AQUABOUNTY TECHNOLOGIES INC (AQB)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 was a transitional quarter focused on liquidity preservation via asset sales; net loss narrowed sharply to $3.37M from $50.51M in Q2 2024, driven primarily by much lower impairments and the wind-down of operating farms . Liquidity remains constrained with $0.73M cash at quarter-end and heightened going concern risk .
• Management sold additional Ohio equipment for $2.4M net proceeds and recorded a $1.2M non-cash impairment on remaining assets; continuing operations had no revenue, with OpEx concentrated in G&A and interest expense .
• Debt profile shifted to short-term: current debt rose to $8.51M (Vendor Note conversion and term note) while long-term debt fell to $0; equity declined to $13.61M as of June 30, 2025 .
• No formal guidance or earnings call transcript was furnished; communications emphasized strategic alternatives for the Ohio Farm Project, asset monetization, and liquidity management; additional governance/leadership changes occurred post-quarter (GC resignation) . Potential stock catalysts: further asset sales, financing/strategic partner announcements, Nasdaq bid-price compliance actions, and resolution of Ohio-related litigation .

What Went Well and What Went Wrong

• What Went Well

  • Liquidity generation from asset sales: $2.4M net proceeds from Ohio equipment sold in June; management reiterated ongoing monetization efforts to fund strategic alternatives for the Ohio Farm Project . Quote: “During the second quarter, we continued to sell available Ohio Equipment Assets to generate cash…” — David A. Frank, Interim CEO/CFO .
  • Material YoY loss improvement: Net loss improved to $(3.37)M vs $(50.51)M in Q2’24 as impairment and operating costs declined with discontinued operations .
  • Cost discipline: Sales & marketing and R&D spending eliminated post asset sales/wind-down; G&A down vs prior year on lower personnel, legal, audit, and travel costs .

• What Went Wrong

  • Going concern risk remains elevated: $0.73M cash at 6/30 and explicit disclosure of substantial doubt about the company’s ability to continue as a going concern absent additional capital/asset sales .
  • Debt and working capital pressure: Current debt increased to $8.51M (including an 8% Vendor Note secured by Ohio assets; first six months interest-free), while the term note required amendments after payment defaults; long-term debt reduced to $0 but maturity concentration rose .
  • Legal overhang: Gilbane (mechanic’s lien; $1.5M) and Buckeye Power Sales ($0.93M claim) complaints tied to the Ohio project increase uncertainty and potential cash outflows .

Financial Results

Income statement summary (Continuing operations and consolidated EPS)

Notes: Q2 2025 and Q2 2024 reflect continuing operations; the company recognized no product revenue in continuing operations in 2025. Q1 2025 EPS reflects loan forgiveness and a gain on asset sales .

Selected revenue context (Discontinued operations)

Balance sheet and liquidity snapshot

Cash flow and asset sales (YTD)

Internal “segment” (management) KPI: Net Cash Expenditures ($000s)

Guidance Changes

Notes: No quantitative guidance was provided in Q2 materials; disclosures emphasized liquidity, going concern, and strategic alternatives .

Earnings Call Themes & Trends

Note: No Q2 2025 conference call transcript or call details were included in the furnished earnings materials; company communications were via 8-K/10-Q -.

Management Commentary

• “During the second quarter, we continued to sell available Ohio Equipment Assets to generate cash for the Company… This transaction provided us with the liquidity to continue to work with our investment banker to pursue strategic alternatives for our Ohio Farm Project.” — David A. Frank, Interim CEO/CFO .
• “On February 11, 2025, we completed the sale of certain Ohio Equipment Assets… for net proceeds of $2.3 million… On March 3, 2025, we completed the sale of our Canadian Farms… and the Company’s Corporate IP… for net proceeds of $1.9 million… These transactions have provided us with the liquidity to continue to pursue strategic alternatives for our Ohio Farm Project.” — David A. Frank .
• 10-Q tone underscores reduced operations, focus on G&A, asset impairment tied to Ohio assets, and explicit going concern risk .

Q&A Highlights

• No earnings call transcript or call details were furnished with Q2 2025 results; management’s disclosures were limited to the press release and 10-Q -.
• Clarifications from filings:
  • Discontinued operations: Indiana and Canadian farms reclassified; small Q2 gain from discontinued operations .
  • Impairment rationale: Remaining Ohio equipment valued at $0.1M; recorded $1.2M non-cash impairment in Q2 after sales .
  • Debt/Defaults: Vendor Note (8% interest; 12-month term; first six months interest-free); term note amended post-quarter; all secured by Ohio assets .

Estimates Context

• S&P Global consensus for Q2 2025 EPS and revenue was unavailable for AQB at the time of analysis; as a result, we cannot assess beats/misses or estimate variances. Values retrieved from S&P Global.

Key Takeaways for Investors

• Liquidity remains the gating factor: with $0.73M cash at quarter-end and substantial doubt language, the path forward hinges on near-term asset monetization and/or external financing/partnerships .
• Balance sheet risk shifted to current maturities: current debt rose to $8.51M including a secured Vendor Note; watch for further amendments, collateral actions, or refinancing needs .
• Legal headwinds at the Ohio site (mechanic’s lien, Buckeye claim) could pressure timing of strategic alternatives or asset values; monitor court developments and any settlements .
• Operating cost base is significantly smaller (no S&M or R&D), but the company is not generating operating revenue; runway is primarily a function of asset sale cadence and expense control .
• Nasdaq bid-price deficiency adds event risk; a reverse split or other actions could be contemplated to regain compliance by Jan 12, 2026 .
• Near-term catalysts: additional equipment/asset sales, financing announcements, partner/strategic transaction updates, litigation outcomes, and Nasdaq compliance actions .
• Tactical stance: high event risk profile; any credible financing/partner news could re-rate the equity, while delays in monetization, adverse legal outcomes, or further going concern deterioration would be negative.

Citations

• Q2 2025 8-K press release and financials:
• Q2 2025 10-Q:
• Q1 2025 8-K:
• Q2 2024 8-K (for prior-year context):
• Additional Q2 2025 8-K (personnel):