AquaBounty Technologies Announces First Quarter 2021 Financial Results

Maynard, Massachusetts, UNITED STATES

MAYNARD, Mass., May 04, 2021 (GLOBE NEWSWIRE) -- 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

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 Technologies
Dave Conley
Corporate Communications
(613) 294-3078

Investor Relations:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
(949) 259-4987 

AquaBounty Technologies, Inc.
Consolidated Balance Sheets
 As of
 March 31, December 31,
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
 Three Months Ended March 31,
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
 Three Months Ended March 31,
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