AQUABOUNTY TECHNOLOGIES INC

Previous wording

As noted above, we sold our Indiana Farm in July 2024 and our Canadian Farms in March 2025. These farms have been designated as discontinued operations in our condensed consolidated financial statements for the three and six months ended June 30, 2025 and 2024 in this Form 10-Q (see Note 5 to our condensed consolidated financial statements for additional information).

Current wording

As noted above, we sold our Indiana Farm in July 2024 and our Canadian Farms in March 2025. These farms have been designated as discontinued operations in our condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 in this Form 10-Q (see Note 5 to our condensed consolidated financial statements for additional information).

Previous wording

With the winding down of our fish rearing operations, we have significantly reduced our headcount and on-going operating costs. We maintain a small core group of corporate individuals to oversee our strategic options, our asset sale transactions and our books and records. As of June 30, 2025, we had an accumulated deficit of $373 million and $730 thousand in cash and cash equivalents on our interim condensed consolidated balance sheet. We require new funding to provide liquidity for working capital in order to realize the potential value of our assets. Consequently, our ability to continue as a going concern is dependent upon our ability to raise additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, on acceptable terms, or at all.

Current wording

With the winding down of our fish rearing operations, we have significantly reduced our headcount and on-going operating costs. We maintain a small core group of corporate individuals to oversee our strategic options, our asset sale transactions and our books and records. As of September 30, 2025, we had an accumulated deficit of $374 million and $951 thousand in cash and cash equivalents on our interim condensed consolidated balance sheet. We require new funding to provide liquidity for working capital in order to realize the potential value of our assets. Consequently, our ability to continue as a going concern is dependent upon our ability to raise additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, on acceptable terms, or at all.

Previous wording

General and administrative expenses for the three months ended June 30, 2025, were down from the corresponding period in 2024 due to reductions in personnel costs, legal fees, share-based compensation costs, professional fees, audit fees, and travel.

Current wording

General and administrative expenses for the three months ended September 30, 2025, were down slightly from the corresponding period in 2024 due to reductions in personnel costs, legal fees, share-based compensation costs, and professional fees, offset by increases in insurance costs and a legal settlement expense.

Previous wording

During the three months ended June 30, 2025, we sold Ohio Equipment Assets for net proceeds of $2.4 million. These assets had been partially impaired in 2024 and further impaired during the first quarter of 2025. As of June 30, 2025, we concluded that the value of the remaining Ohio Equipment Assets was $100 thousand, and thus we recorded a non-cash impairment charge of $1.2 million.

Current wording

During the three months ended September 30, 2025, we sold Ohio Equipment Assets for net proceeds of $27 thousand. These assets had been partially impaired in 2024 and further impaired during the first quarter of 2025. As of September 30, 2025, we concluded that the value of the remaining Ohio Equipment Assets was $5 thousand, and thus we recorded a non-cash impairment charge of $69 thousand.

Previous wording

Comparison of the sixmonths ended June 30, 2025, to the six months ended June 30, 2024

Current wording

Comparison of the nine months ended September 30, 2025, to the nine months ended September 30, 2024

Previous wording

The following table summarizes our results of operations for the six months ended June 30, 2025 and 2024, together with the changes in those items in dollars and as a percentage (all dollar amounts in thousands):

Current wording

The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024, together with the changes in those items in dollars and as a percentage (all dollar amounts in thousands):

Previous wording

Sales and marketing expenses for the six months ended June 30, 2025, were down from the corresponding period in 2024 due to decreases in personnel costs and program spending related to the sale of our Indiana Farm and Canadian Farms.

Current wording

Sales and marketing expenses for the nine months ended September 30, 2025, were down from the corresponding period in 2024 due to decreases in personnel costs and program spending related to the sale of our Indiana Farm and Canadian Farms.

Previous wording

There were no research and development expenses for thesix months ended June 30, 2025, as we no longer have research and development operations after the sale of our Canadian Farms.

