AquaBounty Technologies, Inc. (AQB): history, ownership, mission, how it works & makes money

A Brief History of AquaBounty Technologies, Inc.

AquaBounty Technologies, Inc. was founded in December 1991 in Delaware. The company focuses on the research and development of genetically engineered fish, particularly the AquAdvantage salmon, which has been designed to grow faster than conventional salmon.

Regulatory Milestones

In 2015, AquaBounty received regulatory approval from the U.S. Food and Drug Administration (FDA) for the production and sale of its genetically engineered AquAdvantage salmon in the United States. The following year, Health Canada granted similar approval for the Canadian market. In 2021, AquaBounty expanded its market by obtaining approval from the National Biosafety Technical Commission in Brazil.

Financial Overview

As of September 30, 2024, AquaBounty reported total assets of $117.8 million, a decrease from $187.6 million at the end of 2023. The company's liabilities totaled $17.7 million, down from $22.5 million. Stockholders' equity was reported at $100.1 million, a significant decline from $165.0 million in the previous year.

Recent Developments

In 2024, AquaBounty undertook significant restructuring measures, including the sale of its Indiana farm for approximately $9.5 million, which closed on July 26, 2024. This sale was part of a broader strategy to enhance cash liquidity and fund ongoing operations. The company reported a net loss of $65.1 million for the nine months ended September 30, 2024, compared to a net loss of $19.1 million during the same period in 2023.

Stock Performance and Market Position

AquaBounty's stock has seen considerable fluctuations, reflecting the company's financial challenges. As of the end of September 2024, the company had approximately 3.87 million shares outstanding. The company has faced significant operational hurdles, including cumulative net losses of approximately $286 million since inception, raising concerns about its continued viability without additional capital.

Future Outlook

Looking ahead, AquaBounty anticipates ongoing losses and negative cash flows. As of September 30, 2024, the company had only $500,434 in cash and cash equivalents. The management is exploring options for additional funding, including potential asset sales and equity offerings, to sustain operations and achieve profitability in the future.

A Who Owns AquaBounty Technologies, Inc. (AQB)

Ownership Structure

AquaBounty Technologies, Inc. (AQB) is publicly traded, with ownership distributed among institutional investors, retail investors, and company insiders. As of September 30, 2024, the company had approximately 3,865,778 shares outstanding following a reverse stock split on October 16, 2023, at a ratio of 1-for-20.

Major Shareholders

The following table summarizes the major shareholders of AquaBounty Technologies, Inc. as of 2024:

Institutional Ownership

As of September 30, 2024, institutional investors held a significant portion of AquaBounty's shares. The institutional ownership was approximately 85% of the total shares outstanding. This indicates strong confidence from larger investment firms in the company's growth potential.

Recent Financial Performance

For the nine months ended September 30, 2024, AquaBounty Technologies reported:

• Product Revenues: $705,262
• Net Loss: $(65,076,820)
• Total Assets: $117,785,364
• Total Liabilities: $17,713,714
• Total Stockholders' Equity: $100,071,650

Recent Transactions and Changes in Ownership

In July 2024, AquaBounty completed the sale of its Indiana farm for net proceeds of $9.2 million, which significantly impacted its financial position and liquidity. This transaction was part of a broader strategy to improve cash flow and reduce operational costs.

Future Outlook

The company's ability to sustain operations and growth is contingent upon securing additional capital, particularly through the sale of non-core assets such as the Rollo Bay farm in Canada. As of September 30, 2024, AquaBounty had $500,434 in cash and cash equivalents, indicating a need for further financing to support ongoing operations.

AquaBounty Technologies, Inc. (AQB) Mission Statement

Mission Statement

AquaBounty Technologies, Inc. focuses on the sustainable production of genetically engineered fish, specifically the AquAdvantage salmon, which is designed to grow faster than conventional salmon. The company aims to enhance global food security and reduce environmental impact by utilizing innovative aquaculture practices.

Financial Overview

As of September 30, 2024, AquaBounty Technologies reported a net loss of $65,076,820 for the nine months ended September 30, 2024, compared to a net loss of $19,132,927 for the same period in 2023. The company's total revenues for the nine-month period were $705,262, a decrease of 63% from $1,919,409 in the previous year. This decline is attributed to reduced sales of genetically engineered Atlantic salmon due to the sale of the Indiana farm.

Cash Flow and Capital Structure

For the nine months ended September 30, 2024, AquaBounty Technologies reported cash used in operating activities of $12,700,000, a significant decrease from $18,462,000 in the previous year. The company also generated $6,789,000 from investing activities, primarily from the sale of its Indiana farm, which yielded $9,506,061 in proceeds.

