AquaBounty Technologies Announces Second Quarter 2023 Financial Results
AquaBounty Technologies, Inc. announced its financial results for Q2 2023, reporting a year-over-year decrease of 26% in product revenue. The net loss for Q2 2023 was $6.5 million. Cash and cash equivalents totaled $43.8 million as of June 30, 2023.
Positive
AquaBounty's Indiana farm had its highest quarterly output to date, indicating potential for increased production. The company is exploring new business development opportunities and evaluating construction costs for its farm in Pioneer, Ohio.
Negative
AquaBounty experienced a significant decline in market prices for Atlantic salmon, impacting its second-quarter results. The net loss increased compared to the same period last year.
08/01/2023 - 08:00 AM
Maynard, Massachusetts--(Newsfile Corp. - August 1, 2023) - 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 second quarter and six months ended June 30, 2023.
Second Quarter 2023 Highlights and Recent Developments
Generated $788 thousand in product revenue in the second quarter, a year-over-year decrease of 26% as compared to $1.1 million in the second quarter of 2022. Net loss in the second quarter of 2023 was $6.5 million , as compared to $5.5 million in the second quarter of 2022. Cash and cash equivalents and restricted cash totaled $43.8 million as of June 30, 2023, as compared to $102.6 million as of December 31, 2022. Management Commentary
"Our second quarter results were impacted by a significant decline in market prices for Atlantic salmon, despite the fact that our Indiana farm had its highest quarterly output to date," said Sylvia Wulf, Board Chair and Chief Executive Officer of AquaBounty. "The demand for our fish continues to exceed our supply and we continue to identify opportunities to increase our production to meet this demand."
"We announced in early June that the Company was pausing the construction of our farm in Pioneer, Ohio due to a substantial increase in its estimated cost of completion. The Company is currently evaluating both the cost estimate and our options for moving forward, including alternative financing solutions to bring the project to completion. We previously announced our entry into a contractual commitment with a new construction firm who is assisting us in evaluating construction costs and who would lead construction of the facility going forward."
"Progress continues on the expansion of our broodstock and egg production capabilities at our farm on Prince Edward Island; and we continue to explore new business development opportunities which leverage our core strengths, and which could be applied to new species, including conventional salmon and other finfish, and new geographical territories worldwide. As always, I look forward to providing my fellow shareholders with an update in the near future," concluded Wulf.
About AquaBounty
At AquaBounty Technologies, Inc. (NASDAQ: AQB), we believe we are a leader in land-based sustainable aquaculture from start to finish. As a vertically integrated Company from broodstock to grow out, we are leveraging decades of expertise in fish breeding, genetics, and health & nutrition to deliver disruptive solutions that address food insecurity and climate change issues. We are committed to feeding the world efficiently, sustainably and profitably. 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, including a grow-out farm located in Indiana, United States and a broodstock and egg production farm located on 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 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" as defined in the Private Securities Litigation Reform Act of 1995, as amended, including regarding the timing of the contemplated bond financing; timing of construction; and expansion of potential business and partnership opportunities. 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," "moving forward," "believe," "will," "may," 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, among other things, the potential for additional delays and increased costs related to construction of our new farms and renovations to existing farms; a failure to raise additional capital to finance our activities on acceptable terms; an inability to produce and sell our products in sufficient volume and at acceptable cost and prices; any inability to protect our intellectual property and other proprietary rights and technologies; the effect of changes in applicable laws, regulations and policies; our ability to secure any necessary regulatory approvals; the degree of market acceptance of our products; our failure to retain and recruit key personnel; and the price and volatility of our common stock. 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 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 & Investor Contact: AquaBounty Technologies Dave Conley Corporate Communications (613) 294-3078
Media Contact: Vince McMorrow Fahlgren Mortine (614) 906-1671vince.mcmorrow@Fahlgren.com
AquaBounty Technologies, Inc. Condensed Consolidated Balance Sheets (Unaudited)
