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AquaBounty Technologies, Inc. Announces Results for the Year Ended December 31, 2019

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MAYNARD, Mass., March 10, 2020 (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 year ended December 31, 2019.

Results Highlights:

Operational

  • Sylvia Wulf assumed the position of Chief Executive Officer, President, and Director;

  • The U.S. Food and Drug Administration (“FDA”) lifted its Import Alert, allowing the Company to import its AquAdvantage eggs from its hatchery in Canada to its farm in Indiana;

  • The Company’s Rollo Bay farm site received two regulatory approvals: FDA approved the farm’s hatchery building, and Environment and Climate Change Canada approved the farm’s production facility for the commercial grow-out of AquAdvantage Salmon;

  • The Company’s Indiana farm received two batches of AquAdvantage eggs and is now producing both conventional and AquAdvantage Salmon, bringing total biomass at the farm to 160 tons at year end;

  • Closed the Panama demonstration farm;

  • Received approval in China to conduct a field trial for AquAdvantage Salmon; and

  • Commenced marketing and communications activities, including qualitative and quantitative consumer research in preparation for commercialization.

Financial

  • Completed two public offerings of common shares, raising net funds of $12.4 million;

  • The Company’s Canadian subsidiary received two construction loan instalments totalling $900 thousand from the Department of Economic Development of the Province of Prince Edward Island and the Atlantic Canada Opportunities Agency; and

  • Net loss for the year increased to $13.2 million (2018: $10.4 million) with the ramp-up of production operations in Indiana and Rollo Bay, increased legal fees in support of the FDA legal challenge, and increased headcount.

Sylvia Wulf, Chief Executive Officer of AquaBounty, commented: “This was a transformative year for AquaBounty, as for the first time in the Company’s history we began to grow-out our AquAdvantage Salmon in the United States. Production of both AquAdvantage and conventional salmon at our Indiana farm is progressing on track with conventional salmon harvest commencing in late Q2 this year and AquAdvantage Salmon harvest commencing in Q4. We also took steps during 2019 to strengthen our balance sheet with two successful equity raises and to strengthen our management team with the additions of Dave Melbourne as Chief Commercial Officer and Angela Olsen as General Counsel. We believe we are now well positioned to begin to execute our commercial strategy with the harvest and sale of our salmon from both our Indiana and Rollo Bay farms.”

Inquiries:

AquaBounty Technologies, Inc.
Dave Conley, Corporate Communications +1 613 294 3078

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 potential harvest size, initiation of a field trial and any related commercial operations in China, and the potential for and timing of the harvest and sale of our fish from our production farms. 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

As of

December 31,

2019

2018

Assets

Current assets:

Cash and cash equivalents

$

2,798,744

$

3,002,557

Other receivables

55,198

115,982

Inventory

1,232,049

76,109

Prepaid expenses and other current assets

391,162

315,969

Total current assets

4,477,153

3,510,617

Property, plant and equipment, net

25,065,836

23,716,768

Right of use assets, net

399,477

Definite-lived intangible assets, net

157,588

171,292

Indefinite-lived intangible assets

101,661

191,800

Other assets

32,024

80,583

Total assets

$

30,233,739

$

27,671,060

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable and accrued liabilities

$

1,462,809

$

824,900

Other current liabilities

62,286

20,423

Current debt

163,155

71,613

Total current liabilities

1,688,250

916,936

Long-term lease obligations

352,808

Long-term debt

4,432,052

3,519,821

Total liabilities

6,473,110

4,436,757

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.001 par value, 50,000,000 shares authorized;

21,635,365, (2018: 15,098,837) shares outstanding

21,635

15,099

Additional paid-in capital

156,241,363

142,707,957

Accumulated other comprehensive loss

(360,160

)

(574,186

)

Accumulated deficit

(132,142,209

)

(118,914,567

)

Total stockholders’ equity

23,760,629

23,234,303

Total liabilities and stockholders’ equity

$

30,233,739

$

27,671,060



AquaBounty Technologies, Inc.

