Lightbridge Reports Financial Results for the First Quarter of 2019 and Provides Business Update on Enfission and Other Devel...
May 09 2019 - 4:05PM
Lightbridge Corporation (NASDAQ: LTBR), a nuclear fuel developer,
today provided a business update and reported financial results for
the first quarter ended March 31, 2019.
Seth Grae, President & Chief Executive Officer of
Lightbridge Corporation, commented, “We continue to see increased
governmental support for nuclear energy in the U.S. and around the
world. In April, the Gateway for Accelerated Innovation
in Nuclear (“GAIN”) initiative of the U.S. Department of Energy
(“DOE”) Office of Nuclear Energy announced that Framatome, Inc. had
been awarded a nuclear energy voucher to help accelerate
development of the Lightbridge Fuel™ design. The DOE
established GAIN to provide the nuclear community with technical,
regulatory, and financial support to advance innovative nuclear
technologies toward commercialization. This GAIN nuclear energy
voucher further validates the DOE’s support for our
technology.”
“On the intellectual property front, we recently announced a
Canadian patent related to our four-lobe metallic fuel rod design
and related manufacturing method. We also received a Notice
of Allowance in China for another key patent, which relates to a
fuel assembly design incorporating multi-lobe fuel rods for use in
CANDU heavy water reactors. These patent awards provide long-term
IP protection in key markets for our fuel.”
“We continue to work closely with Framatome through the
Enfission joint venture to prepare the fuel fabrication facility in
Richland, Washington. We are also advancing discussions
relating to our first commercial utility agreement. While
these agreements are complex, we are encouraged by the progress and
remain hopeful we will finalize our first major commercial
agreement later this year.”
RECENT ENFISSION R&D ADVANCEMENTS
1. Fabrication:
- Fabricated and characterized uranium-zirconium samples using
powder and casting routes at University of Lille
- Preliminary inspection strategy for Lightbridge Fuel™ rods
developed
- CERCA, a Framatome R&D workshop facility, construction has
been completed; preparations for commissioning are
underway
2. Fuel Design:
- Completed a neutronic assessment of various burnable absorbers
for Lightbridge Fuel™ rods
- 3-D printed heater rod segments delivered for Critical Heat
Flux (CHF) test and hardware preparation
- Completed additional APOLLO-2a modifications, a neutronics
code; modifications will model the shroud and corner structure
elements within the Lightbridge Fuel™ assembly
3. Regulatory Licensing:
- Completed study of building to building interaction for
proposed Enfission Production Facility in Richland, Washington
- Continued development of licensing requirements for lead test
rod demonstration
Financial Highlights
- Cash and cash equivalents were
$23.5 million at March 31, 2019 compared to $24.6 million at
December 31, 2018.
- Total assets were $25.8 million at
March 31, 2019 and total liabilities were $0.7 million at March 31,
2019.
- Total equity offerings raised $2
million in net proceeds in Q1- 2019 compared to net proceeds of
$24.6 million for equity offerings conducted in Q1 2018.
- Total investment made in the
Enfission joint venture, used primarily for research and
development work conducted by Enfission for Q1 – 19, was $1.4
million compared to $5.2 million for Q1 2018. This Enfission joint
venture was formed in January 2018.
- Stockholders’ equity was $25.1
million at March 31, 2019 compared to $25.9 million at December 31,
2018.
- General and administration expenses
for Q1 2019 was $1.3 million compared to $2.2 million for Q1 2018.
There was a decrease in stock-based compensation of approximately
$0.6 million, a decrease in professional fees of approximately $0.4
million, which was offset by an increase employee compensation and
employee benefits of $0.1 million.
- Other operating expenses were $0.9
million for Q1 2019, consisting of our equity in the loss from the
Enfission joint venture of $1.3 million, which consisted primarily
of research and development expenses, offset by our income from the
research and development support we provided to Enfission of $0.4
million. Other operating expenses were $0.6 million for Q1
2018, consisting of our equity in loss from the Enfission joint
venture of $1.0 million, which consisted primarily of research and
development expenses, offset by our income from the research and
development support we provided to Enfission of $0.4 million.
- Lightbridge’s research and
development expenses (not including Enfission’s research and
development expenses mentioned above) for both Q1 2019 and Q1
2018 was $0.9 million.
