Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 29, 2024 | Jun. 30, 2023 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-36426 | ||
Entity Registrant Name | AquaBounty Technologies, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-3156167 | ||
Entity Address, Address Line One | 233 Ayer Road | ||
Entity Address, Address Line Two | Suite 4 | ||
Entity Address, City or Town | Harvard | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01451 | ||
City Area Code | 978 | ||
Local Phone Number | 648-6000 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | AQB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 27 | ||
Entity Common Stock, Shares Outstanding | 3,857,444 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for its Annual Meeting of Stockholders to be held on May 23, 2024 (the “2024 Proxy Statement”), are incorporated by reference into Part III of this Annual Report on Form 10 ‑ K. | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Central Index Key | 0001603978 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Baltimore, Maryland | ||
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 8,203,869 | $ 101,638,557 |
Inventory | 1,733,603 | 2,276,592 |
Prepaid expenses and other current assets | 1,700,273 | 2,133,583 |
Total current assets | 11,637,745 | 106,048,732 |
Property, plant and equipment, net | 174,381,382 | 106,286,186 |
Right of use assets, net | 281,104 | 222,856 |
Intangible assets, net | 204,436 | 218,139 |
Restricted cash | 1,000,000 | 1,000,000 |
Other assets | 46,761 | 64,859 |
Total assets | 187,551,428 | 213,840,772 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 12,991,819 | 12,000,592 |
Accrued employee compensation | 754,621 | 1,021,740 |
Current debt | 795,300 | 2,387,231 |
Other current liabilities | 30,863 | 20,830 |
Total current liabilities | 14,572,603 | 15,430,393 |
Long-term lease obligations | 250,241 | 203,227 |
Long-term debt, net | 7,711,866 | 6,286,109 |
Total liabilities | 22,534,710 | 21,919,729 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 75,000,000 and 150,000,000 shares authorized at December 31, 2023 and 2022, respectively; 3,847,022 and 3,834,383 shares outstanding at December 31, 2023 and 2022, respectively | 3,847 | 3,834 |
Additional paid-in capital | 385,998,213 | 385,455,961 |
Accumulated other comprehensive loss | (405,464) | (516,775) |
Accumulated deficit | (220,579,878) | (193,021,977) |
Total stockholders’ equity | 165,016,718 | 191,921,043 |
Total liabilities and stockholders’ equity | $ 187,551,428 | $ 213,840,772 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 3,847,022 | 3,834,383 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | ||
Product revenues | $ 2,472,659 | $ 3,136,954 |
Costs and expenses | ||
Product costs | 15,281,635 | 13,630,911 |
Sales and marketing | 795,931 | 1,138,781 |
Research and development | 703,823 | 903,981 |
General and administrative | 13,007,869 | 9,786,819 |
Total costs and expenses | 29,789,258 | 25,460,492 |
Operating loss | (27,316,599) | (22,323,538) |
Other (expense) income | ||
Interest expense | (303,967) | (291,177) |
Other income, net | 62,665 | 457,520 |
Total other (expense) income | (241,302) | 166,343 |
Net loss | (27,557,901) | (22,157,195) |
Other comprehensive income (loss): | ||
Foreign currency gain (loss) | 111,311 | (301,288) |
Unrealized gains on marketable securities | 40,101 | |
Total other comprehensive income (loss) | 111,311 | (261,187) |
Comprehensive loss | $ (27,446,590) | $ (22,418,382) |
Net Loss Per Share, Basic | $ (7.17) | $ (5.78) |
Net Loss Per Share, Diluted | $ (7.17) | $ (5.78) |
Weighted average number of common shares - | ||
Weighted Average Number of Shares Outstanding, Basic | 3,844,239 | 3,832,557 |
Weighted Average Number of Shares Outstanding, Diluted | 3,844,239 | 3,832,557 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total |
Beginning balance (in shares) at Dec. 31, 2021 | 3,830,128 | ||||
Beginning balance at Dec. 31, 2021 | $ 3,830 | $ 384,919,303 | $ (255,588) | $ (170,864,782) | $ 213,802,763 |
Net loss | (22,157,195) | (22,157,195) | |||
Other comprehensive income (loss) | (261,187) | (261,187) | |||
Exercise of options (in shares) | 52 | ||||
Exercise of options | 1,539 | 1,539 | |||
Share based compensation (in shares) | 4,203 | ||||
Share based compensation | $ 4 | 535,119 | 535,123 | ||
Ending balance (in shares) at Dec. 31, 2022 | 3,834,383 | ||||
Ending balance at Dec. 31, 2022 | $ 3,834 | 385,455,961 | (516,775) | (193,021,977) | 191,921,043 |
Net loss | (27,557,901) | (27,557,901) | |||
Other comprehensive income (loss) | 111,311 | 111,311 | |||
Share based compensation (in shares) | 12,639 | ||||
Share based compensation | $ 13 | 542,252 | 542,265 | ||
Ending balance (in shares) at Dec. 31, 2023 | 3,847,022 | ||||
Ending balance at Dec. 31, 2023 | $ 3,847 | $ 385,998,213 | $ (405,464) | $ (220,579,878) | $ 165,016,718 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities | ||
Net loss | $ (27,557,901) | $ (22,157,195) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,158,231 | 2,024,783 |
Share-based compensation | 542,265 | 535,123 |
Other non-cash charge | 16,604 | 22,983 |
Changes in operating assets and liabilities: | ||
Inventory | 546,847 | (1,027,650) |
Prepaid expenses and other assets | 375,430 | (550,120) |
Accounts payable and accrued liabilities | (50,602) | (1,905) |
Accrued employee compensation | (267,119) | 147,151 |
Net cash used in operating activities | (24,236,245) | (21,006,830) |
Investing activities | ||
Purchases of and deposits on property, plant and equipment | (68,889,540) | (67,476,327) |
Maturities of marketable securities | 149,435,173 | |
Purchases of marketable securities | (47,621,291) | |
Other investing activities | (3,263) | 12,500 |
Net cash (used in) provided by investing activities | (68,892,803) | 34,350,055 |
Financing activities | ||
Proceeds from issuance of debt | 417,673 | 476,228 |
Repayment of term debt | (726,140) | (640,170) |
Proceeds from the exercise of stock options and warrants | 1,538 | |
Net cash used in financing activities | (308,467) | (162,404) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,827 | 2,748 |
Net change in cash, cash equivalents and restricted cash | (93,434,688) | 13,183,569 |
Cash, cash equivalents and restricted cash at beginning of period | 102,638,557 | 89,454,988 |
Cash, cash equivalents and restricted cash at end of period | 9,203,869 | 102,638,557 |
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: | ||
Cash and cash equivalents | 8,203,869 | 101,638,557 |
Restricted cash | 1,000,000 | 1,000,000 |
Total cash, cash equivalents and restricted cash | 9,203,869 | 102,638,557 |
Supplemental disclosure of cash flow information and non-cash transactions: | ||
Interest paid in cash | 289,138 | 274,562 |
Property and equipment included in accounts payable and accrued liabilities | $ 11,670,996 | $ 10,565,820 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Business and Organization [Abstract] | |
Nature of Business and Organization | 1. Nature of business and organization Nature of business AquaBounty Technologies, Inc. (the “Parent” and, together with its wholly owned subsidiaries, the “Company”) was incorporated in December 1991 in the State of Delaware for the purpose of conducting research and development of the commercial viability of a group of proteins commonly known as antifreeze proteins. In 1996, the Parent obtained the exclusive licensing rights for a gene construct (transgene) used to create a breed of farm‑raised Atlantic salmon that exhibit growth rates that are substantially faster than conventional salmon. In 2015, the Parent obtained regulatory approval from the U.S. Food and Drug Administration for the production and sale of its genetically engineered AquAdvantage salmon product (“GE Atlantic salmon”) in the United States, and in 2016, the Parent obtained regulatory approval from Health Canada for the production and sale of its GE Atlantic salmon in Canada. In 2021, the Parent obtained regulatory approval from the National Biosafety Technical Commission for the sale of its GE Atlantic salmon in Brazil. In 2021, the Company began harvesting and selling its GE Atlantic salmon in the United States and Canada. Basis of presentation The consolidated financial statements include the accounts of the Parent and its wholly owned subsidiaries. The entities are collectively referred to herein as the “Company.” All inter-company transactions and balances have been eliminated upon consolidation. On October 12, 2023, the stockholders of the Company approved a reverse stock split of the Company’s common stock, and the Board of Directors approved a split ratio of 1-for-20 . The reverse stock split was implemented on October 16, 2023. In conjunction with the reverse stock split, the number of shares of common stock authorized for issuance was reduced from 150 million to 75 million. All share and per share information, as well as other related information on equity instruments in the consolidated financial statements and accompanying notes, have been adjusted to reflect this change. Going Concern Uncertainty Since inception, the Company has incurred cumulative net losses and negative cash flows from operations and expects that this will continue for the foreseeable future. As of December 31, 2023, the Company has $ 9.2 million in cash and cash equivalents, and restricted cash. The Company’s ability to continue as a going concern is dependent upon its ability to raise additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, or on terms acceptable to the Company, or at all. This raises substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the accompanying consolidated financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and do not include any adjustments that might result from the outcome of this uncertainty. Until such time as the Company reaches profitability, it will require additional financing to fund its operations and execute its business plan. