Here are 1-2 brief analogies to describe SmartKem:

• Corning for the foundational flexible materials of next-generation displays. (Corning is known for its specialized glass for displays, and SmartKem provides specialized organic semiconductor materials for advanced flexible displays.)
• Qualcomm for the core electronic components inside flexible screens. (Qualcomm provides the essential chips that power smartphones, and SmartKem provides the essential organic transistor technology that powers future flexible displays.)

• TRUFLEX® Organic Semiconductor Materials: Proprietary organic semiconductor inks and formulations engineered to enable high-performance, low-power, and flexible display backplanes.
• TRUFLEX® OTFT Technology Platform: A comprehensive suite of intellectual property, process know-how, and design guidelines for integrating organic thin-film transistors into next-generation displays.

SmartKem (SMTK) primarily sells its advanced organic semiconductor materials and technology to other companies (B2B).

While SmartKem's public filings indicate a high customer concentration, with a single major customer accounting for a significant portion of its revenue, the names of its major customer companies are not publicly disclosed by SmartKem. This non-disclosure is typical in the specialized materials and display component industry due to confidentiality agreements and competitive considerations.

SmartKem generally refers to its customers and partners as:

• Major global display manufacturers
• Electronics Original Equipment Manufacturers (OEMs)
• Other materials companies integrating SmartKem's technology into their products

These customers typically integrate SmartKem's organic thin-film transistor (OTFT) technology into next-generation displays, flexible electronics, and sensor applications.

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Ian Jenks, Chairman and Chief Executive Officer

Ian Jenks has over 30 years of board-level experience in the industrial technology industry, serving as CEO of companies in both the United States and Europe. He was formerly the President of Uniphase Inc. and Chairman of Oplink Communications Inc., which he took public on NASDAQ. He also served as a strategic advisor to WaveOptics, which was acquired by SNAP for over $500M. Jenks spent seven years as a partner of Crescendo Ventures LLP, a venture capital firm with approximately $1B AUM, and founded Ian Jenks Limited, a consulting company. He has also been a director of several public and private companies including Techstep ASA, Paysafe plc., and Brady plc.

Barbra Keck, Director and Chief Financial Officer

Barbra Keck previously served as the Chief Financial Officer of Deverra Therapeutics, Inc., a cell therapies developer. Before that, she held positions of increasing responsibility at Delcath Systems, Inc., a Nasdaq-listed interventional oncology company, starting as Controller in 2009 and becoming Chief Financial Officer in February 2017, a role she held until 2020.

Jonathan Watkins, Chief Operating Officer

Jonathan Watkins has over 30 years of experience commercializing and scaling novel material technologies and has worked across multinational companies, private equity ventures, and high-growth start-ups. From August 2016 through June 2024, he was the Chief Executive Officer of Impression Technologies Limited ("ITL"), where he led the development and scaling of a novel aluminum light-weighting technology before ITL entered voluntary liquidation in June 2024. He also served as Chief Operating Officer and Commercial Director of Ceres Power plc from 2008 to 2015.

Dr. Simon Ogier, Chief Technology Officer

Simon Ogier joined Smartkem as CTO in 2019 and is an internationally recognized expert in organic thin-film transistors. He has worked to develop high-performance organic semiconductors for transistor applications at companies such as Avecia, Merck, CPI, and NeuDrive Limited. From 2007, while at CPI, he played a major role in establishing the UK's National Printable Electronics Centre (PETEC).

Dr. Beverley Brown, Chief Scientist

Prior to joining Smartkem, Beverley Brown held numerous research and development positions in advanced materials technology at Imperial Chemical Industries Ltd. ("ICI"), Zeneca Group PLC, and Avecia Group PLC. She founded BAB Consultants Ltd in 2006, providing consulting services to chemical companies, the UK government, and the UK's Centre for Process Innovation (CPI). She has over 20 years of experience in organic semiconductor technology and printable electronics.

The key risks to SmartKem's business include financial instability, challenges in market adoption and commercialization of its technology, and potential supply chain disruptions.

1. Financial Instability and Going Concern Risk: SmartKem faces significant financial challenges, highlighted by a sharp decline in its cash position from $7.1 million at the end of 2024 to $1.2 million by June 30, 2025, with projections indicating that funding may only last until September 2025. The company's operating loss widened to $4.4 million in the second quarter of 2025, compared to $2.8 million in the same period of 2024. Furthermore, SmartKem has negative shareholder equity of -$3.0 million and an estimated cash runway of only one month based on free cash flow, suggesting a need for urgent financing that could dilute existing shareholders. The company has also received non-compliance notices from Nasdaq regarding its minimum stockholders' equity requirement. The company's Return on Invested Capital (ROIC) of -122.78% is significantly lower than its Weighted Average Cost of Capital (WACC) of 15.70%, indicating inefficient capital utilization.
2. Market Dependence and Commercialization Challenges: SmartKem's business success is heavily dependent on the broader adoption of flexible electronics, a market that is still in its nascent stages. The development and commercialization of advanced semiconductor technologies, such as their organic thin-film transistor (OTFT) platform, inherently carry substantial technical risks. The sales cycle for SmartKem's products is protracted, typically ranging from 12 to 24 months, during which the company incurs significant expenses without guaranteed customer orders.
3. Supply Chain Disruptions: The company is exposed to risks associated with its supply chain. Any interruptions in the procurement of raw materials or disruptions in manufacturing processes could lead to delays in product delivery and negatively impact revenue.

