AquaBounty Technologies Announces First Quarter 2025 Financial Results
AquaBounty Technologies (NASDAQ: AQB) reported its Q1 2025 financial results, marking a significant turnaround with a net income of $401,000 compared to a net loss of $11.3 million in Q1 2024. The positive results included a $2.0 million non-cash gain from loan forgiveness. The company completed two major asset sales: Ohio Equipment Assets for $2.3 million (generating a $307,000 gain) and its Canadian subsidiary, including broodstock farms and intellectual property, for $1.9 million. Cash position improved to $1.4 million as of March 31, 2025, up from $230,000 at the end of 2024. Management continues to explore strategic alternatives for its partially constructed Ohio Farm Project.
AquaBounty Technologies (NASDAQ: AQB) ha comunicato i risultati finanziari del primo trimestre 2025, segnando una svolta significativa con un utile netto di 401.000 dollari rispetto a una perdita netta di 11,3 milioni di dollari nel primo trimestre 2024. I risultati positivi includono un guadagno non monetario di 2,0 milioni di dollari derivante dalla cancellazione di un prestito. L'azienda ha completato due importanti vendite di asset: attrezzature in Ohio per 2,3 milioni di dollari (generando un guadagno di 307.000 dollari) e la sua filiale canadese, comprensiva di allevamenti di riproduzione e proprietà intellettuale, per 1,9 milioni di dollari. La posizione di cassa è migliorata a 1,4 milioni di dollari al 31 marzo 2025, rispetto ai 230.000 dollari di fine 2024. La direzione continua a esplorare alternative strategiche per il progetto parzialmente costruito della fattoria in Ohio.
AquaBounty Technologies (NASDAQ: AQB) informó sus resultados financieros del primer trimestre de 2025, marcando un giro significativo con un ingreso neto de 401,000 dólares en comparación con una pérdida neta de 11.3 millones de dólares en el primer trimestre de 2024. Los resultados positivos incluyeron una ganancia no monetaria de 2.0 millones de dólares por condonación de préstamos. La compañía completó dos ventas importantes de activos: Equipos en Ohio por 2.3 millones de dólares (generando una ganancia de 307,000 dólares) y su subsidiaria canadiense, incluyendo granjas de reproducción y propiedad intelectual, por 1.9 millones de dólares. La posición de efectivo mejoró a 1.4 millones de dólares al 31 de marzo de 2025, desde 230,000 dólares a finales de 2024. La gerencia continúa explorando alternativas estratégicas para su proyecto parcialmente construido de la granja en Ohio.
AquaBounty Technologies (NASDAQ: AQB)는 2025년 1분기 재무 결과를 발표하며, 2024년 1분기 1,130만 달러 순손실에서 401,000달러 순이익으로 크게 전환했습니다. 긍정적인 결과에는 대출 탕감으로 인한 비현금 이익 200만 달러가 포함되었습니다. 회사는 두 건의 주요 자산 매각을 완료했습니다: 오하이오 장비 자산을 230만 달러에 매각하여 307,000달러 이익을 창출했고, 캐나다 자회사(번식장 및 지적 재산 포함)를 190만 달러에 매각했습니다. 현금 보유액은 2024년 말 23만 달러에서 2025년 3월 31일 기준 140만 달러로 개선되었습니다. 경영진은 부분적으로 건설된 오하이오 농장 프로젝트에 대한 전략적 대안을 계속 모색 중입니다.
AquaBounty Technologies (NASDAQ : AQB) a publié ses résultats financiers du premier trimestre 2025, marquant un tournant important avec un revenu net de 401 000 dollars contre une perte nette de 11,3 millions de dollars au premier trimestre 2024. Les résultats positifs comprennent un gain non monétaire de 2,0 millions de dollars lié à l'annulation d'un prêt. La société a finalisé deux ventes majeures d'actifs : des équipements dans l'Ohio pour 2,3 millions de dollars (générant un gain de 307 000 dollars) et sa filiale canadienne, comprenant des fermes d'élevage et la propriété intellectuelle, pour 1,9 million de dollars. La trésorerie s'est améliorée à 1,4 million de dollars au 31 mars 2025, contre 230 000 dollars fin 2024. La direction continue d'explorer des alternatives stratégiques pour son projet de ferme en Ohio, partiellement construit.
