AquaBounty Technologies, Inc. Announces Results for the Quarter and Nine Months Ended September 30, 2020 and Provides a Cor...
November 03 2020 - 4:05PM
AquaBounty Technologies, Inc. (NASDAQ: 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, 2020 along with a corporate update.
Key Highlights
- Commenced harvesting of conventional Atlantic salmon in June at
the Company’s Indiana farm, validating its land-based Recirculating
Aquaculture System as an efficient and sustainable way to raise
Atlantic salmon.
- Growth and feed conversion ratio targets for the Company’s
AquAdvantage salmon (AAS) are tracking as expected, validating the
economics and preparing the company for the imminent first-ever
harvest of AAS.
- Identified Mayfield in Graves County, Kentucky as the leading
site location for its planned large-scale farm designed for the
Company’s proprietary AquAdvantage salmon after an exhaustive
nationwide search spanning approximately 230 sites.
- Raised gross proceeds of $31.6 million through an underwritten
public offering of 12.65 million shares of common stock at a price
of $2.50 per share.
Management Commentary“The third quarter of 2020
was marked by our continued progress towards the first-ever
commercial scale harvest of AquAdvantage salmon,” said Sylvia Wulf,
Chief Executive Officer of AquaBounty. “In the second quarter, we
successfully started harvesting conventional salmon with the
intention of refining the processes, operating procedures and
partner relationships required for the first harvest of AAS. The
foundational work with these first conventional harvests was
crucial as it has allowed us to implement the necessary logistical
and operational processes for a successful and de-risked first
harvest of AAS, including refinements of quality and productivity
operational parameters. Today, I am pleased to announce that
AquAdvantage salmon are meeting our growth and feed conversion
ratio expectations—a key component of their economic profile—and we
have made tremendous strides towards building out an enhanced
logistics network to expand our distribution capabilities
nationwide.
“While we prepare for the first harvest of AAS and scale our
conventional salmon harvesting efforts, we continue to closely
monitor overall market demand for salmon given COVID-19’s impact on
the food service industry. That said, we will remain flexible in
efforts to maximize revenue and capitalize on the recovery of food
service end-markets and in the meantime, continue to form
relationships with additional customers who continue to be
receptive to our sustainably grown salmon. To that end, we are now
preparing to send out the initial AAS product samples for customer
feedback which we expect to be positive given its benefits of
competitive pricing, freshness, quality and domestic sourcing in
America’s heartland.
“Given this positive momentum in our business, we are also
aggressively moving forward with the planning for our first
large-scale farm, which is anticipated to have the capacity to
produce 10,000 metric tons of AquAdvantage salmon annually. We’ve
selected Mayfield in Graves County, Kentucky as the leading
location as it met all of the previously determined technical,
environmental and economic requirements and we are now completing
due diligence and beginning purchase negotiations.”
“Given our strong balance sheet, the impending first-ever
commercial harvest of AAS and the planned construction of our next
farm, AquaBounty is in a better position than ever to drive
long-term value for our shareholders and become a major domestic
supplier of fresh, sustainable salmon,” concluded Wulf.
Third Quarter Financial Summary
- Revenue in the third
quarter of 2020 was $68,000, as compared to no revenue in the same
period of the prior year.
- Operating expenses
in the third quarter of 2020 were $3.7 million, as compared to $3.0
million in the same period of the prior year. The increase in
operating expenses was due to increased production operations and
legal fees.
- Cash used for
capital projects for the three months ended September 30, 2020
was $1.1 million compared with $0.9 million in the same
period of the prior year. The increase was a result of on-going
improvements to the Indiana farm.
- Cash, cash
equivalents and restricted cash were $39.5 million as of
September 30, 2020, compared with $2.8 million at
December 31, 2019. In August 2020, the Company fortified its
balance sheet with gross proceeds of $31.6 million from a public
offering of common stock.
- Net loss in the
third quarter of 2020 was $3.6 million, as compared to $3.0 million
in the same period of the prior year.
About AquaBounty Technologies, Inc.AquaBounty
Technologies, Inc. (Nasdaq: AQB) 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.
The Company’s AquAdvantage fish program is based upon a single,
specific molecular modification in fish that results in more rapid
growth in early development. With aquaculture facilities located in
Prince Edward Island, Canada, and Indiana, USA, AquaBounty is
raising its disease-free, antibiotic-free salmon in land-based
recirculating aquaculture systems, offering a reduced carbon
footprint and no risk of pollution of marine ecosystems as compared
to traditional sea-cage farming. For more information, please visit
www.aquabounty.com.
Forward-Looking StatementsThis press release
contains “forward-looking statements” as defined in the Private
Securities Litigation Reform Act of 1995, as amended, that involve
significant risks and uncertainties about AquaBounty. AquaBounty
may use words such as “expect,” “anticipate,” “project,” “intend,”
“plan,” “aim,” “believe,” “seek,” “estimate,” “can,” “focus,”
“will,” and “may” 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 risks relating to, among other
things, whether or not AquaBounty will be able to raise capital,
market and other conditions, AquaBounty’s business and financial
condition, and the impact of general economic, public health,
industry or political conditions in the United States or
internationally. For additional disclosure regarding these and
other risks faced by AquaBounty, see disclosures contained in
AquaBounty’s public filings with the SEC, including the “Risk
Factors” in the company’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. You should consider these factors in
evaluating the forward-looking statements included in this press
release and not place undue reliance on such statements. The
forward-looking statements are made as of the date hereof, and
AquaBounty undertakes no obligation to update such statements as a
result of new information, except as required by law.
