AquaBounty Technologies, Inc. Results for the second quarter and first half ended June 30, 2017

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| Source: AquaBounty Technologies Inc

MAYNARD, Mass, Aug. 04, 2017 (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 (NYSE:XON), announces the Company’s financial results for the second quarter and first half ended June 30, 2017.

Financial and Operational Summary:

  • Significant operational progress made in advancing the Company’s commercial plans;
  • Further to receiving regulatory approval from Health Canada and the Canadian Food Inspection Agency last year, sold approximately five tons of fresh AquAdvantage® Salmon fillets at market price to customers in Canada;
  • Purchased certain assets of the Bell Fish Company LLC farm site in Albany, Indiana, for $14.2 million, including legal and other transaction costs;
  • Received provincial approval from the Prince Edward Island regulatory authorities to construct a broodstock facility and a grow-out facility on the Company’s Rollo Bay site;
  • Completed the de-listing of the Company’s common shares from trading on AIM; and
  • Net loss for the three-month period ended June 30, 2017, was relatively flat at $2.1 million compared to the corresponding period of the previous year.

During the current quarter, the Company recognized $53 thousand of revenue on sales of AquAdvantage Salmon fillets.  Operating expenses were up slightly to $2.1 million in the current period from $2.0 million in the corresponding period of the previous year, primarily due to the increased costs associated with being a public company in the United States.

Ronald Stotish, Chief Executive Officer of AquaBounty, stated: “This quarter marked two milestone events for AquaBounty—the purchase of our first commercial farm site for the production of our eco-friendly AquAdvantage Salmon in the United States and the very first sales of AquAdvantage Salmon.  The sale and discussions with potential buyers clearly demonstrate that customers want our fish, and we look forward to increasing our production capacity to meet demand.”

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements regarding the construction of a broodstock facility and grow-out facility on the Company’s Rollo Bay site; the production of AquAdvantage Salmon in the United States; customer demand for AquAdvantage Salmon; and an increase in production capacity.  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, 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
(Unaudited)
 
   As of
   June 30,December 31,
    2017  2016 
Assets    
Current assets:  
 Cash and cash equivalents$7,991,382 $3,324,609 
 Certificate of deposit 12,972  10,666 
 Other receivables 161,039  164,743 
 Inventory 78,275  - 
 Prepaid expenses and other assets 352,772  72,983 
 Total current assets 8,596,440  3,573,001 
     
Property, plant and equipment, net 17,906,075   1,723,707 
Definite lived intangible assets, net 191,847   198,698 
Indefinite lived intangible assets 191,800   191,800 
Other assets 21,628   21,628 
Total assets$26,907,790  $5,708,834 
     
Liabilities and stockholders' equity   
Current liabilities:  
 Accounts payable and accrued liabilities$949,495 $1,017,851 
 Current debt 53,089  17,913 
 Total current liabilities 1,002,584  1,035,764 
     
Long-term debt 2,952,668  2,645,015 
 Total liabilities 3,955,252  3,680,779 
     
Commitments and contingencies  
     
Stockholders' equity:  
 Common stock, $0.001 par value, 200,000,000 shares authorized; 
  8,895,094 (2016: 6,463,936) shares outstanding 8,895   6,464 
 Additional paid-in capital 126,644,804   101,581,724 
 Accumulated other comprehensive loss (278,121) (286,272)
 Accumulated deficit (103,423,040) (99,273,861)
Total stockholders' equity 22,952,538   2,028,055 
     
Total liabilities and stockholders' equity$26,907,790  $5,708,834 
     


AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
 
   Three Months Ended Six Months Ended
   June 30, June 30,
     2017   2016    2017   2016 
Revenues       
 Product revenues$53,278 $-  $53,278  $- 
        
Costs and expenses      
 Product costs 50,777  -   50,777   - 
 Sales and marketing 202,910  239,142   411,198   440,519 
 Research and development 936,317  915,741   1,656,339   1,730,998 
 General and administrative 950,348  824,138   2,071,136   1,603,663 
 Total costs and expenses 2,140,352  1,979,021   4,189,450   3,775,180 
        
Operating loss  (2,087,074) (1,979,021)  (4,136,172) (3,775,180)
        
Other income (expense)      
 Interest expense (5,253) (83,333)  (10,533) (107,639)
 Gain on disposal of equipment -   -   -   2,861 
 Other income (expense), net (1,109) (1,482)  (2,474) (2,855)
 Total other income (expense) (6,362) (84,815)  (13,007) (107,633)
        
Net loss  $(2,093,436)$(2,063,836) $(4,149,179)$(3,882,813)
        
Other comprehensive income (loss):      
 Foreign currency translation gain (loss)  22,437   (3,182)   8,151   (100,175)
 Total other comprehensive income (loss) 22,437   (3,182)  8,151   (100,175)
        
Comprehensive loss $(2,070,999)$(2,067,018) $(4,141,028)$(3,982,988)
        
        
Basic and diluted net loss per share$(0.24)$(0.39) $(0.48)$(0.74)
Weighted average number of common shares -     
 basic and diluted 8,892,213   5,250,504   8,647,861   5,249,405