Smartkem Reports Third Quarter 2025 Financial Results

SMARTKEM, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except number of shares and per share data)

September 30, 

December 31, 

2025

2024

Assets

Current assets

Cash and cash equivalents

$

881

$

7,141

Research and development tax credit receivable

404

519

Prepaid expenses and other current assets

1,079

849

Total current assets

2,364

8,509

Property, plant and equipment, net

221

269

Right-of-use assets, net

663

120

Other assets, non-current

—

6

Total assets

$

3,248

$

8,904

Liabilities and stockholders' (deficit) / equity

Current liabilities

Accounts payable and accrued expenses

$

4,890

$

1,791

Lease liabilities, current

274

47

Other current liabilities

660

450

Total current liabilities

5,824

2,288

Lease liabilities, non-current

376

25

Total liabilities

6,200

2,313

Contingencies (Note 7)

—

—

Stockholders' (deficit) / equity:

Preferred stock, par value $0.0001 per share, 10,000,000 shares

authorized, 0 and 856 shares issued and outstanding, at September 30,

2025 and December 31, 2024, respectively

—

—

Common stock, par value $0.0001 per share, 300,000,000 shares

authorized, 5,605,043 and 3,590,217 shares issued and outstanding, at

September 30, 2025 and December 31, 2024, respectively

1

—

Additional paid-in capital

123,495

122,316

Accumulated other comprehensive loss

(3,374)

(1,105)

Accumulated deficit

(123,074)

(114,620)

Total stockholders' (deficit) / equity

(2,952)

6,591

Total liabilities and stockholders' (deficit) / equity

$

3,248

$

8,904

SMARTKEM, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(in thousands, except number of shares and per share data)

Three Months Ended

September 30, 

Nine Months Ended

September 30, 

2025

2024

2025

2024

Revenue

$

81

$

—

$

136

$

40

Cost of revenue

5

—

34

32

Gross profit

76

—

102

8

Other operating income

181

287

711

725

Operating expenses

Research and development

2,056

1,504

5,979

3,938

General and administrative

1,331

1,578

5,700

4,784

(Gain) / loss on foreign currency transactions

59

43

(167)

75

Total operating expenses

3,446

3,125

11,512

8,797

Loss from operations

(3,189)

(2,838)

(10,699)

(8,064)

Non-operating income / (expense)

Gain / (loss) on foreign currency transactions

(732)

—

2,207

(249)

Change in fair value of the warrant liability

—

—

—

672

Interest income / (expense)

1

(4)

14

5

Total non-operating income / (expense)

(731)

(4)

2,221

428

Loss before income taxes

(3,920)

(2,842)

(8,478)

(7,636)

Income tax refund / (expense)

—

—

24

(1)

Net loss

$

(3,920)

$

(2,842)

$

(8,454)

$

(7,637)

Preferred stock deemed dividends

—

—

—

(7,094)

Net loss attributed to common stockholders

$

(3,920)

$

(2,842)

$

(8,454)

$

(14,731)

Weighted average shares outstanding - basic and diluted

8,782,766

3,308,975

7,842,215

3,068,110

Common share data:

Basic net loss per common share

$

(0.45)

$

(0.86)

$

(1.08)

$

(2.49)

Diluted net loss per common share

(0.45)

(0.86)

(1.08)

(4.80)

Dividend per common share

—

—

—

(2.31)

Net loss

$

(3,920)

$

(2,842)

$

(8,454)

$

(7,637)

Other comprehensive loss:

Foreign currency translation

800

125

(2,269)

281

Total comprehensive loss

$

(3,120)

$

(2,717)

$

(10,723)

$

(7,356)