AquaBounty Technologies, Inc. Results for the second quarter and first half ended June 30, 2017
August 04 2017 - 4:30PM
AquaBounty Technologies, Inc. (NASDAQ:AQB) (“AquaBounty” or the
“Company”), a biotechnology company focused on enhancing
productivity in the aquaculture market and a majority-owned
subsidiary of Intrexon Corporation (NYSE:XON), announces the
Company’s financial results for the second quarter and first half
ended June 30, 2017.
Financial and Operational
Summary:
- Significant operational progress made in advancing the
Company’s commercial plans;
- Further to receiving regulatory approval from Health Canada and
the Canadian Food Inspection Agency last year, sold approximately
five tons of fresh AquAdvantage® Salmon fillets at market price to
customers in Canada;
- Purchased certain assets of the Bell Fish Company LLC farm site
in Albany, Indiana, for $14.2 million, including legal and
other transaction costs;
- Received provincial approval from the Prince Edward Island
regulatory authorities to construct a broodstock facility and a
grow-out facility on the Company’s Rollo Bay site;
- Completed the de-listing of the Company’s common shares from
trading on AIM; and
- Net loss for the three-month period ended June 30, 2017,
was relatively flat at $2.1 million compared to the
corresponding period of the previous year.
During the current quarter, the Company
recognized $53 thousand of revenue on sales of AquAdvantage
Salmon fillets. Operating expenses were up slightly to
$2.1 million in the current period from $2.0 million in
the corresponding period of the previous year, primarily due to the
increased costs associated with being a public company in the
United States.
Ronald Stotish, Chief Executive Officer of
AquaBounty, stated: “This quarter marked two milestone events for
AquaBounty—the purchase of our first commercial farm site for the
production of our eco-friendly AquAdvantage Salmon in the United
States and the very first sales of AquAdvantage Salmon. The
sale and discussions with potential buyers clearly demonstrate that
customers want our fish, and we look forward to increasing our
production capacity to meet demand.”
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements other than statements of
historical fact contained in this press release are forward-looking
statements, including statements regarding the construction of a
broodstock facility and grow-out facility on the Company’s Rollo
Bay site; the production of AquAdvantage Salmon in the United
States; customer demand for AquAdvantage Salmon; and an increase in
production capacity. 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, 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 |
|
|
|
June 30, |
December 31, |
|
|
|
|
2017 |
|
|
2016 |
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and
cash equivalents |
$ |
7,991,382 |
|
$ |
3,324,609 |
|
|
Certificate
of deposit |
|
12,972 |
|
|
10,666 |
|
|
Other
receivables |
|
161,039 |
|
|
164,743 |
|
|
Inventory |
|
78,275 |
|
|
- |
|
|
Prepaid expenses and other assets |
|
352,772 |
|
|
72,983 |
|
|
Total
current assets |
|
8,596,440 |
|
|
3,573,001 |
|
|
|
|
|
|
Property,
plant and equipment, net |
|
17,906,075 |
|
|
1,723,707 |
|
Definite
lived intangible assets, net |
|
191,847 |
|
|
198,698 |
|
Indefinite
lived intangible assets |
|
191,800 |
|
|
191,800 |
|
Other assets |
|
21,628 |
|
|
21,628 |
|
Total assets |
$ |
26,907,790 |
|
$ |
5,708,834 |
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
Current
liabilities: |
|
|
|
Accounts
payable and accrued liabilities |
$ |
949,495 |
|
$ |
1,017,851 |
|
|
Current debt |
|
53,089 |
|
|
17,913 |
|
|
Total
current liabilities |
|
1,002,584 |
|
|
1,035,764 |
|
|
|
|
|
|
Long-term debt |
|
2,952,668 |
|
|
2,645,015 |
|
|
Total
liabilities |
|
3,955,252 |
|
|
3,680,779 |
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common
stock, $0.001 par value, 200,000,000 shares authorized; |
|
|
|
8,895,094 (2016:
6,463,936) shares outstanding |
|
8,895 |
|
|
6,464 |
|
|
Additional
paid-in capital |
|
126,644,804 |
|
|
101,581,724 |
|
|
Accumulated
other comprehensive loss |
|
(278,121 |
) |
|
(286,272 |
) |
|
Accumulated deficit |
|
(103,423,040 |
) |
|
(99,273,861 |
) |
Total stockholders' equity |
|
22,952,538 |
|
|
2,028,055 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
26,907,790 |
|
$ |
5,708,834 |
|
|
|
|
|
|
AquaBounty Technologies, Inc. |
Consolidated Statements of Operations and
Comprehensive Loss |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
2017 |
|
|
2016 |
|
Revenues |
|
|
|
|
|
|
|
Product
revenues |
$ |
53,278 |
|
$ |
- |
|
|
$ |
53,278 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
Product
costs |
|
50,777 |
|
|
- |
|
|
|
50,777 |
|
|
- |
|
|
Sales and
marketing |
|
202,910 |
|
|
239,142 |
|
|
|
411,198 |
|
|
440,519 |
|
|
Research
and development |
|
936,317 |
|
|
915,741 |
|
|
|
1,656,339 |
|
|
1,730,998 |
|
|
General and
administrative |
|
950,348 |
|
|
824,138 |
|
|
|
2,071,136 |
|
|
1,603,663 |
|
|
Total costs and expenses |
|
2,140,352 |
|
|
1,979,021 |
|
|
|
4,189,450 |
|
|
3,775,180 |
|
|
|
|
|
|
|
|
|
Operating loss |
|
(2,087,074 |
) |
|
(1,979,021 |
) |
|
|
(4,136,172 |
) |
|
(3,775,180 |
) |
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
Interest
expense |
|
(5,253 |
) |
|
(83,333 |
) |
|
|
(10,533 |
) |
|
(107,639 |
) |
|
Gain on
disposal of equipment |
|
- |
|
|
- |
|
|
|
- |
|
|
2,861 |
|
|
Other income (expense), net |
|
(1,109 |
) |
|
(1,482 |
) |
|
|
(2,474 |
) |
|
(2,855 |
) |
|
Total other income (expense) |
|
(6,362 |
) |
|
(84,815 |
) |
|
|
(13,007 |
) |
|
(107,633 |
) |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,093,436 |
) |
$ |
(2,063,836 |
) |
|
$ |
(4,149,179 |
) |
$ |
(3,882,813 |
) |
|
|
|
|
|
|
|
|
Other comprehensive income (loss): |
|
|
|
|
|
|
Foreign
currency translation gain (loss) |
|
22,437 |
|
|
(3,182 |
) |
|
|
8,151 |
|
|
(100,175 |
) |
|
Total other comprehensive income (loss) |
|
22,437 |
|
|
(3,182 |
) |
|
|
8,151 |
|
|
(100,175 |
) |
|
|
|
|
|
|
|
|
Comprehensive loss |
$ |
(2,070,999 |
) |
$ |
(2,067,018 |
) |
|
$ |
(4,141,028 |
) |
$ |
(3,982,988 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net loss per share |
$ |
(0.24 |
) |
$ |
(0.39 |
) |
|
$ |
(0.48 |
) |
$ |
(0.74 |
) |
Weighted
average number of common shares - |
|
|
|
|
|
|
basic and
diluted |
|
8,892,213 |
|
|
5,250,504 |
|
|
|
8,647,861 |
|
|
5,249,405 |
|
|
|
|
|
|
|
|
|
For further information, please contact:
Dave Conley, Director of Communications
AquaBounty Technologies, Inc.
+1 613 294 3078
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