Assets and Liabilities

As of September 30, 2024, AquaBounty's total assets amounted to $117,785,364, while total liabilities stood at $17,713,714. The company's stockholders' equity was reported at $100,071,650, reflecting a decrease from $165,016,718 at the end of 2023.

Future Outlook

As of September 30, 2024, AquaBounty Technologies had $500,434 in cash and cash equivalents. The company is actively seeking additional capital to support ongoing operations and has substantial doubt about its ability to continue as a going concern without further financing. The company plans to sell its Rollo Bay farm and additional equipment to enhance liquidity.

Operational Highlights

• Product revenue for GE Atlantic salmon was $395,000 for the nine months ended September 30, 2024, down from $1,779,000 in 2023.
• Non-GE Atlantic salmon revenue increased to $292,000, compared to $124,000 in the previous year.
• Long-lived asset impairment charges totaled $48,733,222 during the nine months ended September 30, 2024.

How AquaBounty Technologies, Inc. (AQB) Works

Company Overview

AquaBounty Technologies, Inc. specializes in the breeding and production of genetically engineered Atlantic salmon, marketed under the brand name AquAdvantage salmon. The company was granted regulatory approvals by the FDA and Health Canada for the sale of its products in 2015 and 2016, respectively.

Operational Structure

The company operates farming facilities in Indiana and Prince Edward Island, Canada. As of 2024, AquaBounty is in the process of selling its Indiana farm, which has resulted in significant non-cash impairment charges. The focus has shifted to enhancing production efficiency at its remaining facilities.

Financial Performance

For the three months ended September 30, 2024, AquaBounty reported revenues of $47,812, a decrease of 93% compared to $733,133 for the same period in 2023. Product costs were $425,057, down from $4,096,040 year-over-year. The net loss for the quarter was $3,404,331, compared to a loss of $6,138,113 in the prior year.

Operational Costs

Total costs and expenses for Q3 2024 were reported at $2,409,131, significantly lower than $6,806,984 in Q3 2023. This reduction is attributed to decreased spending in various operational areas:

• Sales and Marketing: $44,167 (down from $191,862)
• Research and Development: $52,093 (down from $184,221)
• General and Administrative: $1,887,814 (down from $2,334,861)

Long-term Financial Position

As of September 30, 2024, AquaBounty's total liabilities stood at $17,713,714, with total stockholders' equity at $100,071,650. The company has incurred cumulative net losses amounting to approximately $286 million since its inception, with a net loss of $65,076,820 for the nine months ended September 30, 2024.

Cash Flow Analysis

During the nine months ended September 30, 2024, AquaBounty reported net cash used in operating activities of $(12,700,000), an improvement compared to $(18,462,000) in the same period in 2023. The company generated $6,789,181 from investing activities, primarily from the sale of its Indiana farm.

Future Outlook and Risks

The company faces substantial challenges, including the need for additional capital to fund operations. As of September 30, 2024, AquaBounty had only $500,000 in cash and cash equivalents, raising concerns about its ability to continue as a going concern without further financing.

Debt Obligations

AquaBounty's total debt as of September 30, 2024, is $5,648,259, with significant repayments due in the coming years. The company has secured loans with various lenders, including a $10 million loan from JMB Capital Partners Lending, which was partially repaid following the sale of the Indiana farm.

How AquaBounty Technologies, Inc. (AQB) Makes Money

Product Revenue Generation

AquaBounty Technologies generates revenue primarily through the sale of genetically engineered (GE) Atlantic salmon, along with conventional Atlantic salmon, salmon eggs, fry, and byproducts. As of September 30, 2024, the company's product revenue was reported as follows:

Cost Structure

The costs associated with generating product revenue include various operational expenses. For the nine months ended September 30, 2024, the costs were as follows:

Financial Performance Overview

AquaBounty reported significant operating losses. For the nine months ended September 30, 2024, the operating loss was:

Cash Flow Analysis

Cash flow from operations showed significant outflows, particularly due to net losses. The cash flow for the nine months ended September 30, 2024, was as follows:

Debt and Financing

The company has significant debt obligations. As of September 30, 2024, the total debt was:

The company's financial situation indicates a reliance on external financing and cash flow management to sustain operations and facilitate growth.

Updated on 16 Nov 2024

Resources:

1. AquaBounty Technologies, Inc. (AQB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AquaBounty Technologies, Inc. (AQB)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View AquaBounty Technologies, Inc. (AQB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.