EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

 
Eat meat sustainably.
Be a Steakholder.

Steakholder Foods® Reports Financial Results for Q3 2022
and Provides Business Update
 
The company continues to advance its technology via R&D breakthroughs and
investments in global marketing infrastructure toward commercialization of cultivated meat

Rehovot, Israel, November 23, 2022 – Steakholder Foods (Nasdaq: STKH), an international deep-tech food company at the forefront of the cultured meat industry, today released its financial results for the third quarter of 2022, ended September 30, 2022, and provided a recent business update.
 
Steakholder Foods is developing high quality beef, chicken, pork, and seafood products that are safer and more sustainable than conventional meat. Our products under development include whole cuts, ground meat and raw materials made from cultivated animal cells rather than farm-raised animals.
 
Arik Kaufman, Steakholder Foods Chief Executive Officer & Co-Founder: "We are very pleased with the progress we have made over the past few months and are on track with our go-to-market plan. We have significantly advanced our technology, as demonstrated by our recently granted patents in key regions, and we continue to cement our position as a technological leader in the cultivated meat space. This has also helped us add some key collaborations to our business development efforts. And finally, our recent rebranding efforts reflect our vision, direction and differentiators. We are working hard to bring the revolution to the mass market so that everyone can continue to enjoy healthy, delicious, real meat but in a more sustainable way for the planet.”
 
Q3 2022 Financial Results Summary
 
•
Research and development expenses for the three months ended September 30, 2022 totaled $2.8 million, compared to $2.0 million in the same period in 2021. The 38% increase reflects the company’s growing investment in R&D as it continues to expand its cultivated meat technology capabilities mainly through increased headcount, consumable materials and raw materials.
 
•
General and administrative expenses for the three months ended September 30, 2022 totaled $1.3 million, compared to $1.8 million in the same period in 2021. The 28% decrease was primarily due to lower insurance and share-based payment expenses in the current quarter.
 
•
Marketing expenses for the three months ended September 30, 2022 totaled $0.5 million, compared to $0.3 million in the same period in 2021, reflecting increased salary expenses and growing investment in the company’s US and global marketing activities.
 
•
Operating loss for the three months ended September 30, 2022 totaled $4.6 million, compared to $4.1 million in the same period in 2021. The increase reflects continued investment in research and development as well as marketing activities, as indicated above.
 
•
Total comprehensive loss was $3.4 million, or 2 cents per ordinary share ($0.17 per ADS), compared to $4.3 million, or 3 cents per ordinary share ($0.32 per ADS), in the same period in 2021.
 
•
Cash flow used in operating activities totaled $9.8 million in the nine months ended September 30, 2022, compared to $9.6 million in the same period in 2021, reflecting a 2% increase. The changes were due mainly to increased expenditures as indicated above, including expenditures of the company’s subsidiary Peace of Meat, which was first consolidated as of March 2021, and were offset by lower general and administrative expenses.
 
•
Cash flow used in investment activities totaled $2.7 million in the nine months ended September 30, 2022 compared to $7.4 million in the same period in 2021, reflecting a 63% decrease due mainly to the acquisition of Peace of Meat during 2021.
 
•
Cash flow from financing activities was $5.3 million in the nine months ended September 30, 2022 (primarily resulting from a registered direct offering in Q3 2022) compared to $29.0 million in the same period in 2021 (during which the company completed its Nasdaq IPO).
 
•
Cash and cash equivalents were $11.2 million as of September 30, 2022 compared to $19.2 million as of year-end 2021. The decrease was due mainly to funding of the company’s ongoing operations.
 
•
Total capital was $24.4 million as of September 30, 2022 compared with $37.6 million at year-end 2021.
 
Q3 and Beyond: Business Highlights
 
Collaborations
 
In July 2022, Steakholder Foods signed a memorandum of understanding with Umami Meats, a Singaporean cultured seafood company. This collaboration opens a door for both companies into the Asian market, and Singapore specifically, which is currently the only country that has authorized the production and distribution of cultivated meat. Steakholder Foods also sees this collaboration as an opportunity to make a valuable contribution to the preservation of marine ecosystems and wildlife.
 
R&D
 
•
In July 2022, Peace of Meat, the company's wholly owned Belgian subsidiary, announced the establishment of a stable and unique avian cell line with a clear upscaling path. Peace of Meat's cultivated avian capabilities provide a clear path to commercialization in the hybrid foods market.
 
