Sign in

You're signed outSign in or to get full access.

MM

META MATERIALS INC. (MMAT)·Q4 2022 Earnings Summary

Executive Summary

  • Q4 2022 was disclosed via preliminary estimates: revenue of $1.4M, loss per share between $(0.06)–$(0.09), and comprehensive loss between $21M–$30M; cash was $11.8M at 12/31/22 .
  • Sequential revenue declines persisted: $3.3M (Q2) → $2.5M (Q3) → $1.4M (Q4 prelim); net losses remained large ($21.0M in Q2; $24.5M in Q3; Q4 comprehensive loss prelim $21M–$30M) .
  • The company executed a $100M “at-the-market” (ATM) Sales Agreement on 2/10/23, a potential dilution overhang but liquidity backstop; cash fell to $11.8M in Q4 from $31.0M in Q3 and $54.0M in Q2 .
  • Revenue remains highly concentrated in a G10 central bank development program (82% in Q3; 94–97% in Q2), a key narrative driver for stock reaction alongside funding/dilution risk and internal control remediation disclosures .

What Went Well and What Went Wrong

What Went Well

  • Strength in development revenue tied to banknote security program: $2.0M of Q3 revenue from one customer (82% of total) and $3.0M in Q2 (97% of total) .
  • Gross margins remained strong in Q2 and Q3 (gross profit $2.446M on $3.324M revenue in Q2; $1.759M on $2.456M in Q3), supporting a long-term margin narrative when volume arrives .
  • Strategic capabilities expanded: Optodot (battery separators) and PLASMAfusion (high-speed coating) expected to accelerate manufacturing and broaden addressable markets .

What Went Wrong

  • Sequential revenue declines and continued large losses: revenue fell Q2→Q3→Q4 prelim; net losses of $(20.98)M (Q2), $(24.48)M (Q3), and prelim comprehensive loss $(21)–$(30)M (Q4) .
  • Cash burn and increasing opex: Q3 total opex $23.94M (up from $22.09M in Q2), heavy G&A due to legal/SEC matters and integration expense; cash fell to $31.0M (Q3) from $54.0M (Q2) and to $11.8M by year-end prelim .
  • Material weaknesses in internal controls persisted through Q3, with management stating remediation not yet complete—an overhang for investors .

Financial Results

MetricQ2 2022Q3 2022Q4 2022 (Prelim)
Revenue ($USD Millions)$3.324 $2.456 $1.400
Gross Profit ($USD Millions)$2.446 $1.759 N/A
Gross Margin (%)73.6% (calc) 71.6% (calc) N/A
Total Operating Expenses ($USD Millions)$22.088 $23.936 N/A
Net Loss ($USD Millions)$(20.983) $(24.475) N/A (comprehensive loss below)
Comprehensive Loss ($USD Millions)$(24.039) $(28.889) $(21)–$(30)
EPS (Basic/Diluted, $USD)$(0.07) $(0.07) $(0.06)–$(0.09)
Cash & Equivalents at Period End ($USD Millions)$54.040 $31.045 $11.8

Segment/Revenue Mix

MetricQ2 2022Q3 2022Q4 2022 (Prelim)
Product Sales ($USD)$334,113 $432,059 Not disclosed
Development Revenue ($USD)$2,989,614 $2,023,953 Not disclosed
Customer Concentration (Top Customer Share)94–97% 82% Not disclosed

KPIs

KPIQ2 2022Q3 2022Q4 2022 (Prelim)
Cash, Cash Equivalents & Restricted Cash ($USD Millions)$54.040 $31.045 $11.8
Revenue from Top Customer (%)97% 82% Not disclosed
Notes/Loan Receivables from NBH Spin-off ($USD Millions)N/AN/A$20.0 principal (excl. interest/adjustments)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2022None$1.4M (prelim) New prelim disclosure
EPSQ4 2022None$(0.06)–$(0.09) (prelim) New prelim disclosure
Comprehensive LossQ4 2022None$(21)–$(30)M (prelim) New prelim disclosure
Cash & EquivalentsFY2022 (as of 12/31)None$11.8M (prelim) New prelim disclosure
Capital PlanOngoingATM program not disclosed previouslyATM Sales Agreement up to $100M (2/10/23) Initiated

