SmartKem, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SmartKem, Inc. filed its 2023 10-K, reporting $1.34M in assets and $827K in net income, with EPS of $0.0286.</b>

AI Summary

SmartKem, Inc. (SMTK) filed a Annual Report (10-K) with the SEC on March 27, 2024. SmartKem, Inc. reported total assets of $1,344,892 as of December 31, 2023. The company's net income for the fiscal year 2023 was $827,906. Earnings per share (EPS) for 2023 were $0.0286. Total debt was not explicitly detailed, but the debt-to-equity ratio was 0.0286. SmartKem, Inc. had $13,765 in cash and cash equivalents as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking SmartKem, Inc., this filing contains several important signals. The filing provides a comprehensive overview of SmartKem's financial performance and position for the fiscal year ended December 31, 2023, including key financial metrics and risk factors. Investors can use this report to assess the company's profitability, asset base, and potential risks, aiding in investment decisions regarding SMTK.

Risk Assessment

Risk Level: medium — SmartKem, Inc. shows moderate risk based on this filing. The company's financial performance, while showing net income, is based on relatively small figures for assets and cash, indicating a potentially nascent or high-risk stage of development.

Analyst Insight

Monitor future filings for revenue growth, operational expansion, and cash flow generation to assess the sustainability of profitability.

Financial Highlights

debt To Equity

0.0286

operating Margin

6.32

total Assets

1344892

net Income

827906

eps

0.0286

gross Margin

13.88

cash Position

13765

Key Numbers

• 1344892 — Total Assets (As of December 31, 2023)
• 827906 — Net Income (For the fiscal year 2023)
• 0.0286 — Earnings Per Share (EPS) (For the fiscal year 2023)
• 0.0286 — Debt/Equity Ratio (As of December 31, 2023)
• 13765 — Cash and Cash Equivalents (As of December 31, 2023)
• 6.32 — Operating Margin (For the fiscal year 2023)
• 13.88 — Gross Margin (For the fiscal year 2023)

Key Players & Entities

• SmartKem, Inc. (company) — Filer name
• Parasol Investments Corp (company) — Former company name
• Manchester (location) — Business and mail address city
• DE (location) — State of incorporation

FAQ

Risk Factors

• Risks Related to Financial Condition and Operations [medium — financial]: The company faces risks associated with its financial condition, including its ability to secure future funding and manage its operations effectively.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-03-27: Filing Date — Date the 10-K was officially submitted to the SEC.
• 2024-01-26: Consent Conversion and Amendment Agreement — A significant subsequent event impacting the company's capital structure.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (Provides the primary source of detailed financial and operational information for the fiscal year.)

Key Financial Figures

• $0.0001 — g) of the Act: Common stock, par value $0.0001 per share Indicate by check mark if t
• $7.70 — on the closing sale price on the OTC of $7.70 per share, was $ 3,288,895 as of June 3
• $158 billion — al display market size was estimated at $158 billion in 2022 and is expected to grow to arou
• $315 billion — 2022 and is expected to grow to around $315 billion by 2032, an expected compound annual gr

Filing Documents

• smtk-20231231x10k.htm (10-K) — 2259KB
• smtk-20231231xex3d1.htm (EX-3.1) — 385KB
• smtk-20231231xex4d4.htm (EX-4.4) — 58KB
• smtk-20231231xex10d28.htm (EX-10.28) — 88KB
• smtk-20231231xex23d1.htm (EX-23.1) — 3KB
• smtk-20231231xex23d2.htm (EX-23.2) — 4KB
• smtk-20231231xex31d1.htm (EX-31.1) — 12KB
• smtk-20231231xex31d2.htm (EX-31.2) — 13KB
• smtk-20231231xex32d1.htm (EX-32.1) — 6KB
• smtk-20231231xex32d2.htm (EX-32.2) — 6KB
• 0001558370-24-004098.txt (&nbsp;) — 9574KB
• smtk-20231231.xsd (EX-101.SCH) — 56KB
• smtk-20231231_cal.xml (EX-101.CAL) — 63KB
• smtk-20231231_def.xml (EX-101.DEF) — 177KB
• smtk-20231231_lab.xml (EX-101.LAB) — 512KB
• smtk-20231231_pre.xml (EX-101.PRE) — 381KB
• smtk-20231231x10k_htm.xml (XML) — 1552KB

Business

Business 7 Item 1A.

