0001603978-21-000050 | 10-Q | XBRL Viewer | Aquabounty Technologies INC

Inventory (Tables)

6 Months Ended

Jun. 30, 2021


	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

Stockholders' Equity (Information About Options Outstanding and Exercisable) (Details) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
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

Stockholders' Equity (Information About Outstanding Warrants) (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
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

Basis of Presentation (Policy)	6 Months Ended
Basis of Presentation (Policy)	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.

- Definition

Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.

+ References + Details

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

+ Details

Debt (Terms and Conditions of Long-term Debt Outstanding) (Details)	6 Months Ended
	Jun. 30, 2021 CAD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
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

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.

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

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.

Basis of Presentation (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
Basis of Presentation (Details) - USD ($) $ in Millions	Feb. 28, 2021	Jun. 30, 2021
Net proceeds from equity	$ 119.1
Cash, cash equivalents and marketable securities		$ 204.0
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

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

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

Marketable Securities (Schedule of Marketable Securities) (Details)	Jun. 30, 2021 USD ($)
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

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

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

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

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

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

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

Leases (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Lease expense	$ 43	$ 40
Weighted average remaining lease term	24 years
Lease payment	$ 42	$ 42

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	2,000,000.0
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

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.

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

Stockholders' Equity (Narrative) (Details) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
Stockholders' Equity (Narrative) (Details) - USD ($)	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

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

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	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

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

Risks and Uncertainties (Details) - Canada [Member] - Credit Concentration Risk [Member] $ in Millions	Jun. 30, 2021 USD ($)
Concentration Risk [Line Items]
Cash in Canadian bank accounts	$ 273.0
Cash equivalent investment balance	$ 108.3

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.

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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

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.

‎

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

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

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

Income Taxes (Narrative) (Details) - USD ($)	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($)	Dec. 31, 2020	Jun. 30, 2021
Income Taxes [Abstract]
Effective tax rate	0.00%
Unrecognized income tax benefits		$ 0

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

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.

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.

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

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.

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

Subsequent Events (Details) - Subsequent Event [Member] $ in Thousands, $ in Thousands	Jul. 23, 2021 USD ($) a	Jul. 08, 2021 CAD ($)	Jul. 08, 2021 USD ($)
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%

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

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

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

Stockholders' Equity (Restricted Stock Activity) (Details) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
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	$ 4.00

Stockholders' Equity (Stock Option Activity) (Details) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
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

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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

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

Debt (Narrative) (Details)	1 Months Ended		6 Months Ended
Debt (Narrative) (Details)	Sep. 30, 2020 CAD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Apr. 27, 2021 CAD ($)	Apr. 27, 2021 USD ($)	Feb. 25, 2021 CAD ($)	Feb. 25, 2021 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of debt			$ 406,378	$ 221,130
DFO Term Loan [Member]
Debt Instrument [Line Items]
Amount borrowed					$ 276,840	$ 221,470	$ 238,400	$ 187,120
Proceeds from issuance of debt	$ 1,900,000	$ 1,400,000
Maturity date			Aug 2032
Interest expense			$ 159,000	$ 35,000