AquaBounty Technologies, Inc. Announces Results for the Quarter Ended March 31, 2019, and Company Update
May 02 2019 - 4:30PM
AquaBounty Technologies, Inc. (NASDAQ: AQB) (“AquaBounty” or the
“Company”), a biotechnology company focused on enhancing
productivity in the aquaculture market and a subsidiary of Intrexon
Corporation (NASDAQ: XON), announces the Company’s financial
results for the quarter ended March 31, 2019, and a general
update.
Q1 Results Highlights:
- The U.S. Food and Drug
Administration (FDA) lifted the Import Alert, allowing the Company
to stock AquAdvantage Salmon eggs at its Indiana farm;
- Environment and Climate Change
Canada approved the Company’s Rollo Bay production facility for the
commercial grow-out of AquAdvantage Salmon;
- completed a public offering of
common shares, raising net funds of $6.1 million; and
- net loss for the current quarter
increased to $2.76 million (2018: $2.45 million) with the
commencement of production operations in Indiana.
Sylvia Wulf, Chief Executive Officer of
AquaBounty, stated: “We ended the first quarter on a very positive
note with the FDA’s lifting of the Import Alert on AquAdvantage
Salmon and the successful completion of an equity fundraise.
The action by the FDA will allow us to stock our Indiana facility
with our fast-growing salmon eggs, while the new funding provides
us with the needed resources to improve our balance sheet and grow
out our fish at both our Indiana and Rollo Bay farms.”
Board Changes:
Ronald L. Stotish, AquaBounty’s former Chief
Executive Officer and current Chief Technology Officer, informed
the Company in March that he would be retiring at the end of June
after thirteen years of service and thus would not stand for
re-election as a member of the Company’s Board of Directors (the
“Board”) at its 2019 Annual Meeting of Stockholders. During
his tenure, Dr. Stotish led the Company’s campaign to obtain
regulatory approval of AquAdvantage Salmon, the world’s first food
animal to achieve such approval, both in the United States and
Canada. He was also instrumental in securing the necessary
financial support for the business and the construction of its
first production farms. Dr. Stotish commented that: “It has
been my great honour and pleasure to have led the team at
AquaBounty to this critical stage in its development and this
monumental accomplishment. I now look forward to watching the
Company move forward with its plans to grow and sell AquAdvantage
Salmon under the guidance of Sylvia Wulf, creating a new food
business in North America and internationally.”
Jack A. Bobo informed the Company of his
intention to resign from the Board and to withdraw as a director
nominee for election at AquaBounty’s 2019 Annual Meeting of
Stockholders in connection with his departure from his position as
Senior Vice President and Chief Communications Officer of Intrexon
Corporation, the Company’s largest shareholder. Mr. Bobo had
been a director since November 2015, providing his significant
expertise in the analysis and communication of global trends in
biotechnology, food, and agriculture. Mr. Bobo now plans to
focus his efforts on his new role as CEO of Futurity: Food -
Technology - Communications.
Jeffrey Perez, Senior Vice President,
Intellectual Property Affairs of Intrexon Corporation, has been
appointed to fill the open Board position. Before joining
Intrexon, Mr. Perez was Managing Director and Associate General
Counsel at Third Security, LLC, where he evaluated potential
investments of Third Security’s managed investment funds.
Prior to joining Third Security, Mr. Perez practiced law in
the area of intellectual property with the law firm of Hunton &
Williams LLP in Washington D.C.
2019 Annual Meeting of
Stockholders:
AquaBounty held its 2019 Annual Meeting of
Stockholders on April 30, 2019, at the Bostonian Boston
Hotel. At the meeting, the Company’s stockholders approved
the re-election of its six directors to the Board, ratified the
appointment of its independent registered public accounting firm,
and approved an amendment to its 2016 Equity Incentive Plan.
Operations Update:
With the recent action by the FDA to lift the
Import Alert on AquAdvantage Salmon, the Company can now stock and
grow the fish at its Indiana farm site. Consequently,
AquaBounty has determined that it is no longer necessary for the
Company to operate a farm in Panama. The site was originally
set up in 2008 as a demonstration grow-out location for
AquAdvantage Salmon in conjunction with the Company’s New Animal
Drug Application with the FDA.
