Lightbridge Reports Financial Results for the Third Quarter of 2018 and Provides Business Update on Enfission and Other Devel...
November 12 2018 - 8:00AM
Lightbridge Corporation (NASDAQ: LTBR), a U.S.
nuclear fuel technology company, today provided a business update
and reported financial results for the third quarter ended
September 30, 2018. The Company also plans to host a third
quarter conference call; however, the time and date have not been
finalized and will be announced separately.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “Enfission, our
joint venture with Framatome, is making tremendous progress towards
validation and commercialization of Lightbridge’s metallic nuclear
fuel. During the quarter, we announced several key progress updates
for Enfission. We announced that we began preparatory work at the
Framatome fuel fabrication facility in Richland, Washington, which
will be used to manufacture fuel assemblies for nuclear power
plants based on our patented metallic fuel. We are also preparing
the facility licensing package for review and approval by the U.S.
Nuclear Regulatory Commission (NRC). On August 15th, we met with
representatives of the NRC, where we discussed the development and
regulatory licensing of Lightbridge Fuel for the U.S. market. We
look forward to working closely with the NRC staff throughout the
licensing process.”
ENFISSION R&D ADVANCEMENTS THIS
QUARTER
- Fabrication:
- Completed several studies on key
fabrication steps, particularly relating to the co-extrusion
process modeling, billet preparation conditions, and material
flows
- Established purchasing process for
equipment
- Continued further refinement of
fabrication process steps, material flows, and equipment needs and
specifications
- Researched material properties and
prepared material data manual
- Fuel Design:
-
- Prepared product requirements
document and data sheet
- Initiated next phase of neutronics
code modifications to model Lightbridge Fuel™ geometry
- Developed 3D model for
Computational Fluid Dynamics (CFD) analysis
- Developed fuel assembly CFD model
to investigate Critical Heat Flux (CHF) performance
- Regulatory
Licensing:
-
- Established regular interaction
with the NRC, with the first Enfission project kickoff meeting held
in August 2018
- Continued development of fuel
design limits in support of licensing activities
Balance Sheet Overview Our
balance sheet remains strong and we ended the quarter with
approximately $25.3 million of cash and cash equivalents as of
September 30, 2018. We had approximately $4.5 million of cash at
December 31, 2017. The $20.8 million increase in cash and cash
equivalents resulted from the net proceeds from the sale of
approximately $27.6 million of common stock and $3.9 million of
preferred stock during the nine months ended September 30, 2018.
This amount of cash inflow from financing activities was offset by
net cash used in operating activities of approximately $5.3 million
and our cash used in investing activities, which was primarily
capital contributions for our capital investment in Enfission of
approximately $5.2 million in 2018. Cash used in operating
activities for the nine months ended September 30, 2018 was
primarily related to fund our ongoing research and development
activities and general and administrative expenses. We had a
working capital surplus of approximately $24.6 million.
Stockholders' equity at September 30, 2018 was approximately $26.8
million compared to stockholders’ equity of approximately $5.8
million at December 31, 2017.
Operating Results – Third Quarter of
Fiscal 2018 Compared to Third Quarter of Fiscal 2017
Net losses incurred for the three months ended
September 30, 2018 and 2017 amounted to approximately $4.2 million
and $1.7 million respectively. Total operating expenses incurred
for the three months ended September 30, 2018 and 2017 amounted to
approximately $2.8 million and $1.6 million respectively. For the
third quarter ended September 30, 2018, total general and
administrative expenses increased by $0.8 million as compared to
the three months ended September 30, 2017 and total research and
development expenses increased by $0.4 million for the three-months
ended September 30, 2018, as compared to the three months ended
September 30, 2017. The increase was primarily due to an increase
in employee compensation expense and the issuance of
performance-based stock options issued in 2018. Total equity in
loss from our Enfission joint venture was $1.7 million, which was
primarily research and development expenses.