•
In August 2022, the company announced its initiation of cultivated pork development using a porcine cell line with significantly greater lifespan and scalability. The company announced in November 2022 that it successfully differentiated porcine fat cells from its induced pluripotent stem cell line. This is a significant step forward in the company's ability to develop high-quality 3D-printed whole-cut pork products at scale.
 
•
In September 2022, the company introduced Omakase Beef Morsels, a revolutionary, richly marbled structured cultivated meat product developed using Steakholder Foods’ unique 3D-printing process. Inspired by the marbling standard of Wagyu beef, this product was an innovative culinary achievement, elegantly designed as a meat-lover's delicacy for premium dining experiences. The product is made up of multiple layers of muscle and fat tissue that have been differentiated from bovine stem cells and showcases the technology's unprecedented control and flexibility.
 
Patents
 
•
In October 2022, the company filed a provisional patent application with the U.S. Patent and Trademark Office (USPTO) regarding methods and systems for adipocytes differentiation. The patent application details a new and improved process for differentiating stem cells into fat and is more easily reproducible and cost-effective than current methods.
 
•
In October 2022, the company was granted a patent by the USPTO for systems and methods to apply external forces to muscle tissue that result in the development of high-quality complex structured meat. In November 2022, the company was granted the equivalent patent in Canada. This patent is another boost to the company's growing global patent portfolio. The process behind the patent represents a breakthrough in the methodology and technology used to “exercise” muscle tissue to achieve a desired texture. It is a mimicking of natural muscle development that occurs when animals roam or graze.
 
•
In November 2022, the company filed a provisional patent application for the mimicking of  the texture of cooked fish. The company achieved the unique flaky texture of fish using its new approach along with its proprietary 3D printing technology and custom-made bio-inks. The new methodology is expected to enable the production of a wide variety of fish, seafood and cuts. The provisional patent application puts the company on a path toward leadership in the field of structured cultivated fish production.
 
Marketing and Branding
 
•
In August 2022, the company rebranded itself as Steakholder Foods Ltd. and changed its ticker on the Nasdaq stock market to STKH. The new name and brand reflect the company’s commitment to cultivating a new community of meat lovers who wish to support and participate in the company’s mission to make high-quality real meat sustainably. Steakholder Foods has recently received a registered trademark in Japan, reflecting plans to penetrate the Japanese market and other markets in the Asian region.
 
•
In September and October 2022, the company participated at the Future Food-Tech Summit in London and the World Congress of Food Science & Technology in Singapore. The company showcased its 3D bioprinting capabilities, allowing visitors to 3D print their own personalized steaks. This helped generate interest, traction and leads.
 
•
In November 2022, the company hosted its first US tasting event. Guests were treated to a variety of hybrid canapes with cultivated meat that was grown from cells sourced from Texas cattle. The event also included a live 3D printing demonstration with attendees given the opportunity to print personalized steaks. The event brought together top leaders from the industry and included a panel discussion entitled, “The Future of Food and Our Planet.” The event was covered by top media outlets.
 



Steakholder Foods Ltd. (formerly known as MeaTech 3D Ltd.)
Unaudited Condensed Consolidated Interim Financial Statements As At September 30, 2022

Financial Information of Steakholder Foods Ltd.
Page
   
   
   
Contents:
  
