GlobeNewswire Inc | May 4, 2021 04:05PM EDT

May 04, 2021

MAYNARD, Mass., May 04, 2021 (GLOBE NEWSWIRE) -- AquaBounty Technologies, Inc. (Nasdaq: AQB) (AquaBounty or the Company), a land-based aquaculture company utilizing technology to enhance productivity and sustainability, today announced the Companys financial results for its fiscal first quarter ended March 31, 2021.

First Quarter 2021 Key Highlights

-- Fortified balance sheet with $127.1 million in gross proceeds from the closing of an underwritten public offering of common stock in February, to provide further financing for Farm 3 and corporate working capital. -- Appointed veteran Atlantic salmon sales and marketing executive Dennis Bryant as the Companys Director of Sales, who will oversee all aspects of building and servicing AquaBountys customer partnerships. -- Participated in key investor conferences to improve visibility within the investment community, including the Canaccord Genuity 2021 Virtual Sustainability Conference, the H.C. Wainwright Global Life Sciences Conference, and the upcoming Oppenheimer Emerging Growth Conference.

Management Commentary

During the first quarter of 2021, we completed the setup of our commercial framework and we are now preparing for the first commercial scale harvest of our genetically engineered (GE) salmon, which we expect to begin this month, said Sylvia Wulf, Chief Executive Officer of AquaBounty. The appointment of Dennis Bryant as our Director of Sales is a critical step in our commitment to customer satisfaction, and we are confident that all key processes are in place for the launch of our fish during May.

We are looking forward to a successful commercial launch of our GE salmon, which will mark a tremendous milestone that has been decades in the making. We have the experience, capital and technology necessary to succeed, and the warm reception from our potential customers has fortified our belief that AquaBounty represents the next-evolution of land-based salmon farming. We remain focused on continued execution in the weeks and months ahead as we strive to create sustainable, long-term value for our shareholders.

After successful sampling efforts of our GE salmon with widely respected seafood distributors and other interested groups in the first quarter, we began the customer onboarding process, which focused on finalizing planning and allocations for our impending first harvest. Our GE salmon was well received in sampling, and our sales team is very optimistic regarding near-term demand expectations, considering the resurgence of the food service industry as COVID-19 concerns begin to dissipate and consumers return to restaurants.

We raised $127.1 million in gross proceeds in a public offering of equity in February to further finance the construction of our next farm with a planned capacity of 10,000 metric tons, which will greatly increase the Companys growing capacity. We are currently in due diligence on the final site location and expect to commence construction later this year and commercial production in 2023. Ahead of these rigorous efforts, we have made substantial progress on the farm design with our engineering and RAS technology partners, ensuring we have an efficient, replicable facility design that will serve us for years to come, concluded Wulf.

First Quarter 2021 Financial Summary

-- Revenue in the first quarter of 2021 was $74 thousand, as compared to $7 thousand in in the same period of the prior year. Revenue was impacted by the continued effects of the COVID-19 pandemic on demand in the food service industry, which has started to reemerge as vaccines become more widely available. -- Operating expenses in the first quarter of 2021 were $4.2 million, as compared to $3.1 million in the same period of the prior year. The increase in operating expenses was primarily due to production and headcount increases at the Companys two farms. -- Net loss in the first quarter of 2021 was $4.2 million, as compared to $3.1 million in the same period of the prior year. -- Cash, cash equivalents and restricted cash were $211.4million as of March 31, 2021, compared with $96.3million as of December 31, 2020. The Company fortified its balance sheet with $127.1 million in gross proceeds from a public offering of common stock in February.

About AquaBounty

AquaBounty Technologies, Inc. (NASDAQ: AQB) is a leader in the field of land-based aquaculture and the use of technology for improving its productivity and sustainability. The Companys objective is to help ensure the availability of high-quality seafood to meet global consumer demand, while addressing critical production constraints in the most popular farmed species. The Companys genetically engineered salmon program is based upon a single, specific molecular modification in salmon that results in more rapid growth in early development. With aquaculture farms located in Prince Edward Island, Canada, and Indiana, United States, AquaBounty is raising salmon that is free of antibiotics and other contaminants, in land-based Recirculating Aquaculture Systems (RAS) which are designed to prevent disease and to include multiple levels of fish containment to protect wild fish populations. AquaBountys solution offers a reduced carbon footprint and no risk of pollution of marine ecosystems, as compared to traditional sea-cage farming. For more information, please visit www.aquabounty.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended, that involve significant risks and uncertainties about AquaBounty, including but not limited to statements with respect to the completion, timing, size, and use of proceeds of the underwritten offering of common stock. AquaBounty may use words such as expect, anticipate, project, intend, plan, aim, believe, seek, estimate, can, focus, will, and may 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 risks relating to, among other things, whether or not AquaBounty will be able to raise additional capital, market and other conditions, AquaBountys business and financial condition, and the impact of general economic, public health, industry or political conditions in the United States or internationally. For additional disclosure regarding these and other risks faced by AquaBounty, see disclosures contained in AquaBountys public filings with the SEC, including the Risk Factors in the companys Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and prospectus supplement for this offering. You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and AquaBounty undertakes no obligation to update such statements as a result of new information, except as required by law.

