EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

MeaTech 3D Ltd. Corrected First Half 2021 Unaudited Financial Results

Unaudited Financial Results Summary
 
 
•
R&D expenses totaled $2.9 million in the first half of 2021, compared to $0.9 million in the same period in 2020. This reflects MeaTech’s increased investment in research and development to expand its cultured meat technology capabilities.
 
•
Operating loss reached $7.7 million in the first half of 2021, compared to $13.0 million in the same period in 2020, which also included $10.1 million in public listing expenses that did not affect cash flow, in connection with MeaTech's reverse merger into a TASE-listed shell company in 2020. The operating loss increased mainly due to increased R&D expenses, up from $0.9 million in the first half of 2020 to $2.9 million, as well as an increase in general and administrative expenses from $2.0 million to $4.1 million, primarily due to an increase in share-based payment and insurance expenses.
 
•
Non-cash flow share-based payment totaled $2.3 million in the first half of 2021, compared to $1.6 million in the same period in 2020.
 
•
Total comprehensive loss was $7.7 million in the first half of 2021, or $0.07 per ordinary share, compared to $13.2 million, or $0.26 per ordinary share, in the same period in 2020.
 
•
Cash flow used in operating activities was $5.9 million in the first half of 2021, compared to $1.5 million in the same period in 2020.
 
•
Cash and equivalents at June 30, 2021 increased to $30.6 million, up from $13.6 million at year-end 2020, driven mainly by the Nasdaq IPO in March 2021.
 
•
Non-current assets increased to $14.1 million at June 30, 2021, up from $3.6 million at year-end 2020, driven mainly by the initial consolidation of the financial results of wholly-owned subsidiary Peace Of Meat.
 
•
Total assets increased to $46.0 million at June 30, 2021, up from $17.5 million at year-end 2020.
 
•
Total capital reached $43.8 million at June 30, 2021, up from $15.6 million at year-end 2020.


MeaTech 3D Ltd.
Condensed Separate Interim Financial Information As at June 30, 2021

Financial Information of MeaTech 3D Ltd.
Page
   
Contents:
  
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4
5
6


Summary of Corrections to Unaudited Financial Results for First Half of 2021
Corrected figures in the tables set forth above refer only to the six-month period ended on June 30, 2021, and are as follows:

   
Previously Disclosed
    
Adjustments
    
As Corrected
  
   
USD thousands
    
USD thousands
    
USD thousands
  
                   
Balance Sheet Capital
                  
                   
Currency translation differences reserve
    
(91
)
    
948
      
857
  
Accumulated deficit
    
(25,767
)
    
(948
)
    
(26,715
)
                         
Consolidated Statements of Income and of Comprehensive Loss
                        
                         
 Research and development expenses
    
2,146
      
764
      
2,910
  
 Marketing expenses
    
600
      
5
      
605
  
 General and administrative expenses
    
3,983
      
176
      
4,159
  
 Financing expenses (income), net
    
89
      
3
      
92
  
 Currency translation differences loss (income) that will not be transferred to profit or loss
    
871
      
(948
)
    
(77
)
 Basic and diluted loss per share (USD)
    
0.064
      
0.008
      
0.072
  
                         
Consolidated Statements of Cash Flows
                        
                         
Net Loss for the period
    
(6,818
)
    
(948
)
    
(7,766
)
Effect of exchange differences on cash and cash equivalents
    
(1,012
)
    
948
      
(64
)

Subsequent to the issuance of the Original 6-K, in the context of implementing improved financial reporting controls, the Company engaged in further reviews of its reported unaudited financial results. Based on such reviews, the Company determined that in the process of consolidating the results for the first half of 2021 of the Company’s wholly-owned subsidiaries, MeaTech Europe B.V. and Peace of Meat B.V. (“Peace of Meat”), for the first time following the acquisition of Peace of Meat in February 2021, expenses of Peace of Meat were not consolidated properly in the Company’s operating expenses, but were rather presented in currency translation differences reserve. While the total comprehensive loss for the period remains unchanged, the operating loss increased by approximately $1 million (primarily research and development expenses), while the currency translation differences reserve was increased by the same amount.
2
 
