Investment Thesis
AquaBounty is in severe financial distress with persistent and deepening operational losses, critically low liquidity, and unsustainable burn rate. The company is generating minimal revenue ($705K) against substantial operating losses ($6M), with only $951K in cash against $11.9M in liabilities, creating an immediate solvency concern.
Strengths
- Positive stockholders equity of $12.2M provides some asset cushion
- Debt/Equity ratio of 0.65x is moderate relative to equity base
- Operating in emerging biotech aquaculture sector with long-term growth potential
Risks
- Critical liquidity crisis: Current ratio of 0.12x and Quick ratio of 0.08x indicate inability to meet short-term obligations
- Catastrophic cash burn: -$5.6M operating cash flow and -$8.5M free cash flow with only $951K cash on hand suggests runway of approximately 2 months
- Revenue collapse: 21.2% YoY decline to just $705K indicates market adoption failure and suggests business model viability concerns
- Structural unprofitability: -855.7% operating margin and -617.2% net margin show costs drastically exceed revenue
- Deteriorating financial position: Diluted EPS declined 439.1% YoY, signaling shareholder value destruction
- Zero insider activity suggests lack of management confidence in near-term prospects
Key Metrics to Watch
- Cash runway and timeline to capital raise or insolvency
- Monthly cash burn rate trend and operating cash flow stabilization
- Revenue growth trajectory and path to gross profitability
- Dilution from future financing rounds and impact on existing shareholders
- Management changes or strategic pivots indicating business model reassessment
Financial Metrics
Revenue
705.3K
Net Income
-4.4M
EPS (Diluted)
$-1.12
Free Cash Flow
-8.5M
Total Assets
24.2M
Cash
951.4K
Profitability Ratios
Gross Margin
N/A
Operating Margin
-855.7%
Net Margin
-617.2%
ROE
-35.6%
ROA
-18.0%
FCF Margin
-1,204.0%
Balance Sheet & Liquidity
Current Ratio
0.12x
Quick Ratio
0.08x
Debt/Equity
0.65x
Debt/Assets
49.4%
Interest Coverage
N/A
Long-term Debt
7.9M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-20T02:08:11.620550 |
Data as of: 2025-09-30 |
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