Current wording

There were no research and development expenses for thenine months ended September 30, 2025, as we no longer have research and development operations after the sale of our Canadian Farms.

Previous wording

General and administrative expenses for the six months ended June 30, 2025, were down from the corresponding period in 2024 due to reductions in personnel costs, legal fees, state excise tax liabilities, share-based compensation costs, professional fees, audit fees, and travel.

Current wording

General and administrative expenses for the nine months ended September 30, 2025 were down from the corresponding period in 2024 due to reductions in personnel costs, legal fees, state excise tax liabilities, share-based compensation costs, professional fees, audit fees, and travel, partly offset by a legal settlement expense.

Previous wording

During the six months ended June 30, 2025, we sold Ohio Equipment Assets for net proceeds of $4.7 million. These assets had been partially impaired in 2024 and further impaired during the first quarter of 2025. At June 30, 2025, we concluded that the value of the remaining Ohio Equipment Assets was $100 thousand, and thus we recorded a non-cash impairment charge of $1.2 million.

Current wording

During the nine months ended September 30, 2025, we sold Ohio Equipment Assets for net proceeds of $4.7 million. These assets had been partially impaired in 2024 and further impaired during the first quarter of 2025, then written down to $5 thousand as of September 30, 2025. We recorded a non-cash impairment charge of $1.3 million.

Previous wording

Other income for the six months ended June 30, 2025, is comprised of the forgiveness of an outstanding loan and interest income, less interest expense and bank charges. Other expense for the six months ended June 30, 2024 is comprised of interest expense and bank charges, less interest income.

Current wording

Other income for the nine months ended September 30, 2025, is comprised of the forgiveness of an outstanding loan and interest income, less interest expense and bank charges. Other expense for the nine months ended September 30, 2024 is comprised of interest expense and bank charges, less interest income.

Previous wording

The income from discontinued operations for the three months ended June 30, 2025 was comprised of a small gain related to the Indiana Farm. For the three months ended June 30, 2024, the loss was comprised of all operating costs for our Indiana Farm and our Canadian Farms, including fish and egg production costs, sales and marketing, research and development, general and administrative expenses, non-cash long-lived asset impairment charges, a net realizable value adjustment of inventory, interest expense and banking fees.

Current wording

The loss from discontinued operations for the nine months ended September 30, 2025 was comprised of remaining operating costs for the Indiana Farm and Canadian Farms. For the nine months ended September 30, 2024, the loss was comprised of all operating costs for our Indiana Farm and our Canadian Farms, including fish and egg production costs, sales and marketing, research and development, general and administrative expenses, non-cash long-lived asset impairment charges, a net realizable value adjustment of inventory, interest expense and banking fees.

Previous wording

Net cash used in operating activities during the six months ended June 30, 2025, was primarily comprised of our $3.0 million net loss, which included a $2.0 million non-cash gain on the forgiveness of an outstanding loan, and working capital uses of $206 thousand, partially offset by non-cash share-based compensation charges of $57 thousand and an asset impairment charge of $1.2 million. Net cash used in operating activities during the six months ended June 30, 2024, was primarily comprised of our $61.7 million net loss, offset by non-cash depreciation and share-based compensation charges of $897 thousand, a long-lived asset impairment charge of $48.7 million, and working capital sources of $3.3 million.

Current wording

Net cash used in operating activities during the nine months ended September 30, 2025, was primarily comprised of our $4.4 million net loss, which included $2.1 million in non-cash gains, and working capital uses of $452 thousand, partially offset by non-cash share-based compensation charges of $64 thousand and an asset impairment charge of $1.3 million. Net cash used in operating activities during the nine months ended September 30, 2024, was primarily comprised of our $65.1 million net loss, partially offset by non-cash depreciation and share-based compensation charges of $1.1 million, long-lived asset impairment charges of $48.7 million, and working capital sources of $2.5 million.

Previous wording

Spending on operations decreased in the current period due to reductions in personnel, farm operating costs, depreciation charges, and share-based compensation. Uses of cash from changes in working capital were due to increases in prepaid expenses and other assets, and decreases in accounts payable and accrued expenses.

