Lightbridge Corporation (NASDAQ:LTBR), a U.S.
nuclear fuel technology company, today provided a business update
and reported financial results for the first quarter ended March
31, 2017.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “We continue to
progress towards commercialization of our proprietary next
generation nuclear fuel for current and future reactors. We are
advancing towards the creation of a formal joint venture agreement
with AREVA to develop, manufacture and commercialize fuel
assemblies based on our fuel technology, which we expect to
finalize in the coming months. We believe AREVA is the ideal
partner, bringing its leading expertise in nuclear fuel assembly
design, licensing and fabrication, as well as an established global
customer base.”
“At the same time, we are advancing our
discussions with a leading U.S. nuclear utility toward an end-user
agreement for the first use of Lightbridge-designed nuclear fuel in
a commercial reactor in the United States. Also, we remain on track
for irradiation testing of our nuclear fuel samples at the Halden
reactor in Norway.”
“Given our recent partnerships, along with other
support we have received from the industry, we expect that our
nuclear fuel technology has the potential to generate hundreds of
millions of dollars in annual profits. We believe that
nuclear power, generated in existing and future reactors utilizing
our advanced metallic fuel technology, will dramatically improve
the safety and enhance the operating economics of nuclear
power.”
Financial Highlights
Balance Sheet Overview At March
31, 2017, we had approximately $5.3 million in cash and restricted
cash compared to approximately $3.7 million in cash and restricted
cash at December 31, 2016. The $1.6 million increase in cash and
equivalents resulted from the sale of approximately $2.8 million of
our common stock during the quarter ended March 31, 2017, offset by
net cash used in operating activities of $1.1 million. We had
approximately $4.9 million in working capital at March 31, 2017 as
compared to working capital of approximately $3.4 million at
December 31, 2016. Stockholders' equity at March 31, 2017 was
approximately $7.0 million compared to stockholders’ equity of
approximately $5.6 million at December 31, 2016.
Operating Results – First Quarter of
Fiscal 2017 Compared to First Quarter of Fiscal 2016For
the first quarter ended March 31, 2017, our net loss attributable
to common shareholders was approximately $1.8 million, or a loss of
$0.20 per share, on revenue of $0.1 million. In the same
quarter of 2016, the net loss available to common shareholders was
$0.3 million, or loss per share of $0.09 per share, on revenue of
$0.2 million. All revenue was generated from consulting services.
Stock-based compensation expense was $0.2 million for the quarter
ended March 31, 2017 compared to $0.2 million for the quarter ended
March 31, 2016. For the three months ended March 31, 2017, the
Company’s cash flows used in operating activities were $1.1 million
versus $1.3 million used in operating activities for the same
period of 2016. This decrease is primarily due to the decrease in
warrant valuation income of approximately $1.3 million offset by
the decrease in our revenue and the increase in our operating
expenses, which include research and development expenses. The
change for the warrant revaluation is due to a change in the
accounting treatment of the outstanding warrants, which were
recorded as derivative liabilities at March 31, 2016 and are now
recorded as equity in 2017.
2017 First Quarter Conference
Call
Lightbridge will host a conference call on
Wednesday, May 10, 2017 at 11:00 a.m. Eastern Time to discuss the
company's financial results for the first quarter ending March 31,
2017, as well as the Company's corporate progress and other
meaningful developments. Interested parties can access the
conference call by calling 866-682-6100 for U.S. callers, or
+1-862-255-5401 for international callers. The call will be
available on the Company’s website via webcast at
http://ir.ltbridge.com/events.cfm. The conference call will be led
by Seth Grae, President and Chief Executive Officer and other
Lightbridge executives will also be available to answer questions.
Questions may also be submitted in writing before or during the
conference call to ir@ltbridge.com.
A webcast will also be archived on the Company’s
website and a telephone replay of the call will be available
approximately one hour following the call, through midnight June
10, 2017, and can be accessed by calling: 877-481-4010 (U.S.
callers) or +1-919-882-2331 (international callers) and entering
conference ID: 10364.
About Non-GAAP Financial
Measures
This press release contains non-GAAP financial
measures for earnings that exclude warrant revaluation income. Net
income excluding warrant revaluation income is not a measure of
performance calculated in accordance with generally accepted
accounting principles in the United States (“GAAP”). The Company
believes the presentation of net loss excluding warrant revaluation
income is relevant and useful by enhancing the readers’ ability to
understand the Company’s operating performance. The Company’s
management utilizes net loss excluding warrant revaluation income
as a means to measure operating performance. The table below
reconciles net (loss) excluding revaluation income, a non-GAAP
measure, to net loss for the three months ended March 31, 2017 and
2016.
