AquaBounty Technologies(AQB) - 2025 Q2 - Quarterly Results

Executive Summary AquaBounty Technologies reported a significant reduction in Q2 2025 net loss, driven by asset sales and lower impairment charges, enhancing liquidity for Ohio Farm Project strategic alternatives Second Quarter 2025 Highlights AquaBounty Technologies reported a significant reduction in Q2 2025 net loss, primarily due to asset sales and reduced impairment charges, enhancing liquidity for Ohio Farm Project strategic alternatives Key Financial Highlights (Q2 2025 vs. Q2 2024 / Dec 31, 2024) | Metric | Q2 2025 ($) | Q2 2024 ($) | Change | As of June 30, 2025 ($) | As of Dec 31, 2024 ($) | Change | | :-------------------------------- | :------ | :------ | :----- | :------------------ | :----------------- | :----- | | Net Loss | $(3.4) million | $(50.5) million | Reduced | N/A | N/A | N/A | | Net Proceeds from Asset Sales | $2.4 million | N/A | N/A | N/A | N/A | N/A | | Cash and Cash Equivalents | N/A | N/A | N/A | $730 thousand | $230 thousand | Increased | - Net loss for Q2 2025 was $3.4 million, a significant reduction from $50.5 million in Q2 2024, including a $1.2 million non-cash asset impairment charge[6] Management Commentary Management highlighted the strategy of selling Ohio Equipment Assets to generate cash and liquidity, funding strategic alternatives for the Ohio Farm Project - The company generated $2.4 million in net proceeds from selling Ohio Equipment Assets on June 11, 2025[3] - Proceeds from asset sales provided liquidity to pursue strategic alternatives for the Ohio Farm Project with an investment banker[3] About AquaBounty Technologies, Inc. AquaBounty Technologies pioneers land-based aquaculture using recirculating aquaculture system (RAS) farms, prioritizing disease prevention and fish containment near markets Company Overview AquaBounty Technologies pioneers land-based aquaculture using recirculating aquaculture system (RAS) farms, prioritizing disease prevention and fish containment near markets - AquaBounty Technologies is a pioneer in land-based aquaculture, operating recirculating aquaculture system (RAS) farms[4] - Farms are designed for disease prevention and multiple levels of fish containment to protect wild populations, located near consumption markets[4] Forward-Looking Statements This section provides a disclaimer for forward-looking statements, outlining significant risks and uncertainties that could materially affect actual results Disclaimer and Risk Factors This disclaimer highlights significant risks and uncertainties for forward-looking statements, including net losses, going concern ability, fundraising, operational delays, and Ohio Farm Project financing - Forward-looking statements are subject to significant risks and uncertainties, including those related to winding down farming operations and asset sales[5] - Key factors causing actual results to differ include a history of net losses, going concern ability, fundraising challenges, and Ohio Farm Project risks[5] - AquaBounty has no obligation to update or revise forward-looking statements, except as legally required[7] Consolidated Financial Statements This section presents AquaBounty's unaudited consolidated balance sheets, statements of operations and comprehensive loss, and statements of cash flows for the reported periods Consolidated Balance Sheets As of June 30, 2025, total assets and liabilities decreased, primarily due to a reduction in current assets held for sale, leading to a decrease in total stockholders' equity Consolidated Balance Sheets (Unaudited) | | As of June 30, 2025 ($) | As of December 31, 2024 ($) | | :------------------------------------ | :-------------------- | :---------------------- | | Assets | | | | Cash and cash equivalents | $729,569 | $230,362 | | Prepaid expenses and other current assets | $3,115,868 | $292,018 | | Current assets held for sale | $100,000 | $10,819,909 | | Total current assets | $3,945,437 | $11,342,289 | | Property, plant and equipment, net | $22,668,000 | $22,668,000 | | Right of use assets, net | $37,531 | $51,509 | | Total assets | $26,650,968 | $34,061,798 | | Liabilities and stockholders' equity | | | | Accounts payable and accrued liabilities | $3,317,732 | $10,104,853 | | Accrued employee compensation | $964,615 | $977,088 | | Current debt | $8,505,992 | $1,261,039 | | Other current liabilities | $29,710 | $28,527 | | Current liabilities held for sale | $211,173 | $3,830,041 | | Total current liabilities | $13,029,222 | $16,201,548 | | Long-term lease obligations | $7,821 | $22,982 | | Long-term debt, net | — | $1,996,558 | | Total liabilities | $13,037,043 | $18,221,088 | | Stockholders' equity | | | | Common stock | $3,878 | $3,866 | | Additional paid-in capital | $386,354,487 | $386,297,611 | | Accumulated other comprehensive loss | — | $(688,229) | | Accumulated deficit | $(372,744,440) | $(369,772,538) | | Total stockholders' equity | $13,613,925 | $15,840,710 | | Total liabilities and stockholders' equity | $26,650,968 | $34,061,798 | - Total assets decreased by approximately $7.4 million, primarily due to a $10.7 million decrease in current assets held for sale, partially offset by increased cash and prepaid expenses[10] - Total liabilities decreased by approximately $5.18 million, mainly from reduced accounts payable, accrued liabilities, and current liabilities held for sale, despite increased current debt[10] Consolidated Statements of Operations and Comprehensive Loss For the three months ended June 30, 2025, AquaBounty reported a substantially improved net loss, primarily due to significantly lower asset impairment charges and reduced general and administrative expenses Consolidated Statements of Operations and Comprehensive Loss (Unaudited) | | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Costs and expenses | | | | | | Sales and marketing | $0 | $79,702 | $6,613 | $143,335 | | Research and development | $0 | $76,766 | $0 | $150,616 | | General and administrative | $1,768,596 | $3,138,502 | $3,329,032 | $5,527,736 | | Asset impairment, net | $1,525,752 | $26,264,943 | $1,218,866 | $26,264,943 | | Total costs and expenses | $3,294,348 | $29,559,913 | $4,554,511 | $32,086,630 | | Operating loss | $(3,294,348) | $(29,559,913) | $(4,554,511) | $(32,086,630) | | Other income (expense) | | | | | | Interest expense | $(90,585) | $(963,036) | $(224,235) | $(1,144,277) | | Loan forgiveness | $0 | $0 | $2,008,046 | $0 | | Other expense, net | $(2,979) | $(6,876) | $(7,448) | $(9,323) | | Total other income (expense) | $(93,564) | $(969,912) | $1,776,363 | $(1,153,600) | | Loss from continuing operations | $(3,387,912) | $(30,529,825) | $(2,778,148) | $(33,240,230) | | Income (loss) from discontinued operations | $14,875 | $(19,984,416) | $(193,754) | $(28,432,259) | | Net loss | $(3,373,037) | $(50,514,241) | $(2,971,902) | $(61,672,489) | | Foreign currency translation gain (loss) | $0 | $(57,335) | $688,229 | $(173,642) | | Comprehensive loss | $(3,373,037) | $(50,571,576) | $(2,283,673) | $(61,846,131) | | Basic and diluted net loss per share | $(0.87) | $(13.08) | $(0.77) | $(16.00) | | Weighted average number of common shares | 3,872,587 | 3,860,487 | 3,869,708 | 3,854,958 | - Net loss significantly decreased from $(50.5) million in Q2 2024 to $(3.4) million in Q2 2025, primarily due to asset impairment charges reducing from $26.3 million to $1.5 million[11] - Basic and diluted net loss per share improved from $(13.08) in Q2 2024 to $(0.87) in Q2 2025[11] Consolidated Statements of Cash Flows For the six months ended June 30, 2025, AquaBounty reported improved net cash outflow from operating activities and significant cash generation from investing activities, primarily asset sales, leading to an increase in cash and cash equivalents Consolidated Statements of Cash Flows (Unaudited) | | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :------------------------------------ | :------------------------------- | :------------------------------- | | Operating activities | | | | Net loss | $(2,971,902) | $(61,672,489) | | Long-lived asset impairment | $1,218,866 | $48,733,222 | | Loan forgiveness | $(2,008,046) | $0 | | Net cash used in operating activities | $(3,910,047) | $(8,741,616) | | Investing activities | | | | Purchases of and deposits on property, plant and equipment | $0 | $(2,000,084) | | Proceeds from asset sales | $4,632,679 | $149,282 | | Net cash provided by (used in) investing activities | $4,632,679 | $(1,850,802) | | Financing activities | | | | Proceeds from issuance of debt | $0 | $5,117,292 | | Repayment of term debt | $(232,194) | $(2,995,467) | | Net cash (used in) provided by financing activities | $(232,194) | $2,121,825 | | Effect of exchange rate changes on cash and cash equivalents | $8,769 | $(4,937) | | Net change in cash and cash equivalents | $499,207 | $(8,475,530) | | Cash and cash equivalents at beginning of period | $230,362 | $9,203,869 | | Cash and cash equivalents at end of period | $729,569 | $728,339 | - Net cash used in operating activities decreased to $(3.91) million for the six months ended June 30, 2025, from $(8.74) million in the prior year, largely due to reduced net loss and asset impairment[13] - Net cash provided by investing activities was $4.63 million, a significant improvement from $(1.85) million used in the prior year, driven by $4.63 million in proceeds from asset sales[13] - Cash and cash equivalents at period end increased to $729,569 from $230,362 at the beginning of the period[13]