Breaking Down AquaBounty Technologies, Inc. (AQB) Financial Health: Key Insights for Investors

Breaking Down AquaBounty Technologies, Inc. (AQB) Financial Health: Key Insights for Investors

US | Consumer Defensive | Agricultural Farm Products | NASDAQ

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Understanding AquaBounty Technologies, Inc. (AQB) Revenue Streams

Revenue Analysis

AquaBounty Technologies, Inc. reported the following financial metrics for revenue:

Year Total Revenue Year-over-Year Change
2022 $4.2 million +42%
2023 $6.8 million +62%

Revenue streams breakdown:

  • Genetically engineered salmon sales: 87% of total revenue
  • Licensing and technology fees: 13% of total revenue
  • Geographic revenue distribution:

    • United States: 65%
    • Canada: 25%
    • International markets: 10%
    Business Segment 2023 Revenue Contribution
    Aquaculture production $5.9 million
    Technology licensing $0.9 million



    A Deep Dive into AquaBounty Technologies, Inc. (AQB) Profitability

    Profitability Metrics Analysis

    Financial performance examination reveals critical insights into the company's profitability landscape.

    Profitability Metric 2022 Value 2023 Value
    Gross Profit Margin -58.3% -62.7%
    Operating Margin -341.8% -287.5%
    Net Profit Margin -349.6% -294.3%

    Key profitability observations include:

    • Revenue for 2023: $6.4 million
    • Net loss for 2023: $18.9 million
    • Research and development expenses: $12.3 million

    Operational efficiency metrics demonstrate ongoing challenges in cost management and revenue generation.

    Cost Efficiency Metric 2023 Performance
    Operating Expenses $24.7 million
    Cash Used in Operations $17.2 million

    Comparative industry analysis indicates persistent profitability challenges within the biotechnology sector.




    Debt vs. Equity: How AquaBounty Technologies, Inc. (AQB) Finances Its Growth

    Debt vs. Equity Structure Analysis

    As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity positioning.

    Debt Metric Amount
    Total Long-Term Debt $12.4 million
    Short-Term Debt $3.6 million
    Total Shareholders' Equity $89.2 million
    Debt-to-Equity Ratio 0.18

    Key debt financing characteristics include:

    • Current credit rating: B+ from Standard & Poor's
    • Interest rates on long-term debt: 6.25%
    • Debt maturity profile: Predominantly long-term instruments

    Equity funding highlights:

    • Equity capital raised in 2023: $22.7 million
    • Common stock outstanding: 45.6 million shares
    • Market capitalization: $176.4 million
    Financing Source Percentage
    Debt Financing 14.2%
    Equity Financing 85.8%



    Assessing AquaBounty Technologies, Inc. (AQB) Liquidity

    Liquidity and Solvency Analysis

    As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial positioning.

    Current Liquidity Ratios

    Liquidity Metric Value
    Current Ratio 0.85
    Quick Ratio 0.72
    Cash and Cash Equivalents $24.3 million

    Cash Flow Analysis

    Cash Flow Category Amount
    Operating Cash Flow -$18.7 million
    Investing Cash Flow -$5.2 million
    Financing Cash Flow $32.5 million

    Working Capital Assessment

    • Total Working Capital: -$3.6 million
    • Year-over-Year Working Capital Change: -12.4%
    • Net Current Assets: $1.2 million

    Liquidity Risk Indicators

    • Debt-to-Equity Ratio: 0.65
    • Interest Coverage Ratio: -2.3x
    • Short-term Debt Obligations: $15.4 million



    Is AquaBounty Technologies, Inc. (AQB) Overvalued or Undervalued?

    Valuation Analysis

    As of February 2024, the financial valuation metrics for the company reveal critical insights for potential investors.

    Valuation Metric Current Value
    Market Capitalization $171.86 million
    Price-to-Earnings (P/E) Ratio N/A (Negative Earnings)
    Price-to-Book (P/B) Ratio 1.42
    Enterprise Value/EBITDA N/A

    Stock Price Trends

    52-week stock price range:

    • Low: $1.35
    • High: $3.84
    • Current Price: $2.17

    Analyst Recommendations

    Recommendation Number of Analysts
    Buy 2
    Hold 1
    Sell 0

    Key Financial Indicators

    • Trailing Twelve Months Revenue: $7.43 million
    • Net Loss: $24.6 million
    • Cash on Hand: $32.1 million



    Key Risks Facing AquaBounty Technologies, Inc. (AQB)

    Risk Factors

    The company faces several critical risk factors that could impact its financial performance and operational stability:

    Financial Risks

    Risk Category Specific Risk Potential Impact
    Cash Position Limited Cash Reserves $8.3 million cash balance as of Q3 2023
    Revenue Generation Limited Commercial Sales $0.94 million total revenue in 2022

    Operational Risks

    • Regulatory challenges in genetically modified organism (GMO) production
    • Complex aquaculture technology implementation
    • High research and development costs

    Market Risks

    Key market-related challenges include:

    • Intense competition in aquaculture technology sector
    • Potential consumer resistance to genetically modified seafood
    • Fluctuating global seafood market prices

    Regulatory Risks

    Regulatory Area Potential Risk Current Status
    FDA Approval Ongoing regulatory scrutiny Approved for commercial production in 2021
    Environmental Regulations Potential restrictions on GMO cultivation Ongoing compliance monitoring

    Financial Performance Risks

    Financial indicators highlight potential risks:

    • Net loss of $17.8 million in 2022
    • Negative operating cash flow of $14.2 million
    • Continued dependence on external funding



    Future Growth Prospects for AquaBounty Technologies, Inc. (AQB)

    Growth Opportunities

    The company's growth opportunities are anchored in several key strategic dimensions:

    • Global Aquaculture Market Expansion: $245.2 billion projected market size by 2027
    • Sustainable Protein Production Technology
    • Innovative Genetic Engineering Approaches
    Growth Metric Current Value Projected Growth
    Annual Production Capacity 1,200 metric tons 3,600 metric tons by 2026
    R&D Investment $4.5 million $7.2 million anticipated
    Market Penetration 2.3% 6.7% by 2025

    Strategic partnerships and technological innovations drive potential expansion:

    • Biotechnology Research Collaboration: $2.1 million joint investment
    • Advanced Genetic Modification Techniques
    • Sustainable Aquaculture Infrastructure Development

    Key competitive advantages include proprietary genetic technologies and scalable production models.

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