SmartKem, Inc. reported a revenue of $82,000 for the fiscal year ending December 31, 2024, a significant increase from $27,000 in the previous year. This growth was primarily driven by an uptick in sales of demonstrator products as the company expanded its marketing efforts. However, the cost of revenue also rose to $32,000 from $23,000, reflecting the increased volume of products sold. The company's total comprehensive loss for the year was $10.3 million, compared to a loss of $8.5 million in 2023, largely due to higher operating expenses and a loss on foreign currency transactions.
In terms of operational changes, SmartKem's total operating expenses increased to $11.5 million in 2024 from $10.8 million in 2023. Research and development expenses decreased to $5.1 million from $5.6 million, attributed to lower personnel costs following a reduction in force in September 2023. Conversely, general and administrative expenses rose to $6.3 million, up from $5.2 million, primarily due to increased professional service fees. The company had 27 full-time employees as of December 31, 2024, a slight decrease from the previous year.
Strategically, SmartKem has been active in forming partnerships and collaborations to enhance its technology and market presence. In 2024, the company entered into several agreements, including a joint development project with Tianma Microelectronics to integrate its organic thin-film transistor technology with Tianma’s oxide transistors. Additionally, a technology transfer agreement with the Industrial Technology Research Institute (ITRI) aims to develop commercial-scale manufacturing processes for SmartKem's materials. These collaborations are expected to accelerate the adoption of SmartKem's technology in the display industry.
Looking ahead, SmartKem anticipates continued operating losses and recognizes the need for additional capital to fund its operations. As of December 31, 2024, the company had cash and cash equivalents of $7.1 million, which it expects will not be sufficient to cover its operational needs for the next 12 months. The company plans to finance its working capital requirements through a combination of equity offerings, debt financing, and strategic partnerships. Management has expressed substantial doubt about the company's ability to continue as a going concern without raising additional funds.
Overall, SmartKem's financial performance reflects both growth in revenue and ongoing challenges in achieving profitability. The company's strategic initiatives and collaborations are aimed at enhancing its market position and technological capabilities, but the need for further capital remains a critical concern for its future operations.
About SmartKem, Inc.
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