Steakholder Foods

Steakholder Foods, formerly MeaTech 3D, Reports Financial Results for Q1 2022 and Provides Business Update

The company continued to develop the technology, R&D and marketing infrastructure necessary to accelerate toward commercialization of cultured meat

 

Rehovot, Israel, May 31, 2022 –MeaTech 3D Ltd. (Nasdaq: MITC) (“MeaTech”) today reported its financial results for Q1 2022 and provided a business update. MeaTech is an international group of deep-tech food companies at the forefront of the cultured meat industry. MeaTech group uses science and technology to develop high-quality real meat products made from cells rather than farm-raised animals that are delicious, nutritious and safer than conventional meat.

 

Q1 2022 Financial Results Summary

  • Research and development expenses totaled $2.1 million in the three months ending March 31, 2022, compared to $1.1 million in the same period in 2021. The 90% increase is mainly due to the addition of the company’s Belgian subsidiary and reflects MeaTech Group’s growing investment in research and development as it achieves its milestones and expands its cultured meat technology capabilities.
  • General and administrative expenses totaled $2.1 million in the three months ending March 31, 2022, compared to $2.7 million in the same period in 2021. The 23% decrease is driven by lower share-based payment expenses, partially offset by higher D&O insurance expenses in the three months ending March 31, 2022. 
  • Marketing expenses totaled $1.1 million in the three months ending March 31, 2022, compared to $0.3 million in the same period in 2021. The 228% increase is mainly the result of share-based payment expenses of $0.5 million, and the company’s growing investment in marketing activities.
  • Operating loss totaled $5.3 million in the three months ending March 31, 2022, compared to $4.2 million in the same period in 2021. The 26% increase in the operating loss reflects the growing investment of MeaTech Group in research and development as well as marketing activities.
  • Total comprehensive loss totaled $5.7 million in the three months ending March 31, 2022, or 40 cents per ordinary share ($4.00 per ADS), compared to $4.4 million, or 40 cents per ordinary share ($4.00 per ADS), in the same period in 2021.
  • Cash flow used in operating activities totaled $2.8 million in the three months ending March 31, 2022, compared to $1.2 million in the same period in 2021, reflecting a 137% increase, driven mainly by increased research and development expenditures of MeaTech Group.
  • Cash flow used in investment activities totaled $1.0 million in the three months ending March 31, 2022, compared to $5.4 million in the same period in 2021, reflecting an 81% decrease. This resulted mainly from the $4.8 million cash component paid in the acquisition of Peace of Meat in Q1 2021.
  • Cash flow from financing activities was $0.0 million in the three months ending March 31, 2022, compared to $28.2 million in the same period in 2021, during which the company completed its Nasdaq initial public offering.
  • Cash and cash equivalents were $15.3 million on March 31, 2022, compared to $19.2 million at year-end 2021, a decrease of 20%. The decrease was mainly due to the company’s ongoing operations.
  • Current assets decreased by 23% to $16.9 million on March 31, 2022 from $22.1 million at year-end 2021, as a result of its ongoing operations.
  • Non-current assets increased by 25% to $23.2 million on March 31, 2022 from $18.5 million at year-end 2021, due mainly to a  $4.1 million long-term lease asset of its new premises, offset by the recognition of a lease liability in the same amount in accordance with IFRS requirements.
  • Total capital decreased 13% to $32.6 million on March 31, 2022, down from $37.6 million at year-end 2021. The decrease was mainly the result of ongoing operations.


Arik Kaufman, MeaTech’s Chief Executive Officer:
“In just the first quarter of 2022, we have shown our rapid pace of progress toward commercialization. Our recent technological and scientific advancements and business activities have put us firmly on a path toward scaling our unique solution for the sustainable production of a wide variety of cultured meat products.

Business highlights and developments during Q1 2022

    • Promising results with muscle stem cell differentiation: In February, MeaTech announced the successful development of a novel technology process in which muscle cells are fused into significant muscle fibers that better resemble those in whole cuts of meat. Bovine stem cells were isolated, proliferated in the lab, and differentiated into matured muscle cells with improved muscle fiber density, thickness and length. Based on these improvements, MeaTech has filed a provisional patent application with the USPTO.

