AquaBounty Technologies Announces First Quarter 2021 Financial Results
May 04 2021 - 4:05PM
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 its fiscal first quarter ended
March 31, 2021.
First Quarter 2021 Key Highlights
- Fortified balance
sheet with $127.1 million in gross proceeds from the closing of an
underwritten public offering of common stock in February, to
provide further financing for Farm 3 and corporate working
capital.
- Appointed veteran
Atlantic salmon sales and marketing executive Dennis Bryant as the
Company’s Director of Sales, who will oversee all aspects of
building and servicing AquaBounty’s customer partnerships.
- Participated in key
investor conferences to improve visibility within the investment
community, including the Canaccord Genuity 2021 Virtual
Sustainability Conference, the H.C. Wainwright Global Life Sciences
Conference, and the upcoming Oppenheimer Emerging Growth
Conference.
Management Commentary
“During the first quarter of 2021, we completed the setup of our
commercial framework and we are now preparing for the first
commercial scale harvest of our genetically engineered (“GE”)
salmon, which we expect to begin this month,” said Sylvia Wulf,
Chief Executive Officer of AquaBounty. “The appointment of Dennis
Bryant as our Director of Sales is a critical step in our
commitment to customer satisfaction, and we are confident that all
key processes are in place for the launch of our fish during
May.
“We are looking forward to a successful commercial launch of our
GE salmon, which will mark a tremendous milestone that has been
decades in the making. We have the experience, capital and
technology necessary to succeed, and the warm reception from our
potential customers has fortified our belief that AquaBounty
represents the next-evolution of land-based salmon farming. We
remain focused on continued execution in the weeks and months ahead
as we strive to create sustainable, long-term value for our
shareholders.
“After successful sampling efforts of our GE salmon with widely
respected seafood distributors and other interested groups in the
first quarter, we began the customer onboarding process, which
focused on finalizing planning and allocations for our impending
first harvest. Our GE salmon was well received in sampling, and our
sales team is very optimistic regarding near-term demand
expectations, considering the resurgence of the food service
industry as COVID-19 concerns begin to dissipate and consumers
return to restaurants.
“We raised $127.1 million in gross proceeds in a public offering
of equity in February to further finance the construction of our
next farm with a planned capacity of 10,000 metric tons, which will
greatly increase the Company’s growing capacity. We are currently
in due diligence on the final site location and expect to commence
construction later this year and commercial production in 2023.
Ahead of these rigorous efforts, we have made substantial progress
on the farm design with our engineering and RAS technology
partners, ensuring we have an efficient, replicable facility design
that will serve us for years to come,” concluded Wulf.
First Quarter 2021 Financial Summary
- Revenue in the first quarter of 2021
was $74 thousand, as compared to $7 thousand in in the same period
of the prior year. Revenue was impacted by the continued effects of
the COVID-19 pandemic on demand in the food service industry, which
has started to reemerge as vaccines become more widely
available.
- Operating expenses in the first
quarter of 2021 were $4.2 million, as compared to $3.1 million in
the same period of the prior year. The increase in operating
expenses was primarily due to production and headcount increases at
the Company’s two farms.
- Net loss in the first quarter of
2021 was $4.2 million, as compared to $3.1 million in the same
period of the prior year.
- Cash, cash equivalents and
restricted cash were $211.4 million as of March 31, 2021,
compared with $96.3 million as of December 31, 2020. The
Company fortified its balance sheet with $127.1 million in gross
proceeds from a public offering of common stock in February.
About AquaBounty
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 help 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 genetically engineered salmon program is based upon a
single, specific molecular modification in salmon that results in
more rapid growth in early development. With aquaculture farms
located in Prince Edward Island, Canada, and Indiana, United
States, AquaBounty is raising salmon that is free of antibiotics
and other contaminants, in land-based Recirculating Aquaculture
Systems (“RAS”) which are designed to prevent disease and to
include multiple levels of fish containment to protect wild fish
populations. AquaBounty’s solution offers 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 Statements
This 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, including but not limited to statements with respect to
the completion, timing, size, and use of proceeds of the
underwritten offering of common stock. 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 additional
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, Quarterly
Reports on Form 10-Q, and prospectus supplement for this offering.
