Metamaterial Releases Third Quarter 2020 Results

HALIFAX, NS, Nov. 30, 2020 /CNW/ - Metamaterial Inc. (the "Company" or "META") (CSE: MMAT) a developer of high-performance functional materials and nanocomposites, today released third quarter 2020 results. Please visit the Investors section of our website to view the Q3 2020 Shareholder Letter.

The interim financial statements and the associated management discussion and analysis for the quarter and nine months ended September 30, 2020 are available on the Investors section of our website as well as under the Company's profile on SEDAR at www.sedar.com.

About Metamaterial Inc.

META is changing the way we use, interact with, and benefit from light and other forms of energy. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and electromagnetic waves. Metamaterials help support sustainability by doing more with less; they encompass lightweight, sustainable raw materials and processes which consume less energy. META is currently developing new materials with diverse applications in the automotive, aerospace, solar, consumer electronics and medical industries. META has a growing patent portfolio with three core technologies: holography, lithography, and wireless sensing. META is headquartered in Dartmouth, Nova Scotia and has offices in London, UK and Pleasanton, California.

The CSE has neither approved nor disapproved the contents of this news release.

Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Interim condensed consolidated statements of financial position (unaudited)
[expressed in Canadian dollars]
As at
	September 30, 2020	December 31, 2019
	$	$
Assets
Current
Cash and cash equivalents	3,208,911	528,691
Grants receivable	487,771	242,705
Other receivables	76,071	79,072
Inventory	615,225	438,726
Prepaid expenses	461,071	365,602
HST receivable	97,932	262,512
Right-of-use assets	6,708	66,951
Total current assets	4,953,689	1,984,259
Intangible assets, net	5,796,302	6,404,812
Property and equipment, net	3,065,960	3,558,675
Total non-current assets	8,862,262	9,963,487
Total assets	13,815,951	11,947,746
Liabilities and shareholders' equity (deficiency)
Current
Trade payables	1,706,788	3,176,642
Due to related parties	333,182	345,033
Current portion of long-term debt	249,168	104,376
Current portion of deferred revenue	1,900,357	1,819,797
Derivative liability	-	1,175,056
Promissory notes	-	4,595,975
Current portion of lease liabilities	7,616	71,947
Total current liabilities	4,197,111	11,288,826
Deferred revenue	2,527,044	3,089,921
Deferred government assistance	232,207	369,221
Deferred tax liability	512,461	658,481
Unsecured convertible debenture	1,494,958	760,145
Unsecured convertible promissory notes	657,448	-
Secured convertible debentures	4,891,844	-
Funding obligation	904,215	808,298
Long-term debt	3,107,099	3,139,301
Total non-current liabilities	14,327,276	8,825,367
Total liabilities	18,524,387	20,114,193
Shareholders' deficiency
Common shares	34,296,403	7,598,670
Preferred shares	-	12,748,100
Contributed surplus	5,290,939	3,753,211
Warrants	571,555	175,095
Accumulated other comprehensive loss	(349,972)	(159,512)
Deficit	(44,517,361)	(32,282,011)
Total shareholders' deficiency	(4,708,436)	(8,166,447)
Total liabilities and shareholders' deficiency	13,815,951	11,947,746

Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Interim condensed consolidated statement of loss and comprehensive loss (unaudited)
[expressed in Canadian dollars]
	Three months ended September 30		Nine months ended September 30
	2020	2019	2020	2019
	$	$	$	$
Product sales	-	627	2,615	11,315
Development revenue	263,014	215,873	1,147,702	664,078
Revenue, net	263,014	216,500	1,150,317	675,393
Cost of goods sold	1,240	245	4,201	4,268
Gross Profit	261,774	216,255	1,146,116	671,125
Expenses (income)
Salaries and benefits	487,491	719,602	2,601,077	2,203,035
Depreciation and amortization	786,736	838,360	2,508,636	2,312,811
Travel and entertainment	1,444	81,722	89,629	305,764
Other expenses	213,825	107,947	523,402	395,716
Listing expenses	-	-	3,370,249	-
Stock exchange fees	3,750	-	7,500	-
Rent and utilities	116,050	141,594	331,110	346,252
Interest and bank charges	350,815	141,339	785,228	336,207
Consulting	306,770	97,091	665,947	323,614
Investor related expense	42,752	-	111,579	-
Research and development	159,143	215,128	384,270	524,837
Professional fees	305,876	357,856	1,148,823	544,511
Non-cash interest accretion	151,466	121,416	435,594	152,306
Share-based compensation expense	538,806	676,460	1,492,637	1,319,362
Unrealized (gain) loss on FVTPL liabilities	603,054	145,977	(505,194)	381,998
Technology license fees	-	12,130	25,885	37,962
Realized foreign currency exchange loss (gain)	8,705	(4,605)	73,212	758
Interest income	(1,827)	(236)	(8,448)	(726)
Unrealized foreign currency exchange (gain) loss	235,865	(95,741)	(214,181)	267,155
Government assistance	(147,069)	(45,671)	(297,539)	(767,280)
	4,163,652	3,510,369	13,529,416	8,684,282
Net loss before tax	(3,901,878)	(3,294,114)	(12,383,300)	(8,013,157)
Income tax recovery	44,161	44,901	147,950	244,411
Net loss for the period	(3,857,717)	(3,249,213)	(12,235,350)	(7,768,746)
Other comprehensive loss, net of income taxes
Items that may be subsequently reclassified to income:
Unrealized foreign currency translation adjustment	243,637	(165,863)	(190,460)	(104,149)
Comprehensive loss for the period	(3,614,080)	(3,415,076)	(12,425,810)	(7,872,895)
Basic and diluted loss per share	(0.05)	(0.33)	(0.15)	(0.80)
Weighted average number of shares outstanding
- basic and diluted	83,597,092	9,724,476	83,597,092	9,724,476

Metamaterial Inc. (formerly Continental Precious Minerals Inc.)
Interim condensed consolidated statement of cash flows (unaudited)
[expressed in Canadian dollars]
Nine months ended September 30	2020	2019
	$	$
Operating activities
Net loss for the period	(12,235,350)	(7,768,746)
Add (deduct) items not affecting cash:
Government assistance	(154,582)	(767,280)
Deferred income tax recovery	(147,950)	(244,410)
Depreciation and amortization	2,508,636	2,359,308
Non-cash interest accretion	435,594	152,306
Unrealized foreign currency exchange (gain) loss	(340,771)	267,155
Interest expense	392,936	186,813
Share-based payment expense	-	25,000
Listing expenses	3,370,249	-
Unrealized loss on FVTPL liabilities	(505,194)	381,998
Change in deferred revenue	(482,317)	(669,533)
Share-based compensation expense	1,578,114	1,319,362
Net change in non-cash working capital items	(1,832,955)	408,028
Cash used in operating activities	(7,413,590)	(4,349,999)
Investing activities
Additions to intangible assets	(124,519)	(128,622)
Additions to property and equipment	(1,106,870)	(767,149)
Reverse takeover, net cash	4,174,979	-
Cash used in investing activities	2,943,590	(895,771)
Financing activities
Proceeds from long-term debt	50,784	1,129,860
Repayment of long-term debt	(262,258)	(53,568)
Proceeds from unsecured convertible promissory notes	666,950	3,185,760
Proceeds from funding obligation	-	325,000
Proceeds from units, net	814,270	470,083
Proceeds from unsecured convertible debentures	950,000	-
Proceeds from secured convertible debentures	5,000,000	-
Payment of lease liabilities	(69,526)	(54,526)
Cash provided by financing activities	7,150,220	5,002,609
Net (decrease) increase in cash and cash equivalents	2,680,220	(243,161)
Cash and cash equivalents, beginning of the period	528,691	850,623
Cash and cash equivalents, end of the period	3,208,911	607,462
Supplemental cash flow information
Interest on debt paid	252,987	15,609

SOURCE Metamaterial Inc.

Media inquiries: Graham Farrell, Harbor Access LLC, [phone], [email protected]; Investor inquiries: Mark Komonoski, Director Capital Markets and IR, Metamaterial Inc., phone: [phone], [email protected]

Related Links

www.metamaterial.com