Metamaterial Releases Fourth Quarter and Full Year 2020 Results

- April 21st, 2021

Metamaterial Inc. a developer of high-performance functional materials and nanocomposites, today released fourth quarter and full year 2020 results. Please visit the investors section of our website to view the Q4 2020 Shareholder Letter The financial statements and the associated management discussion and analysis for the quarter and twelve months ended December 31, 2020 are available on the Investors section of …

Metamaterial Inc. (the “Company” or “META”) (CSE:MMAT) a developer of high-performance functional materials and nanocomposites, today released fourth quarter and full year 2020 results. Please visit the investors section of our website to view the Q4 2020 Shareholder Letter

The financial statements and the associated management discussion and analysis for the quarter and twelve months ended December 31, 2020 are available on the Investors section of our website as well as under the Company’s profile on SEDAR at www.sedar.com.

The 2020 net loss was $19,806,340, 27c per share on 74,271,609 weighted average shares, compared to a 2019 net loss of $11,083,258, $1.14 per share on 9,724,476 weighted average shares. Total 2020 revenue was $1,507,690, compared to 2019 revenue of $1,195,058.

About Metamaterial Inc.

META delivers previously unachievable performance, across a range of applications, by inventing, designing, developing, and manufacturing sustainable, highly functional materials. Our extensive technology platform enables leading global brands to deliver breakthrough products to their customers in consumer electronics, 5G communications, health and wellness, aerospace, automotive, and clean energy. Our achievements have been widely recognized, including being named a Global Cleantech 100 company. Learn more at www.metamaterial.com.

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

Media inquiries:
media@metamaterial.com

Investor inquiries:
Mark Komonoski
Investor Relations
phone: 1-877-255-8483
mark@metamaterial.com

Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Consolidated statements of financial position
[expressed in Canadian dollars]

December 31, 2020 December 31, 2019
$ $
Assets
Current
Cash and cash equivalents
1,776,983 528,691
Grants receivable
417,442 242,705
Other receivables
50,330 79,072
Inventory
589,977 438,726
Prepaid expenses
436,909 365,602
HST receivable
196,526 262,512
Total current assets
3,468,167 1,917,308
Intangible assets, net
5,699,626 6,404,812
Property and equipment, net
3,515,523 3,558,675
Right-of-use assets
337,441 66,951
Total non-current assets
9,552,590 10,030,438
Total assets
13,020,757 11,947,746
Liabilities and shareholders’ equity (deficiency)
Current
Trade payables
3,743,783 3,176,642
Due to related party
312,528 345,033
Current portion of long-term debt
369,921 104,376
Current portion of deferred revenue
1,578,676 1,483,645
Current portion of deferred government assistance
1,179,096 518,837
Derivative liability
1,175,056
Secured convertible debentures
7,060,493
Secured convertible promissory notes
4,595,975
Unsecured convertible promissory notes
1,531,960
Current portion of lease liabilities
192,001 71,947
Total current liabilities
15,968,458 11,471,511
Deferred revenue
1,023,835 1,862,420
Deferred government assistance
1,414,037
Deferred tax liability
404,947 658,481
Unsecured convertible debentures
2,324,085 760,145
Funding obligation
989,128 808,298
Lease liabilities
152,506
Long-term debt
3,493,029 3,139,301
Total non-current liabilities
8,387,530 8,642,682
Total liabilities
24,355,988 20,114,193
Shareholders’ deficiency
Common shares
34,248,734 7,598,670
Preferred shares
12,748,100
Contributed surplus
5,804,292 3,753,211
Warrants
565,446 175,095
Accumulated other comprehensive loss
134,648 (159,512 )
Deficit
(52,088,351 ) (32,282,011 )
Total shareholders’ deficiency
(11,335,231) (8,166,447)
Total liabilities and shareholders’ deficiency
13,020,757 11,947,746

Consolidated statements of loss and comprehensive loss
[expressed in Canadian dollars]