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
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AquaBounty Technologies, Inc.Consolidated
Balance Sheets(Unaudited) |
|
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|
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|
As of |
|
March 31, |
|
December 31, |
|
2021 |
|
2020 |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
210,899,434 |
|
|
$ |
95,751,160 |
|
Inventory |
|
2,106,473 |
|
|
|
1,525,377 |
|
Prepaid expenses and other current assets |
|
470,961 |
|
|
|
405,370 |
|
Total current assets |
|
213,476,868 |
|
|
|
97,681,907 |
|
|
|
|
|
|
|
Property, plant and equipment,
net |
|
27,904,874 |
|
|
|
26,930,338 |
|
Right of use assets, net |
|
327,386 |
|
|
|
341,997 |
|
Intangible assets, net |
|
242,120 |
|
|
|
245,546 |
|
Restricted cash |
|
500,000 |
|
|
|
500,000 |
|
Other
assets |
|
84,685 |
|
|
|
76,715 |
|
Total assets |
$ |
242,535,933 |
|
|
$ |
125,776,503 |
|
|
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
1,555,066 |
|
|
$ |
1,760,103 |
|
Other current liabilities |
|
62,765 |
|
|
|
62,483 |
|
Current debt |
|
378,791 |
|
|
|
259,939 |
|
Total current liabilities |
|
1,996,622 |
|
|
|
2,082,525 |
|
|
|
|
|
|
|
Long-term lease
obligations |
|
274,232 |
|
|
|
290,327 |
|
Long-term debt |
|
8,622,436 |
|
|
|
8,528,490 |
|
Total liabilities |
|
10,893,290 |
|
|
|
10,901,342 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Common stock, $0.001 par value, 80,000,000 shares authorized; |
|
|
|
|
|
70,983,145 (2020: 55,497,133) shares outstanding |
|
70,983 |
|
|
|
55,497 |
|
Additional paid-in capital |
|
384,459,964 |
|
|
|
263,629,116 |
|
Accumulated other comprehensive loss |
|
(187,219 |
) |
|
|
(267,258 |
) |
Accumulated deficit |
|
(152,701,085 |
) |
|
|
(148,542,194 |
) |
Total stockholders' equity |
|
231,642,643 |
|
|
|
114,875,161 |
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
242,535,933 |
|
|
$ |
125,776,503 |
|
|
|
|
|
|
|
|
|
AquaBounty Technologies, Inc.Consolidated
Statements of Operations and Comprehensive
Loss(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Revenues |
|
|
|
|
|
Product revenues |
$ |
74,372 |
|
|
$ |
6,753 |
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
Product costs |
|
1,554,655 |
|
|
|
841,434 |
|
Sales and marketing |
|
318,635 |
|
|
|
50,788 |
|
Research and development |
|
500,620 |
|
|
|
568,762 |
|
General and administrative |
|
1,785,510 |
|
|
|
1,637,190 |
|
Total costs and expenses |
|
4,159,420 |
|
|
|
3,098,174 |
|
|
|
|
|
|
|
Operating
loss |
|
(4,085,048 |
) |
|
|
(3,091,421 |
) |
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
Interest expense |
|
(78,804 |
) |
|
|
(17,045 |
) |
Other income (expense), net |
|
4,961 |
|
|
|
(1,152 |
) |
Total other income (expense) |
|
(73,843 |
) |
|
|
(18,197 |
) |
|
|
|
|
|
|
Net loss |
$ |
(4,158,891 |
) |
|
$ |
(3,109,618 |
) |
|
|
|
|
|
|
Other comprehensive
income (loss): |
|
|
|
|
|
Foreign currency translation income (loss) |
|
80,039 |
|
|
|
(381,985 |
) |
Total other comprehensive income (loss) |
|
80,039 |
|
|
|
(381,985 |
) |
|
|
|
|
|
|
Comprehensive loss |
$ |
(4,078,852 |
) |
|
$ |
(3,491,603 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
Weighted average number of
common shares - |
|
|
|
|
|
basic and diluted |
|
64,550,920 |
|
|
|
27,116,754 |
|
|
|
|
|
|
|
|
|
AquaBounty Technologies, Inc.Consolidated
Statements of Cash Flows(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Operating activities |
|
|
|
|
|
Net loss |
$ |
(4,158,891 |
) |
|
$ |
(3,109,618 |
) |
Adjustment to reconcile net
loss to net cash used in |
|
|
|
|
|
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
422,185 |
|
|
|
347,859 |
|
Share-based compensation |
|
129,715 |
|
|
|
205,353 |
|
Other non-cash charge |
|
4,203 |
|
|
|
— |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Inventory |
|
(577,154 |
) |
|
|
(610,200 |
) |
Prepaid expenses and other assets |
|
(63,966 |
) |
|
|
(107,922 |
) |
Accounts payable and accrued liabilities |
|
(274,486 |
) |
|
|
339,818 |
|
Net cash used in operating activities |
|
(4,518,394 |
) |
|
|
(2,934,710 |
) |
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
Purchase of property, plant
and equipment |
|
(1,208,183 |
) |
|
|
(691,351 |
) |
Proceeds from sale of asset
held for sale |
|
— |
|
|
|
98,000 |
|
Proceeds from legal
settlement, net |
|
— |
|
|
|
1,014,008 |
|
Other
investing activities |
|
(11,010 |
) |
|
|
(1,307 |
) |
Net cash (used in) provided by investing activities |
|
(1,219,193 |
) |
|
|
419,350 |
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
Proceeds from issuance of
debt |
|
187,120 |
|
|
|
— |
|
Repayment of term debt |
|
(38,885 |
) |
|
|
(39,391 |
) |
Proceeds from the issuance of
common stock, net |
|
119,120,437 |
|
|
|
14,521,704 |
|
Proceeds from the exercise of stock options and warrants, net |
|
1,596,182 |
|
|
|
— |
|
Net cash provided by financing activities |
|
120,864,854 |
|
|
|
14,482,313 |
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash, cash equivalents and restricted
cash |
|
21,007 |
|
|
|
(15,951 |
) |
Net change in cash, cash equivalents and restricted cash |
|
115,148,274 |
|
|
|
11,951,002 |
|
Cash,
cash equivalents and restricted cash at beginning of period |
|
96,251,160 |
|
|
|
2,798,744 |
|
Cash, cash equivalents and restricted cash at end of
period |
$ |
211,399,434 |
|
|
$ |
14,749,746 |
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash reported |
|
|
|
|
|
in the consolidated balance sheet: |
|
|
|
|
|
Cash and cash equivalents |
$ |
210,899,434 |
|
|
$ |
14,749,746 |
|
Restricted cash |
|
500,000 |
|
|
|
— |
|
Total cash, cash equivalents and restricted cash |
$ |
211,399,434 |
|
|
$ |
14,749,746 |
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information and |
|
|
|
|
|
non-cash transactions: |
|
|
|
|
|
Interest paid in cash |
$ |
73,685 |
|
|
$ |
17,045 |
|
Property and equipment included in accounts payable and accrued
liabilities |
$ |
82,068 |
|
|
$ |
257,884 |
|
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