Current wording

Spending on operations decreased in the current period due to reductions in personnel, farm operating costs, depreciation charges, and share-based compensation. Uses of cash from changes in working capital were due to decreases in accounts payable and accrued expenses, partially offset by increases in prepaid expenses and other assets.

Previous wording

During the six months ended June 30, 2025, we received $4.6 million from the sale of assets, and during the six months ended June 30, 2024, we spent $2.0 millionfor construction activities at our farm sites and the purchase of equipment and received $149 thousand from the sale of assets.

Current wording

During the nine months ended September 30, 2025, we received $7.1 million from the sale of assets, and during thenine months ended September 30, 2024, we used $2.7 million for the purchase of property, plant and equipment at our farm sites, and we received $9.5 million from the sale of our Indiana farm and certain equipment from our Ohio farm.

Previous wording

During the six months ended June 30, 2025, we made $232 thousand in debt repayments. During the six months ended June 30, 2024, we received $5.1 million from new debt and made $3.0 million in debt repayments.

Current wording

During the nine months ended September 30, 2025, we made $832 thousand in debt repayments. During the nine months ended September 30, 2024, we received $6.8 million from new debt and made $9.5 million in term debt repayments.

Previous wording

Since inception, we have incurred cumulative net losses and negative cash flows from operating activities, and we expect this to continue for the foreseeable future. As of June 30, 2025, we had $730 thousand of cash and cash equivalents. Our ability to continue as a going concern is dependent upon our ability to raise additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, on terms acceptable to us, or at all. This raises substantial doubt about our ability to continue as a going concern within one year after the date that the accompanying condensed consolidated financial statements are issued.

Current wording

Since inception, we have incurred cumulative net losses and negative cash flows from operating activities, and we expect this to continue for the foreseeable future. As of September 30, 2025, we had $951 thousand of cash and cash equivalents. Our ability to continue as a going concern is dependent upon our ability to raise additional capital, and there can be no assurance that such capital will be available in sufficient amounts, on a timely basis, on terms acceptable to us, or at all. This raises substantial doubt about our ability to continue as a going concern within one year after the date that the accompanying condensed consolidated financial statements are issued.

Previous wording

During 2024, we completed the sale of our Indiana Farm, along with certain Ohio Equipment Assets for net proceeds of $9.2 million. We also focused on cost containment to preserve and extend our available cash. In February 2025, we completed an auction of certain Ohio Equipment Assets for net proceeds of $2.3 million, and in March 2025, we completed the sale of our Canadian Farms for net proceeds of $1.9 million. In June 2025, we sold Ohio Equipment Assets for net proceeds of $2.4 million. Going forward, we plan to continue to sell available Ohio Equipment Assets to increase our cash liquidity in order to realize the potential value of our assets.

Current wording

During 2024, we completed the sale of our Indiana Farm, along with certain Ohio Equipment Assets for net proceeds of $9.2 million. We also focused on cost containment to preserve and extend our available cash. In February 2025, we completed an auction of certain Ohio Equipment Assets for net proceeds of $2.3 million, and in March 2025, we completed the sale of our Canadian Farms for net proceeds of $1.9 million. In June 2025, we sold Ohio Equipment Assets for net proceeds of $2.4 million. Going forward, we plan to continue to sell available Ohio Equipment Assets.

Previous wording

There have been no material changes to these estimates, or the policies related to them, during the six months ended June 30, 2025. For a full discussion of these estimates and policies, see “Critical Accounting Policies and Estimates” within “Management’s Discussion and Analysis of Financial Results of Operations” in our 2024 Annual Report on Form 10-K.

Current wording

There have been no material changes to these estimates, or the policies related to them, during the nine months ended September 30, 2025. For a full discussion of these estimates and policies, see “Critical Accounting Policies and Estimates” within “Management’s Discussion and Analysis of Financial Results of Operations” in our 2024 Annual Report on Form 10-K.