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. Comprehensive loss The Company displays comprehensive loss and its components as part of its consolidated financial statements. Comprehensive loss consists of net loss and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments and unrealized gains (losses) on the Company’s marketable securities. Foreign currency translation The functional currency of the Parent is the US Dollar. The functional currency of the Canadian Subsidiary is the Canadian Dollar (C$), and the functional currency of the US and Brazil Subsidiaries is the US Dollar. For the Canadian Subsidiary, assets and liabilities are translated at the exchange rates in effect at the balance sheet date, equity accounts are translated at the historical exchange rate, and the income statement accounts are translated at the average rate for each period during the year. Net translation gains or losses are adjusted directly to a separate component of other comprehensive income (loss) within stockholders’ equity. Cash equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of business savings accounts, certificates of deposit and money market accounts. Fair Value of Financial instruments The Company groups its financial instruments measured at fair value, if any, in three levels based on the markets in which the instruments are traded and the reliability of the assumptions used to determine fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial instruments with readily available quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgement used in measuring fair value. The three levels of the fair value hierarchy are as follows: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs derived principally from, or that can be corroborated by, observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgement or estimation. The carrying amounts reported in the consolidated balance sheets for prepaid expenses and other current assets and accounts payable approximate fair value based on the short-term maturity of these instruments. All of the Company’s interest-bearing debt is at fixed rates, except for the loan with First Farmer’s Bank and Trust, which has a rate reset in July 2025. Inventories Inventories are mainly comprised of feed, eggs, fry, fish in process and fish for sale. Fish in process inventory is a biological asset that is measured based on the estimated biomass of fish on hand and expected harvest yields. The Company has established a standard procedure to estimate the biomass of fish on hand using counting and sampling techniques. The Company measures inventory at the lower of cost or net realizable value (“NRV”), where NRV is defined as the estimated market price, less the estimated costs of processing, packaging and transportation. The Company considers fish that has been harvested and transported from its farm to be fish for sale. Intangible assets Definite lived intangible assets include patents and licenses. Patent costs consist primarily of legal and filing fees incurred to file patents on proprietary technology developed by the Company. Patent costs are amortized on a straight - line basis over 20 years beginning with the filing date of the applicable patent. License fees are capitalized and expensed over the term of the licensing agreement. Property, plant and equipment Property, plant and equipment are recorded at cost. The Company depreciates all asset classes over their estimated useful lives, as follows: Building 20 - 25 years Equipment 5 - 20 years Office furniture and equipment 3 years Leasehold improvements shorter of asset life or lease term Vehicles 3 years The Company commences depreciation on an asset when it is placed into service. Impairment of long-lived assets The Company reviews the carrying value of its long-lived assets, definite lived intangible assets, and property, plant and equipment when facts and circumstances suggest that they may be impaired. The carrying values of such assets are considered impaired when the estimated undiscounted cash flows from such assets are less than their carrying values. An impairment loss, if any, is recognized in the amount of the difference between the carrying amount and the fair value of such assets. Leases The Company leases certain facilities, property, and equipment under noncancelable operating leases. A determination is made if an arrangement is a lease at its inception, and leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For operating leases, expense is recognized on a straight-line basis over the lease term. Revenue recognition The Company is comprised of one reporting segment and generates revenue from the sale of its products. Revenue is recognized when the customer takes physical control of the goods, in an amount that reflects the transaction price consideration that the Company expects to receive in exchange for the goods. Revenue excludes any sales tax collected and includes any estimate of future credits. During the years ended December 31, 2023 and 2022, the Company recognized the following product revenue: Year Ended December 31, 2022 U.S. Canada Total GE Atlantic salmon $ 2,518,495 $ 394,478 $ 2,912,973 Non-GE Atlantic salmon eggs - 85,089 85,089 Non-GE Atlantic salmon fry - 102,387 102,387 Other revenue - 36,505 36,505 Total Revenue $ 2,518,495 $ 618,459 $ 3,136,954 Year Ended December 31, 2023 U.S. Canada Total GE Atlantic salmon $ 2,331,352 $ - $ 2,331,352 Non-GE Atlantic salmon eggs - 730 730 Non-GE Atlantic salmon fry - 123,381 123,381 Other revenue - 17,196 17,196 Total Revenue $ 2,331,352 $ 141,307 $ 2,472,659 During the years ended December 31, 2023 and 2022, the Company had the following customer concentration of revenue: Years Ended December 31, 2023 2022 Customer A 44 % 36 % Customer B 18 % 17 % Customer C 14 % 15 % All other 24 % 32 % Total of all customers 100 % 100 % Income taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. A valuation allowance is established to reduce net deferred tax assets to the amount expected to be realized. The Company follows accounting guidance regarding the recognition, measurement, presentation and disclosure of uncertain tax positions in the financial statements. Tax positions taken or expected to be taken in the course of preparing the Company’s tax returns are required to be evaluated to determine whether the tax positions are “more likely than not” to be upheld under regulatory review. The resulting tax impact of these tax positions is recognized in the financial statements based on the results of this evaluation. The Company did not recognize any tax liabilities associated with uncertain tax positions, nor has it recognized any interest or penalties related to unrecognized tax positions. The Company is not currently under exam and is no longer subject to federal and state tax examinations by tax authorities for years before 2020. Net loss per share Basic and diluted net loss per share available to common stockholders has been calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Basic net loss per share is based solely on the number of common shares outstanding during the year. Fully diluted net loss per share includes the number of shares of common stock issuable upon the exercise of warrants and options with an exercise price less than the fair value of the common stock. Since the Company is reporting a net loss for all periods presented, all potential common shares are considered anti - dilutive and are excluded from the calculation of diluted net loss per share. The following potentially dilutive securities have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive: Years Ended December 31, Weighted Average Outstanding 2023 2022 Stock options 61,146 40,543 Warrants 917 20,929 Unvested stock awards 27,368 8,299 Share-based compensation The Company measures and recognizes all share - based payment awards, including stock options and restricted share units made to employees and directors, based on estimated fair values. The fair value of a share - based payment award is estimated on the date of grant using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s consolidated statement of operations. The Company uses the Black - Scholes option pricing model (“Black - Scholes”) as its method of valuation. Non - employee share - based compensation is accounted for using Black - Scholes to determine the fair value of warrants or options awarded to non - employees with the fair value of such issuances expensed over the period of service . Recently Issued Accounting Standards Management does not expect any recently issued, but not yet effective, accounting standards to have a material effect on its results of operations or financial condition . |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 3. Risks and uncertainties The Company is subject to risks and uncertainties common in the biotechnology and aquaculture industries. Such risks and uncertainties include, but are not limited to: (i) results from current and planned product development studies and trials; (ii) decisions made by the FDA or similar regulatory bodies in other countries with respect to approval and commercial sale of any of the Company’s proposed products; (iii) the commercial acceptance of any products approved for sale and the Company’s ability to produce, distribute, and sell for a profit any products approved for sale; (iv) the Company’s ability to obtain the necessary patents and proprietary rights to effectively protect its technologies; and (v) the outcome of any collaborations or alliances entered into by the Company. Concentration of credit risk Financial instruments that potentially subject the Company to credit risk consist principally of cash, cash equivalents, and marketable securities. This risk is mitigated by the Company’s policy of maintaining all balances with highly rated financial institutions, investing in cash equivalents with maturities of less than 90 days, and investing in marketable securities with maturities of less than 180 days. The Company’s cash balances may at times exceed insurance limitations. The Company holds cash balances in bank accounts located in Canada to fund its local operations. These amounts are subject to foreign currency exchange risk, which is minimized by the Company’s policy to limit the balances held in these accounts. Balances in Canadian bank accounts at December 31, 2023 and 2022 totaled $ 227 thousand and $ 518 thousand, respectively. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory [Abstract] | |
Inventory | 4. Inventory Major classifications of inventory are summarized as follows for December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Feed $ 167,136 $ 366,957 Eggs and fry 147,998 22,140 Fish in process 1,418,469 1,869,387 Fish for sale — 18,108 Inventory $ 1,733,603 $ 2,276,592 |
Prepaid and Other Current Asset
Prepaid and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid and Other Current Assets [Abstract] | |