SmartKem (SMTK) primarily focuses on advanced semiconductor materials, specifically TRUFLEX® organic thin-film transistors (OTFTs), which are integral to several evolving electronics markets. The company's key market verticals include microLED displays, AMOLED displays, LCD displays, advanced computer and AI chip packaging solutions, and smart sensors.

The addressable markets for SmartKem's main products and services are as follows:

• MicroLED Displays: The global microLED industry is projected to grow from $150 million in 2024 to over $4 billion by 2031. Another estimate projects the global Micro-LED market size to reach $19.8 billion by 2027, growing at a CAGR of 76.6% during the forecast period. In 2020, the Asia-Pacific region was identified as a leading region in the Micro-LED market. SmartKem's technology is being developed for applications such as rollable, transparent microLED displays and microLED-based backlight technology for LCDs.
• Global Display Market (encompassing MicroLED, LCD, and AMOLED displays): The overall global display market size was valued at $168.4 billion in 2022 and is projected to reach approximately $297.1 billion by 2030, with a compound annual growth rate (CAGR) of 7.35% from 2022 to 2030.

Expected Drivers of Future Revenue Growth for SmartKem (SMTK)

1. Increased Adoption and Commercialization of TRUFLEX® Materials in the MicroLED Display Market: SmartKem is actively developing and patenting technology for MicroLED displays, including a collaboration with Chip Foundation for microLED-based backlight technology for Liquid Crystal Displays. The company anticipates benefiting from the significant projected growth of the microLED industry, which is expected to expand from $150 million in 2024 to over $4 billion by 2031. Furthermore, SmartKem is engaged in developing the world's first rollable, transparent microLED display with AUO.
2. Expansion into Advanced Computer and AI Chip Packaging Solutions: SmartKem's proprietary advanced semiconductor materials are applicable to higher-performing advanced computer and artificial intelligence (AI) chips through panel-level packaging solutions. The company has a preliminary Joint Development Agreement with Manz Asia for these advanced packaging solutions and has also signed a Letter of Intent with Jericho Energy Ventures to establish an AI-focused infrastructure company.
3. Penetration into Smart Sensor and CMOS Logic Markets: SmartKem's organic thin-film transistor (OTFT) technology is being leveraged by partners like FlexiIC for the development of low-cost, rapid-turnaround custom circuits and a new generation of low-power CMOS-enabled smart sensor devices. The company's semiconductor platform also extends to applications in smart labeling within biosensors and RFID tags, utilizing a new type of CMOS logic. SmartKem has developed a breakthrough CMOS platform designed for low power operation and robust circuit performance.
4. Successful Achievement of Technology Qualifications, Design Wins, and Strategic Collaborations: A core driver for SmartKem's future revenue lies in its ability to achieve qualifications and secure design wins through its existing and new collaborations. The company is focused on the successful commercialization of its proprietary semiconductor materials, with a 2025 goal to complete the qualification of its Gen 2.5 ITRI process line and establish additional collaborations for technology commercialization. SmartKem has entered into multiple strategic partnerships with industry-leading manufacturers across Asia, North America, and Europe to advance its technology toward commercialization.

Share Repurchases

• SmartKem has not reported any significant dollar amount of share repurchases over the last 3-5 years.

Share Issuance

• In December 2024, SmartKem completed concurrent public and private offerings, generating $7.65 million in gross proceeds through the issuance of common stock and warrants.
• In May 2025, an automatic conversion of Series A-1 Convertible Preferred Stock resulted in the issuance of 690,788 common shares and Class C warrants to purchase an additional 1,282,412 common shares.
• In October 2025, the company entered into a private placement, issuing senior secured notes with an aggregate principal amount of $1,100,000 and warrants exercisable for up to 400,000 shares at $2.75 per share.

Inbound Investments

• SmartKem secured $7.65 million in funding from public and private offerings in December 2024.
• In January 2025, the company received a $1.1 million grant, in collaboration with a partner, to develop the world's first rollable, transparent microLED display.
• In October 2025, a private placement provided $1,000,000 through the issuance of senior secured notes and warrants.

Outbound Investments

• As part of a proposed all-stock business combination with Jericho Energy Ventures in October 2025, SmartKem may be required to purchase Jericho common shares valued at a minimum of $500,000 by November 30, 2025, with potential for up to $1,000,000 if specific financial milestones are achieved.

Capital Expenditures

• Research and Development (R&D) expenses increased by $1.5 million in Q2 2025, partly due to costs associated with the extension of the CPI Framework agreement, reflecting ongoing investment in technology development.
• The company's future operational viability is dependent on its ability to raise additional capital to fund its operations, including continued investment in its R&D facility in Manchester, UK, and prototyping services at the Centre for Process Innovation (CPI) in Sedgefield, UK.