Company Contact:AquaBounty TechnologiesDave ConleyCorporate Communications(613) 294-3078

Investor Relations:Greg Falesnik or Luke ZimmermanMZ Group - MZ North America(949) 259-4987AQB@mzgroup.us



AquaBounty Technologies, Inc.Consolidated Balance Sheets(Unaudited) As of March31, December 31, 2021 2020Assets Current assets: Cash and cash equivalents $ 210,899,434 $ 95,751,160 Inventory 2,106,473 1,525,377 Prepaid expenses and other current 470,961 405,370 assetsTotal current assets 213,476,868 97,681,907 Property, plant and equipment, net 27,904,874 26,930,338 Right of use assets, net 327,386 341,997 Intangible assets, net 242,120 245,546 Restricted cash 500,000 500,000 Other assets 84,685 76,715 Total assets $ 242,535,933 $ 125,776,503 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued $ 1,555,066 $ 1,760,103 liabilitiesOther current liabilities 62,765 62,483 Current debt 378,791 259,939 Total current liabilities 1,996,622 2,082,525 Long-term lease obligations 274,232 290,327 Long-term debt 8,622,436 8,528,490 Total liabilities 10,893,290 10,901,342 Commitments and contingencies Stockholders' equity: Common stock, $0.001 par value, 80,000,000 shares authorized;70,983,145 (2020: 55,497,133) shares 70,983 55,497 outstandingAdditional paid-in capital 384,459,964 263,629,116 Accumulated other comprehensive loss (187,219 ) (267,258 )Accumulated deficit (152,701,085 ) (148,542,194 )Total stockholders' equity 231,642,643 114,875,161 Total liabilities and stockholders' $ 242,535,933 $ 125,776,503 equity

AquaBounty Technologies, Inc.Consolidated Statements of Operations and Comprehensive Loss(Unaudited) Three Months Ended March 31, 2021 2020Revenues Product revenues $ 74,372 $ 6,753 Costs and expenses Product costs 1,554,655 841,434 Sales and marketing 318,635 50,788 Research and development 500,620 568,762 General and administrative 1,785,510 1,637,190 Total costs and expenses 4,159,420 3,098,174 Operating loss (4,085,048 ) (3,091,421 ) Other income (expense) Interest expense (78,804 ) (17,045 )Other income (expense), net 4,961 (1,152 )Total other income (expense) (73,843 ) (18,197 ) Net loss $ (4,158,891 ) $ (3,109,618 ) Other comprehensive income (loss): Foreign currency translation income (loss) 80,039 (381,985 )Total other comprehensive income (loss) 80,039 (381,985 ) Comprehensive loss $ (4,078,852 ) $ (3,491,603 ) Basic and diluted net loss per share $ (0.06 ) $ (0.11 )Weighted average number of common shares - basic and diluted 64,550,920 27,116,754

AquaBounty Technologies, Inc.Consolidated Statements of Cash Flows(Unaudited) Three Months Ended March 31, 2021 2020Operating activities Net loss $ (4,158,891 ) $ (3,109,618 )Adjustment to reconcile net loss to net cash used inoperating activities: Depreciation and amortization 422,185 347,859 Share-based compensation 129,715 205,353 Other non-cash charge 4,203 ? Changes in operating assets and liabilities: Inventory (577,154 ) (610,200 )Prepaid expenses and other assets (63,966 ) (107,922 )Accounts payable and accrued liabilities (274,486 ) 339,818 Net cash used in operating activities (4,518,394 ) (2,934,710 ) Investing activities Purchase of property, plant and equipment (1,208,183 ) (691,351 )Proceeds from sale of asset held for sale ? 98,000 Proceeds from legal settlement, net ? 1,014,008 Other investing activities (11,010 ) (1,307 )Net cash (used in) provided by investing (1,219,193 ) 419,350 activities Financing activities Proceeds from issuance of debt 187,120 ? Repayment of term debt (38,885 ) (39,391 )Proceeds from the issuance of common stock, 119,120,437 14,521,704 netProceeds from the exercise of stock options 1,596,182 ? and warrants, netNet cash provided by financing activities 120,864,854 14,482,313 Effect of exchange rate changes on cash, cash 21,007 (15,951 )equivalents and restricted cashNet change in cash, cash equivalents and 115,148,274 11,951,002 restricted cashCash, cash equivalents and restricted cash at 96,251,160 2,798,744 beginning of periodCash, cash equivalents and restricted cash at $ 211,399,434 $ 14,749,746 end of period Reconciliation of cash, cash equivalents and restricted cash reportedin the consolidated balance sheet: Cash and cash equivalents $ 210,899,434 $ 14,749,746 Restricted cash 500,000 ? Total cash, cash equivalents and restricted $ 211,399,434 $ 14,749,746 cash Supplemental disclosure of cash flow information andnon-cash transactions: Interest paid in cash $ 73,685 $ 17,045 Property and equipment included in accounts $ 82,068 $ 257,884 payable and accrued liabilities