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Press Release Details

AquaBounty Technologies, Inc. Announces Second Quarter 2022 Financial Results

August 9, 2022 at 8:05 AM EDT

MAYNARD, Mass., Aug. 09, 2022 (GLOBE NEWSWIRE) -- 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 the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights and Recent Developments

  • Generated $1.1 million in product revenue in the second quarter, a year-over-year increase of 371% as compared to $227 thousand in the second quarter of 2021.
  • Net loss in the second quarter totaled $5.5 million, as compared to $5.2 million in the second quarter of 2021.
  • Construction activities for the Pioneer, Ohio farm site are well underway and now focused on underground piping.
  • Cash, cash equivalents, marketable securities and restricted cash totaled $149.2 million as of June 30, 2022, as compared to $191.2 million as of December 31, 2021.

Management Commentary

“Our genetically engineered Atlantic salmon saw continued market validation from seafood distributors in the quarter, with strong demand continuing for the entire output of our Indiana farm,” said Sylvia Wulf, Chief Executive Officer of AquaBounty. “This robust demand, combined with improvements in our sales yields and higher market prices, drove an 11% sequential increase in second quarter revenues to $1.1 million. As we ramp production at our Indiana facility, we will continue to utilize the farm as an opportunity to refine our production and harvest methods through the application of technology and process improvements – a critical learning experience ahead of our Ohio farm.

“Construction progress on our next-generation farm in Pioneer, Ohio is advancing. After the groundbreaking ceremony in late April, work commenced on initial pre-construction activities including the construction of roadways, on-site energy infrastructure and land preparation. With that work largely complete, we are now focused on excavating the ground site and laying the piping that will provide fresh water to our fish tanks.

“On the bond financing front, we have decided to slow the process down temporarily in order to evaluate the current economic forces that are driving both inflation and interest rates higher. Since our estimate for construction of the farm currently exceeds our previous range of $290 - $320 million, we will review all options for reducing cost, including potentially phasing the construction of the 10,000 metric ton farm with an initial production output level that would demonstrate our competitive advantage and ability to operate at commercial scale. We believe this is a prudent move and it will allow us to re-estimate remaining construction costs and thus avoid locking in contracts, commodity pricing for materials or interest rates at what may be their peak. We currently expect to resume our bond financing efforts with Wells Fargo Corporate and Investment Banking and the issuance of additional construction sub-contracts, once we have completed our evaluation of the project scope, relevant economic trends and market costs. However, construction on the farm will continue during this period and we are targeting to close the bond financing by year-end.

“As we look to the second half of 2022, we are operating from a strong position. Our GE Atlantic salmon continues to receive market validation, the scale-up of harvests and sales at our Indiana facility is well underway, and construction continues at the Ohio farm – all supported by our fortified balance sheet. We are committed to bringing a high-volume of fresh, sustainable Atlantic salmon to the market and look forward to continued execution and foundation building in the months ahead as we strive to build long-term value for our shareholders,” concluded Wulf.

About AquaBounty

At AquaBounty Technologies, Inc. (NASDAQ: AQB), we believe we are a leader in land-based aquaculture leveraging decades of technology expertise to deliver disruptive solutions that address food insecurity and climate change issues. We are committed to feeding the world efficiently, sustainably and profitably. AquaBounty provides fresh Atlantic salmon to nearby markets by raising its fish in carefully monitored land-based fish farms through a safe, secure and sustainable process. The Company’s land-based Recirculating Aquaculture System (“RAS”) farms, located in Indiana, United States and Prince Edward Island, Canada, are close to key consumption markets and are designed to prevent disease and to include multiple levels of fish containment to protect wild fish populations. AquaBounty is raising nutritious salmon that is free of antibiotics and contaminants and provides a solution resulting in a reduced carbon footprint and no risk of pollution to marine ecosystems as compared to traditional sea-cage farming. For more information on AquaBounty, please visit or follow us on Facebook, Twitter, LinkedIn and Instagram.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, as amended, including regarding the anticipated size of AquaBounty’s proposed facility in Ohio; production capacity; timing of construction, permits, regulatory approvals, or commercial stocking; cost of construction; ability to scale commercial production; the timing of the contemplated bond financing; future revenue streams; onboarding customers, pricing and profitability; customer sentiment; and technological capabilities.  The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these statements because they involve significant risks and uncertainties about AquaBounty. AquaBounty may use words such as “expect,” “anticipate,” “project,” “intend,” “slated to,” “plan,” “aim,” “believe,” “seek,” “estimate,” “can,” “focus,” “will,” “may,” the negative forms of these words 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 AquaBounty will be able to secure required regulatory approvals and permits; be able to profitably construct and operate the Pioneer, Ohio farm; be able to operate its Albany, Indiana and Prince Edward Island farms; AquaBounty’s business and financial condition; and the impact of general economic, public health, industry or political conditions in the United States and internationally.  Forward-looking statements speak only as of the date hereof, and, except as required by law, AquaBounty undertakes no obligation to update or revise these forward-looking statements. For additional information regarding these and other risks faced by us, please refer to our public filings with the Securities and Exchange Commission (“SEC”), available on the Investors section of our website at and on the SEC’s website at

This press release does not constitute an offer to sell or a solicitation of an offer to buy the bonds described herein, nor shall there be any sale of these bonds in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

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

Investor Relations:
Lucas A. Zimmerman
MZ Group - MZ North America
(949) 259-4987

