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MeaTech 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

  1. 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.

  2. 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. 

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. 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.

  12. 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


  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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

)