Prepaid and Other Current Assets | 5. Prepaid and other current assets Major classifications of prepaid and current assets are summarized as follows for December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Receivables $ 1,216,585 $ 337,154 Prepaid insurance 388,049 272,958 Prepaid supplies 85,988 55,007 Prepaid professional services - 1,446,819 Deposits and other 9,651 21,645 Total prepaid expenses and other current assets $ 1,700,273 $ 2,133,583 Certain prepaid professional services, consisting of $ 2.1 million in legal expenditures and fees related to a bond financing transaction for the Ohio farm site were expensed during the year ended December 31, 2023, as the transaction was postponed for an undetermined amount of time. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, plant and equipment Major classifications of property, plant and equipment are summarized as follows for December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Land $ 2,974,685 $ 2,968,561 Building and improvements 15,804,739 15,535,904 Construction in process 147,755,336 78,806,762 Equipment 18,285,038 17,259,301 Office furniture and equipment 231,758 258,972 Vehicles 108,120 106,074 Total property and equipment $ 185,159,676 $ 114,935,574 Less accumulated depreciation and amortization ( 10,778,294 ) ( 8,649,388 ) Property, plant and equipment, net $ 174,381,382 $ 106,286,186 Depreciation and amortization expense for 2023 and 2022 on property, plant and equipment was $ 2.1 million and $ 2.0 million, respectively. As of December 31, 2023, construction in process included $ 141.8 million, $ 4.3 million and $ 1.6 million for construction related to the Ohio, Rollo Bay and Indiana farm sites, respectively. An additional $ 16.7 million has been contractually committed for these farm sites as of December 31, 2023. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt [Abstract] | |
Debt | 7. Debt The current terms and conditions of long-term debt outstanding as of December 31, 2023 and 2022, are as follows: Interest rate Monthly repayment Maturity date December 31, 2023 December 31, 2022 ACOA AIF Grant 0 % Royalties - $ 2,166,289 $ 2,119,476 ACOA term loan #1 0 % C$ 3,120 Feb 2027 89,460 115,158 ACOA term loan #2 0 % C$ 4,630 Sep 2029 240,946 276,743 ACOA term loan #3 0 % C$ 6,945 Dec 2025 125,712 184,500 Kubota Canada Ltd. 0 % C$ 1,142 Jan 2025 11,202 21,077 DFO term loan 0 % C$ 14,896 Jan 2034 1,305,193 854,885 Finance PEI term loan 6.5 % C$ 19,913 Dec 2028 1,713,837 1,752,547 First Farmers Bank & Trust term loan 5.4 % $ 56,832 Oct 2028 2,891,763 3,401,019 Total debt $ 8,544,402 $ 8,725,405 less: debt issuance costs ( 37,236 ) ( 52,065 ) less: current portion ( 795,300 ) ( 2,387,231 ) Long-term debt, net $ 7,711,866 $ 6,286,109 Principal payments due on the long-term debt are as follows: Total 2024 $ 808,114 2025 913,964 2026 887,032 2027 902,419 2028 2,136,774 Thereafter 2,896,099 Total $ 8,544,402 Atlantic Canada Opportunities Agency (“ACOA”) ACOA is a Canadian government agency that provides funding to support the development of businesses and promote employment in the Atlantic region of Canada. ACOA Atlantic Innovation Fund (“AIF”) Grant In January 2009, the Canadian Subsidiary was awarded an AIF grant from ACOA to provide a contribution towards the funding of a research and development project. Contributions under the grant were made through 2014, and no further funds are available. Amounts claimed by the Canadian Subsidiary must be repaid in the form of a 10 % royalty on any products that are commercialized out of this research project until the loan is fully repaid. Revenue from the sale of the Company’s GE Atlantic salmon is not subject to the royalty, and the Company does not expect to commercialize products that would be subject to the royalty in the next five years. ACOA term loans In February 2016, the Canadian Subsidiary executed an agreement with ACOA to partially finance the renovations to the Rollo Bay farm site. All available funding under the agreement was disbursed through May 2017, and no further amounts are available. The loan is being repaid over a 108 -month term at a zero percent interest rate. In November 2018, the Canadian Subsidiary executed a second agreement with ACOA to partially finance the renovations to the Rollo Bay site. All available funding under the agreement was disbursed through March 2019, and no further amounts are available. The loan is being repaid over a 108 -month term with a zero percent interest rate. In July 2021, the Canadian Subsidiary entered into a contribution agreement with ACOA under its REGI-Business Scale-up and Productivity program to provide funding assistance for the Rollo Bay farm site, and on August 20, 2021, the Canadian Subsidiary received C$ 250,000 ($ 200,075 ). All funds received are being repaid over a 36 -month term commencing January 2023 at a zero percent interest rate. Kubota In January 2018, the Canadian Subsidiary financed the purchase of equipment through a loan with Kubota Canada Ltd. The total amount is being repaid in monthly installments. The loan is secured by the underlying equipment. Department of Fisheries and Oceans (“DFO”) DFO is a department of the government of Canada responsible for safeguarding its waters and managing its fisheries, oceans and freshwater resources. DFO supports economic growth in the marine and fisheries sectors, and innovation in areas such as aquaculture and biotechnology . In September 2020, the Canadian Subsidiary entered into a Contribution Agreement with DFO's Atlantic Fisheries Fund, whereby it is eligible to receive up to C$ 1.9 million ($ 1.4 million) to finance new equipment for its Rollo Bay farm (the “DFO Term Loan”). As of December 31, 2022, the Canadian Subsidiary had borrowed C$ 1.2 million ($ 883 thousand) on the facility, and during 2023, the Canadian Subsidiary borrowed an additional C$ 572 thousand ($ 418 thousand) under the DFO Term Loan. Borrowings are interest free and monthly repayments commence in August 2024 , with maturity in January 2034 . The Company recognized interest expense of $ 304 thousand and $ 291 thousand for the years ended December 31, 2023 and 2022, respectively , on its interest-bearing debt. Finance PEI (“FPEI”) FPEI is a corporation of the Ministry of Economic Development and Tourism for Prince Edward Island, Canada, and administers business financing programs for the provincial government. In August 2016, the Canadian Subsidiary obtained a loan from FPEI to partially finance the purchase of the assets of the former Atlantic Sea Smolt plant in Rollo Bay West on Prince Edward Island. In 2018, the Canadian Subsidiary obtained a new loan from FPEI, which incorporated the existing loan and provided C$ 2.0 million ($ 1.5 million) of additional funds. All funds have been dispersed and the loan is being repaid over a 147 -month term ending with a balloon payment, which was extended for five additional years to December 2028. The loan has an interest rate of 6.5 % and is collateralized by a mortgage executed by the Canadian Subsidiary, which conveys a first security interest in all of its current and acquired assets. The loan is guaranteed by the Parent. First Farmers Bank & Trust (“FFBT”) On July 31, 2020, the Company’s Indiana Subsidiary obtained a $ 4.0 million loan from First Farmers Bank and Trust. Net proceeds were $ 3.9 million after deducting $ 90 thousand in loan costs. The loan bears interest at a rate of 5.375 % for the first five years . On July 31, 2025, the interest rate resets to the then U.S. Treasury 5-year maturities rate plus 5 % and remains fixed at that rate through maturity on October 1, 2028 . The note required interest only payments for the first 13 months, followed by monthly principal and interest payments of approximately $ 57 thousand through maturity. The Company must comply with certain financial and non-financial covenants and provide certification of compliance quarterly. During 2022, FFBT removed two of the loan’s negative covenants and the Company increased its required restrictive cash balance amount from $ 500 thousand to $ 1.0 million. This amount is reflected as restricted cash on the balance sheet. At December 31, 2023, the Company was in compliance with its loan covenants. The loan is also subject to certain prepayment penalties and is secured by the assets of the Indiana subsidiary and a guarantee by the Parent. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ equity The Company’s stockholders have authorized 80 million shares of stock, of which 5 million are authorized as preferred stock and 75 million as common stock. Common stock The holders of the common stock are entitled to one vote for each share held at all meetings of stockholders. Dividends and distribution of assets of the Company in the event of liquidation are subject to the preferential rights of any outstanding preferred shares. Warrants All outstanding warrants as of December 31, 2022 expired unexercised during the year ended December 31, 2023. Share-based compensation In 2006, the Company established the 2006 Equity Incentive Plan (as amended, the “2006 Plan”). The 2006 Plan provided for the issuance of incentive stock options to employees of the Company and non-qualified stock options and awards of restricted stock to directors, officers, employees, and consultants of the Company. In accordance with its original terms, the 2006 Plan terminated on March 18, 2016. All outstanding awards under the 2006 Plan will continue until their individual termination dates. In March 2016, the Company’s Board of Directors adopted the AquaBounty Technologies, Inc. 2016 Equity Incentive Plan (as amended, the “2016 Plan”) to replace the 2006 Plan. The 2016 Plan provides for the issuance of incentive stock options, non-qualified stock options, and awards of restricted and direct stock purchases to directors, officers, employees, and consultants of the Company. Total common shares authorized under the 2016 Plan are 215,000 , of which 68,280 shares are reserved for future issuance as of December 31, 2023. Restricted stock The Company’s restricted stock activity under the 2016 Plan is summarized as follows: Shares Weighted average grant date fair value Unvested at December 31, 2022 9,974 $ 37.27 Granted 39,286 10.58 Vested ( 13,584 ) 25.40 Forfeited ( 1,536 ) 23.20 Unvested at December 31, 2023 34,140 $ 11.91 During 2023 and 2022, the Company expensed $ 360 thousand and $ 358 thousand, respectively, related