SEC Filing Summary: AquaBounty Technologies, Inc. (AQB)
Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 2025. AquaBounty Technologies, Inc. is a Delaware corporation engaged in aquaculture. The company has effectively exited its core salmon farming operations. It sold its Indiana Farm in July 2024 and its Canadian subsidiary (including broodstock farms and intellectual property) in March 2025. The company's primary remaining asset is the Ohio Farm Project, a partially constructed recirculating aquaculture system (RAS) facility in Pioneer, Ohio, which has been designated as a discontinued operation and classified as "Assets Held for Sale." The company has reduced its workforce to three corporate employees as of March 2026.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Net Loss | $(18.5) million | $(149.2) million |
| Loss from Continuing Operations | $(2.2) million | $(11.4) million |
| Loss from Discontinued Operations | $(16.3) million | $(137.8) million |
| Cash and Cash Equivalents (Year End) | $0.5 million | $0.2 million |
| Total Assets | $10.3 million | $34.1 million |
| Total Liabilities | $12.2 million | $18.2 million |
| Stockholders' Equity (Deficit) | $(1.9) million | $15.8 million |
| Accumulated Deficit | $(388.3) million | $(369.8) million |
| Long-Term Debt (Continuing Ops) | $3.5 million | $2.0 million |
Note: Revenue was $0 for 2025. The 2024 revenue of $0.8 million was attributed to discontinued operations.
Material Changes vs. Prior Period
- Asset Sales and Restructuring: The company sold its Canadian Farms and Corporate IP in March 2025 and continued selling Ohio Equipment Assets throughout the year to generate liquidity. Proceeds from asset sales totaled $7.1 million in 2025 compared to $10.5 million in 2024.
- Impairment Charges: Total impairment charges dropped significantly to $14.4 million in 2025 (primarily related to the Ohio Farm Project) compared to $129.8 million in 2024 (which included write-downs of the Indiana Farm, Canadian Farms, and Ohio assets).
- Operating Expenses: General and Administrative (G&A) expenses decreased by 56% to $4.0 million in 2025 from $9.0 million in 2024, driven by personnel reductions and the cessation of R&D and sales/marketing activities.
- Debt Structure: In October 2025, the company issued $4.0 million in senior notes (18% interest) to fund working capital. A $2.0 million loan from the Atlantic Canada Opportunities Agency (ACOA) was forgiven in February 2025.
- Going Concern: The company reported a negative stockholders' equity position of $(1.9) million and explicitly stated that substantial doubt exists regarding its ability to continue as a going concern without additional capital.
Outlook, Risks, and Management Commentary
- Strategic Direction: Management is working with an investment bank to identify the optimal path for the Ohio Farm Project, including a potential sale. A non-binding Letter of Interest to purchase the Ohio subsidiary was received in 2025.
- Liquidity Risk: With only $0.5 million in cash as of year-end, the company requires immediate additional capital to fund operations. Future funding may come from asset sales, equity offerings, or debt, all of which carry dilution or restrictive covenant risks.
- Listing Compliance: The company faces risks regarding its Nasdaq listing. It previously received a notice regarding minimum bid price compliance (regained in September 2025) and anticipates a notice regarding minimum book equity compliance in early 2026. Failure to comply could lead to delisting.
- Legal Proceedings: The company settled two significant legal disputes in 2025: a mechanic's lien with Gilbane Building Company (settled for $1.3 million) and a contract dispute with Buckeye Power Sales Co. (settled for $0.55 million).
- Subsequent Event: On February 11, 2026, the company completed a public offering of common shares and warrants for net proceeds of approximately $1.0 million.
Key Facts for Investor Verification
- Cash Runway: Verify the sufficiency of the $1.0 million raised in February 2026 combined with the $0.5 million year-end cash balance to cover operating costs until a strategic transaction is completed.
- Ohio Farm Valuation: Confirm the status of the non-binding Letter of Interest for the Ohio Farm Project and the likelihood of a sale at the recorded fair value of $9.6 million.
- Nasdaq Compliance: Monitor the company's ability to cure the anticipated deficiency in Nasdaq's minimum book equity requirement to avoid delisting.
- Debt Covenants: Review the restrictive covenants in the new $4.0 million Senior Notes, specifically regarding board composition changes and listing compliance, which could trigger an event of default.
- Going Concern Status: Assess the auditor's "substantial doubt" qualification and the company's specific plans to raise capital beyond the recent February 2026 offering.