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AquaBounty Technologies, Inc. Results for the quarter and nine months ended September 30, 2018

MAYNARD, Mass., Nov. 02, 2018 (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 third quarter and nine months ended September 30, 2018.

Financial and Operational Summary:

  • Commenced production operations at our Indiana farm with traditional Atlantic salmon eggs while waiting for approval from the U.S. Food and Drug Administration (“FDA”) to import AquAdvantage Salmon eggs;
  • net loss for the nine-month period ended September 30, 2018, increased to $7.96 million from $6.60 million in the corresponding period of the previous year, reflecting pre-production and production costs at the Indiana farm and R&D activities at the Rollo Bay hatchery; and
  • cash and cash equivalents at September 30, 2018, were $1.0 million (December 31, 2017: $0.5 million).

Post Period Transactions:

  • Completed a warrant exercise transaction with certain warrant holders for 2,250,461 shares of common stock for a reduced exercise price equal to $2.00 per share, with net proceeds of approximately $4.3 million; and
  • finalized 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 to be used to complete construction of the Company’s 250-metric-ton production facility on its Rollo Bay site.

Ronald Stotish, Chief Executive Officer of AquaBounty, stated: “In this quarter, we commenced grow-out of non-transgenic Atlantic salmon at our site in Albany, Indiana, which will allow us to begin utilizing this facility and to make any necessary adjustments to our processes or standard operating procedures while we wait for the FDA import alert on AquAdvantage Salmon to be lifted.”

For further information, please contact:

Dave Conley, Director of Communications
AquaBounty Technologies, Inc.
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, 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 potential for the lifting of the Import Alert, the importation of AquAdvantage Salmon eggs into the United States, and the completion of the construction of the Rollo Bay production facility. 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
(Unaudited)
 
  As of
  September 30, December 31,
    2018     2017  
Assets    
Current assets:    
  Cash and cash equivalents $   1,030,671   $    492,861  
  Certificate of deposit   13,040     13,422  
  Other receivables   81,822     183,926  
  Inventory   72,640     172,363  
  Prepaid expenses and other current assets   315,383     527,322  
  Total current assets   1,513,556     1,389,894  
     
Property, plant and equipment, net   24,001,108     21,802,976  
Definite-lived intangible assets, net   174,717     184,995  
Indefinite-lived intangible assets   191,800     191,800  
Other assets   162,093     162,093  
Total assets $   26,043,274   $   23,731,758  
     
Liabilities and stockholders’ equity    
Current liabilities:    
  Accounts payable and accrued liabilities $   1,483,657   $   2,666,855  
  Current debt   59,636     49,794  
  Total current liabilities   1,543,293     2,716,649  
     
Long-term debt   2,970,816     3,034,420  
  Total liabilities   4,514,109     5,751,069  
     
Commitments and contingencies    
     
Stockholders’ equity:    
  Common stock, $0.001 par value, 50,000,000 shares authorized;    
    12,848,376 (2017: 8,895,094) shares outstanding   12,848     8,895  
  Additional paid-in capital   138,333,891     126,718,186  
  Accumulated other comprehensive loss   (327,102)     (213,884)  
  Accumulated deficit   (116,490,472)     (108,532,508)  
Total stockholders’ equity   21,529,165     17,980,689  
     
Total liabilities and stockholders’ equity $   26,043,274   $   23,731,758  
             


AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
 
  Three Months Ended   Nine Months Ended
  September 30,   September 30,
    2018     2017       2018     2017  
Revenues          
  Product revenues $   10,938   $ -     $   77,933   $ 53,278  
           
Costs and expenses          
  Product costs   8,874     -       72,393     50,777  
  Sales and marketing   64,971     195,947       222,999     607,145  
  Research and development   804,758     860,903       2,663,397     2,517,242  
  General and administrative   1,852,362     1,382,380       5,067,226     3,453,516  
  Total costs and expenses   2,730,965     2,439,230       8,026,015     6,628,680  
           
Operating loss   (2,720,027)     (2,439,230)       (7,948,082)     (6,575,402)  
           
Other income (expense)          
  Gain on disposal of equipment   -     -       11,745     -  
  Interest expense   (5,169)     (5,597)       (15,854)     (16,130)  
  Other income (expense), net   (1,832)     (1,392)       (5,773)     (3,866)  
  Total other income (expense)   (7,001)     (6,989)       (9,882)     (19,996)  
           
Net loss $   (2,727,028)   $ (2,446,219)     $   (7,957,964)   $ (6,595,398)  
           
Other comprehensive income (loss):          
  Foreign currency translation gain (loss)   84,711     34,933       (113,218)     43,084  
  Total other comprehensive income (loss)   84,711     34,933       (113,218)     43,084  
           
Comprehensive loss $   (2,642,317)   $ (2,411,286)     $   (8,071,182)   $ (6,552,314)  
           
Basic and diluted net loss per share $   (0.21)   $ (0.28)     $    (0.64)   $ (0.76)  
Weighted average number of common shares -          
  basic and diluted   12,848,376     8,895,094       12,528,995     8,731,178  

 

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Source: AquaBounty Technologies, Inc.