AquaBounty Technologies posted net losses of USD 50.5 million (EUR 46.3 million) in Q2 2024 largely due to a non-cash impairment charge.
The company said it was hit with a non-cash impairment charge of USD 44.5 million (EUR 40.8 million) against the assets of its recirculating aquaculture system (RAS) farm in the U.S. state of Indiana and also against some of the equipment at its planned Ohio RAS farm – where some of the equipment has been sold or made available for sale. AquaBounty sold its Indiana-based RAS farm to Superior Fresh in July for USD 9.5 million (EUR 8.7 million), which, after expenses, totaled USD 9.2 million (EUR 8.4 million).
That sale represented a loss on the facility for AquaBounty, as it originally purchased the RAS facility from Bell Fish Company in 2017 for USD 14 million (then EUR 12.5 million).
Cash, cash equivalents, and restricted cash for AquaBounty totaled just USD 700,000 (EUR 641,000), down from USD 9.2 million (EUR 8.4 million) as of 31 December 2023. That is also a sharp drop from the USD 43.8 million (EUR 40.1 million) the company had in Q2 2023.
"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," AquaBounty President and CEO David Melbourne said in a release.
Melbourne was promoted to CEO on 7 June 2024 as part of the company’s long-term succession plan for the leadership team.
Melbourne said the company’s goal is now working with its investment banking partner to generate more cash – which could include selling additional equipment assets from its Ohio location. AquaBounty announced plans to build a new RAS salmon facility in Pioneer, Ohio, in July 2021 but later had to pause construction due to ballooning costs.
"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,” Melbourne said. “We completed a sale of conventional Atlantic salmon eggs from our Prince Edward Island 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.”
AquaBounty announced expanded egg incubation capacity in its Q1 2024 results, and Melbourne said that the company continues to innovate at its PEI facility.
“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," he said.
Melbourne said that he is committed to working out a future pathway for AquaBounty in his new role as CEO.
“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,” he said. “I look forward to sharing continued updates in the future."
