AquaBounty Technologies, Inc. Announces Results for the Year Ended December 31, 2019
March 10 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 year ended December 31, 2019.
Results Highlights:
Operational
- Sylvia Wulf assumed the position of Chief Executive Officer,
President, and Director;
- The U.S. Food and Drug Administration (“FDA”) lifted its Import
Alert, allowing the Company to import its AquAdvantage eggs from
its hatchery in Canada to its farm in Indiana;
- The Company’s Rollo Bay farm site received two regulatory
approvals: FDA approved the farm’s hatchery building, and
Environment and Climate Change Canada approved the farm’s
production facility for the commercial grow-out of AquAdvantage
Salmon;
- The Company’s Indiana farm received two batches of AquAdvantage
eggs and is now producing both conventional and AquAdvantage
Salmon, bringing total biomass at the farm to 160 tons at year
end;
- Closed the Panama demonstration farm;
- Received approval in China to conduct a field trial for
AquAdvantage Salmon; and
- Commenced marketing and communications activities, including
qualitative and quantitative consumer research in preparation for
commercialization.
Financial
- Completed two public offerings of common shares, raising net
funds of $12.4 million;
- The Company’s Canadian subsidiary received two construction
loan instalments totalling $900 thousand from the Department
of Economic Development of the Province of Prince Edward Island and
the Atlantic Canada Opportunities Agency; and
- Net loss for the year increased to $13.2 million (2018:
$10.4 million) with the ramp-up of production operations in
Indiana and Rollo Bay, increased legal fees in support of the FDA
legal challenge, and increased headcount.
Sylvia Wulf, Chief Executive Officer of
AquaBounty, commented: “This was a transformative year for
AquaBounty, as for the first time in the Company’s history we began
to grow-out our AquAdvantage Salmon in the United States.
Production of both AquAdvantage and conventional salmon at our
Indiana farm is progressing on track with conventional salmon
harvest commencing in late Q2 this year and AquAdvantage Salmon
harvest commencing in Q4. We also took steps during 2019 to
strengthen our balance sheet with two successful equity raises and
to strengthen our management team with the additions of Dave
Melbourne as Chief Commercial Officer and Angela Olsen as General
Counsel. We believe we are now well positioned to begin to
execute our commercial strategy with the harvest and sale of our
salmon from both our Indiana and Rollo Bay farms.”
Inquiries:
AquaBounty Technologies,
Inc.Dave Conley, Corporate
Communications +1 613 294
3078
Forward-Looking Statements:
This press release 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 potential harvest size,
initiation of a field trial and any related commercial operations
in China, and the potential for and timing of the harvest and sale
of our fish from our production farms. 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 |
|
|
As of |
|
December 31, |
|
2019 |
|
2018 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
2,798,744 |
|
|
$ |
3,002,557 |
|
Other receivables |
55,198 |
|
|
115,982 |
|
Inventory |
1,232,049 |
|
|
76,109 |
|
Prepaid expenses and other current assets |
391,162 |
|
|
315,969 |
|
Total current assets |
4,477,153 |
|
|
3,510,617 |
|
|
|
|
|
Property, plant and equipment,
net |
25,065,836 |
|
|
23,716,768 |
|
Right of use assets, net |
399,477 |
|
|
— |
|
Definite-lived intangible
assets, net |
157,588 |
|
|
171,292 |
|
Indefinite-lived intangible
assets |
101,661 |
|
|
191,800 |
|
Other
assets |
32,024 |
|
|
80,583 |
|
Total
assets |
$ |
30,233,739 |
|
|
$ |
27,671,060 |
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
1,462,809 |
|
|
$ |
824,900 |
|
Other current liabilities |
62,286 |
|
|
20,423 |
|
Current debt |
163,155 |
|
|
71,613 |
|
Total current liabilities |
1,688,250 |
|
|
916,936 |
|
|
|
|
|
Long-term lease
obligations |
352,808 |
|
|
— |
|
Long-term debt |
4,432,052 |
|
|
3,519,821 |
|
Total liabilities |
6,473,110 |
|
|
4,436,757 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.001 par value, 50,000,000 shares authorized; |
|
|
|
21,635,365, (2018: 15,098,837) shares outstanding |
21,635 |
|
|
15,099 |
|
Additional paid-in capital |
156,241,363 |
|
|
142,707,957 |
|
Accumulated other comprehensive loss |
(360,160 |
) |
|
(574,186 |
) |
Accumulated deficit |
(132,142,209 |
) |
|
(118,914,567 |
) |
Total
stockholders’ equity |
23,760,629 |
|
|
23,234,303 |
|
|
|
|
|
Total
liabilities and stockholders’ equity |
$ |
30,233,739 |
|
|
$ |
27,671,060 |
|
AquaBounty Technologies, Inc. |
Consolidated Statements of Operations and Comprehensive
Loss |
|
|
Years ended December 31, |
|
|