Company Contact:AquaBounty TechnologiesDave
ConleyCorporate Communications(613) 294-3078
Investor Relations:Greg Falesnik or Luke
ZimmermanMZ Group - MZ North America(949)
259-4987AQB@mzgroup.us
AquaBounty Technologies,
Inc.Consolidated Balance
Sheets(Unaudited)
|
As of |
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
38,989,366 |
|
|
$ |
2,798,744 |
|
Other receivables |
62,034 |
|
|
55,198 |
|
Inventory |
2,869,470 |
|
|
1,232,049 |
|
Prepaid expenses and other current assets |
820,193 |
|
|
391,162 |
|
Total current assets |
42,741,063 |
|
|
4,477,153 |
|
|
|
|
|
Property, plant and equipment,
net |
25,699,143 |
|
|
25,065,836 |
|
Right of use assets, net |
356,788 |
|
|
399,477 |
|
Definite-lived intangible
assets, net |
147,311 |
|
|
157,588 |
|
Indefinite-lived intangible
assets |
101,661 |
|
|
101,661 |
|
Restricted cash |
500,000 |
|
|
— |
|
Other
assets |
50,213 |
|
|
32,024 |
|
Total
assets |
$ |
69,596,179 |
|
|
$ |
30,233,739 |
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
2,116,877 |
|
|
$ |
1,462,809 |
|
Current lease liabilities and other |
62,627 |
|
|
62,286 |
|
Current debt |
152,501 |
|
|
163,155 |
|
Total current liabilities |
2,332,005 |
|
|
1,688,250 |
|
|
|
|
|
Long-term lease
obligations |
306,174 |
|
|
352,808 |
|
Long-term debt, net |
8,425,552 |
|
|
4,432,052 |
|
Total liabilities |
11,063,731 |
|
|
6,473,110 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.001 par value, 50,000,000 shares authorized;
44,916,926 (2019: 21,635,365) shares outstanding |
44,917 |
|
|
21,635 |
|
Additional paid-in capital |
201,402,983 |
|
|
156,241,363 |
|
Accumulated other comprehensive loss |
(490,153 |
) |
|
(360,160 |
) |
Accumulated deficit |
(142,425,299 |
) |
|
(132,142,209 |
) |
Total
stockholders’ equity |
58,532,448 |
|
|
23,760,629 |
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
69,596,179 |
|
|
$ |
30,233,739 |
|
|
|
|
|
|
|
|
|
AquaBounty Technologies,
Inc.Consolidated Statements of Operations and
Comprehensive Loss(Unaudited)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
Product revenues |
$ |
67,763 |
|
|
$ |
— |
|
|
$ |
77,466 |
|
|
$ |
140,371 |
|
|
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
|
|
Production costs |
1,355,939 |
|
|
846,306 |
|
|
3,238,689 |
|
|
2,649,674 |
|
Sales and marketing |
143,646 |
|
|
206,256 |
|
|
331,868 |
|
|
381,637 |
|
Research and development |
458,462 |
|
|
446,582 |
|
|
1,662,879 |
|
|
1,923,512 |
|
General and administrative |
1,722,874 |
|
|
1,500,448 |
|
|
5,053,608 |
|
|
4,960,553 |
|
Total costs and expenses |
3,680,921 |
|
|
2,999,592 |
|
|
10,287,044 |
|
|
9,915,376 |
|
|
|
|
|
|
|
|
|
Operating
loss |
(3,613,158 |
) |
|
(2,999,592 |
) |
|
(10,209,578 |
) |
|
(9,775,005 |
) |
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
Interest expense |
(38,335 |
) |
|
(17,933 |
) |
|
(73,527 |
) |
|
(45,483 |
) |
Other income (expense), net |
1,705 |
|
|
(697 |
) |
|
15 |
|
|
11,603 |
|
Total other income (expense) |
(36,630 |
) |
|
(18,630 |
) |
|
(73,512 |
) |
|
(33,880 |
) |
|
|
|
|
|
|
|
|
Net loss |
$ |
(3,649,788 |
) |
|
$ |
(3,018,222 |
) |
|
$ |
(10,283,090 |
) |
|
$ |
(9,808,885 |
) |
|
|
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
Foreign currency translation gain (loss) |
86,491 |
|
|
(38,892 |
) |
|
(129,993 |
) |
|
133,448 |
|
Total other comprehensive income (loss) |
86,491 |
|
|
(38,892 |
) |
|
(129,993 |
) |
|
133,448 |
|
|
|
|
|
|
|
|
|
Comprehensive loss |
$ |
(3,563,297 |
) |
|
$ |
(3,057,114 |
) |
|
$ |
(10,413,083 |
) |
|
$ |
(9,675,437 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.09 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.50 |
) |
Weighted average number of
Common Shares - |
|
|
|
|
|
|
|
basic and diluted |
38,911,054 |
|
|
21,604,072 |
|
|
32,756,074 |
|
|
19,556,607 |
|
|
|
|
|
|
|
|
|
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