Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36426 | |
Entity Registrant Name | AquaBounty Technologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3156167 | |
Entity Address, Address Line One | 2 Mill & Main Place | |
Entity Address, Address Line Two | Suite 395 | |
Entity Address, City or Town | Maynard | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01754 | |
City Area Code | 978 | |
Local Phone Number | 648-6000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | AQB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 71,025,738 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0001603978 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 132,345,351 | $ 95,751,160 |
Marketable securities | 71,693,675 | |
Inventory | 2,655,098 | 1,525,377 |
Prepaid expenses and other current assets | 1,285,168 | 405,370 |
Total current assets | 207,979,292 | 97,681,907 |
Property, plant and equipment, net | 29,159,517 | 26,930,338 |
Right of use assets, net | 313,318 | 341,997 |
Intangible assets, net | 238,694 | 245,546 |
Restricted cash | 500,000 | 500,000 |
Other assets | 81,629 | 76,715 |
Total assets | 238,272,450 | 125,776,503 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1,980,365 | 1,760,103 |
Other current liabilities | 63,902 | 62,483 |
Current debt, net | 501,553 | 259,939 |
Total current liabilities | 2,545,820 | 2,082,525 |
Long-term lease obligations | 257,826 | 290,327 |
Long-term debt, net | 8,766,986 | 8,528,490 |
Total liabilities | 11,570,632 | 10,901,342 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 80,000,000 shares authorized; 71,025,738 and 55,497,133 shares outstanding as of June 30, 2021 and December 31, 2020, respectively | 71,026 | 55,497 |
Additional paid-in capital | 384,674,939 | 263,629,116 |
Accumulated other comprehensive loss | (112,325) | (267,258) |
Accumulated deficit | (157,931,822) | (148,542,194) |
Total stockholders’ equity | 226,701,818 | 114,875,161 |
Total liabilities and stockholders’ equity | $ 238,272,450 | $ 125,776,503 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares outstanding (in shares) | 71,025,738 | 55,497,133 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Product revenues | $ 227,393 | $ 2,950 | $ 301,765 | $ 9,703 |
Costs and expenses | ||||
Product costs | 1,847,596 | 1,041,316 | 3,402,251 | 1,882,750 |
Sales and marketing | 548,881 | 137,434 | 867,516 | 188,222 |
Research and development | 431,373 | 635,655 | 931,993 | 1,204,417 |
General and administrative | 2,578,958 | 1,693,544 | 4,364,468 | 3,330,734 |
Total costs and expenses | 5,406,808 | 3,507,949 | 9,566,228 | 6,606,123 |
Operating loss | (5,179,415) | (3,504,999) | (9,264,463) | (6,596,420) |
Other income (expense) | ||||
Interest expense | (80,210) | (18,147) | (159,014) | (35,192) |
Other income (expense), net | 28,888 | (538) | 33,849 | (1,690) |
Total other income (expense) | (51,322) | (18,685) | (125,165) | (36,882) |
Net loss | (5,230,737) | (3,523,684) | (9,389,628) | (6,633,302) |
Other comprehensive income (loss): | ||||
Foreign currency | 65,924 | 165,501 | 145,963 | (216,484) |
Unrealized gains | 8,970 | 8,970 | ||
Total other comprehensive income (loss) | 74,894 | 165,501 | 154,933 | (216,484) |
Comprehensive loss | $ (5,155,843) | $ (3,358,183) | $ (9,234,695) | $ (6,849,786) |
Basic and diluted net loss per share | $ (0.07) | $ (0.11) | $ (0.14) | $ (0.22) |
Weighted average number of common shares - | ||||
basic and diluted | 71,021,141 | 32,097,992 | 67,803,904 | 29,607,373 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total |
Beginning balance (in shares) at Dec. 31, 2019 | 21,635,365 | ||||
Beginning balance at Dec. 31, 2019 | $ 21,635 | $ 156,241,363 | $ (360,160) | $ (132,142,209) | $ 23,760,629 |
Net loss | (3,109,618) | (3,109,618) | |||
Other comprehensive income (loss) | (381,985) | (381,985) | |||
Issuance of common stock, net of issuance costs (in shares) | 10,350,000 | ||||
Issuance of common stock, net of issuance costs | $ 10,350 | 14,511,354 | 14,521,704 | ||
Share based compensation (in shares) | 100,319 | ||||
Share based compensation | $ 101 | 205,252 | 205,353 | ||
Ending balance (in shares) at Mar. 31, 2020 | 32,085,684 | ||||
Ending balance at Mar. 31, 2020 | $ 32,086 | 170,957,969 | (742,145) | (135,251,827) | 34,996,083 |
Beginning balance (in shares) at Dec. 31, 2019 | 21,635,365 | ||||
Beginning balance at Dec. 31, 2019 | $ 21,635 | 156,241,363 | (360,160) | (132,142,209) | 23,760,629 |
Net loss | (6,633,302) | ||||
Other comprehensive income (loss) | (216,484) | ||||
Ending balance (in shares) at Jun. 30, 2020 | 32,105,684 | ||||
Ending balance at Jun. 30, 2020 | $ 32,106 | 171,102,440 | (576,644) | (138,775,511) | 31,782,391 |
Beginning balance (in shares) at Mar. 31, 2020 | 32,085,684 | ||||
Beginning balance at Mar. 31, 2020 | $ 32,086 | 170,957,969 | (742,145) | (135,251,827) | 34,996,083 |
Net loss | (3,523,684) | (3,523,684) | |||
Other comprehensive income (loss) | 165,501 | 165,501 | |||
Issuance of common stock for services (in shares) | 20,000 | ||||
Issuance of common stock for services | $ 20 | 40,580 | 40,600 | ||
Share based compensation | 103,891 | 103,891 | |||
Ending balance (in shares) at Jun. 30, 2020 | 32,105,684 | ||||
Ending balance at Jun. 30, 2020 | $ 32,106 | 171,102,440 | (576,644) | (138,775,511) | 31,782,391 |
Beginning balance (in shares) at Dec. 31, 2020 | 55,497,133 | ||||
Beginning balance at Dec. 31, 2020 | $ 55,497 | 263,629,116 | (267,258) | (148,542,194) | 114,875,161 |
Net loss | (4,158,891) | (4,158,891) | |||
Other comprehensive income (loss) | 80,039 | 80,039 | |||
Cashless exercise of options for common stock (in shares) | 4,354 | ||||
Cashless exercise of options for common stock | $ 4 | (4) | |||
Issuance of common stock, net of issuance costs (in shares) | 14,950,000 | ||||
Issuance of common stock, net of issuance costs | $ 14,950 | 119,105,487 | 119,120,437 | ||
Exercise of warrants for common stock (in shares) | 491,133 | ||||
Exercise of warrants for common stock | $ 491 | 1,595,691 | 1,596,182 | ||
Share based compensation (in shares) | 40,525 | ||||
Share based compensation | $ 41 | 129,674 | 129,715 | ||
Ending balance (in shares) at Mar. 31, 2021 | 70,983,145 | ||||
Ending balance at Mar. 31, 2021 | $ 70,983 | 384,459,964 | (187,219) | (152,701,085) | 231,642,643 |
Beginning balance (in shares) at Dec. 31, 2020 | 55,497,133 | ||||
Beginning balance at Dec. 31, 2020 | $ 55,497 | 263,629,116 | (267,258) | (148,542,194) | 114,875,161 |
Net loss | (9,389,628) | ||||
Other comprehensive income (loss) | 154,933 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 71,025,738 | ||||
Ending balance at Jun. 30, 2021 | $ 71,026 | 384,674,939 | (112,325) | (157,931,822) | 226,701,818 |
Beginning balance (in shares) at Mar. 31, 2021 | 70,983,145 | ||||
Beginning balance at Mar. 31, 2021 | $ 70,983 | 384,459,964 | (187,219) | (152,701,085) | 231,642,643 |
Net loss | (5,230,737) | (5,230,737) | |||
Other comprehensive income (loss) | 74,894 | 74,894 | |||
Exercise of warrants for common stock (in shares) | 39,281 | ||||
Exercise of warrants for common stock | $ 39 | 127,625 | 127,664 | ||
Share based compensation (in shares) | 3,312 | ||||
Share based compensation | $ 4 | 87,350 | 87,354 | ||
Ending balance (in shares) at Jun. 30, 2021 | 71,025,738 | ||||
Ending balance at Jun. 30, 2021 | $ 71,026 | $ 384,674,939 | $ (112,325) | $ (157,931,822) | $ 226,701,818 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net loss | $ (9,389,628) | $ (6,633,302) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 857,842 | 701,593 |