About Lightbridge
Corporation
Lightbridge (NASDAQ: LTBR) is a nuclear fuel
technology development company based in Reston, Virginia, USA. The
Company develops proprietary next generation nuclear fuel
technologies for current and future reactors, which significantly
enhances the economics and safety of nuclear power, operating about
1000° C cooler than standard fuel. In January 2018, Lightbridge and
Framatome, Inc. formed a 50-50 joint venture, Enfission, LLC, to
develop, license, manufacture, and sell nuclear fuel assemblies
based on Lightbridge-designed metallic fuel technology and other
advanced nuclear fuel intellectual property. Enfission has the
exclusive rights to this technology and is responsible for the
development of manufacturing processes and fuel assembly designs
for pressurized water reactors (PWRs), boiling water reactors
(BWRs), water-cooled small modular reactors, and water-cooled
research reactors developed around this intellectual property. PWRs
and BWRs constitute the most widely used reactor types in the
world. Four large electric utilities that generate about half the
nuclear power in the US already advise Lightbridge on fuel
development and deployment. In addition to distributions from
Enfission based on the parties’ ownership interest in the joint
venture, Lightbridge anticipates receiving future licensing
revenues in connection with sales by Enfission of nuclear fuel
incorporating its intellectual property. Lightbridge also provides
comprehensive advisory services for established and emerging
nuclear programs based on a philosophy of transparency,
non-proliferation, safety and operational excellence. For more
information please visit: www.ltbridge.com.
To receive Lightbridge Corporation updates via e-mail, subscribe
at http://ir.ltbridge.com/alerts.cfm.
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 in this news release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding the Company's
competitive position, the timing of demonstration testing and
commercial production, the Company's entry into agreements with
nuclear fuel manufacturers and the timing thereof, the potential
impact of the U.S. Clean Power Plan and similar regulations, the
Company's anticipated financial resources and position, the
Company's product and service offerings, the expected market for
the Company's product and service offerings. 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 degree of market adoption of
the Company's product and service offerings; market competition;
dependence on strategic partners; demand for fuel for nuclear
reactors; the Company's ability to manage its business effectively
in a rapidly evolving market; 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. Readers are cautioned not to put undue
reliance on forward-looking statements.
Investor Relations Contact:
David Waldman/Natalya RudmanTel. +1
855-379-9900ir@ltbridge.com
*** tables follow ***
Lightbridge CorporationCondensed
Consolidated Balance Sheets |
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
25,328,649 |
|
|
$ |
4,515,398 |
|
Accounts receivable - project revenue and reimbursable project
costs |
|
|
- |
|
|
|
10,400 |
|
Other receivable from joint venture |
|
|
521,272 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
|
121,201 |
|
|
|
70,067 |
|
Deferred financing costs, net |
|
|
- |
|
|
|
491,168 |
|
Total Current Assets |
|
|
25,971,122 |
|
|
|
5,087,033 |
|
|
|
|
|
|
|
|
|
|
Investment in Joint Venture |
|
|
671,888 |
|
|
|
- |
|
Other
Assets |
|
|
|
|
|
|
|
|
Patent costs |
|
|
1,539,881 |
|
|
|
1,367,692 |
|
Deferred financing costs, net |
|
|
- |
|
|
|
491,268 |
|
