AquaBounty Technologies Announces Full Year 2024 Financial Results

Rhea-AI Summary

AquaBounty Technologies (NASDAQ: AQB) reported challenging financial results for FY2024, with product revenue declining 68% to $789,000 from $2.5 million in 2023. The company's net loss significantly widened to $149.2 million from $27.6 million in 2023, largely due to $129.8 million in asset impairment charges.

Key developments include the sale of the Indiana grow-out farm in July 2024, closure of Canadian farm operations in December, and suspension of Ohio Farm Site construction. Cash position deteriorated to $230,000 by end of 2024, compared to $9.2 million in 2023.

In early 2025, the company generated additional liquidity through two transactions: $2.2 million from Ohio Equipment Assets auction and $1.9 million from the sale of Canadian Farms and Corporate IP, including AquAdvantage salmon intellectual property. Management continues to explore strategic alternatives for the Ohio Farm Project.

Positive

• Generated $2.2 million from Ohio Equipment Assets auction
• Received $1.9 million from sale of Canadian Farms and Corporate IP

Negative

• Revenue declined 68% year-over-year to $789,000
• Net loss increased to $149.2 million from $27.6 million in 2023
• Recorded $129.8 million in asset impairment charges
• Cash position severely deteriorated to $230,000 from $9.2 million
• Forced to sell core assets and intellectual property
• Ohio Farm construction remains suspended due to lack of financing
• Closed Canadian operations and reduced staff

Insights

Financial Analyst

AquaBounty's full-year 2024 results reveal severe financial deterioration that threatens the company's viability. The 68% revenue decline to just $789,000 follows the sale of core operational assets, including the Indiana farm and winding down of Canadian operations.

The company's net loss ballooned to $149.2 million, over five times 2023's $27.6 million loss, driven primarily by massive $129.8 million asset impairment charges across its operations and intellectual property. These impairments signal a dramatic reduction in expected future value from their assets.

Most alarming is the cash position of just $230,000 as of December 31, 2024, down from $9.2 million a year earlier. This precipitous cash decline forced the company to liquidate core assets simply to maintain basic operations.

Recent asset sales in early 2025 generated $4.1 million in proceeds, providing temporary liquidity relief. However, the sale of the company's intellectual property—including its AquAdvantage salmon technology and patents—is particularly concerning as it represents the divestiture of unique competitive advantages and future growth potential.

The failure to secure financing for the Ohio Farm Project was the critical turning point, forcing management to pivot from growth to survival mode. With construction halted and core assets sold, AquaBounty has effectively dismantled much of its operational infrastructure, significantly limiting future revenue generation capacity.

Harvard, Massachusetts--(Newsfile Corp. - March 27, 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 full year ended December 31, 2024.

Full Year 2024 Highlights and Recent Developments

• For the year ended December 31, 2024, product revenue totaled $789 thousand, a year-over-year decrease of 68% as compared to $2.5 million in 2023, as the Company sold its Indiana grow-out farm ("Indiana Farm") in July and began to wind down its fish rearing operations at its two Canadian farm sites ("Canadian Farms") in December. Both the Indiana Farm and Canadian Farms have been designated as discontinued operations.
• Net loss for the year ended December 31, 2024 increased to $149.2 million compared to $27.6 million in 2023. Included in the loss for 2024 were asset impairment charges of $129.8 million related to the Company's Indiana Farm, Canadian Farms, Ohio equipment assets ("Ohio Equipment Assets"), Ohio farm construction site ("Ohio Farm Site") (together with Ohio Equipment Assets, the "Ohio Farm Project"), and corporate intellectual property ("Corporate IP").
• Construction activities for the Ohio Farm Site remained on pause throughout 2024, pending new sources of financing.
• Cash, cash equivalents and restricted cash totaled $230 thousand as of December 31, 2024, as compared to $9.2 million as of December 31, 2023.
• On February 11, 2025, the Company completed an auction of certain Ohio Equipment Assets for net proceeds of $2.2 million.
• On March 3, 2025, the Company completed the sale of its Canadian Farms and Corporate IP for net proceeds of $1.9 million.

"AquaBounty entered 2024 with the goal of raising new funds to allow for the recommencement of construction activities at our Ohio Farm Site, but ultimately our efforts were unsuccessful," stated David Frank, Chief Financial Officer and Interim Chief Executive Officer. "We therefore had to pivot our focus to selling non-core assets to generate liquidity. We completed the sale of our Indiana Farm in July, and we sold various Ohio Equipment Assets throughout the balance of the year. However, these efforts did not generate enough cash to maintain our operating facilities, and thus we had no alternative but to close down our remaining Canadian Farms operations in December and reduce our staff.

"As stated in our previous announcement, we plan to continue to work with our investment banker to assess strategic alternatives for our Ohio Farm Project, and we will continue to market and sell available Ohio Equipment Assets to generate cash. On February 11, 2025, we completed an auction of certain Ohio Equipment Assets that had been purchased for our Ohio Farm Project for net proceeds of $2.2 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 AquAdvantage salmon and its trademarks and patents, 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 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, 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 www.aquabounty.com and on the SEC's website at www.sec.gov.