Share-based compensation | 217,069 | 309,244 |
Other non-cash charge | 8,565 | 40,600 |
Changes in operating assets and liabilities: | ||
Inventory | (1,122,422) | (1,261,930) |
Prepaid expenses and other assets | (876,139) | (409,635) |
Accounts payable and accrued liabilities | (153,120) | 280,142 |
Net cash used in operating activities | (10,457,833) | (6,973,288) |
Investing activities | ||
Purchase of property, plant and equipment | (2,437,911) | (1,588,497) |
Proceeds from sale of asset held for sale | 98,000 | |
Purchases of marketable securities | (71,702,645) | |
Proceeds from legal settlement, net | 1,014,008 | |
Other investing activities | (11,010) | (12,460) |
Net cash used in investing activities | (74,151,566) | (488,949) |
Financing activities | ||
Proceeds from issuance of debt | 406,378 | 221,130 |
Repayment of term debt | (79,600) | (41,262) |
Proceeds from the issuance of common stock, net | 119,120,437 | 14,521,704 |
Proceeds from the exercise of stock options and warrants | 1,723,846 | |
Net cash provided by financing activities | 121,171,061 | 14,701,572 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 32,529 | (16,685) |
Net change in cash, cash equivalents and restricted cash | 36,594,191 | 7,222,650 |
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 | 132,845,351 | 10,021,394 |
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: | ||
Cash and cash equivalents | 132,345,351 | 10,021,394 |
Restricted cash | 500,000 | |
Supplemental disclosure of cash flow information and non-cash transactions: | ||
Interest paid in cash | 149,533 | 17,058 |
Property and equipment included in accounts payable and accrued liabilities | $ 388,495 | $ 238,235 |
Nature of Business and Organiza
Nature of Business and Organization | 6 Months Ended |
Jun. 30, 2021 | |
Nature of Business and Organization [Abstract] | |
Nature of Business and Organization | 1. Nature of business and organization AquaBounty Technologies, Inc. (the “Parent” and, together with its subsidiaries, the “Company”) was incorporated in December 1991 in the State of Delaware for the purpose of conducting research and development of the commercial viability of a group of proteins commonly known as antifreeze proteins. In 1996, the Parent obtained the exclusive licensing rights for a gene construct (transgene) used to create a breed of farm-raised Atlantic salmon that exhibit growth rates that are substantially faster than conventional salmon. In 2015, the Parent obtained approval from the US Food and Drug Administration (the “FDA”) for the production and sale of its GE Atlantic salmon in the United States and in 2016, the Parent obtained regulatory approval from Health Canada for the production and sale of its GE Atlantic salmon in Canada. In 2021, the Parent obtained regulatory approval from Brazil’s National Biosafety Technical Commission for the sale of its GE Atlantic salmon in Brazil. AquaBounty Farms, Inc. (the “U.S. Subsidiary”) was incorporated in December 2014 in the State of Delaware for the purpose of conducting field trials and commercializing the Parent’s products in the United States. During June 2021, the Company established AquaBounty Farms Ohio LLC (the “Ohio Subsidiary”), a wholly owned entity of the U.S. Subsidiary. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of presentation The unaudited interim condensed consolidated financial statements include the accounts of AquaBounty Technologies, Inc. and its wholly owned direct subsidiaries, AQUA Bounty Canada Inc.; AquaBounty Farms, Inc.; AquaBounty Panama, S. de R.L.; and AquaBounty Brasil Participações Ltda. The entities are collectively referred to herein as the “Company.” All intercompany transactions and balances have been eliminated upon consolidation. The unaudited interim condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the Company’s audited financial statements and related footnotes for the year ended December 31, 2020. The unaudited interim consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the Company’s financial position as of June 30, 2021. The Company's results of operations and cash flows for the interim periods presented are not necessarily indicative of results for subsequent interim periods or for the full year. The unaudited interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements, as allowed by the relevant U.S. Securities and Exchange Commission (“SEC”) rules and regulations; however, the Company believes that its disclosures are adequate to ensure that the information presented is not misleading. Liquidity In February 2021, the Company completed an equity raise with net proceeds of $ 119.1 million and has $ 204 million in cash, cash equivalents and marketable securities as of June 30, 2021. While the Company has experienced net losses and negative cash flows from operations since inception, management believes that it has sufficient cash to meet the Company's requirements beyond the next twelve months from the filing date of these condensed consolidated financial statements. However, until such time as the Company reaches profitability, it may require additional financing to fund its operations and execute its business plan. Inventories Inventories are mainly comprised of feed, eggs and fish in process. Fish in process inventory is measured based on the estimated biomass of fish on hand. The Company has established a standard procedure to estimate the biomass of fish on hand using counting and sampling techniques. The Company measures inventory at the lower of cost or net realizable value (NRV). The NRV calculation contains various estimates and assumptions in regard to the calculation of the biomass, including expected yield, the market value of the biomass and estimated costs of completion and transportation. The Company also considers capacity utilization in calculating its inventory value with any excess capacity charged to production costs as idle capacity. Inventory reserves are recorded as needed to represent the difference between the carrying value and the NRV calculation, taking into consideration the expected timing and disposition of the inventory. Revenue recognition The Company records revenue on the sale of a product when all revenue recognition criteria are fulfilled, including identifying the contract with a customer; identifying the performance obligations in the contract; determining the transaction price; allocating the transaction price to the performance obligations in the contract; and recognizing revenue when (or as) the Company satisfies a performance obligation. The Company evaluates customer credit risk in order to conclude it is “probable” it will collect the amount of consideration due in exchange for the goods or services. Net loss per share Basic and diluted net loss per share available to common stockholders has been calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Basic net loss per share is based solely on the number of common shares outstanding during the year. Fully diluted net loss per share includes the number of shares of common stock issuable upon the exercise of warrants and options with an exercise price less than the fair value of the common stock unless the impact of the warrant or option is anti-dilutive to the calculation. Since the Company is reporting a net loss for all periods presented, all potential