AquaBounty Technologies (NASDAQ: AQB) veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 und verzeichnete eine bedeutende Wende mit einem Nettoeinkommen von 401.000 US-Dollar im Vergleich zu einem Nettoverlust von 11,3 Millionen US-Dollar im ersten Quartal 2024. Die positiven Ergebnisse beinhalteten einen nicht zahlungswirksamen Gewinn von 2,0 Millionen US-Dollar aus der Schuldenerlassung. Das Unternehmen schloss zwei bedeutende Vermögensverkäufe ab: Ausrüstung in Ohio für 2,3 Millionen US-Dollar (mit einem Gewinn von 307.000 US-Dollar) sowie seine kanadische Tochtergesellschaft, einschließlich Zuchtbetrieben und geistigem Eigentum, für 1,9 Millionen US-Dollar. Die Liquiditätsposition verbesserte sich zum 31. März 2025 auf 1,4 Millionen US-Dollar, gegenüber 230.000 US-Dollar Ende 2024. Das Management prüft weiterhin strategische Alternativen für das teilweise errichtete Ohio Farm Projekt.
- Turned net loss into profit: $401,000 net income in Q1 2025 vs $11.3 million loss in Q1 2024
- Successfully sold Ohio Equipment Assets for $2.3 million with $307,000 gain
- Completed sale of Canadian subsidiary and IP for $1.9 million
- Improved cash position: $1.4 million vs $230,000 in December 2024
- Secured $2.0 million gain from loan forgiveness
- Selling core assets including intellectual property and Canadian operations indicates potential financial distress
- Company appears to be in liquidation mode, selling critical infrastructure
- Partially constructed Ohio Farm Project remains unsold
- Low cash position of $1.4 million despite asset sales
- Operating sustainability unclear after selling IP and core operations
Insights
AquaBounty shifts from $11.3M loss to $401K profit through asset sales and debt forgiveness while liquidating core operations.
AquaBounty's Q1 2025 financial results reveal a company in the midst of a significant operational transformation - essentially a controlled liquidation of its core business. The company posted net income of $401,000 compared to a $11.3 million loss in Q1 2024, but this apparent improvement masks a more complex reality.
The positive income figure stems primarily from non-operational sources: a $2 million non-cash gain from loan forgiveness and a $307,000 gain from equipment sales originally intended for their Ohio farm project. Without these one-time items, the company would have remained unprofitable. Most concerning is the company's strategic pivot away from its original business model.
The sale of their Canadian subsidiary including broodstock farms and - most critically - all intellectual property for their genetically engineered Atlantic salmon represents a fundamental abandonment of their core technology. This transaction generated only $1.9 million in net proceeds while transferring ownership of their primary differentiating assets.
Cash position improved from an extremely precarious $230,000 at year-end 2024 to $1.4 million as of March 31, 2025, but this liquidity was generated through asset sales rather than operational improvements. The company explicitly states they're working with investment bankers to "assess strategic alternatives" and sell remaining assets from their Ohio Farm Project.
These actions collectively signal a company that has exhausted its growth options and is now in capital preservation mode, selling core assets to maintain minimal operations while seeking an exit strategy. The dramatic shift from their original pioneering aquaculture technology vision to asset liquidation represents a fundamental business model failure.
Harvard, Massachusetts--(Newsfile Corp. - May 15, 2025) - AquaBounty Technologies, Inc. (NASDAQ: AQB) ("AquaBounty" or the "Company"), a land-based aquaculture company utilizing technology to enhance productivity and sustainability, today announced the Company's financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Highlights
- Net income for the quarter ended March 31, 2025 was
$401 thousand compared to a net loss of$11.3 million for the quarter ended March 31, 2024. Included in net income 2025 was a non-cash gain of$2.0 million on the forgiveness of an outstanding loan. - On February 11, 2025, the Company completed the sale of certain equipment originally intended for its farm in Pioneer, Ohio ("Ohio Equipment Assets") for net proceeds of
$2.3 million and recognized a net gain on the sale of$307 thousand . - On March 3, 2025, the Company completed the sale of its Canadian subsidiary, including the broodstock farms on Prince Edward Island, Canada ("Canadian Farms") and the Company's intellectual property for its genetically engineered Atlantic salmon, along with trademarks and patents ("Corporate IP"), for net proceeds of
$1.9 million . - Cash, cash equivalents and restricted cash totaled
$1.4 million as of March 31, 2025, as compared to$230 thousand as of December 31, 2024.