Total Other Assets |
|
|
1,539,881 |
|
|
|
1,858,960 |
|
Total Assets |
|
$ |
28,182,891 |
|
|
$ |
6,945,993 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
1,389,124 |
|
|
$ |
1,151,210 |
|
Total Current Liabilities |
|
|
1,389,124 |
|
|
|
1,151,210 |
|
Total Liabilities |
|
|
1,389,124 |
|
|
|
1,151,210 |
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies – Note 5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares: |
|
|
|
|
|
|
|
|
Convertible Series A preferred shares, 813,624 shares and 1,020,000
shares issued and outstanding at September 30, 2018 and December
31, 2017, respectively (liquidation preference $2,595,441 and
$3,088,764 at September 30, 2018 and December 31, 2017,
respectively) |
|
|
813 |
|
|
|
1,020 |
|
Convertible Series B preferred shares, 2,666,667 and 0 shares
issued and outstanding at September 30, 2018 and December 31, 2017,
respectively (liquidation preference $4,186,667 at September 30,
2018) |
|
|
2,667 |
|
|
|
- |
|
Common stock, $0.001 par value, 100,000,000 authorized, 30,500,935
shares and 12,737,703 shares issued and outstanding as of September
30, 2018 and December 31, 2017, respectively |
|
|
30,501 |
|
|
|
12,738 |
|
Additional paid-in capital |
|
|
127,034,386 |
|
|
|
93,602,539 |
|
Accumulated deficit |
|
|
(100,274,600 |
) |
|
|
(87,821,514 |
) |
Total Stockholders' Equity |
|
|
26,793,767 |
|
|
|
5,794,783 |
|
Total
Liabilities and Stockholders' Equity |
|
$ |
28,182,891 |
|
|
$ |
6,945,993 |
|
|
|
|
|
|
|
|
|
|
Lightbridge CorporationUnaudited
Condensed Consolidated Statements of Operations |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting Revenue |
|
$ |
- |
|
|
$ |
15,136 |
|
|
$ |
- |
|
|
$ |
165,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of Consulting Services Provided |
|
|
- |
|
|
|
9,364 |
|
|
|
- |
|
|
|
99,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin |
|
|
- |
|
|
|
5,772 |
|
|
|
- |
|
|
|
66,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
1,889,401 |
|
|
|
1,149,847 |
|
|
|
5,566,022 |
|
|
|
3,329,440 |
|
Research and development |
|
|
864,060 |
|
|
|
458,663 |
|
|
|
2,313,124 |
|
|
|
1,468,650 |
|
Total
Operating Expenses |
|
|
2,753,461 |
|
|
|
1,608,510 |
|
|
|
7,879,146 |
|
|
|
4,798,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Operating Income and (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income from joint venture |
|
|
203,180 |
|
|
|
- |
|
|
|
790,554 |
|
|
|
- |
|
Equity in loss from joint venture |
|
|
(1,743,340 |
) |
|
|
- |
|
|
|
(4,545,112 |
) |
|
|
- |
|
Total
Other Operating Income and (Loss) |
|
|
(1,540,160 |
) |
|
|
- |
|
|
|
(3,754,558 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
(4,293,621 |
) |
|
|
(1,602,738 |
) |
|
|
(11,633,704 |
) |
|
|
(4,732,071 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income and (Expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
79,035 |
|
|
|
- |
|
|
|
163,054 |
|
|
|
- |
|
Financing costs |
|
|
- |
|
|
|
(130,828 |
) |
|
|
(982,436 |
) |
|
|
(384,509 |
) |
Other income |
|
|
- |
|
|
|
18 |
|
|
|
- |
|
|
|
61 |
|
Total
Other Income and (Expenses) |
|
|
79,035 |
|
|
|
(130,810 |
) |
|
|
(819,382 |
) |
|
|
(384,448 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
Before Income Taxes |
|
|
(4,214,586 |
) |
|
|
(1,733,548 |
) |
|
|
(12,453,086 |
) |
|
|
(5,116,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss |
|
$ |
(4,214,586 |
) |
|
$ |
(1,733,548 |
) |
|
$ |
(12,453,086 |
) |
|
$ |
(5,116,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Preferred Stock Dividend |
|
|
(119,000 |
) |
|
|
(49,000 |
) |
|
|
(333,667 |
) |
|
|
(147,000 |
) |
Deemed additional dividend on preferred stock dividend due the