    • New headquarters to widen R&D activity: In March, the company moved to new, more spacious headquarters with state-of-the-art laboratories in Rehovot, Israel, the epicenter of the country’s food-tech sector. The new space allows the company to enhance its cultured meat R&D and 3D bioprinting technology and continue growing the biology and engineering teams with a more expansive lab facility. The new headquarters also features a tasting kitchen.

  • Expansion of cultivated meat operation into the US to accelerate go-to-market strategy: In March 2022, MeaTech announced that it will be opening a US office. The new space will include activities in research and development, investor relations, and business development. MeaTech US will be another indication of the company’s rapid growth and scaling efforts.


    • Peace of Meat pilot plant and R&D facility in Belgium: In March, MeaTech announced that its wholly owned Belgian subsidiary, Peace of Meat, will build an R&D facility and pilot plant in Belgium, with construction expected to commence in 2022. The new facility will expand and accelerate the MeaTech Group’s cultured avian technology and R&D capabilities and help propel the company’s market entry.


    • First-of-its-kind tasting event with Israeli anchor investors: In March, MeaTech hosted a
      tasting event at the company’s headquarters with its Israeli anchor investors, including prominent food industry investors. Guests toured the labs and R&D facilities, observed the company’s 3D printing capabilities, and tasted hybrid chicken nuggets made with plant protein combined with cultured chicken developed by Peace of Meat.


    • Breakthrough in 3D bioprinting capabilities: In May, MeaTech announced the development of a unique, multi-nozzle 3D bioprinting system for industrial scale production of complex cultured meat products without impacting cell viability. The company plans to offer the technology to third parties via a wholly owned private MeaTech subsidiary as an additional revenue stream and to accelerate commercialization.


    • Strategic agreement between Peace of Meat and ENOUGH: In May, Peace of Meat signed a strategic agreement with ENOUGH, a leader in the field of mycoprotein, a fungi-based fermented food ingredient, to accelerate commercialization. This innovative initiative is expected to create game-changing hybrid alternative meat products that better resemble the flavor, aroma, texture, and even nutritional value of conventional meat.


    • MeaTech joins the United Nations Global Compact: In May, the company joined the UN Global Compact initiative, committing to ten universally accepted principles in the areas of human rights, labor, environment, and anti-corruption and to act in support of UN goals and issues embodied in the UN’s Sustainable Development Goals (SDGs).

 

 

 

Unaudited Condensed Consolidated Interim Information on the Financial Position

 

 

As of March 31

 

 

As of March 31

 

 

As of December 31

 

 

 

 

2022

 

 

2021

 

 

2021

 

 

 

 

USD thousands

 

 

USD thousands

 

 

USD thousands

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

15,257

 

 

 

35,971

 

 

 

19,176

 

 

Other investment

 

 

151

 

 

 

144

 

 

 

154

 

 

Receivables and prepaid expenses

 

 

1,513

 

 

 

391

 

 

 

2,782

 

 

Total current assets

 

 

16,921

 

 

 

36,506

 

 

 

22,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted deposits

 

 

415

 

 

 

50

 

 

 

405

 

 

Other investment

 

 

1,333

 

 

 

1,259

 

 

 

1,355

 

 

Right-of-use asset

 

 

4,050

 

 

 

294

 

 

 

407

 

 

Intangible assets

 

 

13,196

 

 

 

9,805

 

 

 

13,453

 

 

Fixed assets, net

 

 

4,183

 

 

 

1,797

 

 

 

2,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-current assets

 

 

23,177

 

 

 

13,205

 

 

 

18,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

 

40,098

 

 

 

49,711

 

 

 

40,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 

746

 

 

 

1,357

 

 

 

382

 

 

Other payables

 

 

2,628

 

 

 

1,419

 

 

 

2,239

 

 

Current maturities of lease liabilities

 

 

488

 

 

 

207

 

 

 

165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

3,862

 

 

 

2,983

 

 

 

2,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term lease liabilities

 

 

3,595

 

 

 

96

 

 

 

246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-current liabilities

 

 

3,595

 

 

 

96

 

 

 

