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AquaBounty Technologies, Inc. Announces Results for the Quarter and Six Months Ended June 30, 2019

MAYNARD, Mass., Aug. 06, 2019 (GLOBE NEWSWIRE) -- AquaBounty Technologies, Inc. (AQB) (“AquaBounty” or the “Company”), a land-based aquaculture company utilizing technology to enhance productivity and sustainability, announces the Company’s financial results for the second quarter and six months ended June 30, 2019.

Financial and Operational Summary:

  • Stocked the Company’s Indiana and Rollo Bay farm sites with AquAdvantage Salmon eggs to commence grow-out and proceed toward commercialization;
  • completed a second public offering of common shares, raising net funds of $5.8 million;
  • with commercial facilities now employed, completed the close-down of the Company’s demonstration farm in Panama;
  • net loss for the six-month period ended June 30, 2019, increased to $6.8 million from $5.2 million in the corresponding period of the previous year, and net loss for the three-month period ended June 30, 2019, increased to $4.0 million from $2.8 million in the corresponding period of the previous year, due to increases in headcount and associated ramp-up costs at the Company’s grow-out farm in Indiana, stock compensation charges, and legal fees in support of the U.S. Food and Drug Administration’s (FDA) defense of their approval of AquAdvantage Salmon; and
  • cash at June 30, 2019, was $10.4 million (December 31, 2018: $3.0 million).

Sylvia Wulf, Chief Executive Officer of AquaBounty, stated: “This past quarter was an historic one for AquaBounty, as the FDA’s lifting of the Import Alert on AquAdvantage Salmon allowed us to stock our eggs at our Indiana farm site and, for the first time ever, grow our fish in the United States.  We also stocked our new farm in Rollo Bay on Prince Edward Island and completed a second equity fundraise to continue to improve our balance sheet.

“I am also pleased to welcome David Melbourne, Jr. to AquaBounty in his new role as Chief Commercial Officer and I would like to announce the appointment of Dr. Mark Walton to the position of Vice President of Research and Regulatory Affairs following the retirement of Dr. Ronald Stotish.  With these changes, we continue to build and strengthen our senior management team as we move forward to execute our commercial plan.”

About AquaBounty Technologies:

AquaBounty is a leader in the field of land-based aquaculture and the use of technology for improving its productivity and sustainability.  The Company’s objective is to ensure the availability of high-quality seafood to meet global consumer demand, while addressing critical production constraints in the most popular farmed species.  For more information about AquaBounty, visit www.aquabounty.com.

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 press release are forward-looking statements, including statements regarding the potential for grow-out of our fish at our Indiana and Rollo Bay facilities, the commercialization of our products, and the execution of our commercial plan. Forward-looking statements may be identified with words such as “will,” “may,” “expect,” “plan,” “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.

AquaBounty Technologies, Inc.
Consolidated Balance Sheets
(unaudited)

    As of
    June 30,   December 31,
    2019   2018
Assets        
Current assets:        
Cash and cash equivalents   $ 10,400,795     $ 2,990,196  
Certificate of deposit   12,866     12,361  
Other receivables   109,896     115,982  
Inventory   210,345     76,109  
Prepaid expenses and other current assets   555,946     315,969  
Total current assets   11,289,848     3,510,617  
         
Property, plant and equipment, net   24,621,309     23,716,768  
Right of use assets, net   426,735      
Definite-lived intangible assets, net   164,440     171,292  
Indefinite-lived intangible assets   191,800     191,800  
Other assets   80,583     80,583  
Total assets   $ 36,774,715     $ 27,671,060  
         
Liabilities and stockholders’ equity        
Current liabilities:        
Accounts payable and accrued liabilities   $ 1,977,030     $ 824,900  
Other current liabilities   68,432     20,423  
Current debt   139,274     71,613  
Total current liabilities   2,184,736     916,936  
         
Long-term lease obligations   384,507      
Long-term debt   4,487,004     3,519,821  
Total liabilities   7,056,247     4,436,757  
         
Commitments and contingencies        
         
Stockholders’ equity:        
Common stock, $0.001 par value, 50,000,000 shares authorized;        
21,598,555 (2018: 15,098,837) shares outstanding   21,598     15,099  
Additional paid-in capital   155,803,946     142,707,957  
Accumulated other comprehensive loss   (401,846 )   (574,186 )
Accumulated deficit   (125,705,230 )   (118,914,567 )
Total stockholders’ equity   29,718,468     23,234,303  
         
Total liabilities and stockholders’ equity   $ 36,774,715     $ 27,671,060  
                 


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

    Three Months Ended
June 30,
  Six Months Ended
June 30,
    2019   2018   2019   2018
                 
Revenues                
Product revenues   $ 42,486     $ 47,898     $ 140,371     $ 66,995  
                 
Costs and expenses                
Product costs   38,992     47,287     120,605     63,519  
Sales and marketing   103,390     76,381     175,381     158,028  
Research and development   813,449     880,822     1,476,930     1,858,639  
General and administrative   3,106,374     1,827,991     5,142,868     3,214,864  
Total costs and expenses   4,062,205     2,832,481     6,915,784     5,295,050  
                 
Operating loss   (4,019,719 )   (2,784,583 )   (6,775,413 )   (5,228,055 )
                 
Other income (expense)                
Gain on disposal of equipment   8,548     10,585     8,548     11,745  
Interest expense   (14,212 )   (5,283 )   (27,550 )   (10,685 )
Other income (expense), net   (1,348 )   (1,868 )   3,752     (3,941 )
Total other income (expense)   (7,012 )   3,434     (15,250 )   (2,881 )
                 
Net loss   $ (4,026,731 )   $ (2,781,149 )   $ (6,790,663 )   $ (5,230,936 )
                 
Other comprehensive income (loss):                
Foreign currency translation income (loss)   84,788     (85,811 )   172,340     (197,929 )
Total other comprehensive income (loss)   84,788     (85,811 )   172,340     (197,929 )
                 
Comprehensive loss   $ (3,941,943 )   $ (2,866,960 )   $ (6,618,323 )   $ (5,428,865 )
                 
                 
Basic and diluted net loss per share   $ (0.19 )   $ (0.22 )   $ (0.37 )   $ (0.42 )
Weighted average number of common shares -                
basic and diluted   21,313,055     12,787,761     18,515,907     12,366,657  
                 

For more information, contact:
Dave Conley
Corporate Communications
AquaBounty Technologies, Inc.
+1 613 294 3078