Latest news with #AquaBounty
Yahoo
15-05-2025
- Business
- Yahoo
AquaBounty Technologies Announces First Quarter 2025 Financial Results
Harvard, Massachusetts--(Newsfile Corp. - May 15, 2025) - 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 first quarter ended March 31, 2025. First Quarter 2025 Highlights Net income for the quarter ended March 31, 2025 was $401 thousand compared to a net loss of $11.3 million for the quarter ended March 31, 2024. Included in net income 2025 was a non-cash gain of $2.0 million on the forgiveness of an outstanding loan. On February 11, 2025, the Company completed the sale of certain equipment originally intended for its farm in Pioneer, Ohio ("Ohio Equipment Assets") for net proceeds of $2.3 million and recognized a net gain on the sale of $307 thousand. On March 3, 2025, the Company completed the sale of its Canadian subsidiary, including the broodstock farms on Prince Edward Island, Canada ("Canadian Farms") and the Company's intellectual property for its genetically engineered Atlantic salmon, along with trademarks and patents ("Corporate IP"), for net proceeds of $1.9 million. Cash, cash equivalents and restricted cash totaled $1.4 million as of March 31, 2025, as compared to $230 thousand as of December 31, 2024. "As stated in our previous announcement, AquaBounty plans to continue to work with our investment banker to assess strategic alternatives for our partially constructed farm in Pioneer, Ohio ("Ohio Farm Project") and to market and sell available Ohio Equipment Assets to generate cash," commented David Frank, Chief Financial Officer and Interim Chief Executive Officer. "On February 11, 2025, we completed the sale of certain Ohio Equipment Assets that had been purchased for our Ohio Farm Project for net proceeds of $2.3 million, after deducting commissions and fees. On March 3, 2025, we completed the sale of our Canadian Farms, including the Company's Corporate IP, for net proceeds of $1.9 million, after deducting commissions, fees and the assumption of $3.2 million in outstanding loans. These transactions have provided us with the liquidity to continue to pursue strategic alternatives for our Ohio Farm Project." "We will continue to keep all stakeholders apprised of our progress," concluded Frank. About AquaBounty At AquaBounty Technologies, Inc. (NASDAQ: AQB), we are a pioneer in land-based aquaculture. We have located our land-based recirculating aquaculture system farm close to key consumption markets and designed it to prevent disease and to include multiple levels of fish containment to protect wild fish populations. For more information on AquaBounty, please visit 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 wind down of the Company's farming operations and its ability to sell available assets. 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 "continue," "believe," "will," "may," "expect," 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: our history of net losses and the likelihood of future net losses; our ability to continue as a going concern; our ability to raise additional funds, including from the sale of non-current assets, in sufficient amounts on a timely basis, on acceptable terms, or at all; our ability to retain and reengage key vendors and engage additional vendors, as needed; our ability to obtain approvals and permits to construct and operate our farms without delay; our ability to finance our Ohio Farm Project through the placement of municipal bonds, which may require restrictive debt covenants that could limit our control over the farm's operation and restrict our ability to utilize any cash that the farm generates; risks related to potential strategic acquisitions, investments or mergers; risks of disease outbreaks in Atlantic salmon farming; our ability to efficiently and cost-effectively produce and sell salmon at large commercial scale; security breaches, cyber-attacks and other disruptions could compromise our information, or expose us to fraud or liability, or interrupt our operations; any further write-downs of the value of our assets; business, political, or economic disruptions or global health concerns; adverse developments affecting the financial services industry; our ability to use net operating losses and other tax attributes, which may be subject to certain limitations; volatility in the price of our shares of common stock; our ability to maintain our listing on the Nasdaq Stock Market LLC; an active trading market for our common stock may not be sustained; our status as a "smaller reporting company" and a "non-accelerated filer" may cause our shares of common stock to be less attractive to investors; any issuance of preferred stock with terms that could dilute the voting power or reduce the value of our common stock; provisions in our corporate documents and Delaware law could have the effect of delaying, deferring, or preventing a change in control of us; our expectation of not paying cash dividends in the foreseeable future; and other risks and uncertainties discussed in the Company's filings with the Securities and Exchange Commission ("SEC"). 