(in
millions) |
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
|
March 31, |
|
March 31, |
|
|
2017 |
|
2016 |
Net loss
attributable to common stockholders |
|
$ |
(1.7 |
) |
|
$ |
(0.3 |
) |
Adjustments: |
|
|
|
|
Warrant
revaluation income |
|
|
0 |
|
|
|
1.3 |
|
Net Loss
attributable to common stockholders, excluding warrant revaluation
income |
|
$ |
(1.7 |
) |
|
$ |
(1.6 |
) |
About Lightbridge Corporation
Lightbridge (NASDAQ: LTBR) is a nuclear fuel
technology company based in Reston, Virginia, USA. The Company
develops proprietary next generation nuclear fuel technologies for
current and future reactors. The technology significantly enhances
the economics and safety of nuclear power, operating about 1000° C
cooler than standard fuel. Lightbridge invented, patented and has
independently validated the technology, including successful
demonstration of the fuel in a research reactor with near-term
plans to demonstrate the fuel under commercial reactor conditions.
The Company has assembled a world class development team including
veterans of leading global fuel manufacturers. Four large electric
utilities that generate about half the nuclear power in the US
already advise Lightbridge on fuel development and deployment. The
Company operates under a licensing and royalty model, independently
validated and based on the increased power generated by
Lightbridge-designed fuel and high ROI for operators of existing
and new reactors. The economic benefits are further enhanced by
anticipated carbon credits available under the Clean Power Plan.
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.
*** tables follow ***
Lightbridge Corporation |
Condensed Consolidated Balance
Sheets |
|
|
|
March 31, |
|
|
|
|
2017 |
|
December 31, |
|
|
(Unaudited) |
|
2016 |
ASSETS |
|
|
|
|
Current
Assets |
|
|
|
|
Cash and
cash equivalents |
$ |
5,215,035 |
|
$ |
3,584,877 |
|
Restricted cash |
|
114,036 |
|
|
114,012 |
|
Accounts
receivable - project revenue and reimbursable project costs |
|
87,614 |
|
|
388,434 |
|
Prepaid
expenses and other current assets |
|
165,067 |
|
|
80,933 |
|
Deferred
financing costs, net |
|
491,168 |
|
|
491,168 |
|
Total Current Assets |
|
6,072,920 |
|
|
4,659,424 |
|
|
|
|
|
|
Other
Assets |
|
|
|
|
Patent
costs |
|
1,203,354 |
|
|
1,160,465 |
|
Deferred
financing costs, net |
|
859,682 |
|
|
982,486 |
|
Total
Other Assets |
|
2,063,036 |
|
|
2,142,951 |
|
Total Assets |
$ |
8,135,956 |
|
$ |
6,802,375 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
Liabilities |
|
|
|
|
Accounts
payable and accrued liabilities |
$ |
1,159,163 |
|
$ |
1,216,321 |
|
Total
Current Liabilities |
|
1,159,163 |
|
|
1,216,321 |
|
|
|
|
|
|
Long-Term
Liabilities |
|
|
|
|
Deferred
lease abandonment liability |
|
- |
|
|
28,464 |
|
Total Liabilities |
|
1,159,163 |
|
|
1,244,785 |
|
|
|
|
|
|
Commitments and
contingencies – Note 4 |
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
Preferred
stock, $0.001 par value, 10,000,000 authorized
shares, convertible Series A preferred shares, 1,020,000
shares issued and outstanding at March 31, 2017 and December 31,
2016 |
|
1,020 |
|
|
1,020 |
|
Common
stock, $0.001 par value, 100,000,000 authorized, 9,716,004
shares and 7,112,143 shares issued and outstanding as of March 31,
2017 and December 31, 2016, respectively |
|
9,716 |
|
|
7,112 |
|
Additional paid-in capital |
|
89,427,982 |
|
|
86,266,075 |
|
Accumulated deficit |
|
(82,461,925 |
) |
|
(80,716,617 |
) |
Total Stockholders' Equity |
|
6,976,793 |
|
|
5,557,590 |
|
Total
Liabilities and Stockholders' Equity |
$ |
8,135,956 |
|
$ |
6,802,375 |
|
|
|
|
|
|
Lightbridge Corporation |
