AquaBounty Technologies Reports Significant Financial Decline, Net Loss Increases 240% in Latest Quarter

AquaBounty Technologies, Inc. reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company experienced a substantial decline in product revenues, with revenues for the three months ending September 30, 2024, totaling $47,812, a decrease of 93% from $733,133 in the same period of 2023. For the nine months ended September 30, 2024, total product revenues were $705,262, down 63% from $1,919,409 in the prior year. The decline was primarily attributed to a complete halt in sales of genetically engineered (GE) Atlantic salmon, which had previously generated significant revenue.

Total costs and expenses for the three months ended September 30, 2024, were reported at $2,409,131, a decrease from $6,806,984 in the same quarter of 2023. This reduction in expenses was driven by lower sales and marketing, research and development, and general administrative costs, largely due to personnel reductions and decreased project spending. Despite these cost reductions, the company reported an operating loss of $(2,361,319) for the three months ended September 30, 2024, compared to $(6,073,851) in the same period of 2023. The net loss for the quarter was $(3,404,331), down from $(6,138,113) year-over-year.

For the nine months ended September 30, 2024, AquaBounty's net loss increased to $(65,076,820), compared to $(19,132,927) for the same period in 2023, reflecting a 240% increase in losses. The company also recorded a non-cash impairment charge of $48.7 million related to long-lived assets during this period.

AquaBounty's cash position deteriorated significantly, with cash and cash equivalents dropping to $500,434 as of September 30, 2024, from $8,203,869 at the end of 2023. Total current assets increased to $37,342,571, up from $11,637,745, but total assets decreased from $187,551,428 to $117,785,364. Stockholders' equity also fell to $100,071,650 from $165,016,718.

Strategically, the company has paused commercial activities related to GE Atlantic salmon and is focusing on selling non-core assets, including its Rollo Bay farm and additional equipment from its Ohio farm, to improve liquidity. A reverse stock split was approved by shareholders on October 12, 2023, with a 1-for-20 ratio, reducing the number of authorized shares from 150 million to 75 million. The company is actively seeking new financing options to support ongoing operations and complete construction of its Ohio farm, which is currently 30% complete but has faced delays due to rising costs.