AquaBounty Technologies(AQB) - 2024 Q2 - Quarterly Report

Revenue Performance - Product revenue for Q2 2024 was $180,000, a decrease of 77$788,000 in Q2 2023[81] - GE Atlantic salmon revenue was $0 in Q2 2024, down from$755,000 in Q2 2023, marking a 100% decrease[84] - Total product revenue for the six months ended June 30, 2024, was $657,000, a decline of 45$1,186,000 in the same period of 2023[92] Financial Losses - Operating loss for Q2 2024 was $49.5 million, a significant increase of 669$6.4 million in Q2 2023[81] - The company recorded a net loss of $50.5 million in Q2 2024, up 676$6.5 million in Q2 2023[81] - The company expects to continue incurring net losses and negative cash flows from operating activities for the foreseeable future[104] Expenses - Research and development expenses decreased by 63% to $65,000 in Q2 2024 from$178,000 in Q2 2023[81] - General and administrative expenses increased by 12% to $3.4 million in Q2 2024 from$3.1 million in Q2 2023[81] Cash Flow and Liquidity - Net cash used in operating activities for the six months ended June 30, 2024, was $61.7 million, compared to a net loss of$13.0 million for the same period in 2023[101] - Cash flows from investing activities decreased significantly, with $2.0 million used in 2024 compared to$46.6 million in 2023[103] - The company had $728 thousand in cash and cash equivalents as of June 30, 2024, raising concerns about its ability to continue as a going concern[104] - Cash provided by working capital improved due to reductions in inventory and other current assets[102] Financing Activities - Financing activities generated$5.1 million from new debt in 2024, a substantial increase from $394 thousand in 2023[103] - A loan agreement was entered into for up to$10 million to fund working capital, with $5 million advanced in April 2024[106] - The sale of the Indiana farm and certain equipment generated net proceeds of$9.2 million, aimed at increasing cash liquidity[107] - Interest-bearing debt increased to $6.7 million as of June 30, 2024, from$4.6 million at the end of 2023[116] - The company may finance its cash needs through sales of non-core assets, equity offerings, and debt financings, which could dilute existing shareholders[108] Market Conditions - The company is actively seeking new financing options to support construction and working capital needs[69] - Inflation is expected to continue negatively impacting the company's results in the near term[70]