MAYNARD, Mass., March 07, 2019 (GLOBE NEWSWIRE) -- 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 (NASDAQ: XON), announces the Company’s financial results for the year ended December 31, 2018.

Results Highlights:

Operational

  • Received approval from the U.S. Food and Drug Administration (“FDA”) to raise AquAdvantage Salmon at the Company’s Indiana farm;
  • completed a second harvest of AquAdvantage Salmon at our Panama farm and sold five tons as fillets in Canada;
  • commenced production operations at the Indiana farm with traditional Atlantic salmon eggs while waiting for approval from the FDA to import AquAdvantage Salmon eggs; and
  • hired Sylvia Wulf as the Company’s new Chief Executive Officer, President, and Director effective January 1, 2019.

Financial

  • Completed a public offering of common shares and warrants, raising net funds of $10.6 million;
  • completed an offering of common shares through the conversion of outstanding warrants, raising net funds of $4.3 million;
  • the Company’s Canadian subsidiary received a construction loan in the amount of CA$2.0 million (US$1.6 million) from the Department of Economic Development of the Province of Prince Edward Island; and
  • net loss for the year increased to $10.4 million (2017: $9.3 million) with the commencement of production operations in Indiana.

Sylvia Wulf, Chief Executive Officer of AquaBounty, stated: “This was a successful year in terms of our operational achievements as we continue to take steps forward that will ultimately lead to harvesting our fish on a regular schedule from our two production farms and expanding our global footprint.”

U.S. Production
Having completed the first phase of upgrades to the Indiana farm, it was stocked with conventional Atlantic salmon eggs from the Company’s hatchery in Canada.  The fish are growing well and are expected to be ready for harvest in the summer of 2020.  Regardless of regulatory approval, commercialization of AquAdvantage Salmon in the U.S. is presently blocked by an Import Alert requiring the issuance of labelling guidance by the FDA.  The FDA recently confirmed in a statement to Congress that final labelling guidance for AquAdvantage Salmon is in process.  While the Company understands, based on this statement, that guidance could be issued within the next few weeks, regulatory decisions are never certain.  As a result of the FDA’s statements to Congress, the Company is taking steps to prepare for the import of AquAdvantage Salmon eggs.

Canada Production
The Company expects to have AquAdvantage Salmon growing in its new Rollo Bay farm facility on Prince Edward Island this quarter with harvest projected to be in the summer of 2020, which will demonstrate the superior growth rate, feed efficiency, and economic benefits of our fish.

International Development
AquaBounty is also establishing operations outside North America with projects currently in process in Brazil, Argentina, Israel, and China.  We believe that our experience with growing salmon in recirculating aquaculture systems, combined with our genetically superior fish, provides an unparalleled opportunity to bring our nutritious, safe, and more sustainably produced salmon to consumers.

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 the potential for and timing of: (1) issuance of labelling guidance and lifting of the Import Alert, (2) FDA approval to import AquAdvantage Salmon eggs into the United States, (3) raising AquAdvantage Salmon at our farm in Indiana, (4) stocking our Rollo Bay facility, (5) harvesting our fish from our production farms, and (6) sale of our fish to consumers; the potential for construction at our facilities on Prince Edward Island; projections for harvest; demonstration of the benefits of AquAdvantage Salmon; and expansion of the Company’s global footprint. 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,
 2018 2017
Assets   
Current assets:   
Cash and cash equivalents$2,990,196  $492,861 
Certificate of deposit12,361  13,422 
Other receivables115,982  183,926 
Inventory76,109  172,363 
Prepaid expenses and other current assets315,969  527,322 
Total current assets3,510,617  1,389,894 
    
Property, plant and equipment, net23,716,768  21,802,976 
Definite-lived intangible assets, net171,292  184,995 
Indefinite-lived intangible assets191,800  191,800 
Other assets80,583  162,093 
Total assets$27,671,060  $23,731,758 
    
Liabilities and stockholders’ equity   
Current liabilities:   
Accounts payable and accrued liabilities$845,323  $2,666,855 
Current debt71,613  49,794 
Total current liabilities916,936  2,716,649 
    
