AquaBounty Technologies Announces First Quarter 2023 Financial Results

About this update from Aquabounty Technologies, Inc.

Maynard, Massachusetts --( Newsfile Corp. - May 4, 2023 ) - 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 quarter ended March 31, 2023 . First Quarter 2023 Highlights and Recent Developments Generated $398 thousand in product revenue in the first quarter, a year-over-year decrease of 59% as compared to $963 thousand in the first quarter of 2022. Net loss in the first quarter of 2023 was $6.5 million , as compared to $5.1 million in the first quarter of 2022. Construction activities for the Pioneer, Ohio farm site continued to progress. Cash and cash equivalents and restricted cash totaled $73.8 million as of March 31, 2023 , as compared to $102.6 million as of December 31, 2022 . Management Commentary "Our first quarter results were impacted by the need to conduct planned repairs to our Indiana farm," said Sylvia Wulf , Chief Executive Officer of AquaBounty . "The year-over-year revenue decline for the quarter was related to the scheduled downtime needed to make facility repairs. Additionally, with the transition of our PEI grow-out facility to broodstock maintenance and egg production last August, we no longer are harvesting GE salmon from that farm. Demand for our fish continues to exceed our supply, and during March the Indiana farm had its highest monthly harvest output to date. "We continue to make progress on the construction of our new farm in Pioneer, Ohio and we encourage our investors to view the pictures and drone footage that we've made available on our website to document the farm's progression. The timing for the closing of our bond financing is still expected to be mid-year and we are closely monitoring bond interest rates, project cost estimates and the general economic environment. "We are also moving forward in growth areas outside of GE salmon, including expansion of our conventional salmon egg and fry business and potential partnerships in conventional salmon farming outside of North America . I look forward to providing my fellow shareholders with an update in the near future," concluded Wulf. About AquaBounty At AquaBounty Technologies, Inc. (NASDAQ: AQB), we believe we are a leader in the field of land-based aquaculture and the use of technology for improving its productivity and sustainability. Our objective is to ensure the availability of high-quality seafood to meet growing global consumer demand, while addressing critical production constraints in the most popular farmed species. AquaBounty provides fresh Atlantic salmon to nearby markets by raising its fish in carefully monitored land-based fish farms through a safe, secure and sustainable process. AquaBounty's land-based Recirculating Aquaculture System ("RAS") farms, located in Indiana , United States and Prince Edward Island, Canada , are close to key consumption markets and are designed to prevent disease and to include multiple levels of fish containment to protect wild fish populations. AquaBounty is raising nutritious salmon that is free of antibiotics and contaminants and provides a solution with a reduced carbon footprint without the risk of pollution to marine ecosystems as compared to traditional sea-cage farming. For more information on AquaBounty , please visit www.aquabounty.com or follow us on Facebook , Twitter , LinkedIn and Instagram . Forward-Looking Statements This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, as amended, including regarding the timing of the contemplated bond financing; timing of construction; and expansion of potential business and partnership opportunities. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these statements because they involve significant risks and uncertainties about AquaBounty . AquaBounty may use words such as "expect," "anticipate," "continue," "project," "plan," "moving forward," "believe," "will," "may," the negative forms of these words 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, among other things, the potential for delays and increased costs related to construction of our new farms and renovations to existing farms; a failure to raise additional capital to finance our activities on acceptable terms; an inability to produce and sell our products in sufficient volume and at acceptable cost and prices; any inability to protect our intellectual property and other proprietary rights and technologies; the effect of changes in applicable laws, regulations and policies; our ability to secure any necessary regulatory approvals; the degree of market acceptance of our products; our failure to retain and recruit key personnel; and the price and volatility of our common stock. Forward-looking statements speak only as of the date hereof, and, except as required by law, AquaBounty undertakes no obligation to update or revise these forward-looking