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 information regarding the risks faced by us, please refer to our public filings with the SEC, available on the Investors section of our website at and on the SEC's website at Company & Investor Contact:AquaBounty Technologiesinvestors@ Media Contact:Vince McMorrowFahlgren Mortine(614) AquaBounty Technologies, Balance Sheets(Unaudited) As of March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,366,328 $ 230,362 Prepaid expenses and other current assets 1,207,023 292,018 Current assets held for sale 4,148,500 10,819,909 Total current assets 6,721,851 11,342,289 Property, plant and equipment, net 22,668,000 22,668,000 Right of use assets, net 44,589 51,509 Total assets $ 29,434,440 $ 34,061,798 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued liabilities $ 10,079,353 $ 10,104,853 Accrued employee compensation 960,332 977,088 Current debt 1,092,641 1,261,039 Other current liabilities 29,110 28,527 Current liabilities held for sale 287,290 3,830,041 Total current liabilities 12,448,726 16,201,548 Long-term lease obligations 15,479 22,982 Long-term debt, net — 1,996,558 Total liabilities 12,464,205 18,221,088 Commitments and contingencies Stockholders' equity: Common stock, $0.001 par value, 75,000,000 shares authorized; 3,869,361 and 3,865,778 shares outstanding at March 31, 2025 and December 31, 2024, respectively 3,869 3,866 Additional paid-in capital 386,337,769 386,297,611 Accumulated other comprehensive loss — (688,229) Accumulated deficit (369,371,403)(369,772,538) Total stockholders' equity 16,970,235 15,840,710 Total liabilities and stockholders' equity $ 29,434,440 $ 34,061,798 AquaBounty Technologies, Statements of Operations and Comprehensive Loss(Unaudited) Three Months EndedMarch 31, 2025 2024 Costs and expenses Sales and marketing $ 6,613 $ 63,633 Research and development — 73,850 General and administrative 1,560,436 2,389,234 Gain on asset sales, net (306,886) — Total costs and expenses 1,260,163 2,526,717 Operating loss (1,260,163) (2,526,717) Other income (expense) Interest expense (133,650) (181,241) Loan forgiveness 2,008,046 — Other expense, net (4,469) (2,447) Total other income (expense) 1,869,927 (183,688) Income (loss) from continuing operations 609,764 (2,710,405) Loss from discontinued operations (208,629) (8,447,843) Net income (loss) $ 401,135 $ (11,158,248) Other comprehensive income (loss) Foreign currency translation gain (loss) 688,229 (116,307) Comprehensive income (loss) $ 1,089,364 $ (11,274,555) Basic and diluted net income (loss) per share from continuing operations $ 0.16 $ (0.70) from discontinued operations (0.05) (2.19) Total basic and diluted net income (loss) per share $ 0.10 $ (2.90) Weighted average number of common shares - basic and diluted 3,866,733 3,849,248 AquaBounty Technologies, Statements of Cash Flows(Unaudited) Three Months EndedMarch 31, 2025 2024 Operating activities Net income (loss) $ 401,135 $ (11,158,248) Adjustment to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization — 575,544 Share-based compensation 40,161 105,155 Long-lived asset impairment — 4,265,000 Loan forgiveness (2,008,046) — Other non-cash items — 3,390 Changes in operating assets and liabilities: Inventory — 1,257,290 Prepaid expenses and other assets (518,245) 441,015 Accounts payable and accrued liabilities (259,975) 147,831 Accrued employee compensation (16,756) (52,903) Net cash used in operating activities (2,361,726) (4,415,926) Investing activities Purchases of and deposits on property, plant and equipment — (1,125,954) Proceeds from asset sales 3,721,116 — Net cash provided by (used in) investing activities 3,721,116 (1,125,954) Financing activities Proceeds from issuance of debt — 117,292 Repayment of term debt (232,194) (184,019) Net cash used in financing activities (232,194) (66,727) Effect of exchange rate changes on cash, cash equivalents and restricted cash 8,770 (2,795) Net change in cash, cash equivalents and restricted cash 1,135,966 (5,611,402) Cash, cash equivalents and restricted cash at beginning of period 230,362 9,203,869 Cash, cash equivalents and restricted cash at end of period $ 1,366,328 $ 3,592,467 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents $ 1,366,328 $ 2,592,467 Restricted cash — 1,000,000 Total cash, cash equivalents and restricted cash $ 1,366,328 $ 3,592,467 Supplemental disclosure of cash flow information and non-cash transactions: Interest paid in cash from continuing operations $ — $ 177,851 Interest paid in cash from discontinued operations $ 16,903 $ 27,322 Property and equipment included in accounts payable and accrued liabilities $ 9,137,864 $ 11,453,584 To view the source version of this press release, please visit