common shares are considered anti - dilutive and are excluded from the calculation of diluted net loss per share. At June 30, 2021, the Company had 1,100,607 potentially dilutive securities outstanding, consisting of 418,441 warrants and 682,166 stock options. Accounting Pronouncements Management does not expect any recently issued, but not yet effective, accounting standards to have a material effect on its results of operations or financial condition. |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 3. Risks and uncertainties The Company is subject to risks and uncertainties common in the biotechnology and aquaculture industries. Such risks and uncertainties include, but are not limited to: (i) results from current and planned product development studies and trials; (ii) decisions made by the FDA or similar regulatory bodies in other countries with respect to approval and commercial sale of any of the Company’s proposed products; (iii) the commercial acceptance of any products approved for sale and the Company’s ability to produce, distribute, and sell for a profit any products approved for sale; (iv) the Company’s ability to obtain the necessary patents and proprietary rights to effectively protect its technologies; and (v) the outcome of any collaborations or alliances entered into by the Company. COVID-19 Although the COVID-19 pandemic has diminished in the United States and other parts of the world as vaccines have become more readily available, several variants of the virus continue to spread. Local governmental authorities in the United States and Canada have issued, and continue to update, directives aimed at minimizing the spread of the virus and the Company continues to monitor its status. The ultimate impact of the evolving COVID-19 pandemic on the Company’s operations will depend on future developments, which cannot be predicted with confidence, and the Company cannot predict the extent or impact of the extended period of continued business interruption and reduced operations caused by the COVID-19 pandemic or any additional preventative or protective measures taken in response. To date, the Company’s farm operations have not been materially affected by the pandemic, although management made modifications to biosecurity procedures and the farm sites in early 2020 to adapt to local requirements and to provide a safe work environment. The Company’s current preventative and protective measures include, but are not limited to, segregating farm workers to specific locations, rotating shifts, and monitoring worker temperatures upon arrival at the Company’s facilities. To the extent possible, work-from-home is utilized for employees that do not have fish care responsibilities. The Company has experienced delays in capital projects due to the pandemic and continues to experience extended lead times on equipment purchases. The Company may continue to experience delays on purchases of capital equipment and supplies and other materials required in its operations due to vendor shortages or it could be impacted by transportation or other supply chain disruptions to its partners or customers. The Company was primarily impacted by a reduction in the market price and demand for Atlantic salmon due to the pandemic’s impact on the food service sector. This had a negative impact on revenue and inventory value, as the Company is not yet an established vendor and customers were reluctant to add a new supplier during a period of depressed demand. The Company remains focused on maintaining a strong balance sheet, liquidity, and financial flexibility and continues to monitor developments as it deals with the disruptions and uncertainties from a business and financial perspective relating to the evolving COVID-19 pandemic. Concentration of credit risk Financial instruments that potentially subject the Company to credit risk consist principally of cash, cash equivalents, marketable securities and debt. This risk is mitigated by the Company’s policy of maintaining all balances with highly rated financial institutions, investing cash equivalents with maturities of less than 90 days, and investing marketable securities with maturities of less than 180 days. The Company’s cash balances may at times exceed insurance limitations. The Company holds cash balances in bank accounts located in Canada to fund its local operations. These amounts are subject to foreign currency exchange risk, which is minimized by the Company’s policy to limit the balances held in these accounts. Balances in Canadian bank accounts totaled $ 273 thousand at June 30, 2021. The Company also holds cash equivalent investments in a highly liquid investment account at a major financial institution. At June 30, 2021 the cash equivalent investment balance was $ 108.3 million. All of the Company’s interest-bearing debt is at fixed rates, except for the loan with First Farmer’s Bank and Trust, which has a rate reset in July 2025. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities Marketable securities are classified as available-for-sale. The following table summarizes the amortized cost, gross unrealized gains and losses, and the fair value as of June 30, 2021: Amortized Unrealized Unrealized Market Cost Gains Losses Value June 30, 2021 Government bonds $ 37,650,869 $ 1,751 $ ( 8,101 ) $ 37,644,519 Corporate bonds 3,558,858 ( 1,493 ) 3,557,365 Commercial paper 30,491,791 - - 30,491,791 Marketable securities $ 71,701,518 $ 1,751 $ ( 9,594 ) $ 71,693,675 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2021 | |
Inventory [Abstract] | |
Inventory | 5. Inventory Major classifications of inventory are summarized as follows: June 30, 2021 December 31, 2020 Feed $ 281,171 244,311 Eggs and fry 48,396 54,929 Packaging — 6,452 Fish in process 2,325,531 1,219,685 Inventory $ 2,655,098 1,525,377 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, plant and equipment Major classifications of property, plant and equipment are summarized as follows: June 30, 2021 December 31, 2020 Land $ 733,012 $ 724,785 Building and improvements 14,525,837 14,048,917 Construction in process 4,879,476 3,212,287 Equipment 14,788,329 13,819,210 Office furniture and equipment 218,063 202,596 Vehicles 37,164 28,700 Total property and equipment $ 35,181,881 $ 32,036,495 Less accumulated depreciation and amortization ( 6,022,364 ) ( 5,106,157 ) Property, plant and equipment, net $ 29,159,517 $ 26,930,338 Depreciation expense was $ 845 thousand and $ 695 thousand, for the six-month period ended June 30, 2021 and 2020. Included in construction in process is $ 2.0 million for construction related to the Rollo Bay farm site and improvements to the Fortune Bay hatchery, $ 1.8 million for construction related to the Indiana farm site, and $ 1.1 million related to design work for a new 10,000 metric ton farm. An additional $ 1.4 million has been committed to these projects. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities | 7. Accounts payable and accrued liabilities Accounts payable and accrued liabilities include the following: June 30, 2021 December 31, 2020 Accounts payable $ 820,534 $ 799,888 Accrued payroll including vacation 581,132 583,301 Accrued professional fees and contract services 515,499 278,165 Accrued other 63,200 98,749 Accounts payable and accrued liabilities $ 1,980,365 $ 1,760,103 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt [Abstract] | |