"As stated in our previous announcement, AquaBounty plans to continue to work with our investment banker to assess strategic alternatives for our partially constructed farm in Pioneer, Ohio ("Ohio Farm Project") and to market and sell available Ohio Equipment Assets to generate cash," commented David Frank, Chief Financial Officer and Interim Chief Executive Officer. "On February 11, 2025, we completed the sale of certain Ohio Equipment Assets that had been purchased for our Ohio Farm Project for net proceeds of
"We will continue to keep all stakeholders apprised of our progress," concluded Frank.
About AquaBounty
At AquaBounty Technologies, Inc. (NASDAQ: AQB), we are a pioneer in land-based aquaculture. We have located our land-based recirculating aquaculture system farm close to key consumption markets and designed it to prevent disease and to include multiple levels of fish containment to protect wild fish populations. For more information on AquaBounty, please visit www.aquabounty.com.
Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, as amended, including regarding the wind down of the Company's farming operations and its ability to sell available assets. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these statements because they involve significant risks and uncertainties about AquaBounty. AquaBounty may use words such as "continue," "believe," "will," "may," "expect," the negative forms of these words and similar expressions to identify such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: our history of net losses and the likelihood of future net losses; our ability to continue as a going concern; our ability to raise additional funds, including from the sale of non-current assets, in sufficient amounts on a timely basis, on acceptable terms, or at all; our ability to retain and reengage key vendors and engage additional vendors, as needed; our ability to obtain approvals and permits to construct and operate our farms without delay; our ability to finance our Ohio Farm Project through the placement of municipal bonds, which may require restrictive debt covenants that could limit our control over the farm's operation and restrict our ability to utilize any cash that the farm generates; risks related to potential strategic acquisitions, investments or mergers; risks of disease outbreaks in Atlantic salmon farming; our ability to efficiently and cost-effectively produce and sell salmon at large commercial scale; security breaches, cyber-attacks and other disruptions could compromise our information, or expose us to fraud or liability, or interrupt our operations; any further write-downs of the value of our assets; business, political, or economic disruptions or global health concerns; adverse developments affecting the financial services industry; our ability to use net operating losses and other tax attributes, which may be subject to certain limitations; volatility in the price of our shares of common stock; our ability to maintain our listing on the Nasdaq Stock Market LLC; an active trading market for our common stock may not be sustained; our status as a "smaller reporting company" and a "non-accelerated filer" may cause our shares of common stock to be less attractive to investors; any issuance of preferred stock with terms that could dilute the voting power or reduce the value of our common stock; provisions in our corporate documents and Delaware law could have the effect of delaying, deferring, or preventing a change in control of us; our expectation of not paying cash dividends in the foreseeable future; and other risks and uncertainties discussed in the Company's filings with the Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date hereof, and, except as required by law, AquaBounty undertakes no obligation to update or revise these forward-looking statements. For information regarding the risks faced by us, please refer to our public filings with the SEC, available on the Investors section of our website at www.aquabounty.com and on the SEC's website at www.sec.gov.
Company & Investor Contact:
AquaBounty Technologies
investors@aquabounty.com
Media Contact:
Vince McMorrow
Fahlgren Mortine
(614) 906-1671
vince.mcmorrow@Fahlgren.com
AquaBounty Technologies, Inc.
