Steakholder Foods Ltd. — FY2022 Form 20-F Summary
Reporting period: Fiscal year ended December 31, 2022; this is an annual report, not a standalone Q4 filing. The company reports under IFRS in U.S. dollars. Steakholder Foods is an Israel-based, pre-commercial food-technology company developing cultivated-meat processes and 3D bioprinting systems, primarily for licensing to business customers.
Financial performance and position
| Metric | FY2022 | FY2021 |
|---|---|---|
| Revenue | None | None |
| Research and development expense | $9.801 million | $7.594 million |
| Marketing expense | $3.044 million | $1.628 million |
| General and administrative expense | $6.937 million | $8.010 million |
| Impairment loss | $15.577 million | None |
| Operating loss | $35.359 million | $17.232 million |
| Net loss | $30.767 million | $18.022 million |
| Net cash used in operating activities | $14.313 million | $13.951 million |
All figures are U.S. dollars. No revenue means gross margin and operating margin are not meaningful. The $15.577 million impairment comprised $14.367 million against Peace of Meat’s in-process research and development asset and $1.210 million against fixed assets. Net financing income of $4.592 million, largely from fair-value and foreign-exchange movements, partly offset the operating loss.
At year-end, cash and cash equivalents were $6.284 million, down from $19.176 million. Current assets were $7.114 million versus current liabilities of $4.324 million. Total assets were $15.316 million; total liabilities were approximately $7.433 million, including $3.503 million of lease liabilities. The filing reports no conventional funded debt balance. Accumulated deficit was $67.738 million. Cash used in investing was $3.533 million and cash provided by financing was $5.572 million.
Material changes versus FY2021
- Net loss rose by $12.745 million, primarily reflecting the Peace of Meat impairment; R&D and marketing costs also increased. Excluding the impairment and financing-item effects, management said underlying net loss increased about 15%.
- R&D expense increased 29%, while marketing expense increased 87%; general and administrative expense decreased 13%.
- Operating cash use was broadly similar year over year. Investing cash use declined as the prior-year period included greater Peace of Meat-related investment; financing inflows fell substantially after the company’s 2021 Nasdaq offering.
- After year-end, a January 2023 offering generated approximately $6.5 million gross proceeds (about $5.8 million after stated underwriting discounts and expenses), alongside substantial warrant issuance and repricing of existing warrants.
Outlook, commentary, and risks
- Going concern and funding: The auditor highlighted substantial doubt about the company’s ability to continue as a going concern. Management expected cash, including the January 2023 financing, to fund operations only through Q3 2023 and said further financing or strategic funding would be needed. The financial statements include no going-concern adjustments.
- Commercialization targets: Management stated it aimed for industrial-speed printing in the second half of 2023, initial revenue from hybrid products beginning in 2024, and whole-cut products beginning in 2025. These are forward-looking targets, not assured outcomes. The company reported no revenue to date and no approved products.
- Strategic refocus: The company said it would prioritize commercializing its 3D bioprinter and developing partnerships. Peace of Meat was expected to close and be liquidated after the reporting date; management estimated the closure would reduce annual expenses by about $4.5 million relative to 2022.
- Execution and market risks: Commercial success depends on technical progress, scaling, cost reduction, regulatory pathways, customer and consumer acceptance, manufacturing capability, suppliers, intellectual-property protection, and additional capital. The company is early-stage and its business model remains unproven.
- Regulatory and legal matters: Cultivated-meat regulation is evolving. The company expects food-product regulation to apply principally to its customers, but customers may require compliance assurances from the company. An ISA administrative matter concerning predecessor-company reports had a recorded provision of about $0.2 million; settlement remained subject to Enforcement Committee approval. A separate $0.7 million civil claim was against the settlement fund, and the company said it believed an adverse final ruling was unlikely.
- Other notable risks: The company received a Nasdaq minimum-bid-price deficiency notice on March 27, 2023, with a compliance deadline of September 18, 2023. It also cited exposure to currency fluctuations and political, economic, and security conditions in Israel. No dividends have been paid or are planned for the foreseeable future.
Most important facts for investors to verify
- Current cash, burn rate, and financing runway after the January 2023 offering, including subsequent financing and dilution.
- Progress against the stated 2023–2025 printing and commercialization targets, and whether customer agreements generate cash or revenue.
- Details and implementation of the Peace of Meat closure, including realized asset proceeds and whether anticipated cost savings materialize.
- Regulatory submission and approval status, especially in the United States and Singapore, and any resulting customer or commercialization requirements.
- Nasdaq bid-price compliance status and the dilution and potential exercise effects of outstanding warrants.
- Reconciliation of cash-flow figures: the MD&A narrative gives operating cash use of $14.253 million and net cash decrease of $12.214 million, while the audited cash-flow statement reports $14.313 million of operating cash use and a $12.274 million decrease before exchange effects.