AquaBounty Technologies(AQB) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Results Overview First Quarter 2025 Highlights AquaBounty Technologies reported a significant financial turnaround in Q1 2025, moving from a net loss to net income, primarily driven by a non-cash gain from loan forgiveness and proceeds from strategic asset sales, which also boosted the company's cash position | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :-------------- | :-------------- | | Net Income (Loss) | $401 thousand | $(11.16) million | | Non-cash gain on loan forgiveness | $2.0 million | N/A | | Net gain on Ohio Equipment Assets sale | $307 thousand | N/A | - On February 11, 2025, the Company completed the sale of certain Ohio Equipment Assets for net proceeds of $2.3 million[3][6] - On March 3, 2025, the Company completed the sale of its Canadian Farms and Corporate IP for net proceeds of $1.9 million[3][6] | Metric | As of March 31, 2025 | As of Dec 31, 2024 | Change | | :------------------------------------ | :------------------- | :----------------- | :------------------- | | Cash, cash equivalents and restricted cash | $1.4 million | $230 thousand | +$1.17 million | Management Commentary David Frank, CFO and Interim CEO, highlighted the company's ongoing efforts to assess strategic alternatives for the Ohio Farm Project and to sell assets to generate cash. Recent sales of Ohio Equipment Assets and Canadian Farms have provided crucial liquidity for these strategic pursuits - AquaBounty plans to continue assessing strategic alternatives for its partially constructed farm in Pioneer, Ohio ("Ohio Farm Project") and to market and sell available Ohio Equipment Assets to generate cash[3] - The sale of certain Ohio Equipment Assets, purchased for the Ohio Farm Project, generated net proceeds of $2.3 million[3] - The sale of Canadian Farms, including the Company's Corporate IP, generated net proceeds of $1.9 million, after deducting commissions, fees, and the assumption of $3.2 million in outstanding loans. These transactions provided liquidity to continue pursuing strategic alternatives for the Ohio Farm Project[3] Company Information About AquaBounty AquaBounty Technologies is a pioneer in land-based aquaculture, utilizing recirculating aquaculture system (RAS) farms strategically located near consumption markets. Their farm design prioritizes disease prevention and multiple levels of fish containment to protect wild fish populations - AquaBounty Technologies, Inc. is a pioneer in land-based aquaculture[4] - The company's land-based recirculating aquaculture system (RAS) farms are located close to key consumption markets[4] - Farm designs are engineered to prevent disease and include multiple levels of fish containment to protect wild fish populations[4] Consolidated Financial Statements Consolidated Balance Sheets The consolidated balance sheet as of March 31, 2025, shows a strengthened liquidity position with a significant increase in cash and cash equivalents, a reduction in assets and liabilities held for sale, and the elimination of long-term debt, leading to an overall decrease in total liabilities and an increase in stockholders' equity compared to December 31, 2024 | Metric | March 31, 2025 | December 31, 2024 | Change | | :------------------------------------ | :------------- | :---------------- | :---------------- | | Cash and cash equivalents | $1,366,328 | $230,362 | +$1,135,966 | | Current assets held for sale | $4,148,500 | $10,819,909 | -$6,671,409 | | Total assets | $29,434,440 | $34,061,798 | -$4,627,358 | | Current liabilities held for sale | $287,290 | $3,830,041 | -$3,542,751 | | Long-term debt, net | $0 | $1,996,558 | -$1,996,558 | | Total liabilities | $12,464,205 | $18,221,088 | -$5,756,883 | | Total stockholders' equity | $16,970,235 | $15,840,710 | +$1,129,525 | Consolidated Statements of Operations and Comprehensive Loss For the three months ended March 31, 2025, AquaBounty significantly improved its financial performance, reporting net income compared to a substantial net loss in the prior year. This turnaround was primarily driven by reduced operating expenses, a gain on asset sales, and a significant non-cash gain from loan forgiveness, despite ongoing losses from discontinued operations | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Sales and marketing | $6,613 | $63,633 | -$57,020 | | Research and development | $0 | $73,850 | -$73,850 | | General and administrative | $1,560,436 | $2,389,234 | -$828,798 | | Gain on asset sales, net | $(306,886) | $0 | N/A | | Operating loss | $(1,260,163) | $(2,526,717) | -$1,266,554 (reduction) | | Loan forgiveness | $2,008,046 | $0 | N/A | | Net income (loss) | $401,135 | $(11,158,248) | From loss to income | | Basic and diluted net income (loss) per share | $0.10 | $(2.90) | From loss to income | Consolidated Statements of Cash Flows The consolidated statements of cash flows for Q1 2025 reflect a positive net change in cash, primarily due to significant cash provided by investing activities from asset sales, which offset cash used in operating activities. This marks a substantial improvement compared to the prior year's period, which saw a net negative change in cash | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(2,361,726) | $(4,415,926) | -$2,054,200 (reduction in cash used) | | Net cash provided by (used in) investing activities | $3,721,116 | $(1,125,954) | From cash used to cash provided | | Proceeds from asset sales | $3,721,116 | $0 | N/A | | Net cash used in financing activities | $(232,194) | $(66,727) | -$165,467 (increase in cash used) | | Net change in cash, cash equivalents and restricted cash | $1,135,966 | $(5,611,402) | From negative to positive change | | Cash, cash equivalents and restricted cash at end of period | $1,366,328 | $3,592,467 | -$2,226,139 | Legal & Contact Information Forward-Looking Statements This section serves as a standard disclaimer, indicating that the press release contains forward-looking statements that are subject to significant risks and uncertainties. It advises investors not to place undue reliance on these statements, as actual results could differ materially due to various factors, including financial performance, operational challenges, and market conditions - The press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, which are neither promises nor guarantees[5] - These statements involve significant risks and uncertainties, including a history of net losses, ability to continue as a going concern, ability to raise additional funds, and risks related to operations, financing, and market volatility[5][7] - AquaBounty undertakes no obligation to update or revise these forward-looking statements, and investors are directed to SEC filings for more information on risks[7] Company & Investor Contacts This section provides contact details for investor relations and media inquiries, facilitating communication with stakeholders - For investor inquiries, contact AquaBounty Technologies at investors@aquabounty.com[8] - For media inquiries, contact Vince McMorrow of Fahlgren Mortine at (614) 906-1671 or vince.mcmorrow@Fahlgren.com[8]