Unaudited Condensed Consolidated Interim Information on the Financial Position

   
June 30
    
June 30
    
December 31
  
   
2021
    
2020
    
2020
  
   
USD thousands
    
USD thousands
    
USD thousands
  
Current assets
                  
                   
Cash and cash equivalents
    
30,637
      
5,201
      
13,556
  
Other investment
    
147
      
134
      
149
  
Receivables
    
1,174
      
73
      
131
  
Total current assets
    
31,958
      
5,408
      
13,836
  
                         
Non-current assets
                        
                         
Restricted deposits
    
388
      
72
      
51
  
Other investment
    
1,264
      
1,164
      
2,513
  
Right-of-use asset
    
306
      
143
      
168
  
Intangible assets
    
9,930
      
-
      
-
  
Fixed assets, net
    
2,206
      
277
      
906
  
                         
Total non-current assets
    
14,094
      
1,656
      
3,638
  
                         
Total Assets
    
46,052
      
7,064
      
17,474
  
                         
Current liabilities
                        
                         
Trade payables
    
359
      
61
      
351
  
Other payables
    
1,573
      
398
      
996
  
Current maturities of lease liabilities
    
210
      
109
      
180
  
Derivative instrument
    
-
      
3
      
316
  
                         
Total current liabilities
    
2,142
      
571
      
1,843
  
                         
Non-current liabilities
                        
                         
Long-term lease liabilities
    
102
      
37
      
-
  
                         
Total non-current liabilities
    
102
      
37
      
-
  
                         
Capital
                        
                         
Share capital and premium on shares
    
65,283
      
18,497
      
30,481
  
Capital reserves
    
4,383
      
1,275
      
3,319
  
Currency translation differences reserve
    
857
      
73
      
780
  
Accumulated deficit
    
(26,715
)
    
(13,389
)
    
(18,949
)
                         
Total capital
    
43,808
      
6,456
      
15,631
  
Total liabilities and capital
    
46,052
      
7,064
      
17,474
  

3
 
Unaudited Condensed Consolidated Interim Information on Comprehensive Income
 
   
6 month period ended
June 30,
    
6 month period ended
June 30,
    
Year ended
December 31,
  
   
2021
    
2020
    
2020
  
   
USD thousands, except share data
    
USD thousands, except share data
    
USD thousands, except share data
  
                   
 Research and development expenses
    
2,910
      
850
      
2,491
  
  Marketing expenses
    
605
      
-
      
506
  
  General and administrative expenses
    
4,159
      
2,006
      
5,380
  
  Public listing expenses
    
-
      
10,164
      
10,164
  
  Operating loss
    
7,674
      
13,020
      
18,541
  
                         
Financing expenses (income), net
    
92
      
(56
)
    
(17
)
                         
  Loss for the period
    
7,766
      
12,964
      
18,524
  
                         
Capital reserve for financial assets at fair value that will not be transferred to profit or loss
    
-
      
334
      
334
  
Currency translation differences loss (income) that will not be transferred to profit or loss
    
(77
)
    
(51
)
    
(758
)
                         
Total comprehensive loss for the period
    
7,689
      
13,247
      
18,100
  
                         
  Loss per ordinary share, no par value (USD)
                        
                         
  Basic and diluted loss per share (USD)
    
0.072
      
0.262
      
0.308
  
                         
  Weighted-average number of shares outstanding - basic and diluted (shares)
    
107,189,837
      
49,476,813
      
60,112,197
  

4
 
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 at January 1, 2021
    
30,481
      
(334
)
    
14
      
780
      
3,639
      
(18,949
)
    
15,631
  
                                                         
Share-based payments
    
-
      
-
      
-
      
-
      
2,313
      
-
      
2,313
  
Issuance of shares and warrants, net
    
30,357
      
-
      
-
      
-
      
-
      
-
      
30,357
  
Exercise of options – Share-Based Payment
    
4,445
      
-
      
-
      
-
      
(1,249
)
    
-
      
3,196
  
Other comprehensive income (loss)
    
-
      
-
      
-
      
77
      
-
      
-
      
77
  
Loss for the period
    
-
      
-
      
-
      
-
      
-
      
(7,766
)
    
(7,766
)
                                                         
Balance as at June 30, 2021
    
65,283
      
(334
)
    
14
      
857
      
4,703
      
(26,715
)
    
43,808
  
                                                         
Balance as at January 1, 2020
    
1,880
      
-
      
14
      
22
      
-
      
(425
)
    
1,491
  
                                                         
Reverse acquisition
    
11,439
      
-
      
-
      
-
      
-
      
-
      
11,439
  
Issuance of shares and warrants, net
    
3,059
      
-
      
-
      
-
      
-
      
-
      
3,059
  
Share-Based Payment
    
-
      
-
      
-
      
-
      
1,595
      
-
      
1,595
  
Exercise of options
    
2,119
                                              
2,119
  
Other comprehensive income (loss)
            