to restricted stock awards. At December 31, 2023, the balance of unearned share-based compensation to be expensed in future periods related to the restricted stock awards is $ 215 thousand. The period over which the unearned share-based compensation is expected to be earned is approximately 1.4 years. Stock options The Company’s option activity under the 2006 Plan and the 2016 Plan is summarized as follows: Number of options Weighted average exercise price Outstanding at December 31, 2022 42,035 $ 71.69 Issued 36,654 7.20 Exercised — — Forfeited ( 2,315 ) 10.13 Expired ( 705 ) 146.20 Outstanding at December 31, 2023 75,669 $ 41.64 Exercisable at December 31, 2023 46,397 $ 61.32 Options issued to employees, members of the Board of Directors, and non-employees generally vest over a period of one year to three years and are exercisable for a term of 10 years from the date of issuance. The weighted average fair value of stock options granted during 2023 was $ 5.02 (2022: $ 22.20 ). There were no options exercised in 2023 (2022: 52 ). The total intrinsic value of options exercised in 2022 was $ 142 . As of December 31, 2023 and 2022, the total intrinsic value of exercisable and outstanding options was $ 0 . The following table summarizes information about options outstanding and exercisable as of December 31, 2023: Weighted average exercise price of outstanding options Number of options outstanding Weighted average remaining estimated life (in years) Number of options exercisable < $ 10.00 34,604 9.5 8,966 $ 20.00 - $ 50.00 35,380 6.1 31,847 $ 100.00 - $ 200.00 2,369 6.4 2,268 $ 200.00 - $ 500.00 3,316 2.2 3,316 75,669 46,397 The fair values of stock option grants to employees and members of the Board of Directors during 2023 and 2022 were measured on the date of grant using Black-Scholes, with the following weighted average assumptions: 2023 2022 Expected volatility 86 % 92 %- 103 % Risk free interest rate 4.01 % 1.71 %- 3.95 % Expected dividend yield 0.0 % 0.0 % Expected life (in years) 5 5 The risk-free interest rate is estimated using the Federal Funds interest rate for a period that is commensurate with the expected term of the awards. The expected dividend yield is zero because the Company has never paid a dividend and does not expect to do so for the foreseeable future. The expected life was based on a number of factors including historical experience, vesting provisions, exercise price relative to market price, and expected volatility. The Company believes that all groups of employees demonstrate similar exercise and post-vesting termination behavior and, therefore, does not stratify employees into multiple groups and forfeitures are recognized as they occur. The expected volatility was estimated using the Company’s historical price volatility over a period that is commensurate with the expected term of the awards. Total share-based compensation on stock-option grants amounted to $ 182 thousand and $ 177 thousand for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the balance of unearned share-based compensation to be expensed in future periods related to unvested share-based awards is $ 219 thousand. The period over which the unearned share-based compensation is expected to be earned is 1.4 years. Share-based compensation The following table summarizes share-based compensation costs recognized in the Company’s Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2023 and 2022: 2023 2022 Sales and marketing 19,325 15,956 General and administrative 522,940 519,167 Total share-based compensation $ 542,265 $ 535,123 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income taxes The components of loss before income taxes for the years ended December 31, 2023 and 2022 are presented below: 2023 2022 Domestic $ ( 23,732,417 ) $ ( 20,673,855 ) Foreign ( 3,825,484 ) ( 1,483,340 ) Loss before income taxes $ ( 27,557,901 ) $ ( 22,157,195 ) We have made no provision for foreign or domestic income taxes on the cumulative unremitted earnings of our foreign subsidiaries. We intend to permanently reinvest all foreign earnings and have no intention to repatriate foreign earnings for the foreseeable future. Income taxes computed using the federal statutory income tax rate differs from the Company’s effective tax rate for the years ended December 31, 2023 and 2022 primarily due to the following: 2023 2022 Income tax benefit $ ( 5,787,160 ) $ ( 4,653,011 ) State and provincial income tax ( 2,074,037 ) ( 1,031,963 ) Permanent differences 48,028 ( 60,904 ) US-Foreign rate differential 232,963 ( 65,058 ) Other ( 1,013,689 ) 483,873 $ ( 8,593,895 ) $ ( 5,327,063 ) Change in valuation allowance 8,593,895 5,327,063 Total income tax $ - $ - As of December 31, 2023, the Company had domestic net operating loss carryforwards of approximately $ 122 million, after consideration of limitations pursuant to section 382, to offset future federal taxable income, which begin to expire in 2033. Of this amount, the Company had domestic net operating loss carryforwards of approximately $ 93 million, which can be carried forward indefinitely. The future utilization of certain historic net operating loss and tax credit carryforwards, however, is subject to annual use limitations based on the change in stock ownership rules of Internal Revenue Code Sections 382 and 383. The Company experienced a change in ownership under these rules during 2012 and revised its calculation of net operating loss carryforwards based on annual limitation rules. The Company also had foreign research and development loss carryforwards totaling approximately $ 18 million and foreign research and development expense tax credits of approximately $ 3 million as of December 31, 2023, which expire at various times commencing in 2024. Since the Company has incurred only losses from inception and there is uncertainty related to the ultimate use of the loss carryforwards and tax credits, a valuation allowance has been recognized to offset the Company’s deferred tax assets, and no benefit for income taxes has been recorded. The IRS released guidance which modified the procedures for taxpayers that incur specified research or experimental (R&E) expenditures to change their method of accounting to comply with the new capitalization and amortization rules provided in Section 174, as revised by the Tax Cuts and Jobs Act. The Section 174 rules require taxpayers to capitalize and amortize specified R&E expenditures over a period of five years (for domestic research) or 15 years (for foreign research), beginning with the midpoint of the taxable year in which the expenses are paid or incurred. The impact defers the tax benefit of R&E expenditures. Significant components of the Company’s deferred tax assets and liabilities are as follows: 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 37,551,366 $ 28,188,265 Foreign research and development tax credit carryforwards 2,611,184 2,454,756 Intangibles 2,366,372 2,630,122 R&D costs 843,947 696,326 Other 470,847 332,473 Total deferred tax assets $ 43,843,716 $ 34,301,942 Valuation allowance ( 42,646,455 ) ( 34,052,560 ) Net deferred tax assets $ 1,197,261 $ 249,382 Deferred tax liabilities: Property and equipment ( 1,197,261 ) ( 249,382 ) Total deferred tax liabilities $ ( 1,197,261 ) $ ( 249,382 ) Net deferred tax liabilities $ - $ - |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10. Commitments and contingencies The Company recognizes and discloses commitments when it enters into executed contractual obligations with other parties. The Company accrues contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. The Company is subject to legal proceedings and claims arising in the normal course of business. Management believes that final disposition of any such matters existing at December 31, 2023, will not have a material adverse effect on the Company’s financial position or results of operations. Lease commitments The table below summarizes the Company’s lease obligations as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Operating lease right-of-use assets, net $ 281,104 $ 222,856 Right-of-use assets obtained for new lease liabilities 84,143 - Other current liabilities 30,863 20,830 Operating lease liabilities 250,241 203,227 Total operating lease liabilities $ 281,104 $ 224,057 December 31, 2023 December 31, 2022 Operating lease expense $ 41,798 $ 85,718 Short-term lease expense 48,968 - Lease payments included in operating cash flows 92,857 84,080 Weighted average remaining lease term 22.5 years 25.4 years Weighted average discount rate 8 % 8 % Remaining payments under leases are as follows as of December 31, 2023: Year Amount 2024 $ 48,054 2025 49,801 2026 40,373 2027 19,102 2028 19,676 Thereafter 544,549 Total lease payments 721,555 Less: imputed interest ( 440,451 ) Total operational lease liabilities $ 281,104 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Plan [Abstract] | |
Retirement Plan | 11. Retirement plan The Company has a savings and retirement plan for its US employees that qualifies under Section 401(k) of the Internal Revenue Code. The plan covers substantially all employees and provides for voluntary contributions by participating employees up to the maximum contribution allowed under the Internal Revenue Code. Contributions by the Company can be made, as determined by the Board of Directors, provided the amount does not exceed the maximum permitted by the Internal Revenue Code. Company contributions made and expensed in operations in connection with the plan during the years ended December 31, 2023 and 2022, amounted to $ 113 thousand and $ 94 thousand, respectively. The Company also has a Registered Retirement Savings Plan for its Canadian employees. Company contributions made and expensed in operations in connection with the plan during the years ended December 31, 2023 and 2022, amounted to $ 45 thousand and $ 44 thousand, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent events On February 14, 2024, the Company announced that it had made the decision to sell its Indiana farm as part of its strategy to increase liquidity. |
Nature of Business and Organi_2
Nature of Business and Organization (Policy) | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Business and Organization [Abstract] | |
