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AQB AquaBounty

Filed: 4 May 21, 4:20pm

Exhibit 99.1

 

AquaBounty Technologies Announces First Quarter 2021 Financial Results



MAYNARD, Mass., May 4, 2021 -- AquaBounty Technologies, Inc. (Nasdaq: AQB) (“AquaBounty” or the “Company”), a land-based aquaculture company utilizing technology to enhance productivity and sustainability, today announced the Company’s financial results for its fiscal first quarter ended March 31, 2021.



First Quarter 2021 Key Highlights

·

Fortified balance sheet with $127.1 million in gross proceeds from the closing of an underwritten public offering of common stock in February, to provide further financing for Farm 3 and corporate working capital.

·

Appointed veteran Atlantic salmon sales and marketing executive Dennis Bryant as the Company’s Director of Sales, who will oversee all aspects of building and servicing AquaBounty’s customer partnerships.

·

Participated in key investor conferences to improve visibility within the investment community, including the Canaccord Genuity 2021 Virtual Sustainability Conference, the H.C. Wainwright Global Life Sciences Conference, and the upcoming Oppenheimer Emerging Growth Conference.



Management Commentary

“During the first quarter of 2021, we completed the setup of our commercial framework and we are now preparing for the first commercial scale harvest of our genetically engineered (“GE”) salmon, which we expect to begin this month,” said Sylvia Wulf, Chief Executive Officer of AquaBounty. “The appointment of Dennis Bryant as our Director of Sales is a critical step in our commitment to customer satisfaction, and we are confident that all key processes are in place for the launch of our fish during May.

“We are looking forward to a successful commercial launch of our GE salmon, which will mark a tremendous milestone that has been decades in the making. We have the experience, capital and technology necessary to succeed, and the warm reception from our potential customers has fortified our belief that AquaBounty represents the next-evolution of land-based salmon farming. We remain focused on continued execution in the weeks and months ahead as we strive to create sustainable, long-term value for our shareholders.

“After successful sampling efforts of our GE salmon with widely respected seafood distributors and other interested groups in the first quarter, we began the customer onboarding process, which focused on finalizing planning and allocations for our impending first harvest. Our GE salmon was well received in sampling, and our sales team is very optimistic regarding near-term demand expectations, considering the resurgence of the food service industry as COVID-19 concerns begin to dissipate and consumers return to restaurants.

“We raised $127.1 million in gross proceeds in a public offering of equity in February to further finance the construction of our next farm with a planned capacity of 10,000 metric tons, which will greatly increase the Company’s growing capacity. We are currently in due diligence on the final site location and expect to commence construction later this year and commercial production in 2023.  Ahead of these rigorous efforts, we have made substantial progress on the farm design with our engineering and RAS technology partners, ensuring we have an efficient, replicable facility design that will serve us for years to come,” concluded Wulf.



First Quarter 2021 Financial Summary

·

Revenue in the first quarter of 2021 was $74 thousand, as compared to $7 thousand in in the same period of the prior year. Revenue was impacted by the continued effects of the COVID-19 pandemic on demand in the food service industry, which has started to reemerge as vaccines become more widely available.

·

Operating expenses in the first quarter of 2021 were $4.2 million, as compared to $3.1 million in the same period of the prior year. The increase in operating expenses was primarily due to production and headcount increases at the Company’s two farms.

·

Net loss in the first quarter of 2021 was $4.2 million, as compared to $3.1 million in the same period of the prior year.


 

·

Cash, cash equivalents and restricted cash were $211.4 million as of March 31, 2021, compared with $96.3 million as of December 31, 2020. The Company fortified its balance sheet with $127.1 million in gross proceeds from a public offering of common stock in February.