246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital and premium on shares

 

 

70,059

 

 

 

67,243

 

 

 

69,610

 

 

Capital reserves

 

 

4,026

 

 

 

2,004

 

 

 

3,708

 

 

Currency translation differences reserve

 

 

515

 

 

 

(8

)

 

 

1,275

 

 

Accumulated deficit

 

 

(41,959

)

 

 

(22,607

)

 

 

(36,971

 

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity

 

 

32,641

 

 

 

46,632

 

 

 

37,622

 

 

Total liabilities and Equity

 

 

40,098

 

 

 

49,711

 

 

 

40,654

 

 

 

 

 

 

Unaudited Condensed Consolidated Interim Information on Comprehensive Income

 

 

 

3-month period ended

March 31,

 

 

3-month period ended

March 31,

 

 

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

 

 

2,142

 

 

 

1,126

 

 

 

7,594

 

Marketing expenses

 

 

1,051

 

 

 

320

 

 

 

1,628

 

General and administrative expenses

 

 

2,118

 

 

 

2,760

 

 

 

8,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

5,311

 

 

 

4,206

 

 

 

17,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing expenses (income), net

 

 

(323

)

 

 

(548

)

 

 

790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

4,988

 

 

 

3,658

 

 

 

18,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency translation differences loss (income) that might be transferred to profit or loss over ILS

 

 

515

 

 

 

551

 

 

 

(1,942

)

Currency translation differences loss that might be transferred to profit or loss over EUR

 

 

245

 

 

 

237

 

 

 

1,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss for the period

 

 

5,748

 

 

 

4,446

 

 

 

17,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per ordinary share, no par value (USD)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share (USD)

 

 

0.040

 

 

 

0.040

 

 

 

0.155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding – basic and diluted (shares)

 

 

126,235,376

 

 

 

90,346,518

 

 

 

115,954,501

 

 

 

Unaudited Condensed Consolidated Interim Information on Changes in Equity (Deficit)

 

 

Share and capital premium

 

 

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 of January 1, 2022

 

 

69,610

 

 

 

(334

)

 

 

14

 

 

 

1,275

 

 

 

4,028

 

 

 

(36,971

)

 

 

37,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

714

 

 

 

 

 

 

714

 

Exercise of options

 

 

449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(396

)

 

 

 

 

 

 

53

 

Other comprehensive (loss)

 

 

 

 

 

 

 

 

 

 

 

(760

)

 

 

 

 

 

 

 

 

(760

)

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,988

)

 

 

(4,988

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2022

 

 

70,059

 

 

 

(334

)

 

 

14

 

 

 

515

 

 

 

4,346

 

 

 

(41,959

)

 

 

32,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of January 1, 2021

 

 

30,481

 

 

 

(334

)

 

 

14

 

 

 

780

 

 

 

3,639

 

 

 

(18,949

)

 

 

15,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-Based Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,879

 

 

 

 

 

 

1,879

 

Issuance of shares and warrants, net

 

 

30,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30,357

 

Exercise of options

 

 

6,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,194

)

 

 

 

 

 

 

3,211

 

Other comprehensive (loss)

 

 

 

 

 

 

 

 

 

 

 

 

(788

)

 

 

 

 

 

 

 

 

(788

)

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,658

)

 

 

(3,658

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2021

 

 

67,243

 

 

 

(334

)

 

 

14

 

 

 

(8

)

 

 

2,324

 

 

 

(22,607

)

 

 

46,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of 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

 

 

 

 

 

 

 

 

 

 

 

495

 

 

 

 

 

 

 

 

 

495

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,022

)

 

 

(18,022

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2021

 

 

69,610

 

 

 

(334

)

 

 

14

 

 

 

1,275

 

 

 

4,028

 

 

 

(36,971

)

 

 

37,622

 

 

 

 

 

Unaudited Condensed Consolidated Interim Information on Cash Flows

 

 

 

Three months ended March 31,

2022

 

 

Three months ended March 31,
2021

 

 

Year ended

December 31,

2021

 

 

 

USD thousands

 

 

USD thousands

 

 

USD thousands

 

Cash flows – operating activities

 

 

