Steakholder Foods® Reports Financial Results for Q3 2022 and Provides Business Update
Steakholder Foods 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
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.
- 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.
- 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.
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
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.