Executive Summary

Q1 2023 revenue was $1.412M and diluted EPS was ($0.05), down sharply versus prior year due to the completion of certain development contracts and weaker product sales .
Revenue concentration remained high: one G10 central bank customer represented ~$1.3M, or 89% of total revenue, underscoring counterparty risk in near-term forecasting .
Liquidity tightened: net cash used in operations was ($15.520M) in Q1, with management reiterating substantial doubt about going concern absent additional capital; the company raised ~$22.1M via an April offering and ~$10.0M via Q1 ATM sales to bridge funding .
Post-quarter, management announced a realignment to cut cash burn (targeting $2.6–$3.8M per month by YE 2023) and flagged a non-cash goodwill impairment of roughly $282M anticipated for Q2, both potential stock catalysts given size and restructuring scope .

What Went Well and What Went Wrong

G&A expense declined 30% YoY to $10.186M, driven by lower legal/audit fees and reduced stock-based compensation, partially offset by higher D&A—a sign of near-term cost discipline .
The company secured liquidity through capital markets: ~$10.0M net via ATM in Q1 and ~$22.1M net via an April 2023 underwritten offering (83.33M shares + 83.33M warrants at $0.30) .
Quote (MD&A): “Our general and administrative expenses also decreased in the first quarter ended March 31, 2023 mainly due to a decrease in legal and audit fees and accrued bonus and stock-based compensation expenses.”

Revenue fell 53% YoY to $1.412M as development revenue declined by $1.45M and product sales dropped $0.11M, reflecting contract completions and reduced orders .
Net loss was ($18.669M) despite cost actions; cash used in operations was ($15.520M), intensifying liquidity pressure and going-concern risk .
Continued revenue concentration: one customer accounted for 89% of revenue ($1.3M), heightening execution risk if that program slows or ends .
Analyst concerns: management disclosed a material weakness in internal controls not fully remediated and an SEC enforcement subpoena tied to the Torchlight merger (ongoing) .

Metric	Q1 2022	Q4 2022 (Prelim)	Q1 2023
Revenue ($USD Millions)	$2.975	$1.4	$1.412
Diluted EPS ($)	($0.06)	($0.06) to ($0.09)	($0.05)
Gross Profit Margin (%)	74%	n/a	48%
Operating Expenses ($USD Millions)	$19.605	n/a	$19.230
Net Loss ($USD Millions)	($18.435)	n/a	($18.669)
Comprehensive Loss ($USD Millions)	($17.529)	($21) to ($30)	($18.346)

Revenue composition (segment-like breakdown):

Key KPIs and liquidity:

KPI	Q1 2023
Cash, Cash Equivalents & Restricted Cash ($USD)	$6.542M
Net Cash Used in Operating Activities ($USD)	($15.520M)
Shares Outstanding (End of Period)	383,744,889
Revenue Concentration (Top Customer)	89% of revenue; ~$1.3M

Metric	Period	Previous Guidance	Current Guidance	Change
Realignment & Consolidation Charges ($USD)	FY 2023	None disclosed	$1.9M–$3.2M	New
Avg. Monthly Cash Burn ($USD)	By YE 2023	~$5.7M (May estimate)	$2.6M–$3.8M	Lowered
Goodwill Impairment (Non-Cash) ($USD)	Q2 2023	None disclosed	~$282M estimate at $0.2231 stock price	New
ATM Program Commission Rate	As of Jun 20, 2023	3.0%	2.25%	Lowered

Note: No Q1 2023 earnings call transcript was available (none found) [ListDocuments result].

Topic	Previous Mentions (Q3 2022, Q4 2022)	Current Period (Q1 2023)	Trend
Supply chain & inflation	Inflation in Europe (polymers) and North America; supply chain risks flagged	Similar commentary on inflation and raw materials; continued caution	Persistent headwinds
Global chip shortage	Chip shortages could delay automotive launches affecting NANOWEB orders	Ongoing acknowledgment of chip shortage risks	Unchanged risk
NANOWEB capacity scaling	Need for internal/external capacity; risk to margins if outsourced	Similar capacity constraints; scaling underway	Work-in-progress
Regulatory/legal matters	SEC subpoena; class action/derivative actions ongoing	Material weakness persists; SEC matter noted; remediation efforts continue	Ongoing
Revenue concentration	Single customer 82%–86% in 2022 periods	Single customer 89% in Q1 2023	Concentration elevated
R&D execution & spend	R&D up materially in Q3 2022	R&D increased YoY; focus on battery/medical platforms	Investment sustained

“Revenue has decreased in the past two consecutive quarters, due to a completion of some contracts and a decrease in product sales. A weakening of Canadian Dollar against U.S. Dollar also contributed to the decrease in overall sales during those quarters.”
“We expect we will require additional funding to continue as a going concern… Management’s plans include reduced spending, and the pursuit of additional capital… substantial doubt exists about our ability to continue as a going concern.”
“We currently derive a significant portion of our revenue from contract services with a G10 central bank… authentication features for future banknotes.”
June 20 8-K interim update: “We believe substantial doubt remains about our ability to continue as a going concern.”
On cost actions: “Our average monthly cash burn rate is expected to be reduced from $5.7 million… down to between $2.6 million and $3.8 million by the end of the year.”

No Q1 2023 earnings call transcript was available, so Q&A themes could not be assessed (none found) [ListDocuments result].

Wall Street consensus (S&P Global) for Q1 2023 EPS and revenue was unavailable due to missing SPGI mapping for MMAT; therefore, comparison to consensus cannot be provided at this time (tool error noted).
Implication: In absence of external consensus, investors should benchmark performance against internal targets (cost reduction, cash burn trajectory) and revenue trajectory disclosed in filings .

Revenue contraction and dependence: $1.412M in Q1 (+89% from one customer) highlights sensitivity to single-program timing; diversification is a priority .
Liquidity and going concern: ($15.520M) operating cash outflow in Q1 and explicit going-concern language underscore urgency of capital raises and burn reduction; monitor execution on $2.6–$3.8M/month burn target by YE 2023 .
Large non-cash impairment ahead: anticipated ~$282M Q2 goodwill impairment likely to dominate reported results; assess cash, not GAAP net income, for operating runway .
Cost actions gaining traction: G&A down 30% YoY to $10.186M; continued focus on D&A and R&D mix to support core platforms (NANOWEB, battery materials, medical) .
Capital markets access remains available: ~$10.0M net raised via ATM in Q1 and ~$22.1M net in April—dilutive, but essential to bridge operations; watch dilution and use of proceeds .
Operational scaling risks: supply chain, chip shortages, and capacity scaling for NANOWEB remain unresolved; margins may be pressured if outsourcing is required .
Near-term trading implications: Expect volatility around restructuring updates and Q2 impairment; catalysts include progress on burn reduction and any new multi-customer revenue wins .