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AquaBounty Technologies, Inc. Announces Results for the Quarter and Nine Months Ended September 30, 2019

MAYNARD, Mass., Nov. 05, 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 third quarter and nine months ended September 30, 2019.

Financial and Operational Summary:

  • Production volume of salmon at Indiana farm now at 77 metric tons;
  • a marketing and communications agency was appointed to advance commercialization activities, including consumer research;
  • net loss for the nine-month period ended September 30, 2019, increased to $9.8 million from $8.0 million in the corresponding period of the previous year, and net loss for the three-month period ended September 30, 2019, increased to $3.0 million from $2.7 million in the corresponding period of the previous year, due to increases in production operations, headcount, 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 September 30, 2019, was $6.4 million (December 31, 2018: $3.0 million).

Sylvia Wulf, Chief Executive Officer of AquaBounty, stated: “We are thrilled with the progress of our salmon at our Indiana farm.  The fish are growing extremely well, and they look fantastic.  A new batch of AquAdvantage Salmon eggs was recently received at the farm, and we now have three cohorts of fish in the water.  Every day we move closer to our first harvests, which we expect to commence in June of next year.”

“I am also pleased to welcome Angela M. Olsen to AquaBounty in her role as General Counsel.  Her experience in regulatory affairs and business development will be integral to our international growth.”

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 and timing of the grow-out of our fish at our Indiana farm, the commercialization of our products, the harvest and sale of our fish, and our international growth. 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
  September 30,   December 31,
  2019   2018
Assets      
Current assets:      
Cash and cash equivalents $ 6,412,921   $ 2,990,196  
Certificate of deposit 12,712   12,361  
Other receivables 73,340   115,982  
Inventory 477,077   76,109  
Prepaid expenses and other current assets 391,561   315,969  
Total current assets 7,367,611   3,510,617  
       
Property, plant and equipment, net 24,780,705   23,716,768  
Right of use assets, net 413,235    
Definite-lived intangible assets, net 161,014   171,292  
Indefinite-lived intangible assets 191,800   191,800  
Other assets 45,001   80,583  
Total assets $ 32,959,366   $ 27,671,060  
       
Liabilities and stockholders’ equity      
Current liabilities:      
Accounts payable and accrued liabilities $ 1,102,621   $ 824,900  
Other current liabilities 61,315   20,423  
Current debt 149,069   71,613  
Total current liabilities 1,313,005   916,936  
       
Long-term lease obligations 368,739    
Long-term debt 4,397,539   3,519,821  
Total liabilities 6,079,283   4,436,757  
       
Commitments and contingencies      
       
Stockholders’ equity:      
Common stock, $0.001 par value, 50,000,000 shares authorized;        
21,605,322 (2018: 15,098,837) shares outstanding 21,605   15,099  
Additional paid-in capital 156,022,668   142,707,957  
Accumulated other comprehensive loss (440,738 ) (574,186 )
Accumulated deficit (128,723,452 ) (118,914,567 )
Total stockholders’ equity 26,880,083   23,234,303  
       
Total liabilities and stockholders’ equity $ 32,959,366   $ 27,671,060  
             


AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(unaudited)
       
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
  2019   2018   2019   2018
               
Revenues              
Product revenues $     $ 10,938     $ 140,371     $ 77,933  
               
Costs and expenses              
Product costs     8,874     120,605     72,393  
Sales and marketing 206,256     64,971     381,637     222,999  
Research and development 446,582     804,758     1,923,512     2,663,397  
General and administrative 2,346,754     1,852,362     7,489,622     5,067,226  
Total costs and expenses 2,999,592     2,730,965     9,915,376     8,026,015  
               
Operating loss (2,999,592 )   (2,720,027 )   (9,775,005 )   (7,948,082 )
               
Other income (expense)              
Gain on disposal of equipment         8,548     11,745  
Interest expense (17,933 )   (5,169 )   (45,483 )   (15,854 )
Other income (expense), net (697 )   (1,832 )   3,055     (5,773 )
Total other income (expense) (18,630 )   (7,001 )   (33,880 )   (9,882 )
               
Net loss $ (3,018,222 )   $ (2,727,028 )   $ (9,808,885 )   $ (7,957,964 )
               
Other comprehensive income (loss):              
Foreign currency translation income (loss) (38,892 )   84,711     133,448     (113,218 )
Total other comprehensive income (loss) (38,892 )   84,711     133,448     (113,218 )
               
Comprehensive loss $ (3,057,114 )   $ (2,642,317 )   $ (9,675,437 )   $ (8,071,182 )
               
               
Basic and diluted net loss per share $ (0.14 )   $ (0.21 )   $ (0.50 )   $ (0.64 )
Weighted average number of common shares -              
basic and diluted 21,604,072     12,848,376     19,556,607     12,528,995  
               

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