- Net loss for Q1 2019 was $3.1
million compared to $4.7 million for Q1 2018, a $1.6 million
decrease. This decrease was due to a decrease in general and
administrative expenses of $0.9 million, a decrease in other income
(expenses) of $1.0 million due to the write off of the deferred
financing costs in the first quarter of 2018 for the expired equity
line option agreement and an increase in other operating expenses
of $0.3 million. Explanations for the decrease in general and
administrative expenses and increase in other operating expenses
are mentioned above.
2019 First Quarter Conference
Call
Lightbridge will host a conference call on
Friday, May 10th at 11:00 a.m. Eastern Time to discuss the
company's financial results for the first quarter ending March 31,
2019, as well as the Company's corporate progress and other
meaningful developments.
Interested parties can access the conference
call by calling 877-407-0778 for U.S. callers, or +1-201-689-8565
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 11 a.m. June 10,
2019, and can be accessed by calling: 877-481-4010 (U.S. callers)
or +1-919-882-2331 (international callers) and entering conference
ID: 46943.
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 StatementsWith 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 timing and outcome of research and development
activities and other steps to commercialization of Lightbridge
Fuel™, the Company's entry into a commercial utility agreement, and
the Company's anticipated financial resources and position. . 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. +1 855-379-9900
*** tables follow ***
Lightbridge CorporationUnaudited
Condensed Consolidated Balance Sheets
|
|
March 31, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
ASSETS |
|
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,528,241 |
|
|
$ |
24,637,295 |
|
Other receivable from joint venture |
|
|
358,801 |
|
|
|
93,253 |
|
Prepaid expenses and other current assets |
|
|
194,059 |
|
|
|
36,745 |
|
Total Current Assets |
|
|
24,081,101 |
|
|
|
24,767,293 |
|
Other Assets |
|
|
|
|
|
|
|
|
Patent costs |
|
|
1,686,182 |
|
|
|
1,577,421 |
|
Total Assets |
|
$ |
25,767,283 |
|
|
$ |
26,344,714 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
614,622 |
|
|
$ |
258,056 |
|
Investee losses in excess of investment |
|
|
73,295 |
|
|
|
218,263 |
|
Total Current Liabilities |
|
|
687,917 |
|
|
|
476,319 |
|
|
|
|
|
|
|
|
|
|
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 813,624
shares issued and outstanding at March 31, 2019 and December 31,
2018, respectively (liquidation preference $2,687,077 and
$2,640,862 at March 31, 2019 and December 31, 2018,
respectively) |
|
|
813 |
|
|
|
813 |
|
Convertible Series B preferred shares, 2,666,667 and 2,666,667
shares issued and outstanding at March 31, 2019 and December 31,
2018, respectively (liquidation preference $4,337,455 and
$4,262,855 at March 31, 2019 and December 31, 2018,
respectively) |
|
|
2,667 |
|
|
|
2,667 |
|
Common stock, $0.001 par value, 100,000,000 authorized, 36,149,325
shares and 32,862,090 shares issued and outstanding as of March 31,
2019 and December 31, 2018, respectively |
|
|
36,149 |
|
|
|
32,863 |
|
Additional paid-in capital |
|
|
131,647,886 |
|
|
|
129,329,674 |
|
Accumulated deficit |
|
|
(106,608,149 |
) |
|
|
(103,497,622 |
) |
Total Stockholders' Equity |
|
|
25,079,366 |
|
|
|
25,868,395 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
25,767,283 |
|
|
$ |
26,344,714 |
|
Lightbridge
CorporationUnaudited Condensed Consolidated
Statements of Operations
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
|
|
|
2019 |
|
|
2018 |
|
|
Revenue |
$ |
- |
|
$ |
- |
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
General and administrative |
|
1,357,762 |
|
|
2,223,590 |
|
|
|
Research and development |
|
922,235 |
|
|
911,034 |
|
|
Total Operating