Debt | 8. Debt The current material terms and conditions of debt outstanding are as follows: Interest rate Monthly repayment Maturity date June 30, 2021 December 31, 2020 ACOA AIF Grant 0 % Royalties - $ 2,316,490 $ 2,253,595 ACOA term loan #1 0 % C$ 3,120 Feb 2027 171,161 181,203 ACOA term loan #2 0 % C$ 4,630 Sep 2029 369,689 381,451 Kubota Canada Ltd 0 % C$ 1,142 Jan 2025 39,622 43,925 PEI Finance term loan 4 % C$ 16,313 Nov 2023 2,033,484 2,014,321 DFO term loan 0 % C$ 2,091 Aug 2032 415,593 — First Farmers Bank & Trust term loan (FFBT) 5.375 % $ 56,832 Oct 2028 4,000,000 4,000,000 Total debt $ 9,346,039 $ 8,874,495 less: debt issuance costs ( 77,500 ) ( 86,066 ) less: current portion ( 501,553 ) ( 259,939 ) Long-term debt, net $ 8,766,986 $ 8,528,490 Estimated principal payments remaining on loan debt are as follows: AIF ACOA Kubota FPEI DFO FFBT Total Remainder of 2021 $ — $ 37,507 $ 5,529 $ 38,485 $ — $ 116,675 $ 198,196 2022 — 75,014 11,057 79,545 — 482,306 647,922 2023 — 75,014 11,057 1,915,454 36,455 509,256 2,547,236 2024 — 75,014 11,057 — 43,747 537,276 667,094 2025 — 75,013 922 — 43,747 567,735 687,417 Thereafter 2,316,490 203,288 — — 291,644 1,786,752 4,598,174 Total $ 2,316,490 $ 540,850 $ 39,622 $ 2,033,484 $ 415,593 $ 4,000,000 $ 9,346,039 In September 2020, the Canadian Subsidiary entered into a Contribution Agreement with DFO's Atlantic Fisheries Fund, whereby it is eligible to receive up to C$ 1.9 million ($ 1.4 million) to finance new equipment for its Rollo Bay farm (the “DFO Term Loan”). On February 25, 2021, the Canadian Subsidiary borrowed C$ 238,400 ($ 187,120 ) and on April 27, 2021 the Canadian Subsidiary borrowed C$ 276,840 ($ 221,470 ) under the DFO Term Loan. Borrowings are interest free and monthly repayments commence in March 2023, with maturity in August 2032. All funding requests must be submitted by August 22, 2022. The Company recognized interest expense of $ 159 thousand and $ 35 thousand for the six months ended June 2021 and 2020, respectively, on its interest-bearing debt. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 9. Leases Lease expense for the six months ended June 30, 2021 and 2020, amounted to $ 43 thousand and $ 40 thousand, respectively. The weighted average remaining lease term of the Company’s operating leases was 24 years as of June 30, 2021. Lease payments included in operating cash flows totaled $ 42 thousand for the six months ended June 30, 2021 and 2020. The table below summarizes the Company’s lease obligations and remaining payments a June 30, 2021: June 30, 2021 December 31, 2020 Lease Lease Remaining Remaining Lease Remaining Lease Type Term Years Payments Liability Payments Liability Maynard Office Lease Operating Mar 2023 1.67 118,007 106,390 150,918 134,099 Indiana Auto Lease Operating Feb 2021 - - 1,157 821 Indiana Well Lease Operating Dec 2048 27.44 678,810 215,338 686,809 217,890 Total 796,817 321,728 838,884 352,810 Less: current portion ( 83,543 ) ( 63,902 ) ( 83,571 ) ( 62,483 ) Long-term leases $ 713,274 $ 257,826 $ 755,313 $ 290,327 Remaining payments under leases are as follows at June 30, 2021: Year Office Well Amount Remainder of 2021 33,505 7,999 41,504 2022 67,602 16,478 84,080 2023 16,900 16,972 33,872 2024 - 17,481 17,481 2025 - 18,006 18,006 Thereafter - 601,874 601,874 Total Lease Payments 118,007 678,810 796,817 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ equity Recent issuances On February 8, 2021, the Company completed a public offering of 14,950,000 Common Shares for net proceeds of approximately $ 119.1 million. Warrants The following table summarizes information about outstanding warrants at June 30, 2021, all of which were issued in conjunction with a public equity offering in January 2018: Number of options Weighted average exercise price Outstanding at December 31, 2020 948,855 $ 3.25 Exercised ( 530,414 ) 3.25 Outstanding at June 30, 2021 418,441 3.25 Exercisable at June 30, 2021 418,441 3.25 All remaining warrants have an expiration date of January 17, 2023 . Share-based compensation At June 30, 2021, the Company has reserved 682,166 Common Shares issuable upon the exercise of outstanding stock options under its 2006 and 2016 Equity Incentive Plans. An additional 904,016 Common Shares are reserved for future issuance under the 2016 Equity Incentive Plan. Restricted stock A summary of the Company’s restricted Common Shares as of June 30, 2021, is as follows: Shares Weighted average grant date fair value Balance at December 31, 2020 72,653 $ 1.90 Granted 43,837 6.67 Vested ( 46,327 ) 3.23 Balance at June 30, 2021 70,163 $ 4.00 During the six months ended June 30, 2021 and 2020, the Company expensed $ 149 thousand and $ 122 thousand, respectively, related to the restricted stock awards. At June 30, 2021, the balance of unearned share-based compensation to be expensed in future periods related to the restricted stock awards is $ 238 thousand. The period over which the unearned share-based compensation is expected to be earned is approximately 3 years. Stock options The Company’s option activity is summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2020 657,414 $ 4.28 Granted 48,914 6.72 Exercised ( 16,667 ) 6.90 Forfeited ( 1,959 ) 6.72 Expired ( 5,536 ) 6.90 Outstanding at June 30, 2021 682,166 $ 4.36 Exercisable at June 30, 2021 600,470 $ 4.39 Unless otherwise indicated, options issued to employees, members of the Board of Directors, and non-employees are vested daily over one to three years and are exercisable for a term of ten years from the date of issuance. The fair values of stock option grants to employees and members of the Board of Directors during 2021 were measured on the date of grant using Black-Scholes, with the following weighted average assumptions: March 2021 Expected volatility 111 % Risk free interest rate 0.80 % Expected dividend yield 0 % Expected life (in years) 5 The weighted average fair value of stock options granted during the six months ended June 30, 2021, was $ 5.36 . The total intrinsic value of all options outstanding was $ 1.7 million and $ 3.6 million at June 30, 2021, and December 31, 2020, respectively. The total intrinsic value of exercisable options was $ 1.5 million and $ 3.2 million at June 30, 2021 and December 31, 2020, respectively. The following table summarizes information about options outstanding and exercisable at June 30, 2021: Weighted average exercise price of outstanding options Number of options outstanding Weighted average remaining estimated life (in years) Number of options exercisable $ 1.88 - $ 2.50 531,519 7.8 488,509 $ 3.30 - $ 6.72 58,557 8.4 19,871 $ 7.50 - $ 10.80 20,503 3.0 20,503 $ 14.20 - $ 23.40 71,587 4.8 71,587 682,166 600,470 Total share-based compensation on stock options amounted to $ 68 thousand and $ 187 thousand for the six months ended June 30, 2021 and 2020, respectively. At June 30, 2021, the balance of unearned share-based compensation to be expensed in future periods related to unvested share-based awards was $ 268 thousand. The period over which the unearned share-based compensation is expected to be earned is approximately 2.8 years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and contingencies The Company recognizes and discloses commitments when it enters into executed contractual obligations with other parties. The Company accrues contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. See Note 5 for commitments related to the Company’s renovation and construction costs. The Company is subject to legal proceedings and claims arising in the normal course of business. The Company records estimated losses from these legal proceedings and claims when it determines that it is probable a liability has been incurred and the amount of loss can be reasonably estimated. Litigation is subject to many factors that are difficult to predict so that there can be no assurance, in the event of a material unfavorable result in one or more claims, the Company will not incur material costs. There have been no other material changes to the commitments and contingencies disclosed in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes The Company estimates an annual effective tax rate of 0 % for the year ending December 31, 2021 as the Company incurred losses for the six months ended June 30, 2021 and is forecasting additional losses through the remainder of fiscal year ending December 31, 2021, resulting in an estimated net loss for both financial statement and tax purposes for the year ending December 31, 2021. Therefore, no federal or state income taxes are expected and none have been recorded at this time. Income taxes have been accounted for using the liability method. Due to the Company’s history of losses since inception, there is not enough evidence at this time to support that the Company will generate future income of a sufficient amount and nature to utilize the benefits of its net deferred tax assets. Accordingly, the deferred tax assets have been reduced by a full valuation allowance, since the Company does not currently believe that realization of its deferred tax assets is more likely than not. As of June 30, 2021, the Company had no unrecognized income tax benefits that would reduce the Company’s effective tax rate if recognized. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events ACOA Loan On July 8, 2021, the Canadian Subsidiary entered into a contribution agreement with the Atlantic Canada Opportunities Agency under its REGI-Business Scale-up and Productivity program that can provide up to C$ 250 thousand ($ 200 thousand) in funding assistance. All funds received are to be repaid over a 36 -month term commencing January 2023 at a 0 % interest rate. Site Purchase On July 23, 2021, the Company executed a Purchase and Sale Agreement with Kidston Consultants, Ltd for the purchase of approximately 85 acres of land in the Village of Pioneer, Williams County Ohio for $ 2.1 million. The sale is subject to the satisfaction of certain contingencies and customary closing conditions. The transaction is expected to close in early 2022, though the Company has an option to commence work on the site prior to close. Related Party Agreement On July 30, 2021, the Company executed an agreement with its largest shareholder, Third Security and its affiliates (“TS”), to file a resale registration statement on behalf of TS to register its holdings in the Company’s Common Shares for sale. The agreement includes, among other things, that TS will reimburse the Company for all fees associated with the filing of the registration statement and any future sales transaction fees. |
Nature of Business and Organi_2
Nature of Business and Organization (Policy) | 6 Months Ended |
Jun. 30, 2021 | |
Nature of Business and Organization [Abstract] | |
Nature of Business and Organization | AquaBounty Technologies, Inc. (the “Parent” and, together with its subsidiaries, the “Company”) was incorporated in December 1991 in the State of Delaware for the purpose of conducting research and development of the commercial viability of a group of proteins commonly known as antifreeze proteins. In 1996, the Parent obtained the exclusive licensing rights for a gene construct (transgene) used to create a breed of farm-raised Atlantic salmon that exhibit growth rates that are substantially faster than conventional salmon. In 2015, the Parent obtained approval from the US Food and Drug Administration (the “FDA”) for the production and sale of its GE Atlantic salmon in the United States and in 2016, the Parent obtained regulatory approval from Health Canada for the production and sale of its GE Atlantic salmon in Canada. In 2021, the Parent obtained regulatory approval from Brazil’s National Biosafety Technical Commission for the sale of its GE Atlantic salmon in Brazil. AquaBounty Farms, Inc. (the “U.S. Subsidiary”) was incorporated in December 2014 in the State of Delaware for the purpose of conducting field trials and commercializing the Parent’s products in the United States. During June 2021, the Company established AquaBounty Farms Ohio LLC (the “Ohio Subsidiary”), a wholly owned entity of the U.S. Subsidiary. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Consolidation | The unaudited interim condensed consolidated financial statements include the accounts of AquaBounty Technologies, Inc. and its wholly owned direct subsidiaries, AQUA Bounty Canada Inc.; AquaBounty Farms, Inc.; AquaBounty Panama, S. de R.L.; and AquaBounty Brasil Participações Ltda. The entities are collectively referred to herein as the “Company.” All intercompany transactions and balances have been eliminated upon consolidation. |
Basis of Presentation | The unaudited interim condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the Company’s audited financial statements and related footnotes for the year ended December 31, 2020. The unaudited interim consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the Company’s financial position as of June 30, 2021. The Company's results of operations and cash flows for the interim periods presented are not necessarily indicative of results for subsequent interim periods or for the full year. The unaudited interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements, as allowed by the relevant U.S. Securities and Exchange Commission (“SEC”) rules and regulations; however, the Company believes that its disclosures are adequate to ensure that the information presented is not misleading. |
Liquidity | Liquidity In February 2021, the Company completed an equity raise with net proceeds of $ 119.1 million and has $ 204 million in cash, cash equivalents and marketable securities as of June 30, 2021. While the Company has experienced net losses and negative cash flows from operations since inception, management believes that it has sufficient cash to meet the Company's requirements beyond the next twelve months from the filing date of these condensed consolidated financial statements. However, until such time as the Company reaches profitability, it may require additional financing to fund its operations and execute its business plan. |
Inventories | Inventories Inventories are mainly comprised of feed, eggs and fish in process. Fish in process inventory is measured based on the estimated biomass of fish on hand. The Company has established a standard procedure to estimate the biomass of fish on hand using counting and sampling techniques. The Company measures inventory at the lower of cost or net realizable value (NRV). The NRV calculation contains various estimates and assumptions in regard to the calculation of the biomass, including expected yield, the market value of the biomass and estimated costs of completion and transportation. The Company also considers capacity utilization in calculating its inventory value with any excess capacity charged to production costs as idle capacity. Inventory reserves are recorded as needed to represent the difference between the carrying value and the NRV calculation, taking into consideration the expected timing and disposition of the inventory. |
