SmartKem, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $23,000, a significant increase from zero revenue in the same period last year. The company also recorded a gross profit of $22,000, with operating expenses totaling $3.4 million, up from $2.7 million in the first quarter of 2024. The net loss for the quarter was $2.1 million, compared to a net loss of $1.7 million in the prior year. The increase in losses is attributed to higher research and development costs and general administrative expenses, which rose due to increased personnel expenses and professional service fees.
In terms of operational metrics, SmartKem's cash and cash equivalents decreased to $3.9 million as of March 31, 2025, down from $7.1 million at the end of 2024. The company reported net cash used in operating activities of $3.3 million for the quarter, compared to $1.6 million in the same period last year. This increase in cash outflow is linked to business development initiatives and bonus payouts. The company’s accumulated deficit now stands at $116.8 million, reflecting ongoing investments in research and development.
Strategically, SmartKem is focused on advancing its proprietary TRUFLEX® semiconductor materials, which are designed for use in various display technologies. The company has extended its agreement with the Centre for Process Innovation (CPI) to continue utilizing their facilities for prototyping, although this extension comes with increased costs. SmartKem is also actively seeking to secure additional funding to support its operations and development activities, as its current cash reserves are not expected to cover operational needs for the next 12 months.
Looking ahead, SmartKem acknowledges the need for additional capital to sustain its operations and fund future growth. The company plans to explore various financing options, including equity offerings and strategic partnerships. However, there is uncertainty regarding the availability of such funding on favorable terms. The management has indicated that the future viability of the company is contingent upon its ability to generate sufficient revenue and manage its expenditures effectively.
About SmartKem, Inc.
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