Nature of Business | Nature of business AquaBounty Technologies, Inc. (the “Parent” and, together with its wholly owned subsidiaries, the “Company”) was incorporated in December 1991 in the State of Delaware for the purpose of conducting research and development of the commercial viability of a group of proteins commonly known as antifreeze proteins. In 1996, the Parent obtained the exclusive licensing rights for a gene construct (transgene) used to create a breed of farm‑raised Atlantic salmon that exhibit growth rates that are substantially faster than conventional salmon. In 2015, the Parent obtained regulatory approval from the U.S. Food and Drug Administration for the production and sale of its genetically engineered AquAdvantage salmon product (“GE Atlantic salmon”) in the United States, and in 2016, the Parent obtained regulatory approval from Health Canada for the production and sale of its GE Atlantic salmon in Canada. In 2021, the Parent obtained regulatory approval from the National Biosafety Technical Commission for the sale of its GE Atlantic salmon in Brazil. In 2021, the Company began harvesting and selling its GE Atlantic salmon in the United States and Canada. |
Basis of Presentation | Basis of presentation The consolidated financial statements include the accounts of the Parent and its wholly owned subsidiaries. The entities are collectively referred to herein as the “Company.” All inter-company transactions and balances have been eliminated upon consolidation. On October 12, 2023, the stockholders of the Company approved a reverse stock split of the Company’s common stock, and the Board of Directors approved a split ratio of 1-for-20 . The reverse stock split was implemented on October 16, 2023. In conjunction with the reverse stock split, the number of shares of common stock authorized for issuance was reduced from 150 million to 75 million. All share and per share information, as well as other related information on equity instruments in the consolidated financial statements and accompanying notes, have been adjusted to reflect this change. |
Going Concern Uncertainty | Going Concern Uncertainty Since inception, the Company has incurred cumulative net losses and negative cash flows from operations and expects that this will continue for the foreseeable future. As of December 31, 2023, the Company has $ 9.2 million in cash and cash equivalents, and restricted cash. The Company’s ability to continue as a going concern is dependent upon its ability to raise additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, or on terms acceptable to the Company, or at all. This raises substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the accompanying consolidated financial statements are issued. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and do not include any adjustments that might result from the outcome of this uncertainty. Until such time as the Company reaches profitability, it will require additional financing to fund its operations and execute its business plan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. |
Comprehensive Loss | Comprehensive loss The Company displays comprehensive loss and its components as part of its consolidated financial statements. Comprehensive loss consists of net loss and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments and unrealized gains (losses) on the Company’s marketable securities. |
Foreign Currency Translation | Foreign currency translation The functional currency of the Parent is the US Dollar. The functional currency of the Canadian Subsidiary is the Canadian Dollar (C$), and the functional currency of the US and Brazil Subsidiaries is the US Dollar. For the Canadian Subsidiary, assets and liabilities are translated at the exchange rates in effect at the balance sheet date, equity accounts are translated at the historical exchange rate, and the income statement accounts are translated at the average rate for each period during the year. Net translation gains or losses are adjusted directly to a separate component of other comprehensive income (loss) within stockholders’ equity. |
Cash Equivalents | Cash equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of business savings accounts, certificates of deposit and money market accounts. |
Fair Value of Financial instruments | Fair Value of Financial instruments The Company groups its financial instruments measured at fair value, if any, in three levels based on the markets in which the instruments are traded and the reliability of the assumptions used to determine fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial instruments with readily available quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgement used in measuring fair value. The three levels of the fair value hierarchy are as follows: Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs derived principally from, or that can be corroborated by, observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgement or estimation. The carrying amounts reported in the consolidated balance sheets for prepaid expenses and other current assets and accounts payable approximate fair value based on the short-term maturity of these instruments. All of the Company’s interest-bearing debt is at fixed rates, except for the loan with First Farmer’s Bank and Trust, which has a rate reset in July 2025. |
Inventories | Inventories Inventories are mainly comprised of feed, eggs, fry, fish in process and fish for sale. Fish in process inventory is a biological asset that is measured based on the estimated biomass of fish on hand and expected harvest yields. The Company has established a standard procedure to estimate the biomass of fish on hand using counting and sampling techniques. The Company measures inventory at the lower of cost or net realizable value (“NRV”), where NRV is defined as the estimated market price, less the estimated costs of processing, packaging and transportation. The Company considers fish that has been harvested and transported from its farm to be fish for sale. |
Intangible Assets | Intangible assets Definite lived intangible assets include patents and licenses. Patent costs consist primarily of legal and filing fees incurred to file patents on proprietary technology developed by the Company. Patent costs are amortized on a straight - line basis over 20 years beginning with the filing date of the applicable patent. License fees are capitalized and expensed over the term of the licensing agreement. |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are recorded at cost. The Company depreciates all asset classes over their estimated useful lives, as follows: Building 20 - 25 years Equipment 5 - 20 years Office furniture and equipment 3 years Leasehold improvements shorter of asset life or lease term Vehicles 3 years The Company commences depreciation on an asset when it is placed into service. |
Impairment of Long-lived Assets | Impairment of long-lived assets The Company reviews the carrying value of its long-lived assets, definite lived intangible assets, and property, plant and equipment when facts and circumstances suggest that they may be impaired. The carrying values of such assets are considered impaired when the estimated undiscounted cash flows from such assets are less than their carrying values. An impairment loss, if any, is recognized in the amount of the difference between the carrying amount and the fair value of such assets. |
Leases | Leases The Company leases certain facilities, property, and equipment under noncancelable operating leases. A determination is made if an arrangement is a lease at its inception, and leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For operating leases, expense is recognized on a straight-line basis over the lease term. |
Revenue Recognition | Revenue recognition The Company is comprised of one reporting segment and generates revenue from the sale of its products. Revenue is recognized when the customer takes physical control of the goods, in an amount that reflects the transaction price consideration that the Company expects to receive in exchange for the goods. Revenue excludes any sales tax collected and includes any estimate of future credits. During the years ended December 31, 2023 and 2022, the Company recognized the following product revenue: Year Ended December 31, 2022 U.S. Canada Total GE Atlantic salmon $ 2,518,495 $ 394,478 $ 2,912,973 Non-GE Atlantic salmon eggs - 85,089 85,089 Non-GE Atlantic salmon fry - 102,387 102,387 Other revenue - 36,505 36,505 Total Revenue $ 2,518,495 $ 618,459 $ 3,136,954 Year Ended December 31, 2023 U.S. Canada Total GE Atlantic salmon $ 2,331,352 $ - $ 2,331,352 Non-GE Atlantic salmon eggs - 730 730 Non-GE Atlantic salmon fry - 123,381 123,381 Other revenue - 17,196 17,196 Total Revenue $ 2,331,352 $ 141,307 $ 2,472,659 During the years ended December 31, 2023 and 2022, the Company had the following customer concentration of revenue: Years Ended December 31, 2023 2022 Customer A 44 % 36 % Customer B 18 % 17 % Customer C 14 % 15 % All other 24 % 32 % Total of all customers 100 % 100 % |
Income Taxes | Income taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recorded for the expected future tax consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. A valuation allowance is established to reduce net deferred tax assets to the amount expected to be realized. The Company follows accounting guidance regarding the recognition, measurement, presentation and disclosure of uncertain tax positions in the financial statements. Tax positions taken or expected to be taken in the course of preparing the Company’s tax returns are required to be evaluated to determine whether the tax positions are “more likely than not” to be upheld under regulatory review. The resulting tax impact of these tax positions is recognized in the financial statements based on the results of this evaluation. The Company did not recognize any tax liabilities associated with uncertain tax positions, nor has it recognized any interest or penalties related to unrecognized tax positions. The Company is not currently under exam and is no longer subject to federal and state tax examinations by tax authorities for years before 2020. |