Expenses |
|
2,279,997 |
|
|
3,134,624 |
|
|
|
|
|
|
|
|
|
Other Operating
Income and (Loss) |
|
|
|
|
|
|
Other income from joint venture |
|
355,281 |
|
|
400,343 |
|
|
|
Equity in loss from joint
venture |
|
(1,295,032 |
) |
|
(1,028,327 |
) |
|
Total Other
Operating Income and Loss |
|
(939,751 |
) |
|
(627,984 |
) |
|
|
|
|
|
|
|
|
Operating
Loss |
|
(3,219,748 |
) |
|
(3,762,608 |
) |
|
|
|
|
|
|
|
|
Other Income and
(Expenses) |
|
|
|
|
|
|
Interest income |
|
109,221 |
|
|
23,557 |
|
|
|
Financing costs |
|
- |
|
|
(982,436 |
) |
|
Total Other Income
and (Expenses) |
|
109,221 |
|
|
(958,879 |
) |
|
|
|
|
|
|
|
|
Loss before income
taxes |
|
(3,110,527 |
) |
|
(4,721,487 |
) |
|
|
|
|
|
|
|
Income taxes |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(3,110,527 |
) |
$ |
(4,721,487 |
) |
|
|
|
|
|
|
|
|
Accumulated Preferred
Stock Dividend |
|
(120,815 |
) |
|
(112,902 |
) |
|
Deemed additional
dividend on preferred stock dividend due to beneficial conversion
feature |
|
(51,371 |
) |
|
(31,134 |
) |
|
Deemed dividend on
issuance on Series B convertible preferred stock due to beneficial
conversion feature |
|
- |
|
|
(2,624,836 |
) |
|
|
|
|
|
|
|
|
Net loss
attributable to common stockholders |
$ |
(3,282,713 |
) |
$ |
(7,490,359 |
) |
|
|
|
|
|
|
|
|
Net Loss Per
Common Share, |
|
|
|
|
|
|
Basic and Diluted |
$ |
(0.09 |
) |
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding |
|
34,631,048 |
|
|
19,231,578 |
|
|
|
|
|
|
|
|
|
|
Lightbridge
CorporationUnaudited Condensed Consolidated
Statements of Cash Flows
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
|
|
|
2019 |
|
|
2018 |
|
|
Operating
Activities: |
|
|
|
|
|
|
Net Loss |
$ |
(3,110,527 |
) |
$ |
(4,721,487 |
) |
|
Adjustments to
reconcile net loss from operations to net cash used in operating
activities: |
|
|
|
|
|
|
Stock-based compensation |
|
335,013 |
|
|
1,273,035 |
|
|
|
Write off of deferred
financing costs |
|
- |
|
|
982,436 |
|
|
|
Equity in loss from joint
venture |
|
1,295,032 |
|
|
1,028,327 |
|
|
Changes in
operating working capital items: |
|
|
|
|
|
|
Accounts receivable - fees and
reimbursable project costs |
|
- |
|
|
10,400 |
|
|
|
Other receivable from joint
venture |
|
(265,548 |
) |
|
(488,685 |
) |
|
|
Prepaid expenses and other
assets |
|
(157,314 |
) |
|
(76,545 |
) |
|
|
Accounts payable and accrued
liabilities |
|
356,566 |
|
|
140,567 |
|
|
Net Cash Used In
Operating Activities |
|
(1,546,778 |
) |
|
(1,851,952 |
) |
|
|
|
|
|
|
|
|
Investing
Activities: |
|
|
|
|
|
|
Investment in joint
venture |
|
(1,440,000 |
) |
|
(5,217,000 |
) |
|
|
Patent costs |
|
|
(108,761 |
) |
|
|
(94,800 |
) |
|
Net Cash Used In
Investing Activities |
|
(1,548,761 |
) |
|
|
(5,311,800 |
) |
|
|
|
|
|
|
|
|
Financing
Activities: |
|
|
|
|
|
|
Net proceeds from the issuance
of common stock |
|
1,986,485 |
|
|
20,722,215 |
|
|
|
Net proceeds from the issuance
of preferred stock |
|
- |
|
|
3,900,001 |
|
|
Net Cash Provided
by Financing Activities |
|
1,986,485 |
|
|
24,622,216 |
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) In Cash and Cash Equivalents |
|
(1,109,054 |
) |
|
17,458,464 |
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, Beginning of Period |
|
24,637,295 |
|
|
4,515,398 |
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, End of Period |
$ |
23,528,241 |
|
$ |
21,973,862 |
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information: |
|
|
|
|
|
|
Cash paid during the
period: |
|
|
|
|
|
|
Interest paid |
$ |
- |
|
$ |
- |
|
|
|
Income taxes paid |
$ |
- |
|
$ |
- |
|
|
|
Non-Cash Financing
Activities: |
|
|
|
|
|
|
Deemed dividend on Series B
convertible preferred stock due to beneficial conversion
feature |
$ |
- |
|
$ |
2,624,836 |
|
|
|
Accumulated preferred stock
dividend |
$ |
172,186 |
|
$ |
144,036 |
|
|
|
|
|
|
|
|
|
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