statements. For information regarding the 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 . Company Contact: AquaBounty Technologies Dave Conley Corporate Communications (613) 294-3078 Media Contact: Vince McMorrow Fahlgren Mortine (614) 906-1671 [email protected] Investor Relations: Lucas A. Zimmerman MZ Group - MZ North America (949) 259-4987 [email protected] AquaBounty Technologies, Inc. Condensed Consolidated Balance Sheets (Unaudited) March 31 , December 31 , 2023 2022 Assets Current assets: Cash and cash equivalents $ 72,776,543 $ 101,638,557 Inventory 2,376,207 2,276,592 Prepaid expenses and other current assets 2,290,836 2,133,583 Total current assets 77,443,586 106,048,732 Property, plant and equipment, net 127,357,662 106,286,186 Right of use assets, net 206,734 222,856 Intangible assets, net 214,713 218,139 Restricted cash 1,000,000 1,000,000 Other assets 65,162 64,859 Total assets $ 206,287,857 $ 213,840,772 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued liabilities $ 10,836,269 $ 12,000,592 Accrued employee compensation 704,925 1,021,740 Current debt 2,377,781 2,387,231 Other current liabilities 4,631 20,830 Total current liabilities 13,923,606 15,430,393 Long-term lease obligations 202,103 203,227 Long-term debt, net 6,526,105 6,286,109 Total liabilities 20,651,814 21,919,729 Commitments and contingencies Stockholders' equity: Common stock, $0.001 par value, 150,000,000 shares authorized at March 31, 2023 and December 31, 2022 ; 71,338,938 and 71,110,713 shares outstanding at March 31 , 2023 and December 31, 2022 , respectively 71,339 71,111 Additional paid-in capital 385,585,097 385,388,684 Accumulated other comprehensive loss (512,348) (516,775) Accumulated deficit (199,508,045) (193,021,977) Total stockholders' equity 185,636,043 191,921,043 Total liabilities and stockholders' equity $ 206,287,857 $ 213,840,772 AquaBounty Technologies, Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) Three Months Ended March 31 , 2023 2022 Revenues Product revenues $ 397,846 $ 962,881 Costs and expenses Product costs 3,559,240 3,275,690 Sales and marketing 198,285 247,572 Research and development 122,917 167,189 General and administrative 3,000,482 2,376,236 Total costs and expenses 6,880,924 6,066,687 Operating loss (6,483,078) (5,103,806) Other expense Interest expense (66,274) (75,288) Other income, net 63,284 67,368 Total other expense (2,990) (7,920) Net loss $ (6,486,068) $ (5,111,726) Other comprehensive income (loss): Foreign currency translation gain 4,427 82,905 Unrealized loss on marketable securities - (114,065) Total other comprehensive income (loss) 4,427 (31,160) Comprehensive loss $ (6,481,641) $ (5,142,886) Basic and diluted net loss per share $ (0.09) $ (0.07) Weighted average number of Common Shares - basic and diluted 71,169,277 71,004,454 AquaBounty Technologies, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31 , 2023 2022 Operating activities Net loss $ (6,486,068) $ (5,111,726) Adjustment to reconcile net loss to net cash used in operating activities: Depreciation and amortization 531,726 490,563 Share-based compensation 196,641 211,328 Other non-cash charge 3,834 4,251 Changes in operating assets and liabilities: Inventory (99,936) (411,794) Prepaid expenses and other assets (155,167) (139,671) Accounts payable and accrued liabilities 184,232 (6,949) Accrued employee compensation (316,815) (362,416) Net cash used in operating activities (6,141,553) (5,326,414) Investing activities Purchases of and deposits on property, plant and equipment (22,931,293) (5,762,143) Maturities of marketable securities - 45,915,851 Purchases of marketable securities - (47,621,291) Other investing activities (3,959) - Net cash used in investing activities (22,935,252) (7,467,583) Financing activities Proceeds from issuance of debt 394,156 - Repayment of term debt (179,392) (159,304) Net cash provided by (used in) financing activities 214,764 (159,304) Effect of exchange rate changes on cash, cash equivalents and restricted cash 27 8,106 Net change in cash, cash equivalents and restricted cash (28,862,014) (12,945,195) Cash, cash equivalents and restricted cash at beginning of period 102,638,557 89,454,988 Cash, cash equivalents and restricted cash at end of period $ 73,776,543 $ 76,509,793 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents $ 72,776,543 $ 75,509,793 Restricted cash 1,000,000 1,000,000 Total cash, cash equivalents and restricted cash $ 73,776,543 $ 76,509,793 Supplemental disclosure of cash flow information and non-cash transactions: Interest paid in cash $ 62,439 $ 71,037 Property and equipment included in accounts payable and accrued liabilities $ 9,216,027 $ 1,507,514 To view the source version of this press release, please visit https://www.newsfilecorp.com/release/164708 SOURCE AquaBounty Technologies, Inc.

View stock analysis, news, and events for Aquabounty Technologies, Inc.