Net Loss Per Share | Net loss per share Basic and diluted net loss per share available to common stockholders has been calculated by dividing net loss by the weighted average number of common shares outstanding during the year. Basic net loss per share is based solely on the number of common shares outstanding during the year. Fully diluted net loss per share includes the number of shares of common stock issuable upon the exercise of warrants and options with an exercise price less than the fair value of the common stock. Since the Company is reporting a net loss for all periods presented, all potential common shares are considered anti - dilutive and are excluded from the calculation of diluted net loss per share. The following potentially dilutive securities have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive: Years Ended December 31, Weighted Average Outstanding 2023 2022 Stock options 61,146 40,543 Warrants 917 20,929 Unvested stock awards 27,368 8,299 |
Share-based Compensation | Share-based compensation The Company measures and recognizes all share - based payment awards, including stock options and restricted share units made to employees and directors, based on estimated fair values. The fair value of a share - based payment award is estimated on the date of grant using an option pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s consolidated statement of operations. The Company uses the Black - Scholes option pricing model (“Black - Scholes”) as its method of valuation. Non - employee share - based compensation is accounted for using Black - Scholes to determine the fair value of warrants or options awarded to non - employees with the fair value of such issuances expensed over the period of service . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Management does not expect any recently issued, but not yet effective, accounting standards to have a material effect on its results of operations or financial condition |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Property, Plant and Equipment Estimated Useful Lives | Building 20 - 25 years Equipment 5 - 20 years Office furniture and equipment 3 years Leasehold improvements shorter of asset life or lease term Vehicles 3 years |
Schedule of Product Information | Year Ended December 31, 2022 U.S. Canada Total GE Atlantic salmon $ 2,518,495 $ 394,478 $ 2,912,973 Non-GE Atlantic salmon eggs - 85,089 85,089 Non-GE Atlantic salmon fry - 102,387 102,387 Other revenue - 36,505 36,505 Total Revenue $ 2,518,495 $ 618,459 $ 3,136,954 Year Ended December 31, 2023 U.S. Canada Total GE Atlantic salmon $ 2,331,352 $ - $ 2,331,352 Non-GE Atlantic salmon eggs - 730 730 Non-GE Atlantic salmon fry - 123,381 123,381 Other revenue - 17,196 17,196 Total Revenue $ 2,331,352 $ 141,307 $ 2,472,659 |
Schedule of Customer Concentration of Revenue | Years Ended December 31, 2023 2022 Customer A 44 % 36 % Customer B 18 % 17 % Customer C 14 % 15 % All other 24 % 32 % Total of all customers 100 % 100 % |
Schedule of Impact of Potentially Dilutive Securities Outstanding | Years Ended December 31, Weighted Average Outstanding 2023 2022 Stock options 61,146 40,543 Warrants 917 20,929 Unvested stock awards 27,368 8,299 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory [Abstract] | |
Schedule of Inventory | December 31, 2023 December 31, 2022 Feed $ 167,136 $ 366,957 Eggs and fry 147,998 22,140 Fish in process 1,418,469 1,869,387 Fish for sale — 18,108 Inventory $ 1,733,603 $ 2,276,592 |
Prepaid and Other Current Ass_2
Prepaid and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid and Other Current Assets [Abstract] | |
Schedule of Prepaid and Other Current Assets | December 31, 2023 December 31, 2022 Receivables $ 1,216,585 $ 337,154 Prepaid insurance 388,049 272,958 Prepaid supplies 85,988 55,007 Prepaid professional services - 1,446,819 Deposits and other 9,651 21,645 Total prepaid expenses and other current assets $ 1,700,273 $ 2,133,583 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | December 31, 2023 December 31, 2022 Land $ 2,974,685 $ 2,968,561 Building and improvements 15,804,739 15,535,904 Construction in process 147,755,336 78,806,762 Equipment 18,285,038 17,259,301 Office furniture and equipment 231,758 258,972 Vehicles 108,120 106,074 Total property and equipment $ 185,159,676 $ 114,935,574 Less accumulated depreciation and amortization ( 10,778,294 ) ( 8,649,388 ) Property, plant and equipment, net $ 174,381,382 $ 106,286,186 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt [Abstract] | |
Terms and Conditions of Long-term Debt Outstanding | Interest rate Monthly repayment Maturity date December 31, 2023 December 31, 2022 ACOA AIF Grant 0 % Royalties - $ 2,166,289 $ 2,119,476 ACOA term loan #1 0 % C$ 3,120 Feb 2027 89,460 115,158 ACOA term loan #2 0 % C$ 4,630 Sep 2029 240,946 276,743 ACOA term loan #3 0 % C$ 6,945 Dec 2025 125,712 184,500 Kubota Canada Ltd. 0 % C$ 1,142 Jan 2025 11,202 21,077 DFO term loan 0 % C$ 14,896 Jan 2034 1,305,193 854,885 Finance PEI term loan 6.5 % C$ 19,913 Dec 2028 1,713,837 1,752,547 First Farmers Bank & Trust term loan 5.4 % $ 56,832 Oct 2028 2,891,763 3,401,019 Total debt $ 8,544,402 $ 8,725,405 less: debt issuance costs ( 37,236 ) ( 52,065 ) less: current portion ( 795,300 ) ( 2,387,231 ) Long-term debt, net $ 7,711,866 $ 6,286,109 |
Principal Payments Due on Long-term Debt | Total 2024 $ 808,114 2025 913,964 2026 887,032 2027 902,419 2028 2,136,774 Thereafter 2,896,099 Total $ 8,544,402 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity [Abstract] | |
Unvested Stock Award Activity | Shares Weighted average grant date fair value Unvested at December 31, 2022 9,974 $ 37.27 Granted 39,286 10.58 Vested ( 13,584 ) 25.40 Forfeited ( 1,536 ) 23.20 Unvested at December 31, 2023 34,140 $ 11.91 |
Stock Option Activity | Number of options Weighted average exercise price Outstanding at December 31, 2022 42,035 $ 71.69 Issued 36,654 7.20 Exercised — — Forfeited ( 2,315 ) 10.13 Expired ( 705 ) 146.20 Outstanding at December 31, 2023 75,669 $ 41.64 Exercisable at December 31, 2023 46,397 $ 61.32 |
Information About Options Outstanding and Exercisable | Weighted average exercise price of outstanding options Number of options outstanding Weighted average remaining estimated life (in years) Number of options exercisable < $ 10.00 34,604 9.5 8,966 $ 20.00 - $ 50.00 35,380 6.1 31,847 $ 100.00 - $ 200.00 2,369 6.4 2,268 $ 200.00 - $ 500.00 3,316 2.2 3,316 75,669 46,397 |
Stock Option Grants Weighted Average Assumptions | 2023 2022 Expected volatility 86 % 92 %- 103 % Risk free interest rate 4.01 % 1.71 %- 3.95 % Expected dividend yield 0.0 % 0.0 % Expected life (in years) 5 5 |
Share-based Compensation Costs Recognized on Financial Statements | 2023 2022 Sales and marketing 19,325 15,956 General and administrative 522,940 519,167 Total share-based compensation $ 542,265 $ 535,123 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Components of Loss before Income Taxes | 2023 2022 Domestic $ ( 23,732,417 ) $ ( 20,673,855 ) Foreign ( 3,825,484 ) ( 1,483,340 ) Loss before income taxes $ ( 27,557,901 ) $ ( 22,157,195 ) |
Schedule of Effective Income Tax Rate Reconciliation | 2023 2022 Income tax benefit $ ( 5,787,160 ) $ ( 4,653,011 ) State and provincial income tax ( 2,074,037 ) ( 1,031,963 ) Permanent differences 48,028 ( 60,904 ) US-Foreign rate differential 232,963 ( 65,058 ) Other ( 1,013,689 ) 483,873 $ ( 8,593,895 ) $ ( 5,327,063 ) Change in valuation allowance 8,593,895 5,327,063 Total income tax $ - $ - |
Components of Deferred Tax Assets and Liabilities | 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 37,551,366 $ 28,188,265 Foreign research and development tax credit carryforwards 2,611,184 2,454,756 Intangibles 2,366,372 2,630,122 R&D costs 843,947 696,326 Other 470,847 332,473 Total deferred tax assets $ 43,843,716 $ 34,301,942 Valuation allowance ( 42,646,455 ) ( 34,052,560 ) Net deferred tax assets $ 1,197,261 $ 249,382 Deferred tax liabilities: Property and equipment ( 1,197,261 ) ( 249,382 ) Total deferred tax liabilities $ ( 1,197,261 ) $ ( 249,382 ) Net deferred tax liabilities $ - $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Summary of Lease Obligations | December 31, 2023 December 31, 2022 Operating lease right-of-use assets, net $ 281,104 $ 222,856 Right-of-use assets obtained for new lease liabilities 84,143 - Other current liabilities 30,863 20,830 Operating lease liabilities 250,241 203,227 Total operating lease liabilities $ 281,104 $ 224,057 |
Summary of Lease Costs | December 31, 2023 December 31, 2022 Operating lease expense $ 41,798 $ 85,718 Short-term lease expense 48,968 - Lease payments included in operating cash flows 92,857 84,080 Weighted average remaining lease term 22.5 years 25.4 years Weighted average discount rate 8 % 8 % |
Summary of Remaining Payments under Leases | Year Amount 2024 $ 48,054 2025 49,801 2026 40,373 2027 19,102 2028 19,676 Thereafter 544,549 Total lease payments 721,555 Less: imputed interest ( 440,451 ) Total operational lease liabilities $ 281,104 |
Nature of Business and Organi_3
Nature of Business and Organization (Narrative) (Details) $ in Millions | Oct. 16, 2023 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 shares |
Nature of Business and Organization [Abstract] | |||
Cash, cash equivalents and restricted cash | $ | $ 9.2 | ||
Stock split conversion ratio, reverse split | 0.05 | ||
Common stock, shares authorized (in shares) | shares | 150,000,000 | 75,000,000 | 150,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Number of segments | 1 |
Patents [Member] | Minimum [Member] | |
Patents, useful life | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Property, Plant and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Office Furniture And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | shorter of asset life or lease term |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Product Information) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Product Information [Line Items] | ||
Revenues | $ 2,472,659 | $ 3,136,954 |
GE Atlantic salmon [Member] | ||
Product Information [Line Items] | ||
Revenues | 2,331,352 | 2,912,973 |
Non-GE Atlantic salmon eggs [Member] | ||
Product Information [Line Items] | ||
Revenues | 730 | 85,089 |
Non-GE Atlantic salmon fry [Member] | ||
Product Information [Line Items] | ||
Revenues | 123,381 | 102,387 |
Other revenue [Member] | ||
Product Information [Line Items] | ||
Revenues | 17,196 | 36,505 |
U.S. [Member] | ||
Product Information [Line Items] | ||
Revenues | 2,331,352 | 2,518,495 |
U.S. [Member] | GE Atlantic salmon [Member] | ||
Product Information [Line Items] | ||
Revenues | 2,331,352 | 2,518,495 |
Canada [Member] | ||
Product Information [Line Items] | ||
Revenues | 141,307 | 618,459 |
Canada [Member] | GE Atlantic salmon [Member] | ||
Product Information [Line Items] | ||
Revenues | 394,478 | |