Unaudited Condensed Consolidated Statements of
Operations |
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
Revenue: |
|
|
|
|
|
|
|
|
|
Consulting Revenue |
$ |
135,485 |
|
$ |
166,546 |
|
|
|
|
|
|
Cost of Consulting
Services Provided |
|
85,363 |
|
|
68,225 |
|
|
|
|
|
|
Gross Margin |
|
50,122 |
|
|
98,321 |
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
General and administrative |
|
1,208,303 |
|
|
1,096,109 |
|
Research and development |
|
464,343 |
|
|
586,250 |
|
Total Operating
Expenses |
|
1,672,646 |
|
|
1,682,359 |
|
|
|
|
|
|
Operating Loss |
|
(1,622,524 |
) |
|
(1,584,038 |
) |
|
|
|
|
|
Other Income and
(Expenses) |
|
|
|
|
Warrant revaluation |
|
- |
|
|
1,253,854 |
|
Financing costs |
|
(122,804 |
) |
|
- |
|
Other income (expenses) |
|
20 |
|
|
(4,521 |
) |
Total Other Income and
(Expenses) |
|
(122,784 |
) |
|
1,249,333 |
|
|
|
|
|
|
Net loss before income
taxes |
|
(1,745,308 |
) |
|
(334,705 |
) |
|
|
|
|
|
Income taxes |
|
- |
|
|
- |
|
|
|
|
|
|
Net loss |
$ |
(1,745,308 |
) |
$ |
(334,705 |
) |
|
|
|
|
|
Accumulated preferred stock dividend |
|
(49,000 |
) |
|
- |
|
|
|
|
|
|
Net loss attributable to common stockholders |
|
(1,794,308 |
) |
|
(334,705 |
) |
|
|
|
|
|
Net Loss Per Common
Share, |
|
|
|
|
Basic and Diluted |
$ |
(0.20 |
) |
$ |
(0.09 |
) |
|
|
|
|
|
Weighted Average Number
of Common Shares Outstanding |
|
9,138,014 |
|
|
3,931,506 |
|
|
|
|
|
|
Lightbridge Corporation |
Unaudited Condensed Consolidated Statements of
Cash Flows |
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
Operating
Activities: |
|
|
|
|
Net Loss |
$ |
(1,745,308 |
) |
$ |
(334,705 |
) |
Adjustments to
reconcile net loss from operations to net cash used in operating
activities: |
|
|
|
|
Stock-based compensation |
|
229,631 |
|
|
185,456 |
|
Amortization of deferred financing costs |
|
122,804 |
|
|
- |
|
Warrant revaluation |
|
- |
|
|
(1,253,854 |
) |
Changes in operating
working capital items: |
|
|
|
|
Accounts receivable - fees and reimbursable project costs |
|
300,820 |
|
|
(13,822 |
) |
Prepaid expenses and other assets |
|
(84,134 |
) |
|
(308,438 |
) |
Accounts payable and accrued liabilities |
|
78,262 |
|
|
505,498 |
|
Deferred lease abandonment liability |
|
(42,164 |
) |
|
(95,008 |
) |
Net Cash Used In
Operating Activities |
|
(1,140,089 |
) |
|
(1,314,873 |
) |
|
|
|
|
|
Investing
Activities: |
|
|
|
|
Patent costs |
|
(42,889 |
) |
|
(61,599 |
) |
Net Cash Used In
Investing Activities |
|
(42,889 |
) |
|
(61,599 |
) |
|
|
|
|
|
Financing
Activities: |
|
|
|
|
Net proceeds from the issuance of common stock |
|
2,813,160 |
|
|
1,396,339 |
|
Proceeds from the issuance of note payable |
|
- |
|
|
135,000 |
|
Repayment of note payable |
|
- |
|
|
(26,786 |
) |
Restricted cash |
|
(24 |
) |
|
- |
|
Net Cash Provided by
Financing Activities |
|
2,813,136 |
|
|
1,504,553 |
|
|
|
|
|
|
Net Increase In Cash
and Cash Equivalents |
|
1,630,158 |
|
|
128,081 |
|
|
|
|
|
|
Cash and Cash
Equivalents, Beginning of Period |
|
3,584,877 |
|
|
623,184 |
|
|
|
|
|
|
Cash and Cash
Equivalents, End of Period |
$ |
5,215,035 |
|
$ |
751,265 |
|
|
|
|
|
|
Supplemental Disclosure
of Cash Flow Information: |
|
|
|
|
Cash paid during the period: |
|
|
|
|
Interest
paid |
$ |
- |
|
$ |
484 |
|
Income
taxes paid |
$ |
- |
|
$ |
- |
|
Non-Cash Financing Activity: |
|
|
|
|
Decrease in accrued liabilities – stock-based compensation |
$ |
121,720 |
|
$ |
- |
|
Accumulated preferred stock dividend |
$ |
49,000 |
|
$ |
- |
|
|
|
|
|
|
Investor Relations Contact:
David Waldman/Natalya Rudman
Crescendo Communications, LLC
Tel. +1 855-379-9900
ltbr@crescendo-ir.com
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