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AquaBounty Technologies, Inc. Results for the quarter and six months ended June 30, 2018

MAYNARD, Mass., Aug. 07, 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 (NYSE: XON), announces the Company’s financial results for the second quarter and six months ended June 30, 2018.

Financial and Operational Summary:

  • Completed the second sale of AquAdvantage Salmon from our farm in Panama;
  • stocked 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 six-month period ended June 30, 2018, increased to $5.2 million from $4.1 million in the corresponding period of the previous year, reflecting pre-production costs at the Indiana farm and R&D activities at the Rollo Bay hatchery; and
  • cash and cash equivalents at June 30, 2018, were $3.5 million (December 31, 2017: $0.5 million).

Commencement of Operations in Indiana with Traditional Atlantic Salmon:

AquaBounty previously announced that it had received FDA approval to raise AquAdvantage Salmon at its land-based contained facility near Albany, Indiana.  However, the Company is currently prevented from importing its AquAdvantage Salmon eggs from Canada due to the existence of an “Import Alert” pending the FDA’s issuance of final labelling guidance for the product.  The Company has indicated that it is fully prepared to comply with labelling requirements for its product in order for this process to conclude in the near term.  In the interim, the Company has stocked the Indiana farm with traditional Atlantic salmon eggs and has commenced grow-out activities.

Ronald Stotish, Chief Executive Officer of AquaBounty, stated: “In this quarter, we completed our second sale of AquAdvantage Salmon harvested from our Panama farm and stocked our Indiana farm with traditional Atlantic salmon eggs.  This stocking has allowed us to start operations at the facility, while we wait for the lifting of the import alert on AquAdvantage Salmon, which we anticipate in the second half of the year.”

Dr. Stotish to Present at Investor Conference:

Ronald Stotish will be presenting at the 20th Annual Global Investment Conference in New York City, sponsored by H. C. Wainwright on September 4-6, 2018.  A live webcast of the presentation will be available on the “Investor-Events” page of the Company’s website (www.aquabounty.com).

About AquAdvantage Salmon – AquAdvantage Salmon is an Atlantic salmon that has been bioengineered to grow to market size in about half the time of a traditional farmed Atlantic salmon.  It improves the economics of producing salmon in land-based contained facilities.  AquAdvantage Salmon is a healthy, environmentally sustainable alternative to imported farmed Atlantic salmon.

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 and possible timing of the FDA’s issuance of final labeling guidance, the lifting of the Import Alert, the import of AquAdvantage Salmon eggs into the United States, and the raising of traditional Atlantic salmon and AquAdvantage Salmon at the Indiana farm site facility, and the potential for developments resulting from R&D activities. 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
  June 30, December 31,
    2018      2017   
Assets    
Current assets:    
  Cash and cash equivalents $   3,518,806   $    492,861  
  Certificate of deposit   12,820     13,422  
  Other receivables   101,328     183,926  
  Inventory   82,429     172,363  
  Prepaid expenses and other current assets   394,594     527,322  
  Total current assets   4,109,977     1,389,894  
     
Property, plant and equipment, net   23,617,701     21,802,976  
Definite-lived intangible assets, net   178,143     184,995  
Indefinite-lived intangible assets   191,800     191,800  
Other assets   162,093     162,093  
Total assets $   28,259,714   $   23,731,758  
     
Liabilities and stockholders’ equity    
Current liabilities:    
  Accounts payable and accrued liabilities $   1,168,875   $   2,666,855  
  Current debt   58,377     49,794  
  Total current liabilities   1,227,252     2,716,649  
     
Long-term debt   2,932,573     3,034,420  
  Total liabilities   4,159,825     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   138,262,298     126,718,186  
  Accumulated other comprehensive loss   (411,813 )   (213,884 )
  Accumulated deficit   (113,763,444 )   (108,532,508 )
Total stockholders’ equity   24,099,889     17,980,689  
     
Total liabilities and stockholders’ equity $   28,259,714   $   23,731,758  


AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
       
  Three Months Ended   Six Months Ended
  June 30,   June 30,
    2018     2017       2018     2017  
Revenues          
  Product revenues $   47,898   $   53,278     $   66,995   $   53,278  
           
Costs and expenses          
  Product costs   47,287     50,777       63,519     50,777  
  Sales and marketing   76,381     202,910       158,028     411,198  
  Research and development   880,822     936,317       1,858,639     1,656,339  
  General and administrative   1,827,991     950,348       3,214,864     2,071,136  
  Total costs and expenses   2,832,481     2,140,352       5,295,050     4,189,450  
           
Operating loss   (2,784,583 )   (2,087,074 )     (5,228,055 )   (4,136,172 )
           
Other income (expense)          
  Gain on disposal of equipment   10,585     -       11,745     -  
  Interest expense   (5,283 )   (5,253 )     (10,685 )   (10,533 )
  Other income (expense), net   (1,868 )   (1,109 )     (3,941 )   (2,474 )
  Total other income (expense)   3,434     (6,362 )     (2,881 )   (13,007 )
           
Net loss $   (2,781,149 ) $   (2,093,436 )   $   (5,230,936 ) $   (4,149,179 )
           
Other comprehensive income (loss):          
  Foreign currency translation gain (loss)   (85,811 )   22,437       (197,929 )   8,151  
  Total other comprehensive income (loss)   (85,811 )   22,437       (197,929 )   8,151  
           
Comprehensive loss $   (2,866,960 ) $   (2,070,999 )   $   (5,428,865 ) $   (4,141,028 )
           
Basic and diluted net loss per share $   (0.22 ) $   (0.24 )   $    (0.42 ) $   (0.48 )
Weighted average number of common shares -          
  basic and diluted   12,787,761     8,892,213       12,366,657     8,647,861  

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Source: AquaBounty Technologies, Inc.