AquaBounty Technologies Announces Financial Results for the Quarter and Six Months Ended June 30, 2021

MAYNARD, Mass., Aug. 04, 2021 (GLOBE NEWSWIRE) -- AquaBounty Technologies, Inc. (Nasdaq: AQB) (“AquaBounty” or the “Company”), a land-based aquaculture company utilizing technology to enhance productivity and sustainability, has provided financial results for the second quarter and six months ended June 30, 2021.

Second Quarter 2021 Highlights

  • Successfully completed the first commercial scale harvests of it genetically engineered (“GE”) Atlantic salmon from both its Indiana and Rollo Bay farm sites in June.
  • Selected Pioneer, Ohio as the location for its next large-scale farm with a planned annual production capacity of 10,000 metric tons. Construction is slated to begin within the next six months and the Company anticipates commercial grow-out to commence in 2023.
  • Announced the regulatory approval of the Company’s GE Atlantic salmon by Brazil’s National Biosafety Technical Commission (CTNBio).
  • Elected Gail Sharps Myers—EVP, Chief Legal Officer, Chief People Officer and Corporate Secretary for Denny’s Corporation—to AquaBounty’s Board of Directors at the Annual Shareholders’ Meeting.
  • Appointed Melissa Daley as the Company’s Chief People Officer.

Management Commentary

“The second quarter of 2021 was marked by two significant operational milestones for the Company, including the first commercial harvests and sales of our GE salmon from both our Indiana and Rollo Bay farm sites, and the selection of Pioneer, Ohio as the site location for our large-scale farm,” said Sylvia Wulf, Chief Executive Officer of AquaBounty. “Our next farm will have approximately eight times the planned capacity of our Indiana location. We will continue to provide updates as we gain more specificity on the timelines for permitting and construction, with the commencement of grow-out targeted in 2023.

“In both Indiana and Rollo Bay, our first commercial harvests have been a resounding success, with orders in place for the entire output from our customers who are now introducing the salmon in their markets. We have experienced challenges with the availability of personnel and the age of the technology at our Indiana farm, however we are addressing these issues and incorporating insights gained into the design of our large-scale farm. We will continue to ramp up our harvest schedule over the remainder of this year to each farm’s full capacity to meet growing demand. With the food service industry quickly regaining momentum toward pre-pandemic activity and with restaurants reopening nationally, we remain very optimistic for the demand for our fish.

“We also continue to move forward in our international expansion. After extensive field trials in Brazil, our regulatory application for the sale and consumption of our GE salmon was approved by CTNBio, moving us closer to new market opportunities in South America. We are also actively progressing on potential opportunities in Israel and China.”

“Looking ahead, the next-evolution of land-based salmon farming for AquaBounty is upon us and we are ready to scale to meet the demand with our current and planned facilities. I look forward to sharing additional developments and progress in the months ahead with our shareholders and customers,” concluded Wulf.

Financial Summary through June 30, 2021

  • Revenue for the first six months of 2021 was $302 thousand, compared to $10 thousand in the same period of the prior year. Harvests began during June and are ramping steadily.
  • Operating expenses for the first six months of 2021 were $9.6 million, compared to $6.6 million in the same period of the prior year. The increase reflects the growth in biomass, headcount and production expenses at the farms, as well as increases in corporate and marketing expenses.
  • Net loss for the first six months of 2021 was $9.4 million, compared to $6.6 million in the same period of the prior year.
  • Cash, cash equivalents and marketable securities were $204.0 million as of June 30, 2021, compared with $95.8 million as of December 31, 2020.

About AquaBounty
AquaBounty Technologies, Inc. (NASDAQ: AQB) is a leader in aquaculture leveraging decades of technology expertise to deliver game changing solutions that solve global problems, while improving efficiency, sustainability and profitability. AquaBounty provides fresh Atlantic salmon to nearby markets by raising its fish in carefully monitored land-based fish farms through a safe, secure and sustainable process. The Company’s land-based Recirculating Aquaculture System (“RAS”) farms, located in Indiana, United States and Prince Edward Island, Canada, are close to key consumption markets and are designed to prevent disease and to include multiple levels of fish containment to protect wild fish populations. AquaBounty is raising nutritious salmon that is free of antibiotics and other contaminants and provides a solution resulting in a reduced carbon footprint and no risk of pollution to marine ecosystems as compared to traditional sea-cage farming. For more information on AquaBounty, please visit www.aquabounty.com or follow us on Facebook, Twitter, LinkedIn and Instagram.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. All statements other than statements of historical fact contained in this release are forward-looking statements, including, but not limited to, statements regarding the location and anticipated capacity of our planned farm in Ohio, the timing of the commencement of construction and the beginning of commercial production, the expected demand for our products, our harvesting schedule, purchase orders, commitments and prospective agreements with customers; international expansion and the anticipated growth in market size and geographies. Forward-looking statements may be identified with words such as “will,” “may,” “can,” “expect,” “plan,” “slate,” “anticipate,” “upcoming,” “believe,” “estimate,” or similar terminology, and the negative of these terms. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Forward-looking statements speak only as of the date hereof, and, except as required by law, we undertake no obligation to update or revise these forward-looking statements. For additional information regarding these and other risks faced by us, please refer to our public filings with the Securities and Exchange Commission (“SEC”), available on the Investors section of our website at www.aquabounty.com and on the SEC’s website at www.sec.gov.

