AquaBounty Technologies(US:AQB)2025-03-27 12:20Financial Performance - The company recorded impairment charges totaling $129.8 million in 2024, including $22.5 million for the Indiana Farm and $57.3 million for the Ohio Farm Site[25][26][27]. - Cumulative net losses from incorporation to December 31, 2024, amount to approximately $370 million, with expectations of incurring additional losses in future periods[56]. - The company recorded a net loss of $149.2 million for the year ended December 31, 2024, an increase of 441% compared to the previous year[131]. - The company incurred a net loss of $149.2 million for the year ended December 31, 2024, compared to a net loss of $27.6 million in 2023, reflecting a significant increase in losses[142][143]. - Total costs and expenses for 2024 were $111.44 million, a substantial rise from $13.67 million in 2023, primarily due to a long-lived asset impairment charge of $101.91 million[202]. - The company’s accumulated deficit increased to $369.77 million as of December 31, 2024, compared to $220.58 million in 2023, highlighting ongoing financial challenges[200]. - The basic and diluted net loss per share from continuing operations was $(29.47) in 2024, compared to $(3.60) in 2023, reflecting worsening financial performance[202]. Cash and Liquidity - As of December 31, 2024, the company had only $230 thousand in cash and cash equivalents, raising substantial doubt about its ability to continue as a going concern[56]. - As of March 24, 2025, AquaBounty had an accumulated deficit of $370 million and $557 thousand in cash[118]. - Cash and cash equivalents decreased to $230,362 as of December 31, 2024, down from $9.20 million at the end of 2023[200]. - The company had an accumulated deficit of $370 million as of December 31, 2024, and expects to continue experiencing significant losses in the foreseeable future[138]. - The company currently has all cash and cash equivalents deposited in Citizens Bank, N.A., posing a risk of loss if the financial institution fails[78]. Project Developments - AquaBounty paused construction of the Ohio Farm Project in June 2023 due to rising costs, with total estimated completion costs now between $485 million and $495 million[47][48]. - Construction of the Ohio Farm Project was paused in July 2023 due to rising project costs, and there is uncertainty regarding vendor availability for resuming construction[59]. - The company is seeking additional capital to fund the Ohio Farm Project and has engaged an investment bank to explore funding and strategic alternatives[58]. - The company may face delays in obtaining necessary approvals and permits for the Ohio Farm Project, which could further delay construction and commercialization efforts[61]. - The company sold its Indiana Farm in July 2024 and Canadian Farms in March 2025, designating these as discontinued operations[24]. Strategic Management - AquaBounty engaged an investment bank to explore funding and strategic alternatives for the Ohio Farm Project, requiring approximately $400 million to complete construction[50]. - The company has sold its intellectual property for GE Atlantic salmon as part of its strategic asset management[31]. - The company is exploring strategic alternatives to raise funds, including equity or debt financing, mergers, and asset sales[215]. - The Company is focusing on cost containment to preserve cash and extend its available liquidity[212]. - The Company continues to work with an investment bank to identify optimal paths for realizing the potential of its remaining assets[212]. Regulatory and Compliance - The company received a Nasdaq notice on October 31, 2022, due to its common stock closing bid price being below $1.00 for 30 consecutive business days, with a compliance period until May 1, 2023[82]. - A reverse stock split of 1-for-20 was approved by stockholders on October 12, 2023, and implemented on October 16, 2023, allowing the company to regain compliance with Nasdaq's minimum bid price requirement[83]. - The company has a public float of less than $250 million and annual revenue below $100 million, qualifying it as a "smaller reporting company" under SEC rules[88]. - The company is subject to the regulations of the Public Company Accounting Oversight Board (PCAOB) and must maintain independence in its financial reporting[190]. Cybersecurity - The company has developed a cybersecurity risk management program based on the NIST Cybersecurity Framework to protect its critical systems and information[96]. - The Board of Directors oversees the cybersecurity risk management program and receives periodic updates on cybersecurity risks and incidents[98]. - The company has not identified any material cybersecurity breaches during 2024, indicating effective risk management[97]. Operational Challenges - The company lacks extensive experience in managing large commercial-scale facilities, which may lead to operational challenges and increased costs[69]. - The company is vulnerable to disease outbreaks in salmon farming, which can significantly impact production costs and harvest yields[68]. - Investor concerns regarding the financial services industry could lead to less favorable financing terms, impacting the company's ability to secure necessary funding[77]. Asset Management - The company completed the sale of its Indiana Farm and certain Ohio Equipment Assets for net proceeds of $9.2 million in 2024, and the sale of Canadian operations for $1.9 million in March 2025[148]. - The company plans to continue selling non-core assets and equipment to fund working capital and the construction of its Ohio Farm Project[148][149]. - The company has raised substantial doubt about its ability to continue as a going concern within one year after the issuance of its consolidated financial statements[146][150].