Company & Investor Contact:
AquaBounty Technologies
investors@aquabounty.com

Media Contact:
Vince McMorrow
Fahlgren Mortine
(614) 906-1671
vince.mcmorrow@Fahlgren.com

AquaBounty Technologies, Inc.
Consolidated Balance Sheets

		As of December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	230,362		$	8,203,869
Prepaid expenses and other current assets		292,018			1,148,730
Current assets held for sale		10,819,909			21,658,597
Total current assets		11,342,289			31,011,196
Property, plant and equipment, net		22,668,000			144,103,468
Right of use assets, net		51,509			77,877
Intangible assets, net		—			204,436
Restricted cash		—			1,000,000
Non-current assets held for sale		—			11,154,451
Total assets	$	34,061,798		$	187,551,428
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities	$	10,104,853		$	12,112,673
Accrued employee compensation		977,088			336,409
Current debt		1,261,039			524,462
Other current liabilities		28,527			26,368
Current liabilities held for sale		3,830,041			1,771,423
Total current liabilities		16,201,548			14,771,335
Long-term lease obligations		22,982			51,509
Non-current liabilities held for sale		—			3,215,513
Long-term debt, net		1,996,558			4,496,353
Total liabilities		18,221,088			22,534,710
Commitments and contingencies (Note 10)
Stockholders' equity:
Common stock, $0.001 par value, 75,000,000 shares authorized;
3,865,778 and 3,847,022 shares outstanding at December 31, 2024 and
2023, respectively		3,866			3,847
Additional paid-in capital		386,297,611			385,998,213
Accumulated other comprehensive loss		(688,229	)		(405,464)
Accumulated deficit		(369,772,538	)		(220,579,878)
Total stockholders' equity		15,840,710			165,016,718
Total liabilities and stockholders' equity	$	34,061,798		$	187,551,428

 

AquaBounty Technologies, Inc.
Consolidated Statements of Operations and Comprehensive Loss

		Years ended  December 31,
		2024			2023
Costs and expenses
Sales and marketing		$	191,299		$	649,568
Research and development			203,296			506,243
General and administrative			9,129,645			12,515,834
Long-lived asset impairment			101,914,874			—
Total costs and expenses			111,439,114			13,671,645
Operating loss			111,439,114			13,671,645
Other expense
Interest expense			(2,285,017)			(234,954)
Other (expense) income, net			(28,802)			65,672
Total other expense			(2,313,819)			(169,282)
Loss from continuing operations			113,752,933			13,840,927
Loss from discontinued operations			35,439,727			13,716,974
Net loss		$	149,192,660		$	27,557,901
Other comprehensive (loss) income
Foreign currency (loss) gain			(282,765)			111,311
Comprehensive loss		$	149,475,425		$	27,446,590
Basic and diluted net loss per share
from continuing operations		$	(29.47)		$	(3.60)
from discontinued operations			(9.18)			(3.57)
Total basic and diluted net loss per share		$	(38.65)		$	(7.17)
Weighted average number of common shares -
basic and diluted			3,860,454			3,844,239

 

AquaBounty Technologies, Inc.
Consolidated Statements of Cash Flows

		Years Ended December 31,
		2024			2023
Operating activities
Net loss		$	(149,192,660)		$	(27,557,901)
Adjustment to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization			904,136			2,158,231
Share-based compensation			299,417			542,265
Long-lived asset impairment			129,826,403			—
Other non-cash items			43,393			16,604
Changes in operating assets and liabilities:
Inventory			1,723,559			546,847
Prepaid expenses and other assets			1,277,535			375,430
Accounts payable and accrued liabilities			614,562			(50,602)
Accrued employee compensation			640,679			(267,119)
Net cash used in operating activities			(13,862,976	)		(24,236,245)
Investing activities
Purchases of and deposits on property, plant and equipment			(2,929,908	)		(68,889,540)
Proceeds from asset sales			10,493,222			—
Other investing activities			—			(3,263)
Net cash provided by (used in) investing activities			7,563,314			(68,892,803)
Financing activities
Proceeds from issuance of debt			6,934,832			417,673
Repayment of term debt			(9,598,544	)		(726,140)
Net cash used in financing activities			(2,663,712	)		(308,467)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(10,133	)		2,827
Net change in cash, cash equivalents and restricted cash			(8,973,507	)		(93,434,688)
Cash, cash equivalents and restricted cash at beginning of period			9,203,869			102,638,557
Cash, cash equivalents and restricted cash at end of period		$	230,362		$	9,203,869
Reconciliation of cash, cash equivalents and restricted cash reported
in the consolidated balance sheet:
Cash and cash equivalents		$	230,362		$	8,203,869
Restricted cash			—			1,000,000
Total cash, cash equivalents and restricted cash		$	230,362		$	9,203,869
Supplemental disclosure of cash flow information and non-cash transactions:
Interest paid in cash from continuing operations		$	2,157,195		$	220,125
Interest paid in cash from discontinued operations		$	107,260		$	69,013
Property and equipment included in accounts payable and accrued liabilities		$	9,205,819		$	11,670,996

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246159

FAQ

What caused AquaBounty's (AQB) significant revenue decline in 2024?

AQB's revenue fell 68% to $789,000 due to the sale of Indiana Farm in July and wind-down of Canadian farm operations in December 2024.

How much did AquaBounty (AQB) lose in fiscal year 2024?

AquaBounty reported a net loss of $149.2 million in 2024, including $129.8 million in asset impairment charges.

What assets did AquaBounty (AQB) sell in early 2025?

AQB sold Ohio Equipment Assets for $2.2 million and Canadian Farms with Corporate IP for $1.9 million in early 2025.

What happened to AquaBounty's (AQB) cash position in 2024?

AQB's cash, cash equivalents and restricted cash decreased to $230,000 by end of 2024 from $9.2 million in 2023.

What is the status of AquaBounty's (AQB) Ohio Farm Project?

Construction remains paused pending new financing, while management explores strategic alternatives and continues selling equipment assets.