SmartKem is a company that is going to change the display market. With more than 100 patented IPs, it is going to produce ultra-thin and low-cost displays combining organic thin film transistors and liquid polymers which makes Smartkem stock worth looking at. In this post, we will be cover the following topics in the end you can decide whether SmartKem stock should you buy or sell
- What is SmartKem?
- How SmartKem Aims to Disrupt the World of Displays?
- SmartKem’s Year 2024 and Major Achievement So Far
- How Well is SmartKem stock Doing in 2024?
- SmartKem Stock Potential By the End of 2024 and Beyond
What is SmartKem?
SmarKem Inc.(SMKT) is a tech R&D company that is offering a new display technology.
It operates in a rapidly revolutionizing semiconductor industry with its ultra-thin and low-cost Organic Thin Film Transistor (OTFT) technology. It came into limelight with its first monolithic LED display unit.
Today’s smart TVs typically utilize around 24 million transistors in a single unit meaning a hefty price tag. Also, when exposed to direct sunlight, these smart displays fade away.
On the technical side, the current manufacturing process requires these millions of transistors to be aligned and welded precisely. That’s another costly process resulting in an expensive finished product for the end user.
Manufacturers of smart display units do not need alignment or welding when using SmartKem’s liquid polymers. It means a smoother and quicker production process for manufacturers and a much cheaper product for users.
How SmartKem Aims to Disrupt the World of Displays?
Traditional inorganic display units use millions of transistors made of silicon that are processed at high temperatures and require alignment and welding. It’s a sophisticated and costly process for manufacturers.
Here is how SmartKem is Disrupting the World of Displays:
- Pioneering Organic-Last Integration (OLI) technology enabling its OTFT to be directly placed on a MicroLED planes
- It’s liquid polymers used in layers do not need alignment or welding processes
- OTFTs can be processed at low temperatures (80 C)
- Enabling smooth production of micoLED displays at substantially lower costs
- Its TRUFLEX® semiconductor and liquid ink can be used for existing models or developing new micorLED display units
SmartKem’s TRUFLEX® semiconductor can be used in any type of existing technology like MiniLEDs, MicroLEDs, and AMOLED display units.
SmartKem has yet to commercialize its product and its patented technology is still an unfinished project.
However, we can expect smarter and cheaper finished products like Smart TVs, Smartwatches, Augmented (AR) and Virtual Reality (VR) headsets, Smartphones, and Laptops utilizing this revolutionary technology in the future.
SmartKem’s Year 2024 and Major Achievement So Far
Despite having great technology on the roadmap, we have not yet seen a display using their technology on the market.
They have an accumulated deficit of $95m in the venture so far according to their financial reports and the bulk of the money has been dedicated to the research & development department. It means fewer resources for building a production facility that could produce the end products utilizing its unique OTFT technology.
Like many other tech startups, they have been looking for partnerships that could help them test the technology and eventually help them build finished products.
SmartKem’s initial breakthrough partnership was signed with RiTDisplay, a leading Taiwanese tech giant in passive matrix organic light emitting diode (PMOLED) technology.
In 2022, SmartKem entered a working partnership with Nanosys Inc., a Silicon Valley-based technology firm. Nanosys champions the use of quantum dot nanoLED technology. Nanosys is one of the largest quantum dot nanomaterials production facilities in the world.
Last year, SmartKem started a collaboration with the Hi-Accuracy project in the UK. The project has received funding from the EU’s Horizon 2020 R&D program. It is also in working relations with some of the Hi-Accuracy consortium members like Fraunhofer IAP and VTT for joint production of microdisplay products using its OTFT technology and their production facilities.
A recent technology collaboration agreement of SmartKem is with Taiwan’s Industrial Technology Research Institute (ITRI). The agreement will enable both parties to test the OTFT technology and develop finished products commercially after passing the feasibility phases.
Despite these successful partnerships, SmarKem hasn’t yet been able to commercialize its trademark product TRUFLEX®. Perhaps, realizing the need to get displayed, they have accelerated their efforts in promoting their product through several marketing channels.
One core aspect of their marketing efforts has been their participation in global tech exhibitions, festivals, and shows. They have had a fair share of display counters at different places like Display Week 2024, TechBlick Innovation Festival, and Touch Taiwan Display Exhibition 2024.
How Well is SmartKem stock Doing in 2024?
SmartKem (SKM) has all the potential to become a smart stock in the future. However, they are a penny stock listed on OTCQB at the moment.
Their suite of intangible assets is filled with remarkable intellectual property through 125 patents and 40 codified trade secrets, not to mention their experienced HR capital comprising scientists and a team of professionals.
Here are some Key Points on SKMT’s Potential:
- Cash & Cash Equivalents of $8.9m make the most of current assets
- They had 2 rounds of private equity placements yielding $24m and $15m respectively
- A negligible amount of revenue – $27K
- Net Yearly Losses of $8.5m – Net Accumulated Losses of $95m
- The Balance Sheet is Debt-Free
SmartKem stock went through a reverse stock split of 1:35 last year in a bid to consolidate its share price. The SKMT stock has been trading at around the $10.50 mark recently amid low-volume trading orders, mostly through their private investors.
Despite the grim financial outlook, SMKT holds some bright points that can derive its future growth.
Here are some of those:
- Unique technology resulting in a low-cost, unique finished product
- Substantial Intellectual Property (IP) with patents, codified business secrets, and valuable human resources
- Joint agreements and product development collaborations with some of the leading tech firms
- All-equity funding means substantial room for Debt Financing in the Future
SmartKem Stock Potential By the End of 2024 and Beyond
Without a product that is used by the consumers, SmartKem stock is very difficult to forecast.
For a penny stock to jump into the mainstream market, they’ll need substantial revenue growth and product commercialization arrangements in 2024. Although it seems unlikely, their recent joint working agreements might give them a breakthrough.
Another key factor to look at is their competition. The semiconductor and display market is fiercely competitive with leading tech giants holding the majority market share. Also, their efforts to utilize the production facilities of other tech developers in the same industry could prove risky.
The year 2024 could prove a breakthrough year for SKMT but its success rests more on external factors like:
- product commercialization
- revenue growth
- mitigating net losses.
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