AquaBounty Technologies(AQB) - 2025 Q3 - Quarterly Report

Financial Performance - The company experienced a net loss of $1.381 million for the three months ended September 30, 2025, a 59% improvement compared to a net loss of $3.404 million in the same period of 2024[79]. - Loss from discontinued operations for the nine months ended September 30, 2025, was $90 thousand, significantly lower than the $29.198 million loss in 2024[86]. - Cash used in operating activities for the nine months ended September 30, 2025, was $5.561 million, a 56% reduction from $12.749 million in 2024[93]. Expenses and Cost Management - General and administrative expenses decreased to $1.412 million for the three months ended September 30, 2025, down 6% from $1.502 million in 2024[79]. - The company has focused on cost containment to preserve cash during challenging financial conditions[101]. Asset Management - The company generated $7.1 million from asset sales during the nine months ended September 30, 2025, compared to $2.7 million used for property purchases in the same period of 2024[96]. - The company generated net proceeds of $9.2 million from the sale of its Indiana Farm and certain Ohio Equipment Assets in 2024[101]. - The company plans to continue selling available Ohio Equipment Assets, with recent auctions generating net proceeds of $2.3 million in February 2025 and $2.4 million in June 2025[101]. - The company sold its Indiana Farm in July 2024 and Canadian Farms in March 2025, designating them as discontinued operations[71]. - The company sold its Canadian subsidiary in March 2025, eliminating future foreign translation gains or losses[110]. Financial Position and Liquidity - As of September 30, 2025, the company reported an accumulated deficit of $374 million and cash and cash equivalents of $951 thousand, indicating a need for new funding to maintain liquidity[72]. - Future capital requirements are uncertain, with substantial doubt about the company's ability to continue as a going concern without raising additional capital[98]. - The company may exhaust its resources if unable to generate additional funds in a timely manner, risking its ability to maintain operations[103]. - As of September 30, 2025, the company had $7.4 million in interest-bearing debt instruments for continuing operations, all at fixed rates[109]. - The company had $1.3 million in interest-bearing debt for discontinued operations as of December 31, 2024[109]. Research and Development - The company has no ongoing research and development expenses following the sale of its Canadian Farms in March 2025[88]. Company Classification and Financing - The company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates below $700 million and annual revenue under $100 million[106]. - The company may finance cash needs through sales of non-core assets, equity offerings, and debt financings, which could dilute existing stockholder interests[102]. Accounting Estimates - There have been no material changes to critical accounting estimates during the nine months ended September 30, 2025[105]. Impairment Charges - The company recorded a non-cash impairment charge of $69 thousand on the Ohio Equipment Assets during the three months ended September 30, 2025[83].