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Steakholder Foods (NASDAQ:STKH) (formerly MeaTech 3D) reported 2nd quarter 2022 financial results on August 24th, 2022, which were mostly in-line with our expectations. Quarterly EPS was a loss of ($.03) which was slightly better than our EPS estimate of ($0.04).
Research and development expenses came in at $2.3 million during the quarter compared to $1.8 million for the 2nd quarter of 2021. The increase reflects the company's ongoing investment in research and development as it achieves its business milestones and expands its cultured meat technology capabilities.
Marketing expenses totaled $0.9 million compared to $0.3 million in the prior year period. General and administrative expenses were $1.6 million in the quarter compared to $1.4 million in the 2nd period of 2021. These increases in SG&A expenses were attributed to increased salary expenses, higher payments for legal and professional services, and growing investments in global marketing efforts.
Operating loss was ($4.8) million compared to ($3.5) million in the prior year period due to the increase in operating expenses mentioned above. Cash flow used in operations for the 6-month period came in at ($7.4) million and capital expenditures totaled $2.34 million.
Cash and cash equivalents were $8.4 million at the end of the 2nd quarter compared to $19.2 million at year-end 2021. On July 5, 2022, the company raised gross proceeds of $6.5 million in a secondary equity offering. Pro forma for the capital raised, the cash position as of June 30th is approximately $14.2 million. The company has no outstanding debt and no major liabilities with the exception of ongoing lease obligations.
Steakholder Foods CEO and founder Arik Kaufman stated "We continue to proceed at a rapid pace with our plans and are very pleased with the progress the company has made in this quarter and in general. The $6.5m in capital we raised early in Q3 gives us continued resources to continue moving forward in our mission, and our recent rebranding better reflects the company's vision, direction, and uniqueness in the industry. We're aiming high, and we truly believe that everyone should be able to continue safely and securely enjoying real, delicious meat sustainably."
In July 2022, the company completed a $6.5 million registered direct offering with a leading U.S. based institutional investor. Proceeds will be used for general corporate purposes and operating expenses.
In July 2022, a collaboration was announced with Umami Meats, a Singaporean cultured seafood company. This collaboration opens a door for both companies into the Asian market, and Singapore specifically, which is currently the only country that has authorized the production and distribution of cultured meat. The company also sees this collaboration as an opportunity to make a valuable contribution to the preservation of marine ecosystems and wildlife.
In July 2022, Peace of Meat, the company's wholly owned Belgian subsidiary, announced the establishment of a stable and unique avian cell line with a clear upscaling path. Peace of Meat's cultured avian capabilities opens the door to commercialization in the hybrid foods market.
In August 2022, the company rebranded itself as Steakholder Foods Ltd. and changed its ticker on the Nasdaq to STKH. The new name and brand reflect the company's commitment to cultivating a new community of meat lovers who wish to support and participate in the company's mission to make high-quality real meat sustainably.
In August 2022, the company announced its initiation of cultured pork development using a porcine cell line with significantly greater lifespan and scalability. The new induced pluripotent porcine stem cell line (iPS) enables the company to continue diversifying its species portfolio and accelerate its market readiness for cultured pork production. Products could include items such as bacon, pork chops and ham. Through a unique process of cell cultivation and 3D bioprinting, the company expects to achieve the taste, texture and mouthfeel of conventional pork.
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