(334
)
    
-
      
51
      
-
      
-
      
(283
)
Loss for the period
    
-
      
-
      
-
      
-
      
-
      
(12,964
)
    
(12,964
)
                                                         
Balance as at June 30, 2020
    
18,497
      
(334
)
    
14
      
73
      
1,595
      
(13,389
)
    
6,456
  
                                           
Balance as at January 1, 2020
    
1,880
      
-
      
14
      
22
      
-
      
(425
)
    
1,491
  
                                                         
Share-based payments
    
-
      
-
      
-
      
-
      
3,958
      
-
      
3,958
  
Reverse acquisition
    
11,439
      
-
      
-
      
-
      
-
      
-
      
11,439
  
Issuance of shares and warrants, net
    
14,067
      
-
      
-
      
-
      
-
      
-
      
14,067
  
Exercise of options - Investors
    
2,753
      
-
      
-
      
-
      
-
      
-
      
2,753
  
Exercise of options – Share-Based Payment
    
342
                              
(319
)
            
23
  
Other comprehensive income (loss)
    
-
      
(334
)
    
-
      
758
      
-
      
-
      
424
  
Loss for the period
    
-
      
-
      
-
      
-
      
-
      
(18,524
)
    
(18,524
)
                                                         
Balance as at December 31, 2020
    
30,481
      
(334
)
    
14
      
780
      
3,639
      
(18,949
)
    
15,631
  

5
 
Unaudited Condensed Consolidated Interim Information on Cash Flows

   
Six months
ended June 30,
2021
    
Six months
 ended June 30,
2020
    
Year ended
December 31,
2020
  
   
USD thousands
    
USD thousands
    
USD thousands
  
Cash flows - operating activities
                  
Net Loss for the period
    
(7,766
)
    
(12,964
)
    
(18,524
)
                         
Adjustments:
                        
Depreciation and amortization
    
278
      
73
      
213
  
Change in fair value of derivative
    
(311
)
    
(73
)
    
(36
)
Change in fair value of other investment
    
(90
)
    
-
      
(74
)
Expenses for share-based payments
    
2,313
      
1,592
      
3,958
  
Expenses for public listing
    
-
      
10,164
      
10,164
  
Changes in asset and liability items:
                        
Decrease (increase) in receivables
    
(782
)
    
(34
)
    
5
  
Increase (decrease) in trade payables
    
3
      
(7
)
    
126
  
Increase (decrease) in other payables
    
454
      
(232
)
    
336
  
Net cash from (used in) operating activities
    
(5,901
)
    
(1,481
)
    
(3,832
)
                         
Cash flows - investment activities
                        
Acquisition of fixed assets
    
(902
)
    
(168
)
    
(681
)
Decrease (increase) of restricted deposit
    
(337
)
    
(30
)
    
(6
)
Acquisition of other investments
    
(4,848
)
    
-
      
(1,188
)
                         
Net cash used in investing activities
    
(6,087
)
    
(198
)
    
(1,875
)
                         
Cash flows - financing activities
                        
Proceeds from issuance of shares and warrants
    
27,143
      
3,300
      
14,887
  
Issuance costs
    
(1,145
)
    
(242
)
    
(819
)
Repayment of liability for lease
    
(134
)
    
(55
)
    
(140
)
Proceeds on account of other investment
    
73
      
12
      
71
  
Proceeds on account of capital issuance
    
-
      
338
      
222
  
Proceeds with regard to derivative
    
-
      
74
      
348
  
Proceeds from exercise of share options
    
3,196
      
2,118
      
2,776
  
                         
Net cash from financing activities
    
29,133
      
5,545
      
17,345
  
                         
Increase in cash and cash equivalents
    
17,145
      
3,866
      
11,638
  
Effect of exchange differences on cash and cash equivalents
    
(64
)
    
61
      
644
  
Cash and cash equivalents at the beginning of the period:
    
13,556
      
1,274
      
1,274
  
                         
Cash balance and cash equivalents at end of period
    
30,637
      
5,201
      
13,556
  
                         
Non cash activities
                        
Purchase of fixed assets
    
21
      
-
      
143
  
Issue of shares and options against intangible asset
    
4,359
      
-
      
-
  
 
6