 
2
 
3
 
5
 
6


Unaudited Condensed consolidated interim statements of financial position

   
September 30
    
September 30
    
December 31
  
   
2022
    
2021
    
2021
  
   
USD thousands
    
USD thousands
    
USD thousands
  
Current assets
                  
                   
Cash and cash equivalents
    
11,203
      
25,441
      
19,176
  
Other investment
    
135
      
149
      
154
  
Receivables
    
764
      
1,890
      
2,782
  
Total current assets
    
12,102
      
27,480
      
22,112
  
                         
Non-current assets
                        
                         
Restricted deposits
    
374
      
391
      
405
  
Other investment
    
1,180
      
1,287
      
1,355
  
Right-of-use asset
    
3,478
      
328
      
407
  
Intangible assets
    
11,706
      
11,362
      
13,453
  
Fixed assets, net
    
4,386
      
2,467
      
2,922
  
                         
Total non-current assets
    
21,124
      
15,835
      
18,542
  
                         
Total Assets
    
33,226
      
43,315
      
40,654
  
                         
Current liabilities
                        
                         
Trade payables
    
581
      
313
      
382
  
Other payables
    
2,154
      
1,837
      
2,239
  
Current maturities of lease liabilities
    
407
      
251
      
165
  
Derivative instrument
    
2,450
      
-
      
-
  
                         
Total current liabilities
    
5,592
      
2,401
      
2,786
  
                         
Non-current liabilities
                        
                         
Long-term lease liabilities
    
3,195
      
81
      
246
  
                         
Total non-current liabilities
    
3,195
      
81
      
246
  
                         
Capital
                        
                         
Share capital and premium on shares
    
72,231
      
68,348
      
69,610
  
Capital reserves
    
3,581
      
2,653
      
3,708
  
Currency translation differences reserve
    
(2,771
)
    
519
      
1,275
  
Accumulated deficit
    
(48,602
)
    
(30,687
)
    
(36,971
)
                         
Total capital
    
24,439
      
40,833
      
37,622
  
Total liabilities and capital
    
33,226
      
43,315
      
40,654
  

2
 

 
Unaudited Condensed consolidated interim of Income and of Comprehensive Loss

   
Nine months ended
September 30,
    
Nine months ended September 30,
    
Year ended
December 31,
  
   
2022
    
2021
    
2021
  
   
USD thousands, except share data
    
USD thousands, except share data
    
USD thousands, except share data
  
                   
 Research and development expenses
    
7,219
      
4,928
      
7,594
  
  Marketing expenses
    
2,426
      
872
      
1,628
  
  General and administrative expenses
    
4,982
      
5,961
      
8,010
  
  Operating loss
    
14,627
      
11,761
      
17,232
  
                         
Financing income
    
(3,258
)
    
(457
)
    
(509
)
Financing expenses
    
262
      
434
      
1,299
  
Total financing (income) expenses
    
(2,996
)
    
(23
)
    
790
  
                         
  Loss for the period
    
11,631
      
11,738
      
18,022
  
                         
Currency translation differences loss (income) that might be transferred to profit or loss over ILS
    
2,301
      
(456
)
    
(1,942
)
Currency translation differences loss (income) that might be transferred to profit or loss over EUR
    
1,745
      
717
      
1,447
  
                         
Total comprehensive loss for the period
    
15,677
      
11,999
      
17,527
  
                         
  Loss per ordinary share, no par value (USD)
                        
  Basic and diluted loss per share (USD)
    
0.088
      
0.104
      
0.155
  
                         
  Weighted-average number of shares outstanding - basic and diluted (shares)
    
132,652,822
      
112,891,686
      
115,954,501
  

 
3

Unaudited Condensed consolidated interim of Income and of Comprehensive Loss

   
Three months ended September 30,
    
Three months ended September 30,
  
   
2022
    
2021
  
   
USD thousands, except share data
    
USD thousands, except share data
  
             
 Research and development expenses
    
2,792
      
2,018
  
  Marketing expenses
    
467
      
267
  
  General and administrative expenses
    
1,295
      
1,802
  
  Operating loss
    
4,554
      
4,087
  
                 
Financing income
    
(2,196
)
    
(130
)
Financing expenses
    
117
      
15
  
Total financing (income) expenses
    
(2,079
)
    
(115
)
                 
  Loss for the period
    
2,475
      
3,972
  
                 
Currency translation differences loss (income) that might be transferred to profit or loss over ILS
    
(25
)
    
(163
)
Currency translation differences loss (income) that might be transferred to profit or loss over EUR
    
898
      
501
  
                 
Total comprehensive loss for the period
    
3,348
      
4,310
  
                 
  Loss per ordinary share, no par value (USD)
                
  Basic and diluted loss per share (USD)
    
0.017
      
0.032
  
                 
  Weighted-average number of shares outstanding - basic and diluted (shares)
    
145,116,113
      
124,048,833
  

4
 

Unaudited Condensed consolidated interim statements of changes in equity

   
Premium and Capital Share
    
Fair value of
financial assets
reserve
    
Transactions
with related
parties reserve
    
Currency
translation
differences
reserve
    
Share-based
payments
reserve
    
Accumulated deficit
    
Total
  
   
USD thousands
  
                                           
Balance as at January 1, 2022
    
69,610
      
(334
)
    
14
      
1,275
      
4,028
      
(36,971
)
    