Long-term debt3,519,821  3,034,420 
Total liabilities4,436,757  5,751,069 
    
Commitments and contingencies   
    
Stockholders’ equity:   
Common stock, $0.001 par value, 50,000,000 shares authorized; 15,098,837, (2017: 8,895,094) shares outstanding15,099  8,895 
Additional paid-in capital142,707,957  126,718,186 
Accumulated other comprehensive loss(574,186) (213,884)
Accumulated deficit(118,914,567) (108,532,508)
Total stockholders’ equity23,234,303  17,980,689 
    
Total liabilities and stockholders’ equity$27,671,060  $23,731,758 
        

AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss

 Years ended December 31,
 2018 2017 2016
Revenues     
Product Revenues$84,518  $53,278  $ 
      
Costs and expenses     
Product costs78,155  50,777   
Sales and marketing297,687  799,009  860,365 
Research and development3,458,564  3,371,767  3,429,400 
General and administrative6,615,908  5,063,824  3,775,289 
Total costs and expenses10,450,314  9,285,377  8,065,054 
      
Operating loss(10,365,796) (9,232,099) (8,065,054)
      
Other income (expense)     
Gain on disposal of equipment13,233  941  2,861 
Interest expense(22,257) (21,537) (402,554)
Other income (expense), net(7,239) (5,952) (5,914)
Total other income (expense)(16,263) (26,548) (405,607)
      
Net loss$(10,382,059) $(9,258,647) $(8,470,661)
      
Other comprehensive income (loss):     
Foreign currency translation gain (loss)(360,302) 72,388  (59,840)
Total other comprehensive income (loss)(360,302) 72,388  (59,840)
      
Comprehensive loss$(10,742,361) $(9,186,259) $(8,530,501)
      
Earnings per share     
Net loss(10,382,059) (9,258,647) (8,470,661)
Deemed dividend(1,822,873)    
Net loss attributable to common shareholders(12,204,932) (9,258,647) (8,470,661)
      
Basic and diluted net loss per share attributable to common shareholders
$(0.94) $(1.06) $(1.60)
Weighted average number of common shares -basic and diluted13,028,760  8,772,494  5,303,114 
         

AquaBounty Technologies, Inc.
Consolidated Statements of Cash Flow

 Years ended December 31,
 2018 2017 2016
      
Operating activities     
Net loss$(10,382,059) $(9,258,647) $(8,470,661)
Adjustment to reconcile net loss to net cash used in operating activities:     
Depreciation and amortization843,387  184,946  153,996 
Share-based compensation263,396  122,134  218,294 
Gain on disposal of equipment(13,233) (941) (2,861)
Non-cash interest and other expenses(1,364)   395,833 
Changes in operating assets and liabilities:     
Other receivables56,212  (11,440) (121,640)
Inventory93,956  (169,991)  
Prepaid expenses and other assets289,868  (592,602) 38,054 
Accounts payable and accrued liabilities(966,928) 625,763  340,092 
Net cash used in operating activities(9,816,765) (9,100,778) (7,448,893)
      
Investing activities     
Purchase of property, plant and equipment(4,009,736) (18,893,264) (934,495)
Deposits on equipment purchases(95,001) (153,663) (156,982)
Proceeds from sale of equipment23,233  941  23,844 
Payment of patent costs    (5,664)
Net cash used in investing activities(4,081,504) (19,045,986) (1,073,297)
      
Financing activities     
Proceeds from issuance of debt771,858  256,807  547,142 
Repayment of term debt(55,615) (35,812) (6,268)
Proceeds from the issuance of convertible debt    10,000,000 
Proceeds from the issuance of common stock and warrants, net10,616,046  24,989,257   
Proceeds from exercise of stock options and warrants, net5,116,533  27,502   
Net cash provided by financing activities16,448,822  25,237,754  10,540,874 
      
Effect of exchange rate changes on cash and cash equivalents(53,218) 77,262  (7,496)
Net change in cash and cash equivalents2,497,335  (2,831,748) 2,011,188 
Cash and cash equivalents at beginning of period492,861  3,324,609  1,313,421 
Cash and cash equivalents at the end of period$2,990,196  $492,861  $3,324,609 
      
Supplemental disclosure of cash flow information and non-cash transactions:     
Interest paid in cash$22,257  $21,537  $6,721 
Conversion of convertible debt and accrued interest to common stock$  $  $10,395,833 
Property and equipment included in accounts payable and accrued liabilities
$193,378  $1,036,240  $50,132 
Acquisition of equipment under debt arrangement$74,068  $