About AquaBounty

AquaBounty Technologies, Inc. (NASDAQ: AQB) is a leader in the field of land-based aquaculture and the use of technology for improving its productivity and sustainability. The Company’s objective is to help ensure the availability of high-quality seafood to meet global consumer demand, while addressing critical production constraints in the most popular farmed species.  The Company’s genetically engineered salmon program is based upon a single, specific molecular modification in salmon that results in more rapid growth in early development. With aquaculture farms located in Prince Edward Island, Canada, and Indiana, United States, AquaBounty is raising salmon that is free of antibiotics and other contaminants, in land-based Recirculating Aquaculture Systems (“RAS”) which are designed to prevent disease and to include multiple levels of fish containment to protect wild fish populations.  AquaBounty’s solution offers a reduced carbon footprint and no risk of pollution of marine ecosystems, as compared to traditional sea-cage farming. For more information, please visit www.aquabounty.com.



Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended, that involve significant risks and uncertainties about AquaBounty, including but not limited to statements with respect to the completion, timing, size, and use of proceeds of the underwritten offering of common stock. AquaBounty may use words such as “expect,” “anticipate,” “project,” “intend,” “plan,” “aim,” “believe,” “seek,” “estimate,” “can,” “focus,” “will,” and “may” and similar expressions to identify such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are risks relating to, among other things, whether or not AquaBounty will be able to raise additional capital, market and other conditions, AquaBounty’s business and financial condition, and the impact of general economic, public health, industry or political conditions in the United States or internationally. For additional disclosure regarding these and other risks faced by AquaBounty, see disclosures contained in AquaBounty’s public filings with the SEC, including the “Risk Factors” in the company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and prospectus supplement for this offering. You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and AquaBounty undertakes no obligation to update such statements as a result of new information, except as required by law.



Company Contact:
AquaBounty Technologies
Dave Conley
Corporate Communications
(613) 294-3078

Investor Relations:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
(949) 259-4987
AQB@mzgroup.us






 

AquaBounty Technologies, Inc.

Consolidated Balance Sheets

(Unaudited)







 

 

 

 

 



As of



March 31,

 

December 31,



2021

 

2020

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

210,899,434 

 

$

95,751,160 

Inventory

 

2,106,473 

 

 

1,525,377 

Prepaid expenses and other current assets

 

470,961 

 

 

405,370 

Total current assets

 

213,476,868 

 

 

97,681,907 



 

 

 

 

 

Property, plant and equipment, net

 

27,904,874 

 

 

26,930,338 

Right of use assets, net

 

327,386 

 

 

341,997 

Intangible assets, net

 

242,120 

 

 

245,546 

Restricted cash

 

500,000 

 

 

500,000 

Other assets

 

84,685 

 

 

76,715 

Total assets

$

242,535,933 

 

$

125,776,503 



 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable and accrued liabilities

$

1,555,066 

 

$

1,760,103 

Other current liabilities

 

62,765 

 

 

62,483 

Current debt

 

378,791 

 

 

259,939 

Total current liabilities

 

1,996,622 

 

 

2,082,525 



 

 

 

 

 

Long-term lease obligations

 

274,232 

 

 

290,327 

Long-term debt

 

8,622,436 

 

 

8,528,490 

Total liabilities

 

10,893,290 

 

 

10,901,342 



 

 

 

 

 

Commitments and contingencies

 

 

 

 

 



 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

Common stock, $0.001 par value, 80,000,000 shares authorized;

 

 

 

 

 

70,983,145 (2020: 55,497,133) shares outstanding

 

70,983 

 

 

55,497 

Additional paid-in capital

 

384,459,964 

 

 

263,629,116 

Accumulated other comprehensive loss

 

(187,219)

 

 

(267,258)

Accumulated deficit

 

(152,701,085)

 

 

(148,542,194)

Total stockholders' equity

 

231,642,643 

 

 

114,875,161 



 

 

 

 

 

Total liabilities and stockholders' equity

$

242,535,933 

 

$

125,776,503 




 

AquaBounty Technologies, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)









 

 

 

 

 



Three Months Ended March 31,



2021

 

2020

Revenues

 

 

 

 

 

Product revenues

$

74,372 

 

$

6,753 



 

 

 

 

 

Costs and expenses

 

 

 

 

 

Product costs

 

1,554,655 

 

 

841,434 

Sales and marketing

 

318,635 

 

 