Canada [Member] | Non-GE Atlantic salmon eggs [Member] | ||
Product Information [Line Items] | ||
Revenues | 730 | 85,089 |
Canada [Member] | Non-GE Atlantic salmon fry [Member] | ||
Product Information [Line Items] | ||
Revenues | 123,381 | 102,387 |
Canada [Member] | Other revenue [Member] | ||
Product Information [Line Items] | ||
Revenues | $ 17,196 | $ 36,505 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Schedule of Customer Concentration of Revenue) (Details) - Customer Concentration Risk [Member] - Revenue Benchmark [Member] | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Product Information [Line Items] | ||
Concentration Risk, Percentage | 100% | 100% |
Customer A [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 44% | 36% |
Customer B [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 18% | 17% |
Customer C [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 14% | 15% |
All Other [Member] | ||
Product Information [Line Items] | ||
Concentration Risk, Percentage | 24% | 32% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Schedule of Potentially Dilutive Securities Excluded from Calculation as Effect is Anti-Dilutive) (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 61,146 | 40,543 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 917 | 20,929 |
Unvested Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 27,368 | 8,299 |
Risks and Uncertainties (Narrat
Risks and Uncertainties (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Canada [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Cash in Canadian bank accounts | $ 227 | $ 518 |
Inventory (Schedule of Inventor
Inventory (Schedule of Inventory) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Inventory, net | $ 1,733,603 | $ 2,276,592 |
Feed [Member] | ||
Inventory [Line Items] | ||
Inventory, net | 167,136 | 366,957 |
Eggs And Fry [Member] | ||
Inventory [Line Items] | ||
Inventory, net | 147,998 | 22,140 |
Fish In Process [Member] | ||
Inventory [Line Items] | ||
Inventory, net | $ 1,418,469 | 1,869,387 |
Fish For Sale [Member] | ||
Inventory [Line Items] | ||
Inventory, net | $ 18,108 |
Prepaid and Other Current Ass_3
Prepaid and Other Current Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables | $ 1,216,585 | $ 337,154 |
Prepaid insurance | 388,049 | 272,958 |
Prepaid supplies | 85,988 | 55,007 |
Prepaid professional services | 1,446,819 | |
Deposits and other | 9,651 | 21,645 |
Prepaid expenses and other current assets | 1,700,273 | $ 2,133,583 |
Legal Expense and Fees, Bond Financing, Not Yet Completed [Member] | ||
Prepaid professional services | $ 2,100,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expense | $ 2,100,000 | $ 2,000,000 |
Gross property, plant, and equipment | 185,159,676 | 114,935,574 |
Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 147,755,336 | $ 78,806,762 |
Ohio Farm [Member] | Capital Addition Purchase Commitments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Commitments to purchase property, plant, and equipment | 16,700,000 | |
Ohio Farm [Member] | Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 141,800,000 | |
Rollo Bay Farm And Fortune Bay Hatchery [Member] | Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | 4,300,000 | |
Indiana Aquaculture Farm [Member] | Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant, and equipment | $ 1,600,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 185,159,676 | $ 114,935,574 |
Less accumulated depreciation and amortization | (10,778,294) | (8,649,388) |
Property, plant and equipment, net | 174,381,382 | 106,286,186 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,974,685 | 2,968,561 |
Building And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 15,804,739 | 15,535,904 |
Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 147,755,336 | 78,806,762 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 18,285,038 | 17,259,301 |
Office Furniture And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 231,758 | 258,972 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 108,120 | $ 106,074 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Jul. 31, 2025 | Aug. 20, 2021 USD ($) | Aug. 20, 2021 CAD ($) | Jul. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2020 CAD ($) | Nov. 30, 2018 | Feb. 29, 2016 | Jan. 31, 2009 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2018 USD ($) | Jan. 01, 2023 USD ($) | Dec. 01, 2022 USD ($) | Dec. 01, 2022 CAD ($) | Feb. 25, 2021 USD ($) | Feb. 25, 2021 CAD ($) | Dec. 31, 2018 CAD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||
Proceeds from issuance of debt | $ 417,673 | $ 476,228 | |||||||||||||||||
DFO Term Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | Jan 2034 | Jan 2034 | |||||||||||||||||
Interest rate | 0% | 0% | |||||||||||||||||
Monthly repayment | $ 14,896 | ||||||||||||||||||
First Farmers Bank & Trust [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | Oct 2028 | Oct 2028 | |||||||||||||||||
Interest rate | 5.40% | 5.40% | |||||||||||||||||
Monthly repayment | $ 56,832 | ||||||||||||||||||
Finance PEI Term Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | Dec 2028 | Dec 2028 | |||||||||||||||||
Interest rate | 6.50% | 6.50% | |||||||||||||||||
Monthly repayment | $ 19,913 | ||||||||||||||||||
ACOA Term Loan #3 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | Dec 2025 | Dec 2025 | |||||||||||||||||
Interest rate | 0% | 0% | |||||||||||||||||
Monthly repayment | $ 6,945 | ||||||||||||||||||
ACOA Term Loan #1 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | Feb 2027 | Feb 2027 | |||||||||||||||||
Interest rate | 0% | 0% | |||||||||||||||||
Monthly repayment | $ 3,120 | ||||||||||||||||||
ACOA AIF Grant [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | - | - | |||||||||||||||||
Interest rate | 0% | 0% | |||||||||||||||||
ACOA Term Loan #2 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | Sep 2029 | Sep 2029 | |||||||||||||||||
Interest rate | 0% | 0% | |||||||||||||||||
Monthly repayment | $ 4,630 | ||||||||||||||||||
Loans Payable [Member] | ACOA AIF Grant [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Royalty percentage | 10% | ||||||||||||||||||
Secured Debt [Member] | DFO Term Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Interest expense | $ 304,000 | 291,000 | |||||||||||||||||
Secured Debt [Member] | First Farmers Bank & Trust [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Amount borrowed | $ 4,000,000 | ||||||||||||||||||
Proceeds from issuance of debt | $ 3,900,000 | ||||||||||||||||||
Interest rate | 5.375% | ||||||||||||||||||
Loan settlement costs | $ 90,000 | ||||||||||||||||||
Interest rate, period | 5 years | ||||||||||||||||||
Interest only payment period | 13 months | ||||||||||||||||||
Covenant, minimum cash balance | $ 500,000 | $ 1,000,000 | |||||||||||||||||
Monthly repayment | $ 57,000 | ||||||||||||||||||
Secured Debt [Member] | First Farmers Bank & Trust [Member] | Forecast | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maturity date | Oct. 01, 2028 | ||||||||||||||||||
Secured Debt [Member] | Finance PEI Term Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Amount borrowed | $ 1,500,000 | $ 2,000,000 | |||||||||||||||||
Interest rate | 6.50% | 6.50% | |||||||||||||||||
Loan repayment period | 147 months | ||||||||||||||||||
Secured Debt [Member] | ACOA Term Loan #1 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Loan term | 108 months | ||||||||||||||||||
Interest rate | 0% | ||||||||||||||||||
Secured Debt [Member] | ACOA Term Loan #2 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Loan term | 108 months | ||||||||||||||||||
Interest rate | 0% | ||||||||||||||||||
Canadian Subsidiary [Member] | Secured Debt [Member] | DFO Term Loan [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Amount borrowed | $ 418,000 | $ 572,000 | $ 883,000 | $ 1,200,000 | |||||||||||||||
Proceeds from issuance of debt | $ 1,400,000 | $ 1,900,000 | |||||||||||||||||
Debt payment commence period | 2024-08 | 2024-08 | |||||||||||||||||
Maturity date | January 2034 | January 2034 | |||||||||||||||||
Canadian Subsidiary [Member] | Secured Debt [Member] | ACOA Term Loan #3 [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Loan term | 36 months | 36 months | |||||||||||||||||
Proceeds from issuance of debt | $ 200,075 | $ 250,000 | |||||||||||||||||
Interest rate | 0% | 0% | |||||||||||||||||
US Treasury 5-Year Maturities Rate [Member] | First Farmers Bank & Trust [Member] | Forecast | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Basis spread on variable rate | 5% |
Debt (Terms and Conditions of L
Debt (Terms and Conditions of Long-term Debt Outstanding) (Details) | 12 Months Ended | ||||||
Jul. 31, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2018 | Nov. 30, 2018 | Feb. 29, 2016 | |
Debt Instrument [Line Items] | |||||||
Total debt | $ 8,544,402 | $ 8,725,405 | |||||
less: debt issuance costs | (37,236) | (52,065) | |||||
less: current portion | (795,300) | (2,387,231) | |||||
Long-term debt, net | $ 7,711,866 | 6,286,109 | |||||
ACOA AIF Grant [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Maturity date | - | - | |||||
Total debt | $ 2,166,289 | 2,119,476 | |||||
ACOA Term Loan #1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Monthly repayment | $ 3,120 | ||||||
Maturity date | Feb 2027 | Feb 2027 | |||||
Total debt | $ 89,460 | 115,158 | |||||
ACOA Term Loan #2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Monthly repayment | $ 4,630 | ||||||
Maturity date | Sep 2029 | Sep 2029 | |||||
Total debt | $ 240,946 | 276,743 | |||||
ACOA Term Loan #3 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Monthly repayment | $ 6,945 | ||||||
Maturity date | Dec 2025 | Dec 2025 | |||||
Total debt | $ 125,712 | 184,500 | |||||
Kubota Canada Ltd [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Monthly repayment | $ 1,142 | ||||||
Maturity date | Jan 2025 | Jan 2025 | |||||
Total debt | $ 11,202 | 21,077 | |||||
DFO Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Monthly repayment | $ 14,896 | ||||||
Maturity date | Jan 2034 | Jan 2034 | |||||
Total debt | $ 1,305,193 | 854,885 | |||||
Finance PEI Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.50% | ||||||
Monthly repayment | $ 19,913 | ||||||
Maturity date | Dec 2028 | Dec 2028 | |||||
Total debt | $ 1,713,837 | 1,752,547 | |||||
First Farmers Bank & Trust [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.40% | ||||||
Monthly repayment | $ 56,832 | ||||||
Maturity date | Oct 2028 | Oct 2028 | |||||