Consolidated Balance Sheets
(Unaudited)
| As of | ||||||
| March 31, 2025 | December 31, 2024 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 1,366,328 | $ | 230,362 | ||
| Prepaid expenses and other current assets | 1,207,023 | 292,018 | ||||
| Current assets held for sale | 4,148,500 | 10,819,909 | ||||
| Total current assets | 6,721,851 | 11,342,289 | ||||
| Property, plant and equipment, net | 22,668,000 | 22,668,000 | ||||
| Right of use assets, net | 44,589 | 51,509 | ||||
| Total assets | $ | 29,434,440 | $ | 34,061,798 | ||
| Liabilities and stockholders' equity | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued liabilities | $ | 10,079,353 | $ | 10,104,853 | ||
| Accrued employee compensation | 960,332 | 977,088 | ||||
| Current debt | 1,092,641 | 1,261,039 | ||||
| Other current liabilities | 29,110 | 28,527 | ||||
| Current liabilities held for sale | 287,290 | 3,830,041 | ||||
| Total current liabilities | 12,448,726 | 16,201,548 | ||||
| Long-term lease obligations | 15,479 | 22,982 | ||||
| Long-term debt, net | — | 1,996,558 | ||||
| Total liabilities | 12,464,205 | 18,221,088 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Common stock, | 3,869 | 3,866 | ||||
| Additional paid-in capital | 386,337,769 | 386,297,611 | ||||
| Accumulated other comprehensive loss | — | (688,229) | ||||
| Accumulated deficit | (369,371,403) | (369,772,538) | ||||
| Total stockholders' equity | 16,970,235 | 15,840,710 | ||||
| Total liabilities and stockholders' equity | $ | 29,434,440 | $ | 34,061,798 | ||
AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Costs and expenses | ||||||||
| Sales and marketing | $ | 6,613 | $ | 63,633 | ||||
| Research and development | — | 73,850 | ||||||
| General and administrative | 1,560,436 | 2,389,234 | ||||||
| Gain on asset sales, net | (306,886) | — | ||||||
| Total costs and expenses | 1,260,163 | 2,526,717 | ||||||
| Operating loss | (1,260,163) | (2,526,717) | ||||||
| Other income (expense) | ||||||||
| Interest expense | (133,650) | (181,241) | ||||||
| Loan forgiveness | 2,008,046 | — | ||||||
| Other expense, net | (4,469) | (2,447) | ||||||
| Total other income (expense) | 1,869,927 | (183,688) | ||||||
| Income (loss) from continuing operations | 609,764 | (2,710,405) | ||||||
| Loss from discontinued operations | (208,629) | (8,447,843) | ||||||
| Net income (loss) | $ | 401,135 | $ | (11,158,248) | ||||
| Other comprehensive income (loss) | ||||||||
| Foreign currency translation gain (loss) | 688,229 | (116,307) | ||||||
| Comprehensive income (loss) | $ | 1,089,364 | $ | (11,274,555) | ||||
| Basic and diluted net income (loss) per share | ||||||||
| from continuing operations | $ | 0.16 | $ | (0.70) | ||||
| from discontinued operations | (0.05) | (2.19) | ||||||
| Total basic and diluted net income (loss) per share | $ | 0.10 | $ | (2.90) | ||||
| Weighted average number of common shares | ||||||||
| - basic and diluted | 3,866,733 | 3,849,248 | ||||||
AquaBounty Technologies, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating activities | ||||||||
| Net income (loss) | $ | 401,135 | $ | (11,158,248) | ||||
| Adjustment to reconcile net income (loss) to net cash used in | ||||||||
| operating activities: | ||||||||
| Depreciation and amortization | — | 575,544 | ||||||
| Share-based compensation | 40,161 | 105,155 | ||||||
| Long-lived asset impairment | — | 4,265,000 | ||||||
| Loan forgiveness | (2,008,046) | — | ||||||
| Other non-cash items | — | 3,390 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Inventory | — | 1,257,290 | ||||||
| Prepaid expenses and other assets | (518,245) | 441,015 | ||||||
| Accounts payable and accrued liabilities | (259,975) | 147,831 | ||||||
| Accrued employee compensation | (16,756) | (52,903) | ||||||
| Net cash used in operating activities | (2,361,726) | (4,415,926) | ||||||
| Investing activities | ||||||||
| Purchases of and deposits on property, plant and equipment | — | (1,125,954) | ||||||
| Proceeds from asset sales | 3,721,116 | — | ||||||
| Net cash provided by (used in) investing activities | 3,721,116 | (1,125,954) | ||||||
| Financing activities | ||||||||
| Proceeds from issuance of debt | — | 117,292 | ||||||
| Repayment of term debt | (232,194) | (184,019) | ||||||
| Net cash used in financing activities | (232,194) | (66,727) | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 8,770 | (2,795) | ||||||
| Net change in cash, cash equivalents and restricted cash | 1,135,966 | (5,611,402) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 230,362 | 9,203,869 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,366,328 | $ | 3,592,467 | ||||
| Reconciliation of cash, cash equivalents and restricted cash reported | ||||||||
| in the consolidated balance sheet: | ||||||||
| Cash and cash equivalents | $ | 1,366,328 | $ | 2,592,467 | ||||
| Restricted cash | — | 1,000,000 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 1,366,328 | $ | 3,592,467 | ||||
| Supplemental disclosure of cash flow information and non-cash transactions: | ||||||||
| Interest paid in cash from continuing operations | $ | — | $ | 177,851 | ||||
| Interest paid in cash from discontinued operations | $ | 16,903 | $ | 27,322 | ||||
| Property and equipment included in accounts payable and accrued liabilities | $ | 9,137,864 | $ | 11,453,584 | ||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252256
FAQ
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