Metamaterial Releases Third Quarter 2020 Results

 
 

 Metamaterial Inc. (the " Company " or " META ") (CSE: MMAT) a developer of high-performance functional materials and nanocomposites, today released third quarter 2020 results. Please visit the Investors section of our website to view the Q3 2020 Shareholder Letter .

 
 

  Metamaterial Inc. Logo (CNW Group/Metamaterial Inc.) 

 
 

The interim financial statements and the associated management discussion and analysis for the quarter and nine months ended September 30, 2020 are available on the Investors section of our website as well as under the Company's profile on SEDAR at www.sedar.com .

 

  About Metamaterial Inc.  

 

META is changing the way we use, interact with, and benefit from light and other forms of energy. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and electromagnetic waves. Metamaterials help support sustainability by doing more with less; they encompass lightweight, sustainable raw materials and processes which consume less energy. META is currently developing new materials with diverse applications in the automotive, aerospace, solar, consumer electronics and medical industries. META has a growing patent portfolio with three core technologies: holography, lithography, and wireless sensing. META is headquartered in Dartmouth, Nova Scotia and has offices in London, UK and Pleasanton, California .

 

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

 
 
                                                                                                                                                          
 

   Metamaterial Inc. (formerly Continental Precious Minerals Inc.)   

 
 
 
 
 
 

   Interim condensed consolidated statements of financial position (unaudited)   

 
 

  [expressed in Canadian dollars]  

 
 
 
 
 

  As at  

 
 
 
 
 

   September 30, 2020   

 
 

   December 31, 2019   

 
 
 

   $   

 
 

   $   

 
 
 
 
 

   Assets   

 
 
 
 

  Current  

 
 
 
 

  Cash and cash equivalents  

 
 

  3,208,911  

 
 

  528,691  

 
 

  Grants receivable  

 
 

  487,771  

 
 

  242,705  

 
 

  Other receivables  

 
 

  76,071  

 
 

  79,072  

 
 

  Inventory  

 
 

  615,225  

 
 

  438,726  

 
 

  Prepaid expenses  

 
 

  461,071  

 
 

  365,602  

 
 

  HST receivable  

 
 

  97,932  

 
 

  262,512  

 
 

  Right-of-use assets  

 
 

  6,708  

 
 

  66,951  

 
 

   Total current assets   

 
 

   4,953,689   

 
 

   1,984,259   

 
 

  Intangible assets, net  

 
 

  5,796,302  

 
 

  6,404,812  

 
 

  Property and equipment, net  

 
 

  3,065,960  

 
 

  3,558,675  

 
 

   Total non-current assets   

 
 

   8,862,262   

 
 

   9,963,487   

 
 

   Total assets   

 
 

   13,815,951   

 
 

   11,947,746   

 
 

   Liabilities and shareholders' equity (deficiency)   

 
 
 
 

   Current   

 
 
 
 

  Trade payables  

 
 

  1,706,788  

 
 

  3,176,642  

 
 

  Due to related parties  

 
 

  333,182  

 
 

  345,033  

 
 

  Current portion of long-term debt  

 
 

  249,168  

 
 

  104,376  

 
 

  Current portion of deferred revenue  

 
 

  1,900,357  

 
 

  1,819,797  

 
 

  Derivative liability  

 
 

  -  

 
 

  1,175,056  

 
 

  Promissory notes  

 
 

  -  

 
 

  4,595,975  

 
 

  Current portion of lease liabilities  

 
 

  7,616  

 
 

  71,947  

 
 

   Total current liabilities   

 
 

   4,197,111   

 
 

   11,288,826   

 
 

  Deferred revenue  

 
 

  2,527,044  

 
 

  3,089,921  

 
 

  Deferred government assistance  

 
 

  232,207  

 
 

  369,221  

 
 

  Deferred tax liability  

 
 

  512,461  

 
 

  658,481  

 
 

  Unsecured convertible debenture  

 
 

  1,494,958  

 
 

  760,145  

 
 

  Unsecured convertible promissory notes  

 
 

  657,448  

 
 

  -  

 
 

  Secured convertible debentures  

 
 

  4,891,844  

 
 

  -  

 
 

  Funding obligation  

 
 

  904,215  

 
 

  808,298  

 
 

  Long-term debt  

 
 

  3,107,099  

 
 

  3,139,301  

 
 

   Total non-current liabilities   

 
 

   14,327,276   

 
 

   8,825,367   

 
 

   Total liabilities   

 
 

   18,524,387   

 
 

   20,114,193   

 
 
 
 
 

   Shareholders' deficiency   

 
 
 
 

  Common shares  

 
 

  34,296,403  

 
 

  7,598,670  

 
 

  Preferred shares  

 
 

  -  

 
 

  12,748,100  

 
 

  Contributed surplus  

 
 

  5,290,939  

 
 

  3,753,211  

 
 

  Warrants  

 
 

  571,555  

 
 

  175,095  

 
 

  Accumulated other comprehensive loss  

 
 

  (349,972)  

 
 

  (159,512)  

 
 

  Deficit  

 
 

  (44,517,361)  

 
 

  (32,282,011)  

 
 

   Total shareholders' deficiency   

 
 

   (4,708,436)   

 
 

   (8,166,447)   

 
 

   Total liabilities and shareholders' deficiency   

 
 

   13,815,951   

 
 

   11,947,746   

 
 
 

 

 
 
                                                                                                                                                                                                                                                
 

   Metamaterial Inc. (formerly Continental Precious Minerals Inc.)   

