AquaBounty net loss increases
AquaBounty Technology, has announced the Company’s financial results for the second quarter and six months ended June 30, 2024.
Second Quarter 2024 Highlights and Recent Developments
- Net loss in the second quarter of 2024 was up significantly at $50.5 million as compared to $6.5 million in the second quarter of 2023. The current period loss included a non-cash impairment charge of $44.5 million against the long-lived assets of the Indiana farm and certain equipment from the Ohio farm, which have been sold or made available for sale.
- Cash, cash equivalents and restricted cash totalled $0.7 million as of June 30, 2024, as compared to $9.2 million as of December 31, 2023.
- On April 18, 2024, the Company executed a bridge loan agreement for $10.0 million, secured by the assets of its Indiana and Ohio farms. The Company utilized $6.5 million from the facility, which was repaid on July 26, 2024.
- The sale of the Indiana farm, which included certain equipment from the Ohio farm, was completed on July 26, 2024 for $9.2 million, net of expenses.
- On June 7, 2024, David F. Melbourne Jr. was promoted to Chief Executive Officer, in conjunction with the Company’s succession plan. Sylvia Wulf continues as the non-executive Chair of AquaBounty’s Board of Directors.
David F. Melbourne said: “Our focus during the second quarter was securing a buyer for the Indiana farm and continuing to explore a variety of financing initiatives to maintain liquidity,” said Dave Melbourne, AquaBounty’s President and Chief Executive Officer. “With the sale of the Indiana farm now complete, we will continue to work with our investment banking partner to extend our cash runway, including the sale of additional equipment assets from our Ohio farm.
“While our net loss in the second quarter was up significantly, driven in large part by the non-cash impairment charge taken against our farm assets, the team continues to identify opportunities to preserve cash and reduce operating expenses. We completed a sale of conventional Atlantic salmon eggs from our Prince Edward Island (“PEI”) operations’ winter spawn to a large net-pen salmon farmer at the beginning of the quarter. In addition, we have secured a large follow-up order from the same customer for additional conventional eggs from our summer spawn. Our Research and Development team made further progress in PEI on our breeding, fish health and nutrition, and gene editing initiatives. This work supports important advances that will be valuable for the future of our business, supporting both traditional net-pen and land-based farming operations,” continued Melbourne.
“When I assumed the role as AquaBounty’s CEO in June, I made it clear that I would be fully committed to working with our dedicated team to secure the future pathway forward for our Company and stockholders. I remain resolute to this commitment. Our leadership team, and broader organization, is working tirelessly to stabilize the business in the short term and drive value creation in the long-term. I look forward to sharing continued updates in the future,” concluded Melbourne.