Lightbridge Provides Business Update and Announces First Quarter 2021 Financial Results
May 11 2021 - 4:15PM
Lightbridge Corporation (NASDAQ: LTBR), an advanced nuclear fuel
technology company, announced financial results for the first
quarter ended March 31, 2021 and provided an update on the
Company's continued progress.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “Our first quarter
provided a strong start to the year, as we were awarded our second
voucher from the U.S. Department of Energy’s (DOE) Gateway for
Accelerated Innovation in Nuclear (GAIN) program. We anticipate
signing a Cooperative Research and Development Agreement (CRADA) to
begin the project soon.
“The scope of this project, working in
collaboration with the Pacific Northwest National Laboratory (PNNL)
in Richland, WA, is to demonstrate Lightbridge’s nuclear fuel
casting process using depleted uranium, a key step in the
manufacture of our nuclear fuel.
“In addition, earlier today we announced the
successful demonstration of the manufacturing process for
three-lobe, six-foot rods using surrogate materials. This
demonstration of Lightbridge’s proprietary manufacturing process
uses an internally developed and patented high-temperature
coextrusion process for commercial-scale small modular reactors now
in development and licensing.
“We also received two key patents in the first
quarter from the United States Patent and Trademark Office and the
Korean Intellectual Property Office related to the design and
manufacture process of Lightbridge Fuel™ rods and assemblies.
Importantly, we will demonstrate a critical portion of our patented
manufacturing process within our second GAIN voucher project at
PNNL.
“We’ve started this year off with good traction
and are exploring partnerships and other business development
opportunities. Today, nuclear energy is growing in recognition as a
sustainable energy source. The European Commission recently
announced that it would include nuclear power in the EU’s
sustainable taxonomy, which allows investments in nuclear to be
provided the same tax and regulatory benefits as other “green”
technologies. We believe this will allow Lightbridge to take
advantage of the growing number of projects in advanced nuclear,
from both the private and public sectors, with greater investment
from environmentally sustainable investors,” concluded Mr.
Grae.
Financial Highlights
The Company maintained a strong working capital
position at March 31, 2021 and had no debt.
Cash Flows Summary
- Cash and cash equivalents were
$15.2 million at March 31, 2021, compared to $21.5 million at
December 31, 2020, a decrease of $6.3 million in cash and cash
equivalents.
- Cash used in operating activities
increased $4.3 million, from $2.0 million in 2020 to $6.3 million
in 2021. This increase was due primarily to the dissolution of the
Enfission joint venture and the payment of approximately $4.2
million to Framatome for outstanding invoices for work performed by
Framatome and other expenses incurred by Framatome.
Balance Sheet Summary
- Total assets were $15.9 million and
total liabilities were $0.6 million at March 31, 2021. Working
capital was $15.2 million at March 31, 2021 versus
$17.1 million at December 31, 2020. This was a decrease of
$1.9 million in working capital for the three months ended March
31, 2021.
- Stockholders’ equity was $15.3
million at March 31, 2021 as compared to $17.2 million at December
31, 2020.
Operations Summary
- General and administrative expenses
decreased by approximately $0.2 million for the three months ended
March 31, 2021, as compared to the three months ended March 31,
2020 due to a decrease in legal and accounting professional fees of
approximately $0.1 million relating to the Framatome arbitration,
and a decrease in employee compensation and employee benefits of
approximately $0.1 million.
- Lightbridge’s total corporate
research and development costs for the three months ended March 31,
2021 and the three months ended March 31, 2020, were consistent
period over period as the Company transitioned to a new fuel
development strategy with the DOE’s National Laboratories. There
was a decrease in employee compensation and employee benefits of
approximately $0.2 million, offset by an increase of approximately
$0.1 million in outside research and development work and an
increase of approximately $0.1 million in patent expense.
- On March 25, 2021, the Company was
awarded a second voucher from the DOE’s GAIN program to support
development of Lightbridge Fuel™ in collaboration with the Pacific
Northwest National Laboratory (PNNL). The scope of the project is
to demonstrate Lightbridge’s nuclear fuel casting process using
depleted uranium, a key step in the manufacture of our fuel. The
project is anticipated to commence in the first half of 2021. The
total project value is approximately $664,000, with three-quarters
of this amount funded by DOE for the scope performed by PNNL.
- Total net other operating income
was $0.1 million for the three months ended March 31, 2021 due to
grant income from the GAIN voucher. Grant income is recorded on a
gross method with the grant income shown as other operating income
and the related costs as a charge to research and development
expenses. There was no grant income for the three months ended
March 31, 2020.
- Net loss for the three months ended
March 31, 2021 was $2.0 million compared to $2.3 million for the
three months ended March 31, 2020.
FIRST QUARTER 2021 CONFERENCE CALL &
WEBCAST
Lightbridge will host a conference call on
Wednesday, May 12th at 4:00 p.m. Eastern Time to discuss the
company's financial results and provide an update on its fuel
development activities.