Total debt | $ 2,891,763 | $ 3,401,019 | |||||
Secured Debt [Member] | ACOA Term Loan #1 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Secured Debt [Member] | ACOA Term Loan #2 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0% | ||||||
Secured Debt [Member] | Finance PEI Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.50% | ||||||
Secured Debt [Member] | First Farmers Bank & Trust [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.375% | ||||||
Monthly repayment | $ 57,000 |
Debt (Principal Payments Due on
Debt (Principal Payments Due on Long-term Debt) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Year | ||
2024 | $ 808,114 | |
2025 | 913,964 | |
2026 | 887,032 | |
2027 | 902,419 | |
2027 | 2,136,774 | |
Thereafter | 2,896,099 | |
Total debt | $ 8,544,402 | $ 8,725,405 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Oct. 16, 2023 | |
Stockholders' Equity | |||
Authorized shares of common and preferred stock | 80,000,000 | ||
Authorized shares of preferred stock | 5,000,000 | ||
Authorized shares of common stock | 75,000,000 | 150,000,000 | 150,000,000 |
Outstanding shares of common stock | 3,847,022 | 3,834,383 | |
Common stock, voting rights, number of votes per share | one | ||
Share-based Compensation | |||
Share-based compensation expense | $ 542,265 | $ 535,123 | |
Restricted Stock [Member] | |||
Share-based Compensation | |||
Share-based compensation expense | 360,000 | 358,000 | |
Stock Options [Member] | |||
Share-based Compensation | |||
Share-based compensation expense | 182,000 | $ 177,000 | |
Unearned share-based compensation expense in future periods | $ 219,000 | ||
Unearned share-based compensation earn period | 1 year 4 months 24 days | ||
Exercisable term | 10 years | ||
Weighted average fair value of stock options grants (in dollars per share) | $ 5.02 | $ 22.20 | |
Exercised (in shares) | 0 | 52 | |
Intrinsic value of options exercised | $ 142,000 | ||
Intrinsic value of options outstanding | $ 0 | $ 0 | |
Expected volatility | 86% | ||
Risk free interest rate | 4.01% | ||
Expected dividend yield | 0% | 0% | |
Unvested Stock Awards [Member] | |||
Share-based Compensation | |||
Unearned share-based compensation expense in future periods | $ 215,000 | ||
Unearned share-based compensation earn period | 1 year 4 months 24 days | ||
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation | |||
Award vesting period | 1 year | ||
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation | |||
Award vesting period | 3 years | ||
2016 Equity Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation | |||
Shares authorized to grant | 215,000 | ||
Shares reserved for future issuance | 68,280 | ||
Common Stock [Member] | |||
Share-based Compensation | |||
Exercised (in shares) | 52 |
Stockholders' Equity (Unvested
Stockholders' Equity (Unvested Stock Award Activity) (Details) - Unvested Stock Awards [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Unvested, beginning balance | shares | 9,974 |
Granted | shares | 39,286 |
Vested | shares | (13,584) |
Forfeited | shares | (1,536) |
Unvested, ending balance | shares | 34,140 |
Weighted average grant date fair value | |
Unvested, beginning balance | $ / shares | $ 37.27 |
Granted | $ / shares | 10.58 |
Vested | $ / shares | 25.40 |
Forfeited | $ / shares | 23.20 |
Unvested, ending balance | $ / shares | $ 11.91 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of options | ||
Outstanding, beginning balance | 42,035 | |
Issued | 36,654 | |
Exercised | 0 | (52) |
Forfeited | (2,315) | |
Expired | (705) | |
Outstanding, ending balance | 75,669 | 42,035 |
Exercisable | 46,397 | |
Weighted average exercise price | ||
Outstanding, beginning balance | $ 71.69 | |
Issued | 7.20 | |
Exercised | 0 | |
Forfeited | 10.13 | |
Expired | 146.20 | |
Outstanding, ending balance | 41.64 | $ 71.69 |
Exercisable | $ 61.32 |
Stockholders' Equity (Informati
Stockholders' Equity (Information About Options Outstanding and Exercisable) (Details) - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 75,669 |
Number of options exercisable | 46,397 |
Less than $10.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 34,604 |
Weighted average remaining estimated life (in years) | 9 years 6 months |
Number of options exercisable | 8,966 |
$20.00 - $50.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 35,380 |
Weighted average remaining estimated life (in years) | 6 years 1 month 6 days |
Number of options exercisable | 31,847 |
$100.00 - $200.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 2,369 |
Weighted average remaining estimated life (in years) | 6 years 4 months 24 days |
Number of options exercisable | 2,268 |
$200.00 - $500.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding | 3,316 |
Weighted average remaining estimated life (in years) | 2 years 2 months 12 days |
Number of options exercisable | 3,316 |
Minimum [Member] | Less than $10.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | $ 10 |
Minimum [Member] | $20.00 - $50.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 20 |
Minimum [Member] | $100.00 - $200.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 100 |
Minimum [Member] | $200.00 - $500.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 200 |
Maximum [Member] | $20.00 - $50.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 50 |
Maximum [Member] | $100.00 - $200.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | 200 |
Maximum [Member] | $200.00 - $500.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Weighted average exercise price of outstanding options | $ / shares | $ 500 |
Stockholders' Equity (Stock O_2
Stockholders' Equity (Stock Option Grants Weighted Average Assumptions) (Details) - Stock Options [Member] | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 4.01% | |
Expected volatility | 86% | |
Expected volatility, minimum | 92% | |
Expected volatility, maximum | 103% | |
Risk free interest rate, minimum | 1.71% | |
Risk free interest rate, maximum | 3.95% | |
Expected dividend yield | 0% | 0% |
Expected life (in years) | 5 years | 5 years |
Stockholders' Equity (Share-bas
Stockholders' Equity (Share-based Compensation Costs Recognized on Financial Statements) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation | $ 542,265 | $ 535,123 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation | 19,325 | 15,956 |
General And Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation | $ 522,940 | $ 519,167 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Tax Credit Carryforward [Line Items] | |
Provision for foreign or domestic income taxes | $ 0 |
Income tax expense (benefit) | 0 |
Domestic Tax Authority [Member] | |
Tax Credit Carryforward [Line Items] | |
Domestic operating loss carryforwards | 93,000,000 |
Domestic Tax Authority [Member] | Limitations On Use To Section 382 [Member] | |
Tax Credit Carryforward [Line Items] | |
Domestic operating loss carryforwards | 122,000,000 |
Foreign Tax Authority [Member] | |
Tax Credit Carryforward [Line Items] | |
Foreign operating loss carryforwards | 18,000,000 |
Foreign Tax Authority [Member] | Research Tax Credit Carryforward [Member] | |
Tax Credit Carryforward [Line Items] | |
Foreign research and development tax credit carryforwards | $ 3,000,000 |
Income Taxes (Components of Los
Income Taxes (Components of Loss Before Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||
Domestic | $ (23,732,417) | $ (20,673,855) |
Foreign | (3,825,484) | (1,483,340) |
Loss before income taxes | $ (27,557,901) | $ (22,157,195) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||
Income tax benefit | $ (5,787,160) | $ (4,653,011) |
State and provincial income tax, net of federal benefit | (2,074,037) | (1,031,963) |
Permanent differences | 48,028 | (60,904) |
US-Foreign rate differential | 232,963 | (65,058) |
Other | (1,013,689) | 483,873 |
Total income tax, prior to change in valuation allowance | (8,593,895) | (5,327,063) |
Change in valuation allowance | 8,593,895 | $ 5,327,063 |
Total income tax | $ 0 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Taxes [Abstract] | ||
Net operating loss carryforwards | $ 37,551,366 | $ 28,188,265 |
Foreign research and development tax credit carryforwards | 2,611,184 | 2,454,756 |
Intangibles | 2,366,372 | 2,630,122 |
R&D costs | 843,947 | 696,326 |
Other | 470,847 | 332,473 |
Total deferred tax assets | 43,843,716 | 34,301,942 |
Valuation allowance | (42,646,455) | (34,052,560) |
Net deferred tax assets | 1,197,261 | 249,382 |
Property and equipment | (1,197,261) | (249,382) |
Total deferred tax liabilities | (1,197,261) | (249,382) |
Net deferred tax liabilities |
Commitments and Contingencies_2
Commitments and Contingencies (Summary of Lease Obligations) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | ||
Operating lease right-of-use assets, net | $ 281,104 | $ 222,856 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating lease right-of-use assets, net | Operating lease right-of-use assets, net |
Right-of-use assets obtained for new lease liabilities | $ 84,143 | |
Other current liabilities | $ 30,863 | $ 20,830 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Operating lease liabilities | $ 250,241 | $ 203,227 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Operating lease liabilities | Operating lease liabilities |
Total operating lease liabilities | $ 281,104 | $ 224,057 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Lease Costs) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | ||
Operating lease expense | $ 41,798 | $ 85,718 |
Short-term lease expense | 48,968 | |
Lease payments included in operating cash flows | $ 92,857 | $ 84,080 |
Weighted average remaining lease term | 22 years 6 months | 25 years 4 months 24 days |
Weighted average discount rate | 8% | 8% |
Commitments and Contingencies_4
Commitments and Contingencies (Summary of Remaining Payments under Leases) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies [Abstract] | ||
2024 | $ 48,054 | |
2025 | 49,801 | |
2026 | 40,373 | |
2027 | 19,102 | |
2028 | 19,676 | |
Thereafter | 544,549 | |
Total lease payments | 721,555 | |
Less: imputed interest | (440,451) | |
Total operating lease liabilities | $ 281,104 | $ 224,057 |
Retirement Plan (Narrative) (De
Retirement Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Retirement Plan | $ 113 | $ 94 |
Canada | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Retirement Plan | $ 45 | $ 44 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |