Business
AquaBounty Technologies Announces Second Quarter 2024 Financial Results
Harvard, Massachusetts--(Newsfile Corp. - August 6, 2024) - AquaBounty Technologies, Inc. (NASDAQ: AQB) ("AquaBounty" or the "Company"), a land-based
About this update from Aquabounty Technologies, Inc.
[{"type":"text","content":"Harvard, Massachusetts--(Newsfile Corp. - August 6, 2024) - 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, 2024.\nSecond Quarter 2024 Highlights and Recent Developments\n\nNet loss in the second quarter of 2024 was up significantly at $50.5 million as compared to $6.5 million in the second quarter of 2023. The current period loss included a non-cash impairment charge of $44.5 million against the long-lived assets of the Indiana farm and certain equipment from the Ohio farm, which have been sold or made available for sale.\nCash, cash equivalents and restricted cash totaled $0.7 million as of June 30, 2024, as compared to $9.2 million as of December 31, 2023.\nOn April 18, 2024, the Company executed a bridge loan agreement for $10.0 million, secured by the assets of its Indiana and Ohio farms. The Company utilized $6.5 million from the facility, which was repaid on July 26, 2024.\nThe sale of the Indiana farm, which included certain equipment from the Ohio farm, was completed on July 26, 2024 for $9.2 million, net of expenses.\nOn June 7, 2024, David F. Melbourne Jr. was promoted to Chief Executive Officer, in conjunction with the Company's succession plan. Sylvia Wulf continues as the non-executive Chair of AquaBounty's Board of Directors.\n\nManagement Commentary\n\"Our focus during the second quarter was securing a buyer for the Indiana farm and continuing to explore a variety of financing initiatives to maintain liquidity,\" said Dave Melbourne, AquaBounty's President and Chief Executive Officer. \"With the sale of the Indiana farm now complete, we will continue to work with our investment banking partner to extend our cash runway, including the sale of additional equipment assets from our Ohio farm.\n\"While our net loss in the second quarter was up significantly, driven in large part by the non-cash impairment charge taken against our farm assets, the team continues to identify opportunities to preserve cash and reduce operating expenses. We completed a sale of conventional Atlantic salmon eggs from our Prince Edward Island (\"PEI\") operations' winter spawn to a large net-pen salmon farmer at t...