Forbes
24-04-2025
- Health
- Forbes
Regulatory Reform To Boost U.S. Innovation And National Security
As the U.S. seeks to maintain its global competitiveness in sectors like biotechnology and infrastructure, regulatory reform will play a critical role in shaping that success. As the former President and Chief Operating Officer of Intrexon, a biotechnology company focused on health, energy, food, and the environment, I have personal experience with the challenges faced by the private sector. AquaBounty and Oxitec are two companies that faced an exhausting experience in achieving regulatory approval for their groundbreaking products. While the federal government is making progress and appropriate risks must be managed, these challenges demonstrate how outdated regulatory systems continue to threaten innovation and competitiveness. AquaBounty developed the AquAdvantage Salmon, the first genetically engineered fish approved for human consumption by the Food and Drug Administration (FDA). The fish was engineered to grow in half the time of a wild Atlantic salmon and with one-third of the food. The AquAdvantage Salmon was a significant innovation, and the United States biotechnology community led the world in its development. Although FDA scientists deemed the AquAdvantage Salmon fit for human consumption early in the review process, the agency did not grant approval until November 2015—more than two decades after AquaBounty began its initial research and regulatory submissions in the 1990s. Despite finally reaching U.S. stores in 2021, AquaBounty announced in December 2024 that it would cease fish farming operations, citing insufficient liquidity after over a year of unsuccessful efforts to raise capital. This outcome and a challenging regulatory environment serve as a wake-up call for U.S. national competitiveness and innovation. Similarly, Oxitec developed a genetically engineered male Aedes aegypti mosquito. When released, this non-biting male mosquito mates with the wild female mosquito, and the offspring do not survive. The Aedes aegypti mosquito causes the transmission of dengue, Zika, chikungunya, and yellow fever. Regulators were unprepared for this type of biotech innovation, which resulted in a misaligned and unnecessarily long review process. As a result, the Oxitec mosquito was classified as an 'animal drug' with regulatory oversight from the FDA. Oxitec's genetically engineered Aedes aegypti mosquito underwent several years of regulatory review by the FDA before being reclassified as a biopesticide and transferred to the Environmental Protection Agency (EPA) in 2017. Subsequently, the EPA approved an Experimental Use Permit in May 2020, leading to field trials in Florida and Texas in 2022. This reclassification and inefficiency underscore the regulatory challenges biotechnology and other innovative companies face within the U.S. regulatory framework. The regulatory framework must be improved for innovative companies to compete in the global market. This challenge is a national security concern. Like earlier commissions on cybersecurity and artificial intelligence (which enhanced national security strategy), Congress established the National Security Commission on Emerging Biotechnology (NSCEB). The commission emphasized that biotechnology is central to national security, public health, and economic competitiveness. As the NSCEB warns, China has made biotechnology a national priority for the past two decades, positioning itself ahead of the United States. This concern is echoed in a recent Forbes article emphasizing the urgency of reclaiming America's biotech edge. The NSCEB recommends a minimum investment of $15 billion over the next five years to support domestic biotechnology research and development. As a military leader with biotechnology experience, I know there are several areas where biotech can significantly impact our national security preparedness. These priorities demand a modernized approach—one that anticipates future threats and removes outdated barriers. I currently serve as a strategic advisor to Ginkgo Bioworks, a publicly traded biotechnology company. During the tragic events of 9/11, I was the senior military officer in the National Military Command Center in the Pentagon, where we monitored the most significant threats to the nation. In the late 1930s, the U.S. Army developed radar to track enemy aircraft. Today, we need a similar