Interested parties can access the conference
call by calling 833-519-1295 for U.S. callers, or 914-800-3866 for
international callers. Please reference Conference ID: 3294158. The
call will be available on the Company’s website via webcast at
https://edge.media-server.com/mmc/p/cve98jed.
The webcast will also be archived on the
Company’s website. A telephone replay of the call will be available
approximately two hours following the call and can be accessed by
dialing 855-859-2056 from the U.S. or 404-537-3406 for
international callers. Please reference Conference ID: 3294158.
About Lightbridge
Corporation
Lightbridge (NASDAQ: LTBR) is an advanced
nuclear fuel technology development company positioned to enable
carbon-free energy applications that will be essential in
preventing climate change. The Company is developing Lightbridge
Fuel™, a proprietary next-generation nuclear fuel technology for
Small Modular Reactors, as well as existing light-water reactors,
which significantly enhances reactor safety, economics, and fuel
proliferation resistance. To date, Lightbridge has been awarded the
U.S. Department of Energy’s Gateway for Accelerated Innovation in
Nuclear program twice to support development of Lightbridge Fuel™.
Lightbridge’s innovative fuel technology is backed by worldwide
patents. For more information please visit: www.ltbridge.com.
To receive Lightbridge Corporation updates via e-mail, subscribe
at https://www.ltbridge.com/investors/news-events/email-alerts
Lightbridge is on Twitter. Sign up to follow
@LightbridgeCorp at http://twitter.com/lightbridgecorp.
Forward Looking Statements
With the exception of historical matters, the
matters discussed herein are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the timing and outcome of research
and development activities, other steps to commercialize
Lightbridge Fuel™ and future governmental support and funding for
nuclear energy. These statements are based on current expectations
on the date of this news release and involve a number of risks and
uncertainties that may cause actual results to differ significantly
from such estimates. The risks include, but are not limited to: the
Company’s ability to commercialize its nuclear fuel technology; the
degree of market adoption of the Company's product and service
offerings; the Company’s ability to fund general corporate overhead
and outside research and development costs; market competition; our
ability to attract and retain qualified employees; dependence on
strategic partners; demand for fuel for nuclear reactors, including
small modular reactors; the Company's ability to manage its
business effectively in a rapidly evolving market; the availability
of nuclear test reactors and the risks associated with unexpected
changes in the Company’s fuel development timeline; the increased
costs associated with metallization of our nuclear fuel; public
perception of nuclear energy generally; changes in the political
environment; risks associated with the further spread of COVID-19,
including the ultimate impact of COVID-19 on people, economies, and
the Company’s ability to access capital markets; changes in the
laws, rules and regulations governing the Company’s business;
development and utilization of, and challenges to, our intellectual
property; risks associated with potential shareholder activism;
potential and contingent liabilities; as well as other factors
described in Lightbridge's filings with the Securities and Exchange
Commission. Lightbridge does not assume any obligation to update or
revise any such forward-looking statements, whether as the result
of new developments or otherwise, except as required by law.
Readers are cautioned not to put undue reliance on forward-looking
statements.
A further description of risks and uncertainties can be found in
Lightbridge’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2020 and in its other filings with the Securities and
Exchange Commission, including in the sections thereof captioned
“Risk Factors” and “Forward-Looking Statements”, all of which are
available at http://www.sec.gov/ and www.ltbridge.com.
Investor Relations Contact:Matthew Abenante,
IRCDirector of Investor Relations Tel: +1 (646) 828-8710
ir@ltbridge.com
*** tables follow ***
LIGHTBRIDGE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
ASSETS |
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
15,236,151 |
|
|
$ |
21,531,665 |
|
Prepaid expenses and other current assets |
|
|
637,651 |
|
|
|
172,460 |
|
Total Current Assets |
|
|
15,873,802 |
|
|
|
21,704,125 |
|
Other Assets |
|
|
|
|
|
|
|
|
Trademarks |
|
|
85,562 |
|
|
|
85,562 |
|
Total Assets |
|
$ |
15,959,364 |
|
|
$ |
21,789,687 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
634,037 |
|
|
$ |
382,130 |
|
Accrued legal settlement costs |
|
|
— |
|
|
|