beneficial conversion feature |
|
|
(49,373 |
) |
|
|
- |
|
|
|
(135,053 |
) |
|
|
- |
|
Deemed dividend on issuance on Series B convertible preferred stock
due to beneficial conversion feature |
|
|
- |
|
|
|
- |
|
|
|
(2,624,836 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss Attributable to Common Stockholders |
|
|
(4,382,959 |
) |
|
|
(1,782,548 |
) |
|
|
(15,546,642 |
) |
|
|
(5,263,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss Per Common Share, Basic and Diluted |
|
$ |
(0.15 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.63 |
|
|
$ |
(0.53 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Common Shares Outstanding |
|
|
29,506,791 |
|
|
|
10,836,115 |
|
|
|
24,851,212 |
|
|
|
9,968,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lightbridge CorporationUnaudited
Condensed Consolidated Statements of Cash Flows |
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
Operating Activities |
|
|
|
|
|
|
Net Loss |
|
$ |
(12,453,086 |
) |
|
$ |
(5,116,519 |
) |
Adjustments to
reconcile net loss from operations to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,951,394 |
|
|
|
598,485 |
|
Amortization of deferred financing cost |
|
|
- |
|
|
|
368,414 |
|
Abandonment loss |
|
|
- |
|
|
|
109,752 |
|
Write off of deferred financing costs |
|
|
982,436 |
|
|
|
- |
|
Equity in loss from joint venture |
|
|
4,545,112 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Changes in operating working capital items: |
|
|
|
|
|
|
|
|
Accounts receivable - fees and reimbursable project
costs |
|
|
10,400 |
|
|
|
373,298 |
|
Other receivable from joint venture |
|
|
(521,272 |
) |
|
|
- |
|
Prepaid expenses and other assets |
|
|
(51,134 |
) |
|
|
(16,634 |
) |
Accounts payable and accrued liabilities |
|
|
237,914 |
|
|
|
164,302 |
|
Deferred lease abandonment liability |
|
|
- |
|
|
|
(68,726 |
) |
Net
Cash Used In Operating Activities |
|
|
(5,298,236 |
) |
|
|
(3,587,628 |
) |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Investment in joint venture |
|
|
(5,217,000 |
) |
|
|
- |
|
Patent costs |
|
|
(172,189 |
) |
|
|
(159,253 |
) |
Net
Cash Used In Investing Activities |
|
|
(5,389,189 |
) |
|
|
(159,253 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Net proceeds from the issuance of common stock |
|
|
27,600,675 |
|
|
|
4,376,455 |
|
Net proceeds from the issuance of preferred stock |
|
|
3,900,001 |
|
|
|
- |
|
Restricted cash |
|
|
- |
|
|
|
(65 |
) |
Net
Cash Provided By Financing Activities |
|
|
31,500,676 |
|
|
|
4,376,390 |
|
|
|
|
|
|
|
|
|
|
Net
Increase In Cash and Cash Equivalents |
|
|
20,813,251 |
|
|
|
629,509 |
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents, Beginning of Period |
|
|
4,515,398 |
|
|
|
3,584,877 |
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents, End of Period |
|
$ |
25,328,649 |
|
|
$ |
4,214,386 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
|
Cash paid during the period: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
- |
|
|
$ |
- |
|
Income taxes paid |
|
$ |
- |
|
|
$ |
- |
|
Non-Cash Financing Activity: |
|
|
|
|
|
|
|
|
Deemed
dividend on issuance Series B convertible preferred stock due to
beneficial conversion feature |
|
$ |
2,624,836 |
|
|
$ |
- |
|
Accumulated preferred stock dividend |
|
$ |
333,667 |
|
|
$ |
147,000 |
|
Conversion of Series A convertible preferred stock to common stock
and payment of paid-in-kind dividends to Series A preferred
stockholder |
|
$ |
207 |
|
|
$ |
- |
|
Decrease
in accrued liabilities - stock-based compensation |
|
$ |
- |
|
|
$ |
121,720 |
|
|
|
|
|
|
|
|
|
|
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