37,622
  
                                                         
Share-based payments
    
-
      
-
      
-
      
-
      
1,092
      
-
      
1,092
  
Issuance of shares and warrants, net
    
1,348
      
-
      
-
      
-
      
-
      
-
      
1,348
  
Exercise of options
    
1,273
                              
(1,219
)
            
54
  
Other comprehensive income (loss)
    
-
      
-
      
-
      
(4,046
)
    
-
      
-
      
(4,046
)
Loss for the period
    
-
      
-
      
-
      
-
      
-
      
(11,631
)
    
(11,631
)
                                                         
Balance as at September 30, 2022
    
72,231
      
(334
)
    
14
      
(2,771
)
    
3,901
      
(48,602
)
    
24,439
  
                                                     
 
                                                         
                                                         
Balance as at January 1, 2021
    
30,481
      
(334
)
    
14
      
780
      
3,639
      
(18,949
)
    
15,631
  
     
0
                              
0
                  
Share-Based Payment
    
-
      
-
      
-
      
-
      
2,829
      
-
      
2,829
  
Issuance of shares and warrants, net
    
31,176
      
-
      
-
      
-
      
-
      
-
      
31,176
  
Exercise of options
    
6,691
                              
(3,495
)
            
3,196
  
Other comprehensive income (loss)
    
-
      
-
      
-
      
(261
)
    
-
      
-
      
(261
)
Loss for the period
    
-
      
-
      
-
      
-
      
-
      
(11,738
)
    
(11,738
)
                                     
0
                  
Balance as at September 30, 2021
    
68,348
      
(334
)
    
14
      
519
      
2,973
      
(30,687
)
    
40,833
  
                                                     

 
Balance as at January 1, 2021
    
30,481
      
(334
)
    
14
      
780
      
3,639
      
(18,949
)
    
15,631
  
                                                         
Share-based payments
    
-
      
-
      
-
      
-
      
3,965
      
-
      
3,965
  
Issuance of shares and warrants, net
    
32,330
      
-
      
-
      
-
      
-
      
-
      
32,330
  
Exercise of options
    
6,799
                              
(3,576
)
            
3,223
  
Other comprehensive income (loss)
    
-
      
-
      
-
      
495
      
-
      
-
      
495
  
Loss for the period
    
-
      
-
      
-
      
-
      
-
      
(18,022
)
    
(18,022
)
                                                         
Balance as at December 31, 2021
    
69,610
      
(334
)
    
14
      
1,275
      
4,028
      
(36,971
)
    
37,622
  
                                                         

5

Unaudited Condensed consolidated interim statements of cash flows

   
Nine months ended September 30,
2022
    
Nine months ended September 30,
2021
    
Year ended
December 31,
2021
  
   
USD thousands
    
USD thousands
    
USD thousands
  
Cash flows - operating activities
                  
Net Loss for the period
    
(11,631
)
    
(11,738
)
    
(18,022
)
                         
Adjustments:
                        
Depreciation and amortization
    
1,099
      
479
      
680
  
Change in fair value of derivative
    
(2,100
)
    
(312
)
    
(316
)
Change in fair value of other investment
    
(99
)
    
(138
)
    
(193
)
Net foreign exchange expenses
    
(901
)
    
411
      
1,279
  
Interest expense over lease liabilities
    
250
      
7
      
9
  
Interest income over short term deposits
    
(73
)
    
-
      
-
  
Share-based payment expenses
    
1,092
      
2,829
      
3,965
  
Changes in asset and liability items:
                        
Decrease (increase) in receivables
    
1,790
      
(1,523
)
    
(2,351
)
Increase (decrease) in trade payables
    
315
      
(309
)
    
(97
)
Increase (decrease) in other payables
    
413
      
682
      
1,095
  
Net cash from (used in) operating activities
    
(9,845
)
    
(9,612
)
    
(13,951
)
                         
Cash flows - investment activities
                        
Acquisition of fixed assets
    
(2,686
)
    
(1,124
)
    
(1,828
)
Increase in restricted deposit
    
(20
)
    
(337
)
    
(337
)
Loan provided
    
-
      
(367
)
    
(367
)
Proceeds on account of other investment*
    
110
      
111
      
149
  
Interest received over short term deposits
    
73
      
-
      
-
  
Acquisition of other investments, net of cash acquired
    
(188
)
    
(5,685
)
    
(6,808
)
                         
Net cash used in investing activities
    
(2,711
)
    