Company Contact:
AquaBounty Technologies
Dave Conley
Corporate Communications
(613) 294-3078

Investor Relations:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
(949) 259-4987
AQB@mzgroup.us

AquaBounty Technologies, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

      
 As of
 June 30, December 31,
 2021
 2020
Assets     
Current assets:     
Cash and cash equivalents$ 132,345,351  $95,751,160 
Marketable securities  71,693,675    
Inventory  2,655,098   1,525,377 
Prepaid expenses and other current assets  1,285,168   405,370 
Total current assets  207,979,292   97,681,907 
      
Property, plant and equipment, net  29,159,517   26,930,338 
Right of use assets, net  313,318   341,997 
Intangible assets, net  238,694   245,546 
Restricted cash  500,000   500,000 
Other assets  81,629   76,715 
Total assets$ 238,272,450  $125,776,503 
      
Liabilities and stockholders' equity     
Current liabilities:     
Accounts payable and accrued liabilities$ 1,980,365  $1,760,103 
Other current liabilities  63,902   62,483 
Current debt, net  501,553   259,939 
Total current liabilities  2,545,820   2,082,525 
      
Long-term lease obligations  257,826   290,327 
Long-term debt, net  8,766,986   8,528,490 
Total liabilities  11,570,632   10,901,342 
      
Commitments and contingencies     
      
Stockholders' equity:     
Common stock, $0.001 par value, 80,000,000 shares authorized;     
71,025,738 and 55,497,133 shares outstanding as of June 30, 2021 and December 31,2020, respectively  71,026   55,497 
Additional paid-in capital  384,674,939   263,629,116 
Accumulated other comprehensive loss  (112,325)  (267,258)
Accumulated deficit  (157,931,822)  (148,542,194)
Total stockholders' equity  226,701,818   114,875,161 
      
Total liabilities and stockholders' equity$ 238,272,450  $125,776,503 
        

AquaBounty Technologies, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)

            
 Three Months Ended June 30, Six Months Ended June 30,
 2021 2020 2021 2020
Revenues           
Product revenues$ 227,393  $2,950  $ 301,765  $9,703 
            
Costs and expenses           
Product costs  1,847,596   1,041,316    3,402,251   1,882,750 
Sales and marketing  548,881   137,434    867,516   188,222 
Research and development  431,373   635,655    931,993   1,204,417 
General and administrative  2,578,958   1,693,544    4,364,468   3,330,734 
Total costs and expenses  5,406,808   3,507,949    9,566,228   6,606,123 
            
Operating loss  (5,179,415)  (3,504,999)   (9,264,463)  (6,596,420)
            
Other income (expense)           
Interest expense  (80,210)  (18,147)   (159,014)  (35,192)
Other income (expense), net  28,888   (538)   33,849   (1,690)
Total other income (expense)  (51,322)  (18,685)   (125,165)  (36,882)
            
Net loss$ (5,230,737) $(3,523,684) $ (9,389,628) $(6,633,302)
            
Other comprehensive income (loss):           
Foreign currency  65,924   165,501    145,963   (216,484)
Unrealized gains  8,970       8,970    
Total other comprehensive income (loss)  74,894   165,501    154,933   (216,484)
            
Comprehensive loss$ (5,155,843) $(3,358,183) $ (9,234,695) $(6,849,786)
            
            
Basic and diluted net loss per share$ (0.07) $(0.11) $ (0.14) $(0.22)
Weighted average number of common shares -           
basic and diluted  71,021,141   32,097,992    67,803,904   29,607,373 
                

AquaBounty Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

      
 Six Months Ended June 30,
 2021 2020
Operating activities     
Net loss$ (9,389,628) $(6,633,302)
Adjustment to reconcile net loss to net cash used in     
operating activities:     
Depreciation and amortization  857,842   701,593 
Share-based compensation  217,069   309,244 
Other non-cash charge  8,565   40,600 
Changes in operating assets and liabilities:     
Inventory  (1,122,422)  (1,261,930)
Prepaid expenses and other assets  (876,139)  (409,635)
Accounts payable and accrued liabilities  (153,120)  280,142 
Net cash used in operating activities  (10,457,833)  (6,973,288)
      
Investing activities     
Purchase of property, plant and equipment  (2,437,911)  (1,588,497)
Proceeds from sale of asset held for sale    98,000 
Purchases of marketable securities  (71,702,645)   
Proceeds from legal settlement, net    1,014,008 
Other investing activities  (11,010)  (12,460)
Net cash used in investing activities  (74,151,566)  (488,949)
      
Financing activities     
Proceeds from issuance of debt  406,378   221,130 
Repayment of term debt  (79,600)  (41,262)
Proceeds from the issuance of common stock, net  119,120,437   14,521,704 
Proceeds from the exercise of stock options and warrants  1,723,846    
Net cash provided by financing activities  121,171,061   14,701,572 
      
Effect of exchange rate changes on cash, cash equivalents and restricted cash  32,529   (16,685)
Net change in cash, cash equivalents and restricted cash  36,594,191   7,222,650 
Cash, cash equivalents and restricted cash at beginning of period  96,251,160   2,798,744 
Cash, cash equivalents and restricted cash at end of period$ 132,845,351  $10,021,394 
      
Reconciliation of cash, cash equivalents and restricted cash reported     
in the consolidated balance sheet:     
Cash and cash equivalents$ 132,345,351  $10,021,394 
Restricted cash  500,000    
Total cash, cash equivalents and restricted cash$ 132,845,351  $10,021,394 
      
Supplemental disclosure of cash flow information and     
non-cash transactions:     
Interest paid in cash$ 149,533  $17,058 
Property and equipment included in accounts payable and accrued liabilities$ 388,495  $238,235 

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.