Note: No formal quantitative forward guidance ranges beyond preliminary estimates were provided; the 8-K disclosed preliminary Q4 and FY estimates and an ATM program .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2022)Previous Mentions (Q3 2022)Current Period (Q4 2022 prelim)Trend
Banknote / G10 Central Bank Development Revenue97% of revenue; key driver 82% of revenue; concentration persists Not disclosed in prelim; program remains central in filings Ongoing heavy concentration
Manufacturing Scale-Up (NANOWEB, PLASMAfusion)Roll-to-roll pilot line; PLASMAfusion expected to accelerate capacity Continued investment; opex up Strategic capabilities unchanged; PLASMAfusion benefits reiterated in 10-K Building capacity; revenue lag
Battery Materials (Optodot)Acquired Optodot; NPORE separators strategic Integration costs; R&D elevated Strategy consistent with FY 10-K Expanding platform
Liquidity & Capital Raises$50M registered direct offering (June) Cash fell to $31.0M; need for capital noted ATM Sales Agreement up to $100M (Feb 2023) Liquidity backstopped; dilution risk
Internal Controls / SEC MattersMaterial weaknesses; remediation in progress Weaknesses persisted No change in prelim; remediation remains a focus Improving but unresolved
Spin-off / NBHN/AN/ANBH spin-off recognized notes/loans ($20M principal) One-time impact; balance-sheet item

Note: No Q4 earnings call transcript is available in the document catalog; themes reflect MD&A and annual filings .

Management Commentary

  • “We currently derive a significant portion of our revenue from contract services with a G10 central bank.” (Q3 10-Q MD&A) .
  • “We believe that our existing cash will be sufficient to meet our working capital and capital expenditure needs for the next 12 months; however, we may need to raise additional capital...” (Q3 10-Q; similar in Q2 10-Q) .
  • “We made significant improvement to our internal controls... we still consider there to be material weaknesses... Notwithstanding... the condensed consolidated interim financial statements... present fairly...” (Q3 10-Q) .
  • “PLASMAfusion®... is expected to significantly accelerate line speed and increase annual capacity.” (FY 2022 10-K) .
  • “On December 14, 2022, the Company completed the spin-off of Next Bridge Hydrocarbons... recognized note and loan receivables... $20 million principal...” (Q4 prelim 8-K) .

Q&A Highlights

Q4 2022 earnings call transcript is not available in the document catalog; no Q&A content to summarize [ListDocuments returned none; ReadDocument errors for transcripts].

Estimates Context

  • Wall Street consensus comparisons (EPS/Revenue) are unavailable due to missing S&P Global company mapping for MMAT; thus we cannot assess beats/misses versus consensus (GetEstimates returned mapping error). Where estimates are required, please note that consensus values were unavailable from S&P Global for this period.

Key Takeaways for Investors

  • Revenue trajectory remains negative sequentially; delivery timing on development contracts is critical to re-accelerate topline in 2023–2024 .
  • Cash burn is substantial and opex elevated; the ATM program provides liquidity but introduces dilution risk—monitor usage and pricing triggers .
  • Revenue concentration in a single G10 central bank program is a key risk and catalyst; progress updates materially impact sentiment .
  • Strategic assets (Optodot/NPORE and PLASMAfusion) expand optionality; commercialization milestones in batteries and coatings can reset the narrative .
  • Internal control remediation and ongoing legal/SEC matters remain an overhang; resolution and effective controls are necessary for investor confidence .
  • NBH spin-off and $20M notes/loans are one-off balance sheet items; monitor recoverability and cash conversion .
  • Near-term trading likely sensitive to capital raise cadence (ATM), banknote contract news flow, and evidence of revenue diversification beyond the top customer .