Revenue Recognition | Revenue recognition The Company records revenue on the sale of a product when all revenue recognition criteria are fulfilled, including identifying the contract with a customer; identifying the performance obligations in the contract; determining the transaction price; allocating the transaction price to the performance obligations in the contract; and recognizing revenue when (or as) the Company satisfies a performance obligation. The Company evaluates customer credit risk in order to conclude it is “probable” it will collect the amount of consideration due in exchange for the goods or services. |
Net Loss Per Share | Net loss per share Basic and diluted net loss per share available to common stockholders has been calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Basic net loss per share is based solely on the number of common shares outstanding during the year. Fully diluted net loss per share includes the number of shares of common stock issuable upon the exercise of warrants and options with an exercise price less than the fair value of the common stock unless the impact of the warrant or option is anti-dilutive to the calculation. Since the Company is reporting a net loss for all periods presented, all potential common shares are considered anti - dilutive and are excluded from the calculation of diluted net loss per share. At June 30, 2021, the Company had 1,100,607 potentially dilutive securities outstanding, consisting of 418,441 warrants and 682,166 stock options. |
Accounting Pronouncements | Accounting Pronouncements Management does not expect any recently issued, but not yet effective, accounting standards to have a material effect on its results of operations or financial condition. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | Amortized Unrealized Unrealized Market Cost Gains Losses Value June 30, 2021 Government bonds $ 37,650,869 $ 1,751 $ ( 8,101 ) $ 37,644,519 Corporate bonds 3,558,858 ( 1,493 ) 3,557,365 Commercial paper 30,491,791 - - 30,491,791 Marketable securities $ 71,701,518 $ 1,751 $ ( 9,594 ) $ 71,693,675 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory [Abstract] | |
Schedule of Inventory | June 30, 2021 December 31, 2020 Feed $ 281,171 244,311 Eggs and fry 48,396 54,929 Packaging — 6,452 Fish in process 2,325,531 1,219,685 Inventory $ 2,655,098 1,525,377 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | June 30, 2021 December 31, 2020 Land $ 733,012 $ 724,785 Building and improvements 14,525,837 14,048,917 Construction in process 4,879,476 3,212,287 Equipment 14,788,329 13,819,210 Office furniture and equipment 218,063 202,596 Vehicles 37,164 28,700 Total property and equipment $ 35,181,881 $ 32,036,495 Less accumulated depreciation and amortization ( 6,022,364 ) ( 5,106,157 ) Property, plant and equipment, net $ 29,159,517 $ 26,930,338 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | June 30, 2021 December 31, 2020 Accounts payable $ 820,534 $ 799,888 Accrued payroll including vacation 581,132 583,301 Accrued professional fees and contract services 515,499 278,165 Accrued other 63,200 98,749 Accounts payable and accrued liabilities $ 1,980,365 $ 1,760,103 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt [Abstract] | |
Terms and Conditions of Long-term Debt Outstanding | Interest rate Monthly repayment Maturity date June 30, 2021 December 31, 2020 ACOA AIF Grant 0 % Royalties - $ 2,316,490 $ 2,253,595 ACOA term loan #1 0 % C$ 3,120 Feb 2027 171,161 181,203 ACOA term loan #2 0 % C$ 4,630 Sep 2029 369,689 381,451 Kubota Canada Ltd 0 % C$ 1,142 Jan 2025 39,622 43,925 PEI Finance term loan 4 % C$ 16,313 Nov 2023 2,033,484 2,014,321 DFO term loan 0 % C$ 2,091 Aug 2032 415,593 — First Farmers Bank & Trust term loan (FFBT) 5.375 % $ 56,832 Oct 2028 4,000,000 4,000,000 Total debt $ 9,346,039 $ 8,874,495 less: debt issuance costs ( 77,500 ) ( 86,066 ) less: current portion ( 501,553 ) ( 259,939 ) Long-term debt, net $ 8,766,986 $ 8,528,490 |
Principal Payments Due on Long-term Debt | AIF ACOA Kubota FPEI DFO FFBT Total Remainder of 2021 $ — $ 37,507 $ 5,529 $ 38,485 $ — $ 116,675 $ 198,196 2022 — 75,014 11,057 79,545 — 482,306 647,922 2023 — 75,014 11,057 1,915,454 36,455 509,256 2,547,236 2024 — 75,014 11,057 — 43,747 537,276 667,094 2025 — 75,013 922 — 43,747 567,735 687,417 Thereafter 2,316,490 203,288 — — 291,644 1,786,752 4,598,174 Total $ 2,316,490 $ 540,850 $ 39,622 $ 2,033,484 $ 415,593 $ 4,000,000 $ 9,346,039 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Summary of Lease Obligations and Remaining Payments | June 30, 2021 December 31, 2020 Lease Lease Remaining Remaining Lease Remaining Lease Type Term Years Payments Liability Payments Liability Maynard Office Lease Operating Mar 2023 1.67 118,007 106,390 150,918 134,099 Indiana Auto Lease Operating Feb 2021 - - 1,157 821 Indiana Well Lease Operating Dec 2048 27.44 678,810 215,338 686,809 217,890 Total 796,817 321,728 838,884 352,810 Less: current portion ( 83,543 ) ( 63,902 ) ( 83,571 ) ( 62,483 ) Long-term leases $ 713,274 $ 257,826 $ 755,313 $ 290,327 |
Summary of Remaining Payments under Leases | Year Office Well Amount Remainder of 2021 33,505 7,999 41,504 2022 67,602 16,478 84,080 2023 16,900 16,972 33,872 2024 - 17,481 17,481 2025 - 18,006 18,006 Thereafter - 601,874 601,874 Total Lease Payments 118,007 678,810 796,817 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity [Abstract] | |
Information About Outstanding Warrants | Number of options Weighted average exercise price Outstanding at December 31, 2020 948,855 $ 3.25 Exercised ( 530,414 ) 3.25 Outstanding at June 30, 2021 418,441 3.25 Exercisable at June 30, 2021 418,441 3.25 |
Restricted Stock Activity | Shares Weighted average grant date fair value Balance at December 31, 2020 72,653 $ 1.90 Granted 43,837 6.67 Vested ( 46,327 ) 3.23 Balance at June 30, 2021 70,163 $ 4.00 |
Stock Option Activity | Number of options Weighted average exercise price Outstanding at December 31, 2020 657,414 $ 4.28 Granted 48,914 6.72 Exercised ( 16,667 ) 6.90 Forfeited ( 1,959 ) 6.72 Expired ( 5,536 ) 6.90 Outstanding at June 30, 2021 682,166 $ 4.36 Exercisable at June 30, 2021 600,470 $ 4.39 |
Stock Option Grants Weighted Average Assumptions | March 2021 Expected volatility 111 % Risk free interest rate 0.80 % Expected dividend yield 0 % Expected life (in years) 5 |
Information About Options Outstanding and Exercisable | Weighted average exercise price of outstanding options Number of options outstanding Weighted average remaining estimated life (in years) Number of options exercisable $ 1.88 - $ 2.50 531,519 7.8 488,509 $ 3.30 - $ 6.72 58,557 8.4 19,871 $ 7.50 - $ 10.80 20,503 3.0 20,503 $ 14.20 - $ 23.40 71,587 4.8 71,587 682,166 600,470 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Feb. 28, 2021 | Jun. 30, 2021 | |
Net proceeds from equity | $ 119.1 | |
Cash, cash equivalents and marketable securities | $ 204 | |
Potentially dilutive securities outstanding (in shares) | 1,100,607 | |
Warrant [Member] | ||
Potentially dilutive securities outstanding (in shares) | 418,441 | |
Stock Option [Member] | ||
Potentially dilutive securities outstanding (in shares) | 682,166 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) - Canada [Member] - Credit Concentration Risk [Member] $ in Millions | Jun. 30, 2021USD ($) |
Concentration Risk [Line Items] | |
