receivable
|
|
|
26,062
|
|
|
|
175,780
|
|
|
Accounts receivable
|
|
|
1,977,676
|
|
|
|
1,665,700
|
|
|
Inventory
|
|
|
274,090
|
|
|
|
265,718
|
|
|
Prepaid expenses and other current assets
|
|
|
6,466,469
|
|
|
|
3,451,367
|
|
|
Assets held for sale
|
|
|
71,700,000
|
|
|
|
75,500,000
|
|
|
Due from related parties
|
|
|
8,552
|
|
|
|
10,657
|
|
|
Total current assets
|
|
|
112,676,454
|
|
|
|
131,379,332
|
|
|
Intangible assets, net
|
|
|
51,025,428
|
|
|
|
28,971,824
|
|
|
Property, plant and equipment, net
|
|
|
34,534,045
|
|
|
|
27,018,114
|
|
|
Operating lease right-of-use assets
|
|
|
5,366,070
|
|
|
|
6,278,547
|
|
|
Goodwill
|
|
|
279,052,357
|
|
|
|
240,376,634
|
|
|
Total assets
|
|
$
|
482,654,354
|
|
|
$
|
434,024,451
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Trade and other payables
|
|
$
|
12,818,253
|
|
|
$
|
13,335,470
|
|
|
Current portion of long-term debt
|
|
|
742,782
|
|
|
|
491,278
|
|
|
Current portion of deferred revenues
|
|
|
623,895
|
|
|
|
779,732
|
|
|
Current portion of deferred government assistance
|
|
|
783,055
|
|
|
|
846,612
|
|
|
Preferred stock liability
|
|
|
71,700,000
|
|
|
|
75,500,000
|
|
|
Current portion of operating lease liabilities
|
|
|
864,519
|
|
|
|
663,861
|
|
|
Asset retirement obligations
|
|
|
21,937
|
|
|
|
21,937
|
|
|
Total current liabilities
|
|
|
87,554,441
|
|
|
|
91,638,890
|
|
|
Deferred revenues
|
|
|
503,690
|
|
|
|
637,008
|
|
|
Deferred government assistance
|
|
|
—
|
|
|
|
3,038
|
|
|
Deferred tax liability
|
|
|
161,662
|
|
|
|
324,479
|
|
|
Long-term operating lease liabilities
|
|
|
3,177,910
|
|
|
|
3,706,774
|
|
|
Funding obligation
|
|
|
292,749
|
|
|
|
268,976
|
|
|
Long-term debt
|
|
|
2,137,948
|
|
|
|
2,737,171
|
|
|
Total liabilities
|
|
$
|
93,828,400
|
|
|
$
|
99,316,336
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
Common stock - $0.001 par
value;
1,000,000,000 shares
authorized,
361,377,856 shares
issued and outstanding at September 30, 2022, and
$0.001 par
value;
unlimited shares
authorized,
284,573,316 shares
issued and outstanding at December 31, 2021
|
|
|
339,555
|
|
|
|
262,751
|
|
|
Additional paid-in capital
|
|
|
587,635,212
|
|
|
|
463,136,404
|
|
|
Accumulated other comprehensive loss
|
|
|
(6,862,090
|
)
|
|
|
(296,936
|
)
|
|
Accumulated deficit
|
|
|
(192,286,723
|
)
|
|
|
(128,394,104
|
)
|
|
Total stockholders’ equity
|
|
|
388,825,954
|
|
|
|
334,708,115
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
482,654,354
|
|
|
$
|
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
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales
|
|
$
|
432,059
|
|
|
$
|
297,431
|
|
|
$
|
934,299
|
|
|
$
|
321,431
|
|
|
Development revenue
|
|
|
2,023,953
|
|
|
|
275,181
|
|
|
|
7,820,135
|
|
|
|
1,471,804
|
|
|
Total Revenue
|
|
|
2,456,012
|
|
|
|
572,612
|
|
|
|
8,754,434
|
|
|
|
1,793,235
|
|
|
Cost of goods sold
|
|
|
696,730
|
|
|
|
145,103
|
|
|
|
2,353,393
|
|
|
|
146,209
|
|
|
Gross Profit
|
|
|
1,759,282
|
|
|
|
427,509
|
|
|
|
6,401,041
|
|
|
|
1,647,026
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling & Marketing
|
|
|
1,027,886
|
|
|
|
427,004
|
|
|
|
3,190,951
|
|
|
|
1,122,469
|
|
|
General & Administrative
|
|
|
16,674,309
|
|
|
|
9,776,850
|
|
|
|
45,743,892
|
|
|
|
16,217,012
|
|
|
Research & Development
|
|
|
6,233,685
|
|
|
|
1,816,547
|
|
|
|
16,693,833
|
|
|
|
5,229,456
|
|
|
Total operating expenses
|
|
|
23,935,880
|
|
|
|
12,020,401
|
|
|
|
65,628,676
|
|
|
