AQBHIGH SIGNALFINANCIAL10-K

AQB has undergone a dramatic financial restructuring with stockholders' equity turning negative and massive asset reductions, while simultaneously divesting core farm operations and seeking strategic alternatives for remaining assets.

The company has experienced a complete financial transformation, moving from $15.8M in stockholders' equity to negative $1.9M, indicating severe financial distress or a major restructuring event. The 33% increase in outstanding shares suggests significant dilution, while the divestiture of Indiana and Canadian farms and active pursuit of selling the Ohio Farm Project signals a fundamental pivot away from the core agricultural business model.

Comparing 2026-03-31 vs 2025-03-27View on EDGAR →
FINANCIAL ANALYSIS

AQB's financials show a company in dramatic transition, with total assets collapsing 70% from $34.1M to $10.3M while stockholders' equity turned negative at -$1.9M. Despite the severe balance sheet deterioration, operational metrics improved significantly with operating losses decreasing 96% and capital expenditures dropping 96% to just $2.9M, suggesting the company has drastically scaled back operations. The combination of asset sales, reduced cash burn, and improved operating cash flow indicates AQB is actively restructuring and liquidating assets to address financial distress.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+117.6%
$230K$501K

Cash position surged 117.6% — strong cash generation or capital raise providing significant financial cushion.

Stockholders Equity
Balance Sheet
-111.9%
$15.8M-$1.9M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Operating Income
P&L
+96.4%
-$111.4M-$4.0M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Capital Expenditure
Cash Flow
-95.7%
$68.9M$2.9M

Capex reduced 95.7% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Net Income
P&L
+87.6%
-$149.2M-$18.5M

Net income grew 87.6% — bottom-line growth signals improving overall business health.

R&D Expense
P&L
-71.1%
$704K$203K

R&D spending cut 71.1% — could signal cost discipline or concerning reduction in innovation investment.

Total Assets
Balance Sheet
-69.6%
$34.1M$10.3M

Total assets contracted 69.6% — asset sales, write-downs, or balance sheet optimization underway.

Current Liabilities
Balance Sheet
-46%
$16.2M$8.7M

Current liabilities reduced — improved short-term financial position and working capital health.

Operating Cash Flow
Cash Flow
+37%
-$13.9M-$8.7M

Operating cash flow surged 37% — exceptional cash generation, highest quality earnings signal.

Total Liabilities
Balance Sheet
-32.9%
$18.2M$12.2M

Liabilities reduced 32.9% — deleveraging improves balance sheet strength and financial flexibility.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-27
ADDED
At March 27, 2026, the registrant had 5,147,204 shares of common stock outstanding.
We require approvals and permits for our Ohio Farm Project, and any delay or denial of those approvals or permits could potentially impact the value of those assets and limit our strategic options.
We may pursue strategic acquisitions, dispositions, mergers or joint ventures and other strategic transactions that could have an adverse impact on our business if they are unsuccessful.
The composition of our Board may change from time to time under our governing documents, including through the filling of vacancies, which may result in a change in the Company s strategic plan.
We continue to work with an investment bank to identify the optimal path forward for realizing the potential of this asset, including its possible sale.
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REMOVED
At March 24, 2025, the registrant had 3,869,361 shares of common stock outstanding.
If we lose key vendors, including those necessary to complete the construction of our Ohio Farm Project, or are unable to engage additional vendors, it could delay our construction or commercialization plans.
We require approvals and permits to construct and operate our farms, and any delay or denial of those approvals or permits could potentially delay or halt certain operations and commercial efforts.
Delays and defects may prevent the commencement of farm operations.
The financing of our Ohio Farm Project through the placement of municipal bonds may require restrictive debt covenants that could limit our control over the farm s operation and restrict our ability to utilize a portion of any cash that the farm generates.
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