Exhibit 99.1

 

META Announces Third Quarter and YTD 2021 Results

HALIFAX, NS / ACCESSWIRE / November 15, 2021 / Meta Materials Inc. (the “Company” or “META®”) (NASDAQ: MMAT, FSE: MMAT) a developer of high-performance functional materials and nanocomposites, today announced third quarter and YTD 2021 results. Please visit the Investors section of our website to view the Q3 2021 Shareholder Letter.

The interim financial statements and the associated management discussion and analysis for the quarter ended September 30, 2021 are available on the Investors section of our website as well as on Nasdaq.com or on the SEC EDGAR website at www.sec.gov.

In Q3 2021, total revenue grew 189%, to $572,612, compared to $198,175 in Q3 2020. For the nine months YTD 2021, total revenue increased by 111%, to $1,793,235, versus $848,858 in the first nine months of 2020. The Q3 2021 net loss was $11,425,248, $0.04 per share on 280,080,786 weighted average shares, compared to a net loss of $2,581,204, $0.02 per share on 155,913,202 weighted average shares in Q3 2020. For the nine months YTD 2021, the net loss was $61,467,070 (which includes a one-time, non-cash loss of $40,540,091 on financial instruments), $0.28 per share on 216,135,190 weighted average shares, compared to a loss of $5,815,233, $0.04 per share on 131,557,607 weighted average shares in the first nine months of 2020.

Net cash used in operating activities during the nine months YTD 2021 was $15,584,000, compared to $5,903,523 in the first nine months of 2020. Capital expenditures for purchases of property, plant, and equipment and intangible assets totaled $6,390,932. As of September 30, 2021, cash and cash equivalents totaled $140,796,052, and common shares outstanding were 281,200,905. Subsequent to quarter end, the Company used $72.1MM in cash to complete the acquisition of Nanotech Security Corp.

About Meta Materials 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 nano-optic technology provides anti-counterfeiting security features for government documents and currencies and authentication for brands. Our achievements have been widely recognized, including being named a Lux Research Innovator of the Year in 2021. Learn more at www.metamaterial.com.

META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED)
	As of			As of
	September 30, 2021			December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	140,796,052		$	1,395,683
Restricted cash		421,817			-
Grants receivable		285,063			327,868
Accounts receivable		96,848			22,833
Inventory		358,964			463,382
Prepaid expenses and other current assets		3,262,595			514,204
Assets held for sale		73,650,140			-
Due from related parties		64,708			-
Total current assets		218,936,187			2,723,970
Intangible assets, net		4,642,904			4,476,614
Property, plant and equipment, net		7,525,989			2,761,171
Operating lease right-of-use assets		4,775,130			270,581
Goodwill		218,828,518			-
Total assets	$	454,708,728		$	10,232,336
Liabilities and stockholders’ equity (deficit)
Current liabilities
Trade and other payables	$	6,556,665		$	2,940,452
Due to related party		-			245,467
Current portion of long-term debt		532,346			290,544
Current portion of deferred revenues		1,186,885			1,239,927
Current portion of deferred government assistance		842,425			779,578
Preferred stock liability		77,906,354			-
Current portion of operating lease liabilities		330,867			150,802
Asset retirement obligations		21,937			-
Unsecured convertible promissory notes		-			1,203,235
Secured convertible debentures		-			5,545,470
Total current liabilities		87,377,479			12,395,475
Deferred revenues		637,559			804,143
Deferred government assistance		38,869			146,510
Deferred tax liability		131,907			318,054
Unsecured convertible debentures		-			1,825,389
Long-term operating lease liabilities		2,423,123			119,779
Funding obligation		868,169			776,884
Long-term debt		2,698,515			2,743,504
Total liabilities		94,175,621			19,129,738
Stockholders’ equity (deficit)
Common stock - $0.001 par value; 1,000,000,000 shares authorized, 281,200,905 shares issued and outstanding at September 30, 2021, and $Nil par value; unlimited shares authorized, 154,163,975 shares issued and outstanding at December 31, 2020		259,384			132,347
Additional paid-in capital		459,129,666			29,021,974
Accumulated other comprehensive income (loss)		7,970			(654,880	)
Accumulated deficit		(98,863,913	)		(37,396,843	)
Total stockholders’ equity (deficit)		360,533,107			(8,897,402	)
Total liabilities and stockholders’ equity (deficit)	$	454,708,728		$	10,232,336