Risk Factors

Risk Factors 19 Item 1B. Unresolved Staff Comments 39 Item 1C. Cybersecurity 39 Item 2.

Properties

Properties 39 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 PART II 40 Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 40 Item 6. [Reserved] 40 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 45 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 46 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 80 Item 9A.

Controls and Procedures

Controls and Procedures 80 Item 9B . Other Information 81 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 81 PART III 82 Item 10. Directors, Executive Officers, and Corporate Governance 82 Item 11.

Executive Compensation

Executive Compensation 86 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 90 Item 13. Certain Relationships and Related Transactions, and Director Independence 92 Item 14. Principal Accountant Fees and Services 96 PART IV 97 Item 15. Exhibits and Financial Statement Schedules 97 Item 16. Form 10-K Summary 100

Signatures

Signatures 101 2 Table of Contents Glossary of Terms and Abbreviations The following is a glossary of technical terms used in this Annual Report on Form 10-K (this "Report"): 106 – 1,000,000 (the symbol before the number 6 indicates "raised to the power") AMOLED – Active Matrix OLED AR – Augmented Reality a-Si – Amorphous silicon (TFT) BKM – Best-Known Method BL – Base Layer C – Degrees Celsius CoA – Certificate of Analysis CAD – Computer Aided Design COC – Cyclic Olefin Copolymer CPI – Centre for Process Innovation DLT - Digital Lithography Technology EDA – Electronic Design Automation EL-QD-LED – Electroluminescent Quantum Dot Light Emitting Diode FET – Field-Effect Transistor IC – Integrated Circuit IGZO – Indium gallium zinc oxide TFT IV – Current-Voltage LTPS – Low-Temperature Polysilicon TFT (Note: Low-Temperature is relative to silicon wafer processing temperatures >300C, however not low temperature relative to the glass transition temperature of many plastics (<150C) OEM – Original Equipment Manufacturer OGI – Organic Gate Insulator OLAE – Organic and Large Area Electronics OLED – Organic Light Emitting Diode 3 Table of Contents OSC – Organic Semiconductor OTFT – Organic Thin-Film Transistor PCB – Printed Circuit Board PDK – Process Design Kit PEN - PolyEthylene Naphthalate PET - PolyEthylene Terephthalate PI - Polyimide POR – Process of Record PV – PassiVation layer SAM – Self-Assembled Monolayer SRL – Sputter Resistant Layer TAC - Cellulose TriACetate T g – Glass transition temperature TFT – Thin-Film Transistor VR – Virtual Reality V th – Threshold Voltage V to – Turn-on Voltage 4 Table of Contents CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains express or implied forward-looking statements that are based on our managemen

Business

Item 1. Business Unless otherwise stated or the context otherwise indicates, references to "SmartKem" the "Company," "we," "our," "us," or similar terms refer to SmartKem, Inc. and its subsidiaries. Overview We are seeking to reshape the world of electronics with our disruptive organic thin-film transistors ("OTFTs") that we believe have the potential to drive the next generation of displays. Our patented TRUFLEX semiconductor and dielectric inks, or electronic polymers, are used to make a new type of transistor that we believe have the capability to revolutionize the display industry. Our inks enable low temperature printing processes that are compatible with existing manufacturing infrastructure to deliver low-cost displays that outperform existing technologies. Our electronic polymer platform can be used in a range of display technologies including microLED, miniLED and AMOLED displays for next generation televisions, laptops, augmented reality ("AR") and virtual reality ("VR") headsets, smartwatches and smartphones. We design and develop our materials at our research and development facility in Manchester, UK. We manufacture prototypes for prospective customers at the Centre for Process Innovation ("CPI") in Sedgefield, UK. We also operate a field application office in Taiwan. With our collaboration partners, we are developing a commercial-scale production process and EDA tools for our materials to demonstrate the commercial viability of manufacturing a new generation of displays using our materials. We have an extensive IP portfolio including 125 granted patents across 19 patent families, 15 pending patents and 40 codified trade secrets. Our Technology The invention and development of OTFT devices has enabled the rapid expansion of the electronics industry, particularly with the advent of the planar process essential for integrated circuitry. This is due to the ability to create compact circuits with an ever-increasing capability, lower cost per logic

View Full Filing

View this 10-K filing on SEC EDGAR