 
 
 
 
 
 
 
 
 

   Interim condensed consolidated statement of loss and comprehensive loss (unaudited)   

 
 

  [expressed in Canadian dollars]  

 
 
 
 
 
 
 
 
 
 

  Three months ended September 30  

 
 

  Nine months ended September 30  

 
 
 

   2020   

 
 

   2019   

 
 

   2020   

 
 

   2019   

 
 
 

   $   

 
 

   $   

 
 

   $   

 
 

   $   

 
 

  Product sales  

 
 

  -  

 
 

  627  

 
 

  2,615  

 
 

  11,315  

 
 

  Development revenue  

 
 

  263,014  

 
 

  215,873  

 
 

  1,147,702  

 
 

  664,078  

 
 

   Revenue, net   

 
 

   263,014   

 
 

   216,500   

 
 

   1,150,317   

 
 

   675,393   

 
 

  Cost of goods sold  

 
 

  1,240  

 
 

  245  

 
 

  4,201  

 
 

  4,268  

 
 

   Gross Profit   

 
 

   261,774   

 
 

   216,255   

 
 

   1,146,116   

 
 

   671,125   

 
 
 
 
 
 
 

   Expenses (income)   

 
 
 
 
 
 

  Salaries and benefits  

 
 

  487,491  

 
 

  719,602  

 
 

  2,601,077  

 
 

  2,203,035  

 
 

  Depreciation and amortization  

 
 

  786,736  

 
 

  838,360  

 
 

  2,508,636  

 
 

  2,312,811  

 
 

  Travel and entertainment  

 
 

  1,444  

 
 

  81,722  

 
 

  89,629  

 
 

  305,764  

 
 

  Other expenses  

 
 

  213,825  

 
 

  107,947  

 
 

  523,402  

 
 

  395,716  

 
 

  Listing expenses  

 
 

  -  

 
 

  -  

 
 

  3,370,249  

 
 

  -  

 
 

  Stock exchange fees  

 
 

  3,750  

 
 

  -  

 
 

  7,500  

 
 

  -  

 
 

  Rent and utilities  

 
 

  116,050  

 
 

  141,594  

 
 

  331,110  

 
 

  346,252  

 
 

  Interest and bank charges  

 
 

  350,815  

 
 

  141,339  

 
 

  785,228  

 
 

  336,207  

 
 

  Consulting  

 
 

  306,770  

 
 

  97,091  

 
 

  665,947  

 
 

  323,614  

 
 

  Investor related expense  

 
 

  42,752  

 
 

  -  

 
 

  111,579  

 
 

  -  

 
 

  Research and development  

 
 

  159,143  

 
 

  215,128  

 
 

  384,270  

 
 

  524,837  

 
 

  Professional fees  

 
 

  305,876  

 
 

  357,856  

 
 

  1,148,823  

 
 

  544,511  

 
 

  Non-cash interest accretion  

 
 

  151,466  

 
 

  121,416  

 
 

  435,594  

 
 

  152,306  

 
 

  Share-based compensation expense  

 
 

  538,806  

 
 

  676,460  

 
 

  1,492,637  

 
 

  1,319,362  

 
 

  Unrealized (gain) loss on FVTPL liabilities  

 
 

  603,054  

 
 

  145,977  

 
 

  (505,194)  

 
 

  381,998  

 
 

  Technology license fees  

 
 

  -  

 
 

  12,130  

 
 

  25,885  

 
 

  37,962  

 
 

  Realized foreign currency exchange loss (gain)  

 
 

  8,705  

 
 

  (4,605)  

 
 

  73,212  

 
 

  758  

 
 

  Interest income  

 
 

  (1,827)  

 
 

  (236)  

 
 

  (8,448)  

 
 

  (726)  

 
 

  Unrealized foreign currency exchange (gain) loss  

 
 

  235,865  

 
 

  (95,741)  

 
 

  (214,181)  

 
 

  267,155  

 
 

  Government assistance  

 
 

  (147,069)  

 
 

  (45,671)  

 
 

  (297,539)  

 
 

  (767,280)  

 
 
 

   4,163,652   

 
 

   3,510,369   

 
 

   13,529,416   

 
 

   8,684,282   

 
 

   Net loss before tax   

 
 

   (3,901,878)   

 
 

   (3,294,114)   

 
 

   (12,383,300)   

 
 

   (8,013,157)   

 
 

  Income tax recovery  

 
 

  44,161  

 
 

  44,901  

 
 

  147,950  

 
 

  244,411  

 
 

   Net loss for the period   

 
 

   (3,857,717)   

 
 

   (3,249,213)   

 
 

   (12,235,350)   

 
 

   (7,768,746)   