|
22,568,937
|
|
|
Loss from operations
|
|
|
(22,176,598
|
)
|
|
|
(11,592,892
|
)
|
|
|
(59,227,635
|
)
|
|
|
(20,921,911
|
)
|
|
Interest expense, net
|
|
|
(134,205
|
)
|
|
|
(215,116
|
)
|
|
|
(440,694
|
)
|
|
|
(1,093,833
|
)
|
|
Loss on foreign exchange, net
|
|
|
(2,223,633
|
)
|
|
|
(440,157
|
)
|
|
|
(3,046,955
|
)
|
|
|
(770,542
|
)
|
|
Loss on financial instruments, net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(40,540,091
|
)
|
|
Other (loss) income, net
|
|
|
21,908
|
|
|
|
739,260
|
|
|
|
(1,324,528
|
)
|
|
|
1,673,124
|
|
|
Total other (expense) income, net
|
|
|
(2,335,930
|
)
|
|
|
83,987
|
|
|
|
(4,812,177
|
)
|
|
|
(40,731,342
|
)
|
|
Loss before income taxes
|
|
|
(24,512,528
|
)
|
|
|
(11,508,905
|
)
|
|
|
(64,039,812
|
)
|
|
|
(61,653,253
|
)
|
|
Income tax recovery
|
|
|
37,208
|
|
|
|
83,657
|
|
|
|
147,193
|
|
|
|
186,183
|
|
|
Net loss
|
|
$
|
(24,475,320
|
)
|
|
$
|
(11,425,248
|
)
|
|
$
|
(63,892,619
|
)
|
|
$
|
(61,467,070
|
)
|
|
Other Comprehensive Income net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation loss
|
|
|
(4,413,860
|
)
|
|
|
(125,976
|
)
|
|
|
(6,565,154
|
)
|
|
|
(17,328
|
)
|
|
Fair value gain on changes of own credit risk
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
680,178
|
|
|
Total Other Comprehensive (Loss) Income
|
|
|
(4,413,860
|
)
|
|
|
(125,976
|
)
|
|
|
(6,565,154
|
)
|
|
|
662,850
|
|
|
Comprehensive loss
|
|
$
|
(28,889,180
|
)
|
|
$
|
(11,551,224
|
)
|
|
$
|
(70,457,773
|
)
|
|
$
|
(60,804,220
|
)
|
|
Basic and diluted loss per share
(1)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.28
|
)
|
|
Weighted average number of shares outstanding - basic and
diluted
(1)
|
|
|
362,260,641
|
|
|
|
280,080,786
|
|
|
|
316,661,487
|
|
|
|
216,135,190
|
|
(1)
Retroactively restated for the nine months ended September 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, July 1, 2022
|
|
|
360,810,016
|
|
|
$
|
338,987
|
|
|
$
|
585,045,778
|
|
|
$
|
(2,448,230
|
)
|
|
$
|
(167,811,403
|
)
|
|
$
|
415,125,132
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(24,475,320
|
)
|
|
|
(24,475,320
|
)
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,413,860
|
)
|
|
|
—
|
|
|
|
(4,413,860
|
)
|
|
Exercise of stock options
|
|
|
120,269
|
|
|
|
120
|
|
|
|
32,352
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32,472
|
|
|
Settlement of restricted stock units
|
|
|
224,519
|
|
|
|
225
|
|
|
|
(225
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Stock-based compensation
|
|
|
223,052
|
|
|
|
223
|
|
|
|
2,557,307
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,557,530
|
|
|
Balance, September 30, 2022
|
|
|
361,377,856
|
|
|
|
339,555
|
|
|
|
587,635,212
|
|
|
|
(6,862,090
|
)
|
|
|
(192,286,723
|
)
|
|
|
388,825,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, July 1, 2021
|
|
|
279,782,854
|
|
|
$
|
257,966
|
|
|
$
|
454,961,102
|
|
|
$
|
133,946
|
|
|
$
|
(87,438,665
|
)
|
|
$
|
367,914,349
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(11,425,248
|
)
|
|
|
(11,425,248
|
)
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(125,976
|
)
|
|
|
—
|
|
|
|
(125,976
|
)
|
|
Exercise of stock options
|
|
|
1,226,375
|
|
|
|
1,226
|
|
|
|
335,271
|
|
|
|
—
|
|
|
|
—
|
|
|
|
336,497
|
|
|
Exercise of warrants
|
|
|
48,308
|
|
|
|
43
|
|
|
|
(43
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Stock-based compensation
|
|
|
148,368
|
|
|
|
149
|
|
|
|
3,833,336
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,833,485