Cash in Canadian bank accounts | $ 273 |
Cash equivalent investment balance | $ 108.3 |
Marketable Securities (Schedule
Marketable Securities (Schedule of Marketable Securities) (Details) | Jun. 30, 2021USD ($) |
Marketable Securities [Line Items] | |
Amortized cost | $ 71,701,518 |
Unrealized Gains | 1,751 |
Unrealized Losses | (9,594) |
Market Value | 71,693,675 |
Government Bonds [Member] | |
Marketable Securities [Line Items] | |
Amortized cost | 37,650,869 |
Unrealized Gains | 1,751 |
Unrealized Losses | (8,101) |
Market Value | 37,644,519 |
Corporate Bonds [Member] | |
Marketable Securities [Line Items] | |
Amortized cost | 3,558,858 |
Unrealized Gains | |
Unrealized Losses | (1,493) |
Market Value | 3,557,365 |
Commercial Paper [Member] | |
Marketable Securities [Line Items] | |
Amortized cost | 30,491,791 |
Unrealized Gains | |
Unrealized Losses | |
Market Value | $ 30,491,791 |
Inventory (Schedule of Inventor
Inventory (Schedule of Inventory) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory | $ 2,655,098 | $ 1,525,377 |
Feed [Member] | ||
Inventory [Line Items] | ||
Inventory | 281,171 | 244,311 |
Eggs And Fry [Member] | ||
Inventory [Line Items] | ||
Inventory | 48,396 | 54,929 |
Packaging [Member] | ||
Inventory [Line Items] | ||
Inventory | 6,452 | |
Fish In Process [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 2,325,531 | $ 1,219,685 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 845,000 | $ 695,000 | |
Gross property, plant, and equipment | 35,181,881 | $ 32,036,495 | |
Capital Addition Purchase Commitments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Commitments to purchase property, plant, and equipment | 1,400,000 | ||
Construction In Process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant, and equipment | 4,879,476 | $ 3,212,287 | |
Rollo Bay Farm And Fortune Bay Hatchery [Member] | Construction In Process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant, and equipment | 2,000,000 | ||
Indiana Farm [Member] | Construction In Process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant, and equipment | 1,800,000 | ||
New 10,000 Metric Ton Farm [Member] | Construction In Process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 1,100,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 35,181,881 | $ 32,036,495 |
Less accumulated depreciation and amortization | (6,022,364) | (5,106,157) |
Property, plant and equipment, net | 29,159,517 | 26,930,338 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 733,012 | 724,785 |
Building And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,525,837 | 14,048,917 |
Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,879,476 | 3,212,287 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,788,329 | 13,819,210 |
Office Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 218,063 | 202,596 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 37,164 | $ 28,700 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable | $ 820,534 | $ 799,888 |
Accrued payroll including vacation | 581,132 | 583,301 |
Accrued professional fees and contract services | 515,499 | 278,165 |
Accrued other | 63,200 | 98,749 |
Accounts payable and accrued liabilities | $ 1,980,365 | $ 1,760,103 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 27, 2021USD ($) | Apr. 27, 2021CAD ($) | Feb. 25, 2021USD ($) | Feb. 25, 2021CAD ($) | |
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of debt | $ 406,378 | $ 221,130 | ||||||
DFO Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount borrowed | $ 221,470 | $ 276,840 | $ 187,120 | $ 238,400 | ||||
Proceeds from issuance of debt | $ 1,400,000 | $ 1,900,000 | ||||||
Maturity date | Aug 2032 | |||||||
Interest expense | $ 159,000 | $ 35,000 |
Debt (Terms and Conditions of L
Debt (Terms and Conditions of Long-term Debt Outstanding) (Details) | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2021CAD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |||
Total debt | $ 9,346,039 | $ 8,874,495 | |
less: debt issuance costs | (77,500) | (86,066) | |
less: current portion | (501,553) | (259,939) | |
Long-term debt, net | $ 8,766,986 | 8,528,490 | |
ACOA AIF Grant [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
Maturity date | - | - | |
Total debt | $ 2,316,490 | 2,253,595 | |
ACOA Term Loan#1 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
Monthly repayment | $ 3,120 | ||
Maturity date | Feb 2027 | Feb 2027 | |
Total debt | $ 171,161 | 181,203 | |
ACOA Term Loan#2 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
Monthly repayment | $ 4,630 | ||
Maturity date | Sep 2029 | Sep 2029 | |
Total debt | $ 369,689 | 381,451 | |
Kubota Canada Ltd [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
Monthly repayment | $ 1,142 | ||
Maturity date | Jan 2025 | Jan 2025 | |
Total debt | $ 39,622 | 43,925 | |
PEI Finance Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.00% | ||
Monthly repayment | $ 16,313 | ||
Maturity date | Nov 2023 | Nov 2023 | |
Total debt | $ 2,033,484 | 2,014,321 | |
DFO Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.00% | ||
Monthly repayment | $ 2,091 | ||
Maturity date | Aug 2032 | Aug 2032 | |
Total debt | $ 415,593 | ||
First Farmers Bank & Trust Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.375% | ||
Monthly repayment | $ 56,832 | ||
Maturity date | Oct 2028 | Oct 2028 | |
Total debt | $ 4,000,000 | $ 4,000,000 |
Debt (Principal Payments Due on
Debt (Principal Payments Due on Long-term Debt) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Year | ||
Remainder of 2021 | $ 198,196 | |
2022 | 647,922 | |
2023 | 2,547,236 | |
2024 | 667,094 | |
2025 | 687,417 | |
Thereafter | 4,598,174 | |
Total debt | 9,346,039 | $ 8,874,495 |
ACOA AIF Grant [Member] | ||
Year | ||
Remainder of 2021 | ||
2022 | ||
2023 | ||
2024 | ||
2025 | ||
Thereafter | 2,316,490 | |
Total debt | 2,316,490 | 2,253,595 |
ACOA [Member] | ||
Year | ||
Remainder of 2021 | 37,507 | |
2022 | 75,014 | |
2023 | 75,014 | |
2024 | 75,014 | |
2025 | 75,013 | |
Thereafter | 203,288 | |
Total debt | 540,850 | |
Kubota Canada Ltd [Member] | ||
Year | ||
Remainder of 2021 | 5,529 | |
2022 | 11,057 | |
2023 | 11,057 | |
2024 | 11,057 | |
2025 | 922 | |
Thereafter | ||
Total debt | 39,622 | 43,925 |
PEI Finance Term Loan [Member] | ||
Year | ||
Remainder of 2021 | 38,485 | |
2022 | 79,545 | |
2023 | 1,915,454 | |
2024 | ||
2025 | ||
Thereafter | ||
Total debt | 2,033,484 | 2,014,321 |
DFO Term Loan [Member] | ||
Year | ||
Remainder of 2021 | ||
2022 | ||
2023 | 36,455 | |
2024 | 43,747 | |
2025 | 43,747 | |
Thereafter | 291,644 | |
Total debt | 415,593 | |
First Farmers Bank & Trust Term Loan [Member] | ||
Year | ||
Remainder of 2021 | 116,675 | |
2022 | 482,306 | |
2023 | 509,256 | |
2024 | 537,276 | |
2025 | 567,735 | |
Thereafter | 1,786,752 | |
Total debt | $ 4,000,000 | $ 4,000,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Lease expense | $ 43 | $ 40 |
Weighted average remaining lease term | 24 years | |
Lease payment | $ 42 | $ 42 |
Leases (Summary of Lease Obliga
Leases (Summary of Lease Obligations and Remaining Payments) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Remaining Payments | $ 796,817 | $ 838,884 |
Remaining Payments - Less: current portion | (83,543) | (83,571) |
Remaining Payments - Long-term leases | 713,274 | 755,313 |
Lease Liability | 321,728 | 352,810 |
Lease Liability - Less: current portion | (63,902) | (62,483) |
Lease Liability - Long-term leases | $ 257,826 | 290,327 |
Maynard Office Lease [Member] | ||