 
 
 
 
 
 
 

   Other comprehensive loss, net of income taxes   

 
 
 
 
 
 

   Items that may be subsequently reclassified to income:   

 
 
 
 
 
 

  Unrealized foreign currency translation adjustment  

 
 

  243,637  

 
 

  (165,863)  

 
 

  (190,460)  

 
 

  (104,149)  

 
 

   Comprehensive loss for the period   

 
 

   (3,614,080)   

 
 

   (3,415,076)   

 
 

   (12,425,810)   

 
 

   (7,872,895)   

 
 
 
 
 
 
 

   Basic and diluted loss per share   

 
 

   (0.05)   

 
 

   (0.33)   

 
 

   (0.15)   

 
 

   (0.80)   

 
 

   Weighted average number of shares outstanding   

 
 
 
 
 
 

   - basic and diluted   

 
 

   83,597,092   

 
 

   9,724,476   

 
 

   83,597,092   

 
 

   9,724,476   

 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
                                                                                                                                                 
 

   Metamaterial Inc. (formerly Continental Precious Minerals Inc.)   

 
 
 
 
 
 

   Interim condensed consolidated statement of cash flows (unaudited)   

 
 

  [expressed in Canadian dollars]  

 
 
 
 
 
 
 
 

  Nine months ended September 30  

 
 

   2020   

 
 

   2019   

 
 
 

  $  

 
 

  $  

 
 
 
 
 

   Operating activities   

 
 
 
 

  Net loss for the period  

 
 

  (12,235,350)  

 
 

  (7,768,746)  

 
 

  Add (deduct) items not affecting cash:  

 
 
 
 

  Government assistance  

 
 

  (154,582)  

 
 

  (767,280)  

 
 

  Deferred income tax recovery  

 
 

  (147,950)  

 
 

  (244,410)  

 
 

  Depreciation and amortization  

 
 

  2,508,636  

 
 

  2,359,308  

 
 

  Non-cash interest accretion  

 
 

  435,594  

 
 

  152,306  

 
 

  Unrealized foreign currency exchange (gain) loss  

 
 

  (340,771)  

 
 

  267,155  

 
 

  Interest expense  

 
 

  392,936  

 
 

  186,813  

 
 

  Share-based payment expense  

 
 

  -  

 
 

  25,000  

 
 

  Listing expenses  

 
 

  3,370,249  

 
 

  -  

 
 

  Unrealized loss on FVTPL liabilities  

 
 

  (505,194)  

 
 

  381,998  

 
 

  Change in deferred revenue  

 
 

  (482,317)  

 
 

  (669,533)  

 
 

  Share-based compensation expense  

 
 

  1,578,114  

 
 

  1,319,362  

 
 

  Net change in non-cash working capital items  

 
 

  (1,832,955)  

 
 

  408,028  

 
 

   Cash used in operating activities   

 
 

   (7,413,590)   

 
 

   (4,349,999)   

 
 
 
 
 

   Investing activities   

 
 
 
 

  Additions to intangible assets  

 
 

  (124,519)  

 
 

  (128,622)  

 
 

  Additions to property and equipment  

 
 

  (1,106,870)  

 
 

  (767,149)  

 
 

  Reverse takeover, net cash  

 
 

  4,174,979  

 
 

  -  

 
 

   Cash used in investing activities   

 
 

   2,943,590   

 
 

   (895,771)   

 
 
 
 
 

   Financing activities   

 
 
 
 

  Proceeds from long-term debt  

 
 

  50,784  

 
 

  1,129,860  

 
 

  Repayment of long-term debt  

 
 

  (262,258)  

 
 

  (53,568)  

 
 

  Proceeds from unsecured convertible promissory notes  

 
 

  666,950  

 
 

  3,185,760  

 
 

  Proceeds from funding obligation  

 
 

  -  

 
 

  325,000  

 
 

  Proceeds from units, net  

 
 

  814,270  

 
 

  470,083  

 
 

  Proceeds from unsecured convertible debentures  

 
 

  950,000  

 
 

  -  

 
 

  Proceeds from secured convertible debentures  

 
 

  5,000,000  

 
 

  -  

 
 

  Payment of lease liabilities  

 
 

  (69,526)  

 
 

  (54,526)  

 
 

   Cash provided by financing activities   

 
 

   7,150,220   

 
 

   5,002,609   

 
 
 
 
 

   Net (decrease) increase in cash and cash equivalents   

 
 

   2,680,220   

 
 

   (243,161)   

 
 

  Cash and cash equivalents, beginning of the period  

 
 

  528,691  

 
 

  850,623  

 
 

   Cash and cash equivalents, end of the period   

 
 

   3,208,911   

 
 

   607,462   

 
 
 
 
 

   Supplemental cash flow information   

 
 
 
 

  Interest on debt paid  

 
 

  252,987  

 
 

  15,609  

 
 
 
 
 
 

 

 
 
 

SOURCE Metamaterial Inc.

 

 

 

 Cision View original content to download multimedia: https://www.newswire.ca/en/releases/archive/December2020/01/c1403.html  

 
 

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