Inquiries:
AquaBounty Technologies,
Inc.Dave Conley, Corporate
Communications +1 613 294
3078
Forward-Looking Statements:
This press release, including the attached
Chairman’s Statement, 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
stocking and grow-out of our fish at our Indiana and Rollo Bay
facilities, the harvesting and sale of our fish from our production
farms, and the development of a new business in North America and
internationally. 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 |
|
|
March 31, |
|
December 31, |
|
|
2019 |
|
2018 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
7,630,376 |
|
|
$ |
2,990,196 |
|
Certificate of deposit |
|
12,606 |
|
|
12,361 |
|
Other
receivables |
|
136,903 |
|
|
115,982 |
|
Inventory |
|
159,131 |
|
|
76,109 |
|
Prepaid expenses and other current assets |
|
261,176 |
|
|
315,969 |
|
Total
current assets |
|
8,200,192 |
|
|
3,510,617 |
|
|
|
|
|
|
Property, plant and
equipment, net |
|
23,934,625 |
|
|
23,716,768 |
|
Right of use assets,
net |
|
|
454,890 |
|
|
— |
|
Definite-lived
intangible assets, net |
|
167,866 |
|
|
171,292 |
|
Indefinite-lived
intangible assets |
|
191,800 |
|
|
191,800 |
|
Other
assets |
|
80,583 |
|
|
80,583 |
|
Total
assets |
|
$ |
33,029,956 |
|
|
$ |
27,671,060 |
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable and accrued liabilities |
|
$ |
958,058 |
|
|
$ |
824,900 |
|
Other
current liabilities |
|
84,253 |
|
|
20,423 |
|
Current debt |
|
90,200 |
|
|
71,613 |
|
Total
current liabilities |
|
1,132,511 |
|
|
916,936 |
|
|
|
|
|
|
Long-term lease
obligations |
|
399,935 |
|
|
— |
|
Long-term
debt |
|
3,941,010 |
|
|
3,519,821 |
|
Total liabilities |
|
5,473,456 |
|
|
4,436,757 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
Common
stock, $0.001 par value, 50,000,000 shares authorized; |
|
|
|
|
18,697,477 (2018: 15,098,837) shares outstanding |
|
18,697 |
|
|
15,099 |
|
Additional paid-in capital |
|
149,702,936 |
|
|
142,707,957 |
|
Accumulated other comprehensive loss |
|
(486,635) |
|
|
(574,186) |
|
Accumulated deficit |
|
(121,678,498) |
|
|
(118,914,567) |
|
Total
stockholders’ equity |
|
27,556,500 |
|
|
23,234,303 |
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
|
$ |
33,029,956 |
|
|
$ |
27,671,060 |
|
AquaBounty Technologies,
Inc.Consolidated Statements of Operations and
Comprehensive Loss(unaudited)
|
|
Three Months Ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
Revenues |
|
|
|
|
Product revenues |
|
$ |
97,885 |
|
|
$ |
19,097 |
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
Product
costs |
|
81,613 |
|
|
16,232 |
|
Sales and
marketing |
|
71,991 |
|
|
81,647 |
|
Research
and development |
|
663,481 |
|
|
977,817 |
|
General
and administrative |
|
2,036,493 |
|
|
1,386,873 |
|
Total costs and expenses |
|
2,853,578 |
|
|
2,462,569 |
|
|
|
|
|
|
Operating
loss |
|
(2,755,693) |
|
|
(2,443,472) |
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
Gain on
disposal of equipment |
|
— |
|
|
1,160 |
|
Interest
expense |
|
(13,338) |
|
|
(5,402) |
|
Other income (expense), net |
|
5,100 |
|
|
(2,073) |
|
Total other income (expense) |
|
(8,238) |
|
|
(6,315) |
|
|
|
|
|
|
Net loss |
|
$ |
(2,763,931) |
|
|
$ |
(2,449,787) |
|
|
|
|
|
|
Other
comprehensive income (loss): |
|
|
|
|
Foreign
currency translation income (loss) |
|
87,551 |
|
|
(112,118) |
|
Total other comprehensive income (loss) |
|
87,551 |
|
|
(112,118) |
|
|
|
|
|
|
Comprehensive loss |
|
$ |
(2,676,380) |
|
|
$ |
(2,561,905) |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share |
|
$ |
(0.18) |
|
|
$ |
(0.21) |
|
Weighted average number
of common shares - |
|
|
|
|
basic and
diluted |
|
15,687,681 |
|
|
11,940,874 |
|
|
|
|
|
|
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