 

 

 

 

 

 

 

Net Loss for the period

 

 

(4,988

)

 

 

(3,658

)

 

 

(18,022

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

382

 

 

 

109

 

 

 

680

 

Change in fair value of derivative

 

 

 

 

 

(304

)

 

 

(316

)

Change in fair value of other investment

 

 

(44

)

 

 

(74

)

 

 

(193

)

Changes in net foreign exchange expenses

 

 

(340

)

 

 

(174

)

 

 

1,279

 

Share-based payment expenses

 

 

714

 

 

 

1,879

 

 

 

3,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in asset and liability items:

 

 

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in receivables and prepaid expenses

 

 

1,203

 

 

 

(50

)

 

 

(2,351

)

Increase (decrease) in trade payables

 

 

(382

)

 

 

736

 

 

 

(97

)

Increase in other payables

 

 

615

 

 

 

336

 

 

 

1,095

 

Net cash (used in) operating activities

 

 

(2,840

)

 

 

(1,200

)

 

 

(13,960

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows – investment activities

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of fixed assets

 

 

(800

)

 

 

(219

)

 

 

(1,828

)

Increase of restricted deposit

 

 

(19

)

 

 

 

 

 

(337

)

Loan provided

 

 

 

 

 

(367

)

 

 

(367

)

Acquisition of subsidiary, net of cash acquired

 

 

(188

)

 

 

(4,848

)

 

 

(6,808

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

(1,007

)

 

 

(5,434

)

 

 

(9,340

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows – financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of shares and warrants

 

 

 

 

 

29,281

 

 

 

29,281

 

Issuance costs

 

 

 

 

 

(3,283

)

 

 

(3,283

)

Repayment of liability for lease

 

 

(118

)

 

 

(58

)

 

 

(346

)

Proceeds on account of other investment

 

 

38

 

 

 

37

 

 

 

149

 

Proceeds from exercise of share options

 

 

53

 

 

 

3,211

 

 

 

3,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

(27

)

 

 

29,188

 

 

 

29,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

 

(3,874

)

 

 

22,554

 

 

 

5,723

 

Effect of exchange differences on cash and cash equivalents

 

 

(45

)

 

 

(137

)

 

 

(103

)

Cash and cash equivalents at the beginning of the period:

 

 

19,176

 

 

 

13,556

 

 

 

13,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

 

15,257

 

 

 

35,973

 

 

 

19,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncash activities

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of fixed assets

 

 

756

 

 

 

222

 

 

 

57

 

Issue of shares and options against intangible asset

 

 

 

 

 

4,359

 

 

 

6,332

 

 

About MeaTech

 

MeaTech is an international group of deep-tech food companies 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 “MITC”. MeaTech maintains facilities in Rehovot, Israel and Antwerp, Belgium and is in the process of expanding activities to the US. The company believes cultivated meat technologies hold significant potential to improve meat production, simplify the meat supply chain, and offer consumers a range of new product offerings. 

MeaTech aims to provide an alternative to industrialized animal farming that dramatically reduces carbon footprint, minimizes water and land usage, and prevents the slaughtering of animals. With a modular factory design, MeaTech aims to offer a sustainable solution for producing a variety of beef, chicken and pork products, both as raw materials and whole cuts.     

For more information, please visit: https://meatech3d.com

 

Forward-Looking Statements 

This press release contains forward-looking statements concerning MeaTech’s business, operations and financial performance and condition as well as plans, objectives, and expectations for MeaTech’s 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 MeaTech’s 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 MeaTech’s 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, MeaTech’s expectations regarding the success of its cultured meat manufacturing technologies it is developing, which will require significant additional work before MeaTech can potentially launch commercial sales; MeaTech’s research and development activities associated with technologies for cultured meat manufacturing, including three-dimensional meat production, which involves a lengthy and complex process; MeaTech’s 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 MeaTech’s 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 MeaTech to predict their occurrence or how they will affect MeaTech. If one or more of the factors affecting MeaTech’s forward-looking information and statements proves incorrect, then MeaTech’s 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, MeaTech cautions you not to place undue reliance on its forward-looking information and statements. MeaTech 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.