Year ended December 31
2020 2019
$ $
Product sales
2,615 31,426
Development revenue
1,505,075 1,163,632
Revenue, net
1,507,690 1,195,058
Cost of goods sold
4,409 12,138
Gross Profit
1,503,281 1,182,920
Expenses (income)
Salaries and benefits
3,390,940 3,040,775
Depreciation and amortization
2,840,640 3,178,505
Impairment expense
5,224 87,166
Travel and entertainment
79,369 493,800
Other expenses
742,476 507,980
Listing expenses
3,370,249
Stock exchange fees
12,000
Rent and utilities
404,699 414,958
Finance Income
(34,302 ) (822,375 )
Finance costs
2,142,131 937,435
Consulting
1,416,962 548,922
Investor relations
154,496 30,936
Research and development
516,577 788,476
Professional fees
2,274,554 846,418
Share-based compensation expense
2,032,055 1,710,952
Unrealized loss on FVTPL liabilities
1,917,860 862,176
Realized loss on derivative liability
128,653
Technology license fees
14,602 50,807
Realized foreign currency exchange loss
83,750 1,290
Unrealized foreign currency exchange (gain) loss
255,109 417,115
Amortization of deferred government assistance
(182,685 ) (178,834 )
Other loss (income)
(530,960 )
21,565,359 12,385,542
Net loss before tax
(20,062,078) (11,202,622)
Income tax recovery
255,738 119,364
Net loss for the period
(19,806,340) (11,083,258)
Other comprehensive loss, net of income taxes
Items that may be subsequently reclassified to income:
Unrealized foreign currency translation adjustment
294,160 246,998
Comprehensive loss for the period
(19,512,180) (10,836,260)
Basic and diluted loss per share
$ (0.27) $ (1.14)
Weighted average number of shares outstanding
– basic and diluted
74,271,609 9,724,476

Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Consolidated statements of cash flows

[expressed in Canadian dollars]

Year ended December 31
2020 2019
$ $
Operating activities
Net loss for the period
(19,806,340 ) (11,083,258 )
Add (deduct) items not affecting cash:
Non-cash finance income
(22,927 ) (821,599 )
Non-cash finance costs
1,627,599 703,798
Deferred income tax recovery
(255,738 ) (119,364 )
Depreciation and amortization
2,840,640 3,121,654
Impairment of intangible assets
5,224 87,166
Unrealized foreign currency exchange loss
260,068 437,935
Listing expenses
3,370,249
Unrealized loss on FVTPL liabilities
1,917,860 862,176
Realized loss on derivative liability
128,653
Change in deferred revenue
(738,720 ) (841,370 )
Change in deferred government assistance
(342,216 ) (435,558 )
Share-based compensation expense
2,032,055 1,780,952
Non-cash consulting
30,000 51,750
Other loss (income)
(530,960 )
Net change in non-cash working capital items
(849,236 ) 1,179,094
Cash used in operating activities
(9,802,829) (5,607,584)
Investing activities
Additions to intangible assets
(140,323 ) (220,480 )
Additions to property and equipment
(1,152,752 ) (1,449,951 )
Reverse takeover, net cash
4,179,371
Cash used in investing activities
2,886,296 (1,670,431)
Financing activities
Proceeds from long-term debt
35,075 879,860
Repayment of long-term debt
(263,431 ) (77,024 )
Repurchase of shares
(24,365 )
Proceeds from unsecured convertible promissory notes
1,804,570 3,185,760
Proceeds from funding obligation
1,300,000
Net proceeds from units
814,270 1,013,622
Proceeds from unsecured convertible debentures
950,000 750,000
Proceeds from secured convertible debentures
5,000,000
Payment of lease liabilities
(149,991 ) (75,335 )
Cash provided by financing activities
8,166,128 6,976,883
Net (decrease) increase in cash and cash equivalents
1,249,595 (301,132)
Cash and cash equivalents, beginning of the period
528,691 850,623
Effects of exchange rate changes on cash and cash equivalents
(1,303 ) (20,800 )
Cash and cash equivalents, end of the period
1,776,983 528,691
Supplemental cash flow information
Interest on debt paid
406,518 20,335

SOURCE: Metamaterial Inc.

View source version on accesswire.com:
https://www.accesswire.com/641400/Metamaterial-Releases-Fourth-Quarter-and-Full-Year-2020-Results

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