AquaBounty Technologies, Inc.
Condensed Consolidated Balance Sheets

  June 30,  December 31,
 2022 2021
Current assets:     
Cash and cash equivalents$ 118,888,889  $88,454,988 
Marketable securities  29,354,888   101,773,781 
Inventory  1,918,395   1,259,910 
Prepaid expenses and other current assets  4,447,399   1,536,484 
Total current assets  154,609,571   193,025,163 
Property, plant and equipment, net  63,978,895   33,815,119 
Right of use assets, net  254,221   284,320 
Intangible assets, net  224,991   231,842 
Restricted cash  1,000,000   1,000,000 
Other assets  72,083   79,548 
Total assets$ 220,139,761  $228,435,992 
Liabilities and stockholders' equity     
Current liabilities:     
Accounts payable and accrued liabilities$ 6,883,125  $4,317,615 
Accrued employee compensation  783,449   874,589 
Current debt  688,390   627,365 
Other current liabilities  52,260   66,269 
Total current liabilities  8,407,224   5,885,838 
Long-term lease obligations  205,565   224,058 
Long-term debt, net  8,114,797   8,523,333 
Total liabilities  16,727,586   14,633,229 
Commitments and contingencies     
Stockholders' equity:     
Common stock, $0.001 par value, 150,000,000 and 80,000,000 shares authorized at     
June 30, 2022 and December 31, 2021, respectively; 71,110,713 and 71,025,738 shares     
outstanding at June 30, 2022 and December 31, 2021, respectively  71,111   71,026 
Additional paid-in capital  385,172,168   384,852,107 
Accumulated other comprehensive loss  (318,554)  (255,588)
Accumulated deficit  (181,512,550)  (170,864,782)
Total stockholders' equity  203,412,175   213,802,763 
Total liabilities and stockholders' equity$ 220,139,761  $228,435,992 

AquaBounty Technologies, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss

 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2022 2021 2022 2021
Product revenues$ 1,069,706  $227,393  $ 2,032,587  $301,765 
Costs and expenses           
Product costs  3,250,106   1,847,596    6,525,796   3,402,251 
Sales and marketing  349,917   548,881    597,489   867,516 
Research and development  208,292   431,373    375,481   931,993 
General and administrative  2,831,930   2,578,958    5,208,166   4,364,468 
Total costs and expenses  6,640,245   5,406,808    12,706,932   9,566,228 
Operating loss  (5,570,539)  (5,179,415)   (10,674,345)  (9,264,463)
Other income (expense)           
Interest expense  (74,694)  (80,210)   (149,982)  (159,014)
Other income, net  109,191   28,888    176,559   33,849 
Total other income (expense)  34,497   (51,322)   26,577   (125,165)
Net loss$ (5,536,042) $(5,230,737) $ (10,647,768) $(9,389,628)
Other comprehensive (loss) income:           
Foreign currency translation (loss) gain  (153,602)  65,924    (70,697)  145,963 
Unrealized gain on marketable securities  121,796   8,970    7,731   8,970 
Total other comprehensive (loss) income  (31,806)  74,894    (62,966)  154,933 
Comprehensive loss$ (5,567,848) $(5,155,843) $ (10,710,734) $(9,234,695)
Basic and diluted net loss per share$ (0.08) $(0.07) $ (0.15) $(0.14)
Weighted average number of Common Shares -           
basic and diluted  71,068,671   71,021,141    71,036,562   67,803,904 

AquaBounty Technologies, Inc.
Condensed Consolidated Statements of Cash Flows

 Six Months Ended June 30,
 2022 2021
Operating activities     
Net loss$ (10,647,768) $(9,389,628)
Adjustment to reconcile net loss to net cash used in     
operating activities:     
Depreciation and amortization  988,292   857,842 
Share-based compensation  318,608   217,069 
Other non-cash charge  14,860   8,565 
Changes in operating assets and liabilities:     
Inventory  (661,090)  (1,122,422)
Prepaid expenses and other assets  (2,883,505)  (876,139)
Accounts payable and accrued liabilities  1,705,335   (150,951)
Accrued employee compensation  (91,140)  (2,169)
Net cash used in operating activities  (11,256,408)  (10,457,833)
Investing activities     
Purchases and deposits on property, plant and equipment  (30,472,704)  (2,437,911)
Maturities of marketable securities  120,047,915   139,542 
Purchases of marketable securities  (47,621,291)  (71,842,187)
Other investing activities  12,500   (11,010)
Net cash provided by (used in) investing activities  41,966,420   (74,151,566)
Financing activities     
Proceeds from issuance of debt  42,338   406,378 
Repayment of term debt  (318,600)  (79,600)
Proceeds from the issuance of common stock, net    119,120,437 
Proceeds from the exercise of stock options and warrants  1,538   1,723,846 
Net cash (used in) provided by financing activities  (274,724)  121,171,061 
Effect of exchange rate changes on cash, cash equivalents and restricted cash  (1,387)  32,529 
Net change in cash, cash equivalents and restricted cash  30,433,901   36,594,191 
Cash, cash equivalents and restricted cash at beginning of period  89,454,988   96,251,160 
Cash, cash equivalents and restricted cash at end of period$ 119,888,889  $132,845,351 
Reconciliation of cash, cash equivalents and restricted cash reported     
in the consolidated balance sheet:     
Cash and cash equivalents$ 118,888,889  $132,345,351 
Restricted cash  1,000,000   500,000 
Total cash, cash equivalents and restricted cash$ 119,888,889  $132,845,351 
Supplemental disclosure of cash flow information and non-cash transactions:     
Interest paid in cash$ 141,490  $149,533 
Property and equipment included in accounts payable and accrued liabilities$ 3,758,842  $388,495