Lease Term | Mar 2023 | |
Remaining Years | 1 year 8 months 1 day | |
Remaining Payments | $ 118,007 | 150,918 |
Lease Liability | $ 106,390 | 134,099 |
Indiana Auto Lease [Member] | ||
Lease Term | Feb 2021 | |
Remaining Payments | 1,157 | |
Lease Liability | 821 | |
Indiana Well Lease [Member] | ||
Lease Term | Dec 2048 | |
Remaining Years | 27 years 5 months 8 days | |
Remaining Payments | $ 678,810 | 686,809 |
Lease Liability | $ 215,338 | $ 217,890 |
Leases (Summary of Remaining Pa
Leases (Summary of Remaining Payments under Leases) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Remainder of 2021 | $ 41,504 | |
2022 | 84,080 | |
2023 | 33,872 | |
2024 | 17,481 | |
2025 | 18,006 | |
Thereafter | 601,874 | |
Remaining Payments | 796,817 | $ 838,884 |
Office [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Remainder of 2021 | 33,505 | |
2022 | 67,602 | |
2023 | 16,900 | |
2024 | ||
2025 | ||
Thereafter | ||
Remaining Payments | 118,007 | |
Well [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Remainder of 2021 | 7,999 | |
2022 | 16,478 | |
2023 | 16,972 | |
2024 | 17,481 | |
2025 | 18,006 | |
Thereafter | 601,874 | |
Remaining Payments | $ 678,810 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | Feb. 08, 2021 | Feb. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Stockholders' Equity | |||||||
Proceeds from issuance or sale of equity | $ 119,100,000 | ||||||
Share-based compensation | $ 217,069 | $ 309,244 | |||||
Restricted Stock [Member] | |||||||
Stockholders' Equity | |||||||
Share-based compensation expense | 149,000 | 122,000 | |||||
Unearned share-based compensation expense in future periods | $ 238,000 | ||||||
Unearned share-based compensation earn period | 3 years | ||||||
Stock Option [Member] | |||||||
Stockholders' Equity | |||||||
Unearned share-based compensation expense in future periods | $ 268,000 | ||||||
Unearned share-based compensation earn period | 2 years 9 months 18 days | ||||||
Weighted average fair value of stock options grants (in dollars per share) | $ 5.36 | ||||||
Intrinsic value of options outstanding | $ 1,700,000 | $ 3,600,000 | |||||
Intrinsic value of exercisable options | 1,500,000 | $ 3,200,000 | |||||
Share-based compensation | $ 68,000 | $ 187,000 | |||||
2006 and 2016 Equity Incentive Plans [Member] | |||||||
Stockholders' Equity | |||||||
Common stock reserved for future issuances (in shares) | 682,166 | ||||||
2016 Equity Incentive Plan [Member] | |||||||
Stockholders' Equity | |||||||
Common stock reserved for future issuances (in shares) | 904,016 | ||||||
Common Stock [Member] | |||||||
Stockholders' Equity | |||||||
Issued (in shares) | 14,950,000 | 10,350,000 | |||||
Common Stock [Member] | Warrant [Member] | |||||||
Stockholders' Equity | |||||||
Expiration date | Jan. 17, 2023 | ||||||
February 2021 Public Offering [Member] | Common Stock [Member] | |||||||
Stockholders' Equity | |||||||
Issued (in shares) | 14,950,000 | ||||||
Proceeds from issuance or sale of equity | $ 119,100,000 |
Stockholders' Equity (Informati
Stockholders' Equity (Information About Outstanding Warrants) (Details) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of options | |
Outstanding, beginning balance | shares | 948,855 |
Exercised | shares | (530,414) |
Outstanding, ending balance | shares | 418,441 |
Exercisable | shares | 418,441 |
Weighted average exercise price | |
Outstanding, beginning balance | $ / shares | $ 3.25 |
Exercised | $ / shares | 3.25 |
Outstanding, ending balance | $ / shares | 3.25 |
Exercisable | $ / shares | $ 3.25 |
Stockholders' Equity (Restricte
Stockholders' Equity (Restricted Stock Activity) (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares | |
Beginning balance | shares | 72,653 |
Granted | shares | 43,837 |
Vested | shares | (46,327) |
Ending balance | shares | 70,163 |
Weighted average grant date fair value | |
Beginning balance | $ / shares | $ 1.90 |
Granted | $ / shares | 6.67 |
Vested | $ / shares | 3.23 |
Ending balance | $ / shares | $ 4 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) - Stock Option [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of options | |
Outstanding, beginning balance | shares | 657,414 |
Granted | shares | 48,914 |
Exercised | shares | (16,667) |
Forfeited | shares | (1,959) |
Expired | shares | (5,536) |
Outstanding, ending balance | shares | 682,166 |
Exercisable | shares | 600,470 |
Weighted average exercise price | |
Outstanding, beginning balance | $ / shares | $ 4.28 |
Granted | $ / shares | 6.72 |
Exercised | $ / shares | 6.90 |
Forfeited | $ / shares | 6.72 |
Expired | $ / shares | 6.90 |
Outstanding, ending balance | $ / shares | 4.36 |
Exercisable | $ / shares | $ 4.39 |
Stockholders' Equity (Stock O_2
Stockholders' Equity (Stock Option Grants Weighted Average Assumptions) (Details) - Stock Option [Member] | 1 Months Ended | 6 Months Ended |
Mar. 31, 2021 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 111.00% | 111.00% |
Risk free interest rate | 0.80% | 0.80% |
Expected dividend yield | 0.00% | 0.00% |
Expected life (in years) | 5 years |
Stockholders' Equity (Informa_2
Stockholders' Equity (Information About Options Outstanding and Exercisable) (Details) - Stock Option [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 682,166 |
Number of options exercisable | 600,470 |
$1.88 - $2.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 531,519 |
Weighted average remaining estimated life (in years) | 7 years 9 months 18 days |
Number of options exercisable | 488,509 |
$3.30 - $6.72 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 58,557 |
Weighted average remaining estimated life (in years) | 8 years 4 months 24 days |
Number of options exercisable | 19,871 |
$7.50 - $10.80 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 20,503 |
Weighted average remaining estimated life (in years) | 3 years |
Number of options exercisable | 20,503 |
$14.20 - $23.40 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 71,587 |
Weighted average remaining estimated life (in years) | 4 years 9 months 18 days |
Number of options exercisable | 71,587 |
Minimum [Member] | $1.88 - $2.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | $ 1.88 |
Minimum [Member] | $3.30 - $6.72 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 3.30 |
Minimum [Member] | $7.50 - $10.80 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 7.50 |
Minimum [Member] | $14.20 - $23.40 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 14.20 |
Maximum [Member] | $1.88 - $2.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 2.50 |
Maximum [Member] | $3.30 - $6.72 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 6.72 |
Maximum [Member] | $7.50 - $10.80 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 10.80 |
Maximum [Member] | $14.20 - $23.40 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | $ 23.40 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2021 | |
Income Taxes [Abstract] | ||
Effective tax rate | 0.00% | |
Unrecognized income tax benefits | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ in Thousands, $ in Thousands | Jul. 23, 2021USD ($)a | Jul. 08, 2021CAD ($) | Jul. 08, 2021USD ($) |
Subsequent Event [Line Items] | |||
Number of acres of land purchased | a | 85 | ||
Purchase of land | $ | $ 2,100 | ||
ACOA Loan [Member] | Canadian Subsidiary [Member] | |||
Subsequent Event [Line Items] | |||
Amount borrowed | $ 250 | $ 200 | |
Loan term | 36 months | ||
Interest rate | 0.00% | 0.00% |