The company's capital structure is under significant pressure, with an accumulated deficit of $144.5 million and a negative equity position of $3.9 million reported in 2025Q4.
| Total Current Assets | 8.8M | 1.5M | 8.51M | 10.53M | 6.44M | 14.1M | 2.02M | 2.11M |
| Cash & Short-Term Investments | 7.57M | 374K | 7.14M | 8.84M | 4.24M | 12.23M | 763.81K | 411.94K |
| Cash Only | 7.57M | 374K | 7.14M | 8.84M | 4.24M | 12.23M | 763.81K | 411.94K |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 710K | 552K | 903K | 1.14M | 1.35M | 1.12M | 1.1M | 1.61M |
| Days Sales Outstanding | 18.43 | 12.91 | 4.02K | 15.44K | 12.28K | 22.71K | 4.27K | 109.65K |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - |
| Other Current Assets | 525K | 575K | 0 | 80K | 36K | 0 | 0 | 0 |
| Total Non-Current Assets | 676K | 787K | 395K | 747K | 1.08M | 962K | 926.86K | 2.55M |
| Property, Plant & Equipment | 676K | 180K | 389K | 740K | 1.08M | 956K | 918.45K | 1.13M |
| Fixed Asset Turnover | 24.09x | 86.73x | 0.21x | 0.04x | 0.04x | 0.02x | 0.10x | 0.00x |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.41M |
| Other Non-Current Assets | 0 | 607K | 6K | 7K | 6K | 6K | 8.41K | 6.12K |
| Total Assets | 9.48M | 2.29M | 8.9M | 11.27M | 7.53M | 15.06M | 2.95M | 4.66M |
| Asset Turnover | 3.24x | 6.82x | 0.01x | 0.00x | 0.01x | 0.00x | 0.03x | 0.00x |
| Asset Growth % | -77.89% | -74.3% | -21.01% | 49.79% | - | 410.57% | -36.7% | - |
| Total Current Liabilities | 3.84M | 5.91M | 2.29M | 1.77M | 1.4M | 1.51M | 1.08M | 1.2M |
| Accounts Payable | 3.03M | 4.6M | 843K | 355K | 230K | 510K | 226.85K | 273.3K |
| Days Payables Outstanding | 4.82K | 6.18K | 9.62K | 5.63K | 2.54K | 23.27K | 1.51K | 253.84 |
| Short-Term Debt | 378K | 928K | 47K | 230K | 226K | 97K | 223.62K | 150.99K |
| Deferred Revenue (Current) | 214K | 108K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 324K | 0 | 450K | 808K | 714K | 520K | 500.59K | 656.11K |
| Current Ratio | 2.29x | 0.25x | 3.72x | 5.95x | 4.59x | 9.34x | 1.88x | 1.77x |
| Quick Ratio | 2.29x | 0.25x | 3.72x | 5.95x | 4.59x | 9.34x | 1.88x | 1.77x |
| Cash Conversion Cycle | -4.8K | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 230K | 312K | 25K | 1.39M | 239K | 28K | 20.48K | 8.55M |
| Long-Term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8.31M |
| Capital Lease Obligations | 1.34M | 312K | 25K | 19K | 239K | 28K | 20.48K | 234.23K |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 1.37M | 0 | 0 | 0 | 0 |
| Total Liabilities | 4.07M | 6.22M | 2.31M | 3.16M | 1.64M | 1.54M | 1.1M | 9.74M |
| Total Debt | 608K | 1.51M | 72K | 249K | 465K | 125K | 244.1K | 8.7M |
| Net Debt | -6.96M | 1.14M | -7.07M | -8.59M | -3.77M | -12.1M | -519.72K | 8.29M |
| Debt / Equity | 0.11x | - | 0.01x | 0.03x | 0.08x | 0.01x | 0.13x | - |
| Debt / EBITDA | 0.33x | - | - | - | - | - | - | - |
| Net Debt / EBITDA | -3.74x | - | - | - | - | - | - | - |
| Interest Coverage | -4.32x | -19.51x | - | - | - | -788.05x | -0.67x | -7.28x |
| Total Equity | 5.41M | -3.93M | 6.59M | 8.11M | 5.88M | 13.52M | 1.85M | -5.08M |
| Equity Growth % | -449.18% | -159.69% | -18.76% | 37.91% | - | 630.43% | 136.42% | - |
| Book Value per Share | 0.37 | -0.48 | 2.02 | 6.03 | 7.13 | 18.76 | 2.55 | -6.99 |
| Total Shareholders' Equity | 5.41M | -3.93M | 6.59M | 8.11M | 5.88M | 13.52M | 1.85M | -5.08M |
| Common Stock | 2K | 1K | 0 | 0 | 3K | 3K | 16.17K | 2.92K |
| Retained Earnings | -144.5M | -125.13M | -114.62M | -95.07M | -86.57M | -75.07M | -57.95M | -34.81M |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -2.67M | -3.58M | -1.1M | -1.58M | -483K | -1.36M | -1.48M | -1.2M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent liquidity shortfall
As reported in financial statements, SmartKem's total assets have declined from $11.3 million in 2023Q4 to $9.5 million in 2026Q1, reflecting a persistent erosion of the capital base that underscores the company's inability to achieve a self-sustaining financial trajectory during its current development phase.
The consistent decline in total assets, coupled with the accumulation of a $144.5 million deficit in retained earnings, suggests that the company is consuming its capital base to fund ongoing R&D. Investors should monitor whether the recent asset stabilization in 2026Q1 represents a genuine inflection point or merely a temporary pause before further depletion.
Based on the most recent quarterly data, SmartKem's cash position plummeted to $374,000 by 2025Q4, representing a severe liquidity risk that leaves the firm with minimal runway to cover its ongoing operating expenses without immediate access to external capital markets.
The current ratio of 0.25 observed in 2025Q4 indicates that current liabilities significantly outweigh liquid assets, creating a precarious environment for creditors and shareholders alike. This liquidity profile suggests that the company may be forced into dilutive financing arrangements to maintain its operational continuity.
According to historical balance sheet data, SmartKem's equity position has experienced extreme volatility, swinging into negative territory at -$3.9 million in 2025Q4, which highlights the structural damage caused by persistent net losses and the potential for future shareholder dilution to restore solvency.
The transition of equity into negative territory suggests that the company's accumulated losses have effectively wiped out the book value of the firm. This trend warrants further investigation into the company's capital structure and the potential for future equity raises to address the insolvency risk.
As indicated by the financial data, the most non-obvious risk is the company's reliance on milestone-based revenue to mask a structural inability to cover fixed costs, as evidenced by the $144.5 million accumulated deficit that continues to weigh heavily on the balance sheet.
The disconnect between the company's high-margin IP model and its actual cash position suggests that the reported revenue may not be translating into meaningful liquidity. This discrepancy implies that the balance sheet is highly sensitive to the timing of licensing payments, making the company's financial health binary and unpredictable.
Quick answers to the most common questions about buying SMTK stock.
As of 2025, SmartKem, Inc. (SMTK) had total assets of $2.3M including $1.5M in current assets.
SmartKem, Inc. (SMTK) carries total debt of $1.5M, offset by $0.4M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
SmartKem, Inc. (SMTK) has total shareholders' equity (book value) of $-3.9M ($-0.48 book value per share). Book value represents the net worth of the company belonging to common stock holders.
SmartKem, Inc. (SMTK) reported a current ratio of 0.25x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.