Consolidated Statements of Operations and Comprehensive Loss

Years ended December 31,

2019

2018

2017

Revenues

Product Revenues

$

186,738

$

84,518

$

53,278

Costs and expenses

Production costs

3,573,858

2,626,353

1,193,566

Sales and marketing

709,023

297,687

799,009

Research and development

2,359,441

3,458,564

3,371,767

General and administrative

6,723,060

4,067,710

3,921,035

Total costs and expenses

13,365,382

10,450,314

9,285,377

Operating loss

(13,178,644

)

(10,365,796

)

(9,232,099

)

Other income (expense)

Interest expense

(62,988

)

(22,257

)

(21,537

)

Other income (expense), net

13,990

5,994

(5,011

)

Total other income (expense)

(48,998

)

(16,263

)

(26,548

)

Net loss

$

(13,227,642

)

$

(10,382,059

)

$

(9,258,647

)

Other comprehensive income (loss):

Foreign currency translation gain (loss)

214,026

(360,302

)

72,388

Total other comprehensive income (loss)

214,026

(360,302

)

72,388

Comprehensive loss

$

(13,013,616

)

$

(10,742,361

)

$

(9,186,259

)

Earnings per share

Net loss

$

(13,227,642

)

$

(10,382,059

)

$

(9,258,647

)

Deemed dividend

$

$

(1,822,873

)

$

Net loss attributable to common shareholders

$

(13,227,642

)

$

(12,204,932

)

$

(9,258,647

)

Basic and diluted net loss per share attributable to common shareholders

$

(0.66

)

$

(0.94

)

$

(1.06

)

Weighted average number of common shares -basic and diluted

20,078,017

13,028,760

8,772,494



AquaBounty Technologies, Inc.

Consolidated Statements of Cash Flows

Years ended December 31,

2019

2018

2017

Operating activities

Net loss

$

(13,227,642

)

$

(10,382,059

)

$

(9,258,647

)

Adjustment to reconcile net loss to net cash used in

operating activities:

Depreciation and amortization

1,285,902

843,387

184,946

Share-based compensation

872,177

263,396

122,134

Gain on disposal of equipment

(12,133

)

(13,233

)

(941

)

Loss on asset held for sale

149,800

Impairment loss

103,116

Other non-cash charges

(1,364

)

Changes in operating assets and liabilities:

Other receivables

65,002

56,212

(11,440

)

Inventory

(1,154,222

)

93,956

(169,991

)

Prepaid expenses and other assets

59,942

289,868

(592,602

)

Accounts payable, accrued liabilities and other liabilities

609,311

(966,928

)

625,763

Net cash used in operating activities

(11,248,747

)

(9,816,765

)

(9,100,778

)

Investing activities

Purchase of property, plant and equipment

(2,316,809

)

(4,009,736

)

(18,893,264

)

Deposits on equipment purchases

(160,675

)

(95,001

)

(153,663

)

Proceeds from sale of equipment

15,848

23,233

941

Net cash used in investing activities

(2,461,636

)

(4,081,504

)

(19,045,986

)

Financing activities

Proceeds from issuance of debt

900,767

771,858

256,807

Repayment of term debt

(85,802

)

(55,615

)

(35,812

)

Proceeds from the issuance of common stock and warrants, net

12,395,348

10,616,046

24,989,257

Proceeds from exercise of stock options and warrants, net

272,417

5,116,533

27,502

Net cash provided by financing activities

13,482,730

16,448,822

25,237,754

Effect of exchange rate changes on cash and cash equivalents

23,840

(54,279

)

80,018

Net change in cash and cash equivalents

(203,813

)

2,496,274

(2,828,992

)

Cash and cash equivalents at beginning of period

3,002,557

506,283

3,335,275

Cash and cash equivalents at the end of period

$

2,798,744

$

3,002,557

$

506,283

Supplemental disclosure of cash flow information and non-cash transactions:

Interest paid in cash

$

62,988

$

22,257

$

21,537

Property and equipment included in accounts payable and accrued liabilities

$

210,270

$

193,378

$

1,036,240

Acquisition of equipment under debt arrangement

$

$

74,068