(7,402
)
    
(9,191
)
                         
Cash flows - financing activities
                        
Proceeds from issuance of shares and warrants
    
2,005
      
29,281
      
29,281
  
Issuance costs
    
(657
)
    
(3,283
)
    
(3,283
)
Repayment of liability for lease
    
(316
)
    
(222
)
    
(346
)
Repayment of interest over  liability of lease
    
(250
)
    
(7
)
    
(9
)
Proceeds with regard to derivative
    
4,495
      
-
      
-
  
Proceeds from exercise of share options
    
53
      
3,196
      
3,222
  
                         
Net cash from financing activities
    
5,330
      
28,965
      
28,865
  
                         
Increase (Decrease) in cash and cash equivalents
    
(7,226
)
    
11,951
      
5,723
  
Effect of exchange differences on cash and cash equivalents
    
(747
)
    
(66
)
    
(103
)
Cash and cash equivalents at the beginning of the period:
    
19,176
      
13,556
      
13,556
  
                         
Cash balance and cash equivalents at end of period
    
11,203
      
25,441
      
19,176
  
Non-cash activities
                        
Purchase of fixed assets yet to be paid
    
4
      
188
      
57
  
Issue of shares and options against intangible asset
    
-
      
4,359
      
6,332
  

*Reclassified
6
About Steakholder Foods
 
Steakholder Foods Ltd., formerly MeaTech 3D Ltd., is an international deep-tech food company at the forefront of the cultured meat revolution. The company initiated activities in 2019 and is listed on the Nasdaq Capital Market under the ticker “STKH” (formerly MITC). Steakholder Foods maintains facilities in Rehovot, Israel and Antwerp, Belgium and has recently expanded activities to the US.
 
The company is developing a slaughter-free solution for producing a variety of beef, chicken, pork, and seafood products — both as raw materials and whole cuts — as an alternative to industrialized farming and fishing. With its membership in the UN Global Compact, Steakholder Foods is committed to act in support of issues embodied in the United Nations Sustainable Development Goals (SDGs) which include strengthening food security, decreasing carbon footprint, and conserving water and land resources.
 
For more information, please visit: https://steakholderfoods.com
 
Forward-Looking Statements
 
This press release contains forward-looking statements concerning Steakholder Foods’ business, operations and financial performance and condition as well as plans, objectives, and expectations for Steakholder Foods’ business operations and financial performance and condition. Any statements that are not historical facts may be deemed to be forward-looking statements. Forward-looking statements reflect Steakholder Foods’ current views with respect to future events and are based on assumptions and subject to known and unknown risks and uncertainties, which change over time, and other factors that may cause Steakholder Foods’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan” or words or phases of similar meaning and include, without limitation, Steakholder Foods’ expectations regarding the success of its cultured meat manufacturing technologies it is developing, which will require significant additional work before Steakholder Foods can potentially launch commercial sales; Steakholder Foods’ research and development activities associated with technologies for cultured meat manufacturing, including three-dimensional meat production, which involves a lengthy and complex process; Steakholder Foods’ ability to obtain and enforce its intellectual property rights and to operate its business without infringing, misappropriating, or otherwise violating the intellectual property rights and proprietary technology of third parties; and other risks and uncertainties, including those identified in Steakholder Foods’ Annual Report on Form 20-F for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission on March 24, 2022. New risks and uncertainties may emerge from time to time, and it is not possible for Steakholder Foods to predict their occurrence or how they will affect Steakholder Foods. If one or more of the factors affecting Steakholder Foods’ forward-looking information and statements proves incorrect, then Steakholder Foods’ actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, Steakholder Foods cautions you not to place undue reliance on its forward-looking information and statements. Steakholder Foods disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law. 
 
Press Contact: 
 
Investor Contacts: 
  
  
Maissa Dauriac 
Rainier Communications 
mdauriac@rainierco.com
Tel: +1-818-642-5257 
Joseph Green 
Edison Group  
jgreen@edisongroup.com
Tel: +1-646-653-7030  
Ehud Helft 
Edison Israel  
ehelft@edisongroup.com
Tel: +1-212-378-8040
 






       
Nasdaq listed
STKH		 5 David Fikes St.
Rehovot, 7632805 Israel		 PO Box 4061 Ness Ziona
Israel +972-73-332-2853		 www.steakholderfoods.com
info@steakholderfoods.com