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META MATERIALS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED)
	Three months ended September 30,						Nine months ended September 30,
	2021			2020			(Recast - note 11) 2021			2020
Revenue:
Product sales		297,431			982			321,431			2,904
Development revenue		275,181			197,193			1,471,804			845,954
Total Revenue		572,612			198,175			1,793,235			848,858
Cost of goods sold		145,103			935			146,209			3,095
Gross Profit		427,509			197,240			1,647,026			845,763
Operating Expenses:
Selling & Marketing		427,004			196,276			1,122,469			520,804
General & Administrative		9,776,850			1,463,255			16,217,012			4,620,907
Research & Development		1,816,547			1,043,915			5,229,456			2,936,516
Total operating expenses		12,020,401			2,703,446			22,568,937			8,078,227
Other income (expense):
Interest expense, net		(215,116	)		(376,776	)		(1,093,833	)		(893,001	)
(Loss) Gain on foreign exchange, net		(440,157	)		(175,514	)		(770,542	)		81,159
(Loss) Gain on financial instruments, net		—			(118,455	)		(40,540,091	)		1,167,310
Other income, net		739,260			562,443			1,673,124			974,112
Total other income (expense)		83,987			(108,302	)		(40,731,342	)		1,329,580
Loss before income taxes		(11,508,905	)		(2,614,508	)		(61,653,253	)		(5,902,884	)
Income tax recovery		83,657			33,304			186,183			87,651
Net loss		(11,425,248	)		(2,581,204	)		(61,467,070	)		(5,815,233	)
Other Comprehensive Income (Loss) net of tax
Foreign currency translation gain (loss)		(125,976	)		167,941			(17,328	)		8,693
Fair value gain (loss) on changes of own credit risk		—			(223,221	)		680,178			(588,429	)
Total Other Comprehensive Income (Loss)		(125,976	)		(55,280	)		662,850			(579,736	)
Comprehensive loss		(11,551,224	)		(2,636,484	)		(60,804,220	)		(6,394,969	)
Basic and diluted loss per share (1)		(0.04	)		(0.02	)		(0.28	)		(0.04	)
Weighted average number of shares outstanding - basic and    diluted (1)		280,080,786			155,913,202			216,135,190			131,557,607

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META MATERIALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Nine months ended
	September 30, 2021			September 30, 2020
	$			$
Cash flows from operating activities:
Net loss		(61,467,070	)		(5,815,233	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash finance income		—			(14,002	)
Non-cash interest expense		904,749			611,808
Non-cash lease expense		256,785			—
Deferred income tax		(186,183	)		(87,651	)
Depreciation and amortization		1,798,607			1,768,261
Unrealized foreign currency exchange loss (gain)		279,805			(146,433	)
Loss (gain) on financial instruments, net		40,540,091			(1,167,310	)
Change in deferred revenue		(239,057	)		(380,494	)
Non-cash government assistance		(508,730	)		(274,632	)
Loss on debt settlement		19,253			—
Stock-based compensation		855,989			1,114,814
Non-cash consulting expense		3,926,628			43,673
Changes in operating assets and liabilities		(1,764,867	)		(1,556,324	)
Net cash used in operating activities		(15,584,000	)		(5,903,523	)
Cash flows from investing activities:
Purchases of intangible assets		(838,664	)		(60,716	)
Purchases of property, plant and equipment		(5,552,268	)		(651,651	)
Proceeds from reverse takeover		146,954,733			3,072,136
Net cash provided by investing activities		140,563,801			2,359,769
Cash flows from financing activities:
Proceeds from long-term debt		1,127,151			25,783
Repayments of long-term debt		(938,496	)		(190,633	)
Proceeds from government grants		223,384			198,286
Proceeds from unsecured promissory notes		13,963,386			502,987
Proceeds from secured convertible debentures		—			3,630,019
Proceeds from unsecured convertible debentures		—			693,784
Proceeds from issuance of common stock and warrants, net		—			598,546
Proceeds from stock option exercises		374,652			—
Proceeds from warrant exercises		93,993			—
Proceeds from broker warrant exercises		16,255			—
Net cash provided by financing activities		14,860,325			5,458,772
Net increase in cash, cash equivalents and restricted cash		139,840,126			1,915,018
Cash, cash equivalents and restricted cash at beginning of the period		1,395,683			407,061
Effects of exchange rate changes on cash, cash equivalents and restricted cash		(17,940	)		83,582
Cash, cash equivalents and restricted cash at end of the period		141,217,869			2,405,661
Supplemental cash flow information
Accrued purchases of property, equipment and patents		799,305			225,357
Right-of-use assets obtained in exchange for lease liabilities		892,003			—
Right-of-use assets and prepaid expenses recognized in exchange for common stock		2,149,381			—
Settlement of liabilities in common stock		52,063,432			—
Interest paid on debt		64,528			114,040

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Forward Looking Information

This press release includes forward-looking information or statements within the meaning of Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, regarding the Company, which may include, but are not limited to, statements with respect to the business strategies, product development, expansion plans and operational activities of the Company . Often but not always, forward-looking information can be identified by the use of words such as “pursuing”, “potential”, “predicts”, “projects”, “seeks”, “plans”, “expect”, “intends”, “anticipated”, “believes” or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would” or “will” be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of the Company and are based on assumptions and subject to risks and uncertainties. Although the management of the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, the capabilities of our facilities and the expansion thereof, research and development projects of the Company, the market potential of the products of the Company , the market position of the Company, the scalability of the Company’s production ability, capacity for new customer engagements, material selection programs timeframes, the ability to reduce production costs, enhance metamaterials manufacturing capabilities and extend market reach into new applications and industries, the ability to accelerate commercialization plans, the possibility of new customer contracts, the continued engagement of our employees, the technology industry, market strategic and operational activities, and management’s ability to manage and to operate the business. More details about these and other risks that may impact the Company’s businesses are described under the heading “Forward-Looking Information” and under the heading “Risk Factors” in the Company’s Form 10-Q filed with the SEC on November 15, 2021, in the Company’s Form 10-K filed with the SEC on March 18, 2021, and in subsequent filings made by Meta Materials with the SEC, which are available on SEC’s website at www.sec.gov. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by law.

Investor Contact

Mark Komonoski
Senior Vice President
Integrous Communications
Phone: 1-877-255-8483
Email: ir@metamaterial.com

Media Inquiries

Rob Stone
Vice President, Corporate Development and Communications
Meta Materials Inc.

media@metamaterial.com

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