2019 |
|
2018 |
|
2017 |
Revenues |
|
|
|
|
|
Product Revenues |
$ |
186,738 |
|
|
$ |
84,518 |
|
|
$ |
53,278 |
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
Production costs |
3,573,858 |
|
|
2,626,353 |
|
|
1,193,566 |
|
Sales and marketing |
709,023 |
|
|
297,687 |
|
|
799,009 |
|
Research and development |
2,359,441 |
|
|
3,458,564 |
|
|
3,371,767 |
|
General and administrative |
6,723,060 |
|
|
4,067,710 |
|
|
3,921,035 |
|
Total costs and expenses |
13,365,382 |
|
|
10,450,314 |
|
|
9,285,377 |
|
|
|
|
|
|
|
Operating
loss |
(13,178,644 |
) |
|
(10,365,796 |
) |
|
(9,232,099 |
) |
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
Interest expense |
(62,988 |
) |
|
(22,257 |
) |
|
(21,537 |
) |
Other income (expense), net |
13,990 |
|
|
5,994 |
|
|
(5,011 |
) |
Total other income (expense) |
(48,998 |
) |
|
(16,263 |
) |
|
(26,548 |
) |
|
|
|
|
|
|
Net loss |
$ |
(13,227,642 |
) |
|
$ |
(10,382,059 |
) |
|
$ |
(9,258,647 |
) |
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
Foreign currency translation gain (loss) |
214,026 |
|
|
(360,302 |
) |
|
72,388 |
|
Total other comprehensive income (loss) |
214,026 |
|
|
(360,302 |
) |
|
72,388 |
|
|
|
|
|
|
|
Comprehensive loss |
$ |
(13,013,616 |
) |
|
$ |
(10,742,361 |
) |
|
$ |
(9,186,259 |
) |
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
Net loss |
$ |
(13,227,642 |
) |
|
$ |
(10,382,059 |
) |
|
$ |
(9,258,647 |
) |
Deemed dividend |
$ |
— |
|
|
$ |
(1,822,873 |
) |
|
$ |
— |
|
Net loss attributable to
common shareholders |
$ |
(13,227,642 |
) |
|
$ |
(12,204,932 |
) |
|
$ |
(9,258,647 |
) |
|
|
|
|
|
|
Basic and diluted net loss per
share attributable to common shareholders |
$ |
(0.66 |
) |
|
$ |
(0.94 |
) |
|
$ |
(1.06 |
) |
Weighted average number of
common shares -basic and diluted |
20,078,017 |
|
|
13,028,760 |
|
|
8,772,494 |
|
AquaBounty Technologies, Inc. |
Consolidated Statements of Cash Flows |
|
|
Years ended December 31, |
|
|
2019 |
|
2018 |
|
2017 |
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
Net loss |
$ |
(13,227,642 |
) |
|
$ |
(10,382,059 |
) |
|
$ |
(9,258,647 |
) |
Adjustment to reconcile net
loss to net cash used in |
|
|
|
|
|
operating activities: |
|
|
|
|
|
Depreciation and amortization |
1,285,902 |
|
|
843,387 |
|
|
184,946 |
|
Share-based compensation |
872,177 |
|
|
263,396 |
|
|
122,134 |
|
Gain on disposal of equipment |
(12,133 |
) |
|
(13,233 |
) |
|
(941 |
) |
Loss on asset held for sale |
149,800 |
|
|
— |
|
|
— |
|
Impairment loss |
103,116 |
|
|
— |
|
|
— |
|
Other non-cash charges |
— |
|
|
(1,364 |
) |
|
— |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Other receivables |
65,002 |
|
|
56,212 |
|
|
(11,440 |
) |
Inventory |
(1,154,222 |
) |
|
93,956 |
|
|
(169,991 |
) |
Prepaid expenses and other assets |
59,942 |
|
|
289,868 |
|
|
(592,602 |
) |
Accounts payable, accrued liabilities and other liabilities |
609,311 |
|
|
(966,928 |
) |
|
625,763 |
|
Net cash used in operating activities |
(11,248,747 |
) |
|
(9,816,765 |
) |
|
(9,100,778 |
) |
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
Purchase of property, plant
and equipment |
(2,316,809 |
) |
|
(4,009,736 |
) |
|
(18,893,264 |
) |
Deposits on equipment
purchases |
(160,675 |
) |
|
(95,001 |
) |
|
(153,663 |
) |
Proceeds from sale of
equipment |
15,848 |
|
|
23,233 |
|
|
941 |
|
Net cash used in investing activities |
(2,461,636 |
) |
|
(4,081,504 |
) |
|
(19,045,986 |
) |
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
Proceeds from issuance of
debt |
900,767 |
|
|
771,858 |
|
|
256,807 |
|
Repayment of term debt |
(85,802 |
) |
|
(55,615 |
) |
|
(35,812 |
) |
Proceeds from the issuance of
common stock and warrants, net |
12,395,348 |
|
|
10,616,046 |
|
|
24,989,257 |
|
Proceeds from exercise of
stock options and warrants, net |
272,417 |
|
|
5,116,533 |
|
|
27,502 |
|
Net cash provided by financing activities |
13,482,730 |
|
|
16,448,822 |
|
|
25,237,754 |
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents |
23,840 |
|
|
(54,279 |
) |
|
80,018 |
|
Net change in cash and cash
equivalents |
(203,813 |
) |
|
2,496,274 |
|
|
(2,828,992 |
) |
Cash and cash equivalents at
beginning of period |
3,002,557 |
|
|
506,283 |
|
|
3,335,275 |
|
Cash and cash equivalents at the end of
period |
$ |
2,798,744 |
|
|
$ |
3,002,557 |
|
|
$ |
506,283 |
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information and non-cash
transactions: |
|
|
|
|
|
Interest paid in cash |
$ |
62,988 |
|
|
$ |
22,257 |
|
|
$ |
21,537 |
|
Property and equipment
included in accounts payable and accrued liabilities |
$ |
210,270 |
|
|
$ |
193,378 |
|
|
$ |
1,036,240 |
|
Acquisition of equipment under
debt arrangement |
$ |
— |
|
|
$ |
74,068 |
|
|
— |
|
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