50,788 

Research and development

 

500,620 

 

 

568,762 

General and administrative

 

1,785,510 

 

 

1,637,190 

Total costs and expenses

 

4,159,420 

 

 

3,098,174 



 

 

 

 

 

Operating loss

 

(4,085,048)

 

 

(3,091,421)



 

 

 

 

 

Other income (expense)

 

 

 

 

 

Interest expense

 

(78,804)

 

 

(17,045)

Other income (expense), net

 

4,961 

 

 

(1,152)

Total other income (expense)

 

(73,843)

 

 

(18,197)



 

 

 

 

 

Net loss

$

(4,158,891)

 

$

(3,109,618)



 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

Foreign currency translation income (loss)

 

80,039 

 

 

(381,985)

Total other comprehensive income (loss)

 

80,039 

 

 

(381,985)



 

 

 

 

 

Comprehensive loss

$

(4,078,852)

 

$

(3,491,603)



 

 

 

 

 



 

 

 

 

 

Basic and diluted net loss per share

$

(0.06)

 

$

(0.11)

Weighted average number of common shares -

 

 

 

 

 

basic and diluted

 

64,550,920 

 

 

27,116,754 




 

AquaBounty Technologies, Inc.

Consolidated Statements of Cash Flows

(Unaudited)







 

 

 

 

 



Three Months Ended March 31,



2021

 

2020

Operating activities

 

 

 

 

 

Net loss

$

(4,158,891)

 

$

(3,109,618)

Adjustment to reconcile net loss to net cash used in

 

 

 

 

 

operating activities:

 

 

 

 

 

Depreciation and amortization

 

422,185 

 

 

347,859 

Share-based compensation

 

129,715 

 

 

205,353 

Other non-cash charge

 

4,203 

 

 

 —

Changes in operating assets and liabilities:

 

 

 

 

 

Inventory

 

(577,154)

 

 

(610,200)

Prepaid expenses and other assets

 

(63,966)

 

 

(107,922)

Accounts payable and accrued liabilities

 

(274,486)

 

 

339,818 

Net cash used in operating activities

 

(4,518,394)

 

 

(2,934,710)



 

 

 

 

 

Investing activities

 

 

 

 

 

Purchase of property, plant and equipment

 

(1,208,183)

 

 

(691,351)

Proceeds from sale of asset held for sale

 

 —

 

 

98,000 

Proceeds from legal settlement, net

 

 —

 

 

1,014,008 

Other investing activities

 

(11,010)

 

 

(1,307)

Net cash (used in) provided by investing activities

 

(1,219,193)

 

 

419,350 



 

 

 

 

 

Financing activities

 

 

 

 

 

Proceeds from issuance of debt

 

187,120 

 

 

 —

Repayment of term debt

 

(38,885)

 

 

(39,391)

Proceeds from the issuance of common stock, net

 

119,120,437 

 

 

14,521,704 

Proceeds from the exercise of stock options and warrants, net

 

1,596,182 

 

 

 —

Net cash provided by financing activities

 

120,864,854 

 

 

14,482,313 



 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

21,007 

 

 

(15,951)

Net change in cash, cash equivalents and restricted cash

 

115,148,274 

 

 

11,951,002 

Cash, cash equivalents and restricted cash at beginning of period

 

96,251,160 

 

 

2,798,744 

Cash, cash equivalents and restricted cash at end of period

$

211,399,434 

 

$

14,749,746 



 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash reported

 

 

 

 

 

in the consolidated balance sheet:

 

 

 

 

 

  Cash and cash equivalents

$

210,899,434 

 

$

14,749,746 

  Restricted cash

 

500,000 

 

 

 —

  Total cash, cash equivalents and restricted cash

$

211,399,434 

 

$

14,749,746 



 

 

 

 

 

Supplemental disclosure of cash flow information and

 

 

 

 

 

non-cash transactions:

 

 

 

 

 

  Interest paid in cash

$

73,685 

 

$

17,045 

  Property and equipment included in accounts payable and accrued liabilities

$

82,068 

 

$

257,884