system to detect biological threats. As we saw with COVID-19, pathogen spread was discovered only after people had become ill. As Matthew McKnight, General Manager of Biosecurity at Ginkgo Bioworks, stated, 'The earlier you detect, the faster you nip something in the bud.' He leads a team building a 24/7 detection system for hazardous viruses and pathogens. This biological radar, which I previously discussed in a Forbes article on innovation and biosecurity, is designed to provide early warnings and enable faster responses before outbreaks spread. This program enhances national security by enabling early detection of biosecurity threats and helping the U.S. remain competitive with China, just like cybersecurity and AI. While U.S. biotechnology companies navigate a challenging regulatory process, Chinese companies like BGI have expanded their global footprint. During the COVID-19 pandemic, BGI partnered with over 180 countries to provide timely detection and intervention, including the establishment of testing laboratories. BGI's extensive international partnerships bolster its scientific capabilities and position it to influence global health organizations and policy. This strategic positioning highlights the long-term competitive implications for U.S. and other international biotechnology companies. Scaling biotechnology infrastructure is not just a commercial advantage—it is a geopolitical one. Moreover, these challenges extend beyond biotechnology. In July 2012, President Obama announced the "We Can't Wait' initiative to expedite the deepening of the major East Coast ports to accommodate larger post-Panamax ships. The Savannah Harbor Deepening Project, authorized by Congress in 1999, faced an 18-year delay due to bureaucratic complexities and interagency disagreements. As Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers, my team and I were directly involved in efforts to move this project forward. Despite bipartisan support, progress was stalled for years due to misalignment among federal agencies on priorities. I saw firsthand how even urgent, nationally significant initiatives can be slowed by the regulatory process. Yet, after years of coordinated effort, the federal government finally approved the start of construction. That hard-won progress is a testament to persistence and collaboration—but also highlights how regulatory inefficiencies can delay essential infrastructure projects and undermine national competitiveness. The federal government can better support innovation and economic prosperity by improving its regulatory process, whether it is biotechnology, infrastructure, or other business sectors. The FDA, EPA, and U.S. Department of Agriculture have made efforts to assist biotechnology developers navigate the regulatory landscape, yet much work remains. Part of the challenge is the lack of accountability and authority to move the regulatory process along. Public companies are held accountable by their shareholders, and quarterly earnings calls allow for discussion of progress on key initiatives. While the U.S. Congress can hold hearings to monitor progress, too many agencies are involved in decision-making with no apparent authority when agencies disagree. That was one of the challenges with the Savannah Harbor Deepening Project. There are years of back-and-forth discussions and collaborations to find common ground. Accountability is essential. Additionally, businesses must understand how to work within the federal government. The federal government has many good people who have implemented processes to mitigate risk. Businesses with team members who have federal government experience can help navigate the regulatory process. The federal government and companies must learn from each other. Regardless of the industry, the National Security Commission on Emerging Biotechnology called for reforms addressing the challenges similar to those that I have personally encountered and highlighted in this paper. Some of these reforms include modernizing regulatory frameworks, investing in national biosecurity infrastructure, and making strategic investments. The country needs top-down (government-led) and bottom-up (business-led) partnerships to better understand the challenges and accelerate regulatory progress. Establishing clear timelines, acknowledging defined authority, and fostering accountability in regulatory decision-making are imperative to prevent prolonged delays while managing risks. Such regulatory reforms are essential for the United States to sustain its leadership in innovation and drive the future of biotechnology. Leaders in business and government must work together to modernize our approach—because America's ability to innovate, compete, and lead depends on it.