June 30, December 31, 2023 2022 Assets Current assets: Cash and cash equivalents $ 42,842,280 $ 101,638,557 Inventory 2,353,616 2,276,592 Prepaid expenses and other current assets 3,375,949 2,133,583 Total current assets 48,571,845 106,048,732 Property, plant and equipment, net 160,174,487 106,286,186 Right of use assets, net 205,565 222,856 Intangible assets, net 211,287 218,139 Restricted cash 1,000,000 1,000,000 Other assets 52,793 64,859 Total assets $ 210,215,977 $ 213,840,772 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued liabilities $ 20,875,113 $ 12,000,592 Accrued employee compensation 943,248 1,021,740 Current debt 2,406,147 2,387,231 Other current liabilities 4,586 20,830 Total current liabilities 24,229,094 15,430,393 Long-term lease obligations 200,979 203,227 Long-term debt, net 6,441,077 6,286,109 Total liabilities 30,871,150 21,919,729 Commitments and contingencies Stockholders' equity: Common stock, $0.00 1 par value, 150,000,000 shares authorized at June 30, 2023 and December 31, 2022; 71,345,649 and 71,110,713 shares outstanding at June 30, 2023 and December 31, 2022, respectively 71,346 71,111 Additional paid-in capital 385,691,274 385,388,684 Accumulated other comprehensive loss (401,002 ) (516,775 Accumulated deficit (206,016,791 ) (193,021,977 Total stockholders' equity 179,344,827 191,921,043 Total liabilities and stockholders' equity $ 210,215,977 $ 213,840,772
AquaBounty Technologies, Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues Product revenues $ 788,430 $ 1,069,706 $ 1,186,276 $ 2,032,587 Costs and expenses Product costs 3,790,878 3,250,106 7,350,118 6,525,796 Sales and marketing 194,254 349,917 392,539 597,489 Research and development 178,394 208,292 301,311 375,481 General and administrative 3,067,533 2,831,930 6,068,015 5,208,166 Total costs and expenses 7,231,059 6,640,245 14,111,983 12,706,932 Operating loss (6,442,629 ) (5,570,539 ) (12,925,707 ) (10,674,345 Other expense Interest expense (65,789 ) (74,694 ) (132,063 ) (149,982 Other (expense) income, net (328 ) 109,191 62,956 176,559 Total other (expense) income (66,117 ) 34,497 (69,107 ) 26,577 Net loss $ (6,508,746 ) $ (5,536,042 ) $ (12,994,814 ) $ (10,647,768 Other comprehensive income (loss): Foreign currency translation gain (loss) 111,346 (153,602 ) 115,773 (70,697 Unrealized gain on marketable securities - 121,796 - 7,731 Total other comprehensive income (loss) 111,346 (31,806 ) 115,773 (62,966 Comprehensive loss $ (6,397,400 ) $ (5,567,848 ) $ (12,879,041 ) $ (10,710,734 Basic and diluted net loss per share $ (0.09 ) $ (0.08 ) $ (0.18 ) $ (0.15 Weighted average number of Common Shares - basic and diluted 71,344,025 71,068,671 71,256,782 71,036,562
AquaBounty Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended June 30, 2023 2022 Operating activities Net loss $ (12,994,814 ) $ (10,647,768 Adjustment to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,066,476 988,292 Share-based compensation 302,825 318,608 Other non-cash charge 9,408 14,860 Changes in operating assets and liabilities: Inventory (74,789 ) (661,090 Prepaid expenses and other assets (1,225,343 ) (2,883,505 Accounts payable and accrued liabilities 748,443 1,705,335 Accrued employee compensation (78,492 ) (91,140 Net cash used in operating activities (12,246,286 ) (11,256,408 Investing activities Purchases of and deposits on property, plant and equipment (46,586,998 ) (30,472,704 Maturities of marketable securities - 120,047,915 Purchases of marketable securities - (47,621,291 Other investing activities (3,263 ) 12,500 Net cash (used in) provided by investing activities (46,590,261 ) 41,966,420 Financing activities Proceeds from issuance of debt 394,156 42,338 Repayment of term debt (359,704 ) (318,600 Proceeds from the exercise of stock options and warrants - 1,538 Net cash provided by (used in) financing activities 34,452 (274,724 Effect of exchange rate changes on cash, cash equivalents and restricted cash 5,818 (1,387 Net change in cash, cash equivalents and restricted cash (58,796,277 ) 30,433,901 Cash, cash equivalents and restricted cash at beginning of period 102,638,557 89,454,988 Cash, cash equivalents and restricted cash at end of period $ 43,842,280 $ 119,888,889 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents $ 42,842,280 $ 118,888,889 Restricted cash 1,000,000 1,000,000 Total cash, cash equivalents and restricted cash $ 43,842,280 $ 119,888,889 Supplemental disclosure of cash flow information and non-cash transactions: Interest paid in cash $ 124,430 $ 141,490 Property and equipment included in accounts payable and accrued liabilities $ 18,682,066 $ 3,758,842
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What were AquaBounty's financial results for Q2 2023?
AquaBounty reported a year-over-year decrease of 26% in product revenue and a net loss of $6.5 million for Q2 2023.
What is the current cash position of AquaBounty?
As of June 30, 2023, AquaBounty had $43.8 million in cash and cash equivalents.
What is the status of AquaBounty's farm in Pioneer, Ohio?
The construction of the farm in Pioneer, Ohio has been paused due to a substantial increase in its estimated cost of completion. The company is evaluating cost estimates and exploring alternative financing solutions.
What is AquaBounty's strategy for growth?
AquaBounty is expanding its broodstock and egg production capabilities at its farm on Prince Edward Island. The company is also exploring new business development opportunities and considering new species and geographical territories.