|
|
|
Balance, September 30, 2021
|
|
|
281,205,905
|
|
|
$
|
259,384
|
|
|
$
|
459,129,666
|
|
|
$
|
7,970
|
|
|
$
|
(98,863,913
|
)
|
|
$
|
360,533,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(63,892,619
|
)
|
|
|
(63,892,619
|
)
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,565,154
|
)
|
|
|
—
|
|
|
|
(6,565,154
|
)
|
|
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
|
|
|
1,252,546
|
|
|
|
1,252
|
|
|
|
336,541
|
|
|
|
—
|
|
|
|
—
|
|
|
|
337,793
|
|
|
Settlement of restricted stock units
|
|
|
224,519
|
|
|
|
225
|
|
|
|
(225
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Exercise of warrants
|
|
|
1,623,700
|
|
|
|
1,624
|
|
|
|
167,950
|
|
|
|
—
|
|
|
|
—
|
|
|
|
169,574
|
|
|
Issuance of stock in connection with acquisitions
|
|
|
36,443,684
|
|
|
|
36,443
|
|
|
|
67,086,069
|
|
|
|
—
|
|
|
|
—
|
|
|
|
67,122,512
|
|
|
Stock-based compensation
|
|
|
223,052
|
|
|
|
223
|
|
|
|
10,626,176
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10,626,399
|
|
|
Balance, September 30, 2022
|
|
|
361,377,856
|
|
|
$
|
339,555
|
|
|
$
|
587,635,212
|
|
|
$
|
(6,862,090
|
)
|
|
$
|
(192,286,723
|
)
|
|
$
|
388,825,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2021
|
|
|
154,163,975
|
|
|
$
|
132,347
|
|
|
$
|
29,021,974
|
|
|
$
|
(654,880
|
)
|
|
$
|
(37,396,843
|
)
|
|
$
|
(8,897,402
|
)
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(61,467,070
|
)
|
|
|
(61,467,070
|
)
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
662,850
|
|
|
|
—
|
|
|
|
662,850
|
|
|
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
|
|
|
1,640,294
|
|
|
|
1,640
|
|
|
|
448,012
|
|
|
|
—
|
|
|
|
—
|
|
|
|
449,652
|
|
|
Exercise of warrants
|
|
|
287,114
|
|
|
|
282
|
|
|
|
93,712
|
|
|
|
—
|
|
|
|
—
|
|
|
|
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
|
|
|
478,562
|
|
|
|
479
|
|
|
|
5,268,928
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,269,407
|
|
|
Balance, September 30, 2021
|
|
|
281,205,905
|
|
|
$
|
259,384
|
|
|
$
|
459,129,666
|
|
|
$
|
7,970
|
|
|
$
|
(98,863,913
|
)
|
|
$
|
360,533,107
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
September 30, 2022
|
|
|
September 30, 2021
|
|
|
|
|
$
|
|
|
$
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(63,892,619
|
)
|
|
$
|
(61,467,070
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Non-cash finance income
|
|
|
(12,433
|
)
|
|
|
—
|
|
|
Non-cash interest expense
|
|
|
419,684
|
|
|
|
904,749
|
|
|
Non-cash lease expense
|
|
|
1,212,415
|
|
|
|
256,785
|
|
|
Deferred income tax
|
|
|
(147,193
|
)
|
|
|
(186,183
|
)
|
|
Depreciation and amortization
|
|
|
5,377,470
|
|
|
|
1,798,607
|
|
|
Unrealized foreign currency exchange loss
|
|
|
2,843,223
|
|
|
|
279,805
|
|
|
Loss on financial instruments, net
|
|
|
—
|
|
|
|
40,540,091
|
|
|
Change in deferred revenue
|
|
|
(199,785
|
)
|
|
|
(239,057
|
)
|
|
Non-cash government assistance
|
|
|
(3,047
|
)
|
|
|
(508,730
|
)
|
|
Loss on debt settlement
|
|
|
—
|
|
|
|
19,253
|
|
|
Gain on sale of property, plant and equipment
|
|
|
(783
|
)
|
|
|
—
|
|
|
Stock-based compensation
|
|
|
9,763,627
|
|
|
|
855,989
|
|
|
Non-cash consulting expense
|
|
|
862,771
|
|
|
|
3,926,628
|
|
|
Changes in operating assets and liabilities
|
|
|
(4,739,841
|
)
|
|
|
(1,764,867
|
)
|
|
Net cash used in operating activities
|
|
|
(48,516,511
|
)
|
|
|
(15,584,000
|
)
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of intangible assets
|
|
|
|