4,200,000 |
|
Total Current Liabilities |
|
|
634,037 |
|
|
|
4,582,130 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares |
|
|
|
|
|
|
|
|
Convertible Series A preferred shares, 699,878 shares issued and
outstanding at March 31, 2021 and December 31, 2020, respectively
(liquidation preference $2,658,753 and $2,613,025 at March 31, 2021
and December 31, 2020, respectively) |
|
|
699 |
|
|
|
699 |
|
Convertible Series B preferred shares, 2,666,667 shares issued and
outstanding at March 31, 2021 and December 31, 2020
(liquidation preference $4,983,223 and $4,897,517 at March 31, 2021
and December 31, 2020, respectively) |
|
|
2,667 |
|
|
|
2,667 |
|
Common stock, $0.001 par value, 8,333,333 authorized, 6,591,310
shares and 6,567,110 shares issued and outstanding at March 31,
2021 and December 31, 2020, respectively |
|
|
6,591 |
|
|
|
6,567 |
|
Additional paid-in capital |
|
|
146,482,966 |
|
|
|
146,353,232 |
|
Accumulated deficit |
|
|
(131,167,596 |
) |
|
|
(129,155,608 |
) |
Total Stockholders' Equity |
|
|
15,325,327 |
|
|
|
17,207,557 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
15,959,364 |
|
|
$ |
21,789,687 |
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATIONUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Three Month Ended |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
General and administrative |
|
|
1,782,860 |
|
|
|
1,936,755 |
|
Research and development |
|
|
369,450 |
|
|
|
389,824 |
|
Total Operating Expenses |
|
|
2,152,310 |
|
|
|
2,326,579 |
|
|
|
|
|
|
|
|
|
|
Other Operating Income |
|
|
|
|
|
|
|
|
Grant income |
|
|
103,319 |
|
|
|
— |
|
Total Other Operating Income |
|
|
103,319 |
|
|
|
— |
|
Total Operating Loss |
|
$ |
(2,048,991 |
) |
|
$ |
(2,326,579 |
) |
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
Interest income |
|
|
3,309 |
|
|
|
62,493 |
|
Foreign transaction gain |
|
|
33,694 |
|
|
|
— |
|
Total Other Income |
|
|
37,003 |
|
|
|
62,493 |
|
|
|
|
|
|
|
|
|
|
Net Loss Before Income Taxes |
|
|
(2,011,988 |
) |
|
|
(2,264,086 |
) |
Income Taxes |
|
|
— |
|
|
|
— |
|
Net Loss |
|
$ |
(2,011,988 |
) |
|
$ |
(2,264,086 |
) |
|
|
|
|
|
|
|
|
|
Accumulated Preferred Stock
Dividend |
|
|
(131,434 |
) |
|
|
(125,911 |
) |
Deemed additional dividend on
preferred stock dividend due to the beneficial conversion
feature |
|
|
(57,489 |
) |
|
|
(54,317 |
) |
Net Loss Attributable to Common
Shareholders |
|
$ |
(2,200,911 |
) |
|
$ |
(2,444,314 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
$ |
(0.33 |
) |
|
$ |
(0.74 |
) |
|
|
|
|
|
|
|
|
|
Weighted Average Number of
Common Shares Outstanding |
|
|
6,589,392 |
|
|
|
3,294,998 |
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATIONUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Three Month Ended |
|
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
Net Loss |
|
$ |
(2,011,988 |
) |
|
$ |
(2,264,086 |
) |
Adjustments to reconcile net
loss from operations to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Common stock issued for services and stock-based compensation |
|
|
60,068 |
|
|
|
6,085 |
|
Changes in operating working
capital items |
|
|
|
|
|
|
|
|
Other receivable from joint venture |
|
|
— |
|
|
|
400,000 |
|
Prepaid expenses and other current assets |
|
|
(465,191 |
) |
|
|
(297,281 |
) |
Accounts payable and accrued liabilities |
|
|
321,597 |
|
|
|
135,394 |
|
Accrued legal settlement costs |
|
|
(4,200,000 |
) |
|
|
— |
|
Net Cash Used in Operating
Activities |
|
|
(6,295,514 |
) |
|
|
(2,019,888 |
) |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Patents and trademarks |
|
|
— |
|
|
|
(4,423 |
) |
Net Cash Used in Investing
Activities |
|
|
— |
|
|
|
(4,423 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Net proceeds from the issuance of common stock |
|
|
— |
|
|
|
399,675 |
|
Net Cash Provided by Financing
Activities |
|
|
— |
|
|
|
399,675 |
|
|
|
|
|
|
|
|
|
|
Net (Decrease) in Cash and
Cash Equivalents |
|
|
(6,295,514 |
) |
|
|
(1,624,636 |
) |
Cash and Cash Equivalents,
Beginning of Period |
|
|
21,531,665 |
|
|
|
17,958,989 |
|
Cash and Cash Equivalents, End
of Period |
|
$ |
15,236,151 |
|
|
$ |
16,334,353 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of
Cash Flow Information |
|
|
|
|
|
|
|
|
Cash paid during the
year: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
— |
|
|
$ |
— |
|
Income taxes paid |
|
$ |
— |
|
|
$ |
— |
|
Non-Cash Financing
Activities: |
|
|
|
|
|
|
|
|
Accumulated preferred stock dividend |
|
$ |
188,923 |
|
|
$ |
180,228 |
|
Conversion of Series A convertible preferred stock to common stock
and payment of paid-in-kind dividends to Series A preferred
stockholder |
|
$ |
— |
|
|
$ |
8,975 |
|
Common stock issued for services |
|
$ |
69,690 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
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