AquaBounty Technologies, Inc. Results for the second quarter and first half ended June 30, 2017

August 4, 2017 at 4:30 PM EDT

MAYNARD, Mass, Aug. 04, 2017 (GLOBE NEWSWIRE) -- AquaBounty Technologies, Inc. (NASDAQ:AQB) (“AquaBounty” or the “Company”), a biotechnology company focused on enhancing productivity in the aquaculture market and a majority-owned subsidiary of Intrexon Corporation (NYSE:XON), announces the Company’s financial results for the second quarter and first half ended June 30, 2017.

Financial and Operational Summary:

Significant operational progress made in advancing the Company’s commercial plans;
Further to receiving regulatory approval from Health Canada and the Canadian Food Inspection Agency last year, sold approximately five tons of fresh AquAdvantage^® Salmon fillets at market price to customers in Canada;
Purchased certain assets of the Bell Fish Company LLC farm site in Albany, Indiana, for $14.2 million, including legal and other transaction costs;
Received provincial approval from the Prince Edward Island regulatory authorities to construct a broodstock facility and a grow-out facility on the Company’s Rollo Bay site;
Completed the de-listing of the Company’s common shares from trading on AIM; and
Net loss for the three-month period ended June 30, 2017, was relatively flat at $2.1 million compared to the corresponding period of the previous year.

During the current quarter, the Company recognized $53 thousand of revenue on sales of AquAdvantage Salmon fillets. Operating expenses were up slightly to $2.1 million in the current period from $2.0 million in the corresponding period of the previous year, primarily due to the increased costs associated with being a public company in the United States.

Ronald Stotish, Chief Executive Officer of AquaBounty, stated: “This quarter marked two milestone events for AquaBounty—the purchase of our first commercial farm site for the production of our eco-friendly AquAdvantage Salmon in the United States and the very first sales of AquAdvantage Salmon. The sale and discussions with potential buyers clearly demonstrate that customers want our fish, and we look forward to increasing our production capacity to meet demand.”

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements regarding the construction of a broodstock facility and grow-out facility on the Company’s Rollo Bay site; the production of AquAdvantage Salmon in the United States; customer demand for AquAdvantage Salmon; and an increase in production capacity. Forward-looking statements may be identified with words such as “will,” “may,” “expect,” “plan,” “anticipate,” “upcoming,” “believe,” “estimate”, or similar terminology, and the negative of these terms. Forward-looking statements are not promises or guarantees of future performance, and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Forward-looking statements speak only as of the date hereof, and, except as required by law, we undertake no obligation to update or revise these forward-looking statements. For additional information regarding these and other risks faced by us, refer to our public filings with the Securities and Exchange Commission (“SEC”), available on the Investors section of our website at www.aquabounty.com and on the SEC’s website at www.sec.gov.


AquaBounty Technologies, Inc.
Consolidated Balance Sheets
(Unaudited)

			As of
			June 30,			December 31,
				2017			2016
Assets
Current assets:
	Cash and cash equivalents		$	7,991,382		$	3,324,609
	Certificate of deposit			12,972			10,666
	Other receivables			161,039			164,743
	Inventory			78,275			-
	Prepaid expenses and other assets			352,772			72,983
	Total current assets			8,596,440			3,573,001

Property, plant and equipment, net				17,906,075			1,723,707
Definite lived intangible assets, net				191,847			198,698
Indefinite lived intangible assets				191,800			191,800
Other assets				21,628			21,628
Total assets			$	26,907,790		$	5,708,834

Liabilities and stockholders' equity
Current liabilities:
	Accounts payable and accrued liabilities		$	949,495		$	1,017,851
	Current debt			53,089			17,913
	Total current liabilities			1,002,584			1,035,764

Long-term debt				2,952,668			2,645,015
	Total liabilities			3,955,252			3,680,779

Commitments and contingencies

Stockholders' equity:
	Common stock, $0.001 par value, 200,000,000 shares authorized;
		8,895,094 (2016: 6,463,936) shares outstanding		8,895			6,464
	Additional paid-in capital			126,644,804			101,581,724
	Accumulated other comprehensive loss			(278,121	)		(286,272	)
	Accumulated deficit			(103,423,040	)		(99,273,861	)
Total stockholders' equity				22,952,538			2,028,055

Total liabilities and stockholders' equity			$	26,907,790		$	5,708,834

AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
			2017			2016			2017			2016
Revenues
	Product revenues	$	53,278		$	-		$	53,278		$	-

Costs and expenses
	Product costs		50,777			-			50,777			-
	Sales and marketing		202,910			239,142			411,198			440,519
	Research and development		936,317			915,741			1,656,339			1,730,998
	General and administrative		950,348			824,138			2,071,136			1,603,663
	Total costs and expenses		2,140,352			1,979,021			4,189,450			3,775,180

Operating loss			(2,087,074	)		(1,979,021	)		(4,136,172	)		(3,775,180	)

Other income (expense)
	Interest expense		(5,253	)		(83,333	)		(10,533	)		(107,639	)
	Gain on disposal of equipment		-			-			-			2,861
	Other income (expense), net		(1,109	)		(1,482	)		(2,474	)		(2,855	)
	Total other income (expense)		(6,362	)		(84,815	)		(13,007	)		(107,633	)

Net loss		$	(2,093,436	)	$	(2,063,836	)	$	(4,149,179	)	$	(3,882,813	)

Other comprehensive income (loss):
	Foreign currency translation gain (loss)		22,437			(3,182	)		8,151			(100,175	)
	Total other comprehensive income (loss)		22,437			(3,182	)		8,151			(100,175	)

Comprehensive loss		$	(2,070,999	)	$	(2,067,018	)	$	(4,141,028	)	$	(3,982,988	)


Basic and diluted net loss per share		$	(0.24	)	$	(0.39	)	$	(0.48	)	$	(0.74	)
Weighted average number of common shares -
	basic and diluted		8,892,213			5,250,504			8,647,861			5,249,405

For further information, please contact:

Dave Conley, Director of Communications
AquaBounty Technologies, Inc.
+1 613 294 3078

AquaBounty Technologies Inc

Press Release Details

AquaBounty Technologies, Inc. Results for the second quarter and first half ended June 30, 2017