Lightbridge Reports Financial Results for the Third Quarter of 2019 and Provides Business Update on Enfission and Other Devel...
November 05 2019 - 4:05PM
Lightbridge Corporation (NASDAQ: LTBR), a nuclear fuel developer,
today provided a business update and reported financial results for
the third quarter ended September 30, 2019.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “During the third
quarter of 2019, we achieved several major milestones. We
successfully demonstrated the high temperature co-extrusion of
12-foot, Lightbridge Fuel™ rods using surrogate materials for
commercial scale nuclear reactors. In parallel, we also
demonstrated the process to produce fuel rods at a length designed
for small modular reactors.”
“We also recently announced that we received a
patent grant from the Korean Intellectual Property Office related
to one of the embodiments of our fuel assembly design incorporating
metallic fuel rods. This new patent is the latest addition to our
growing intellectual property portfolio. Our technology is patented
in major markets around the world including the U.S., Europe,
China, Russia and other key markets.”
“Our fuel is designed for existing and new
reactors, improving their economics by increasing power output and
enabling longer fuel cycles. The market for pressurized water
reactors, boiling water reactors, and pressurized heavy water
reactors includes over 350 reactors worldwide. The average annual
fuel spend per reactor, per year is approximately $50 million,
which we estimate equates to a $20 billion addressable global
market. We are encouraged by industry feedback on our fuel, due to
the fact that we will uniquely offer nuclear plant operators an
advanced fuel that provides a compelling value proposition and
addresses key challenges facing the industry. At the same time, our
balance sheet remains strong with approximately $20.6 million in
cash and no long-term debt.”
RECENT RESEARCH AND DEVELOPMENT
ADVANCEMENTS
- Demonstrated co-extrusion
manufacturing process using surrogate materials to full commercial
length for large light water reactors (12-ft long), as well as for
small modular reactors (6-ft long). The surrogate materials were
designed to simulate the flow stresses, temperatures and extrusion
pressures expected in the manufacture of the Lightbridge Fuel™ rods
utilizing a uranium-zirconium alloy.
- Defined lead test rod (LTR)
high-level design requirements. This is key input for the technical
scope of an LTR contract with a host utility.
- Completed critical heat flux (CHF)
performance evaluation of the LTR. CHF is a critical element of
thermal-hydraulic design and safety evaluations.
- Completed neutronics analysis of
baseline fuel assembly behavior. This is a necessary step before a
neutronics analysis of the entire core can be performed.
Financial Highlights
- Cash and cash equivalents were
$20.6 million at September 30, 2019 compared to $24.6 million at
December 31, 2018.
- Total assets were $23.0 million at
September 30, 2019 and total liabilities were $1.7 million at
September 30, 2019.
- Total equity offerings raised $0.8
million in net proceeds for the three months ended
September 30, 2019 compared to net proceeds of $1.7
million for the three months ended September 30, 2018.
- Total investment made in the
Enfission joint venture, used primarily for research and
development work conducted by Enfission for the nine months ended
September 30, 2019, was $3.5 million compared to $5.2 million
for the nine months ended September 30, 2018. This Enfission joint
venture was formed in January 2018.
- Stockholders’ equity was $21.4
million at September 30, 2019 compared to $25.9 million at
December 31, 2018.
- General and administration expenses
for the three months ended September 30, 2019 were
$1.5 million compared to $1.9 million for the three
months ended September 30, 2018.
- Other operating expenses were $0.3
million for the three months ended September 30, 2019,
consisting of our equity in the loss from the Enfission joint
venture of $0.5 million, which consisted primarily of research and
development expenses, offset by our income from the research and
development support we provided to Enfission of $0.2 million. Other
operating expenses were $1.5 million for the three months
ended September 30, 2018, consisting of our equity in loss
from the Enfission joint venture of $1.7 million, which consisted
primarily of research and development expenses, offset by our
income from the research and development support we provided to
Enfission of $0.2 million.
- Lightbridge’s research and
development expenses (not including Enfission’s research and
development expenses mentioned above) for the three months ended
September 30, 2019 were $0.8 million compared to
$0.9 million for the three months ended September 30,
2018.
- Net loss was $2.4 million for the three months ended
September 30, 2019 compared to $4.2 million for the
three months ended September 30, 2018.
- Effective October 21, 2019, we conducted a one-for-twelve
reverse stock split of our issued and outstanding common stock and
have retroactively adjusted our common shares outstanding.
2019 Third Quarter Conference
Call
Lightbridge will host a conference call on
November 7, 2019, at 2:00 p.m. Eastern Time to discuss the
Company's financial results for the third quarter ending September
30, 2019, as well as the Company's corporate progress and other
meaningful developments.
Interested parties can access the conference
call by calling 844-369-8774 for U.S. callers, or +1-862-298-0844
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 2:00 p.m. on
December 7, 2019, and can be accessed by calling: 877-481-4010
(U.S. callers) or +1-919-882-2331 (international callers) and
entering conference ID: 56761.
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
|
|
September 30, |
|
December 31, |
|
|
2019 |
|
2018 |
ASSETS |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
20,581,978 |
|
$ |
24,637,295 |
|
Other receivable from joint venture |
|
|
633,408 |
|
|
93,253 |
|
Prepaid expenses and other current assets |
|
|
97,033 |
|
|
36,745 |
|
Total Current Assets |
|
|
21,312,419 |
|
|
24,767,293 |
|
|
|
|
|
|
|
|
|
Patent costs |
|
|
1,725,853 |
|
|
1,577,421 |
|
Total Assets |
|
$ |
23,038,272 |
|
$ |
26,344,714 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
1,195,892 |
|
$ |
258,056 |
|
Investee losses in excess of investment |
|
|
490,726 |
|
|
218,263 |
|
Total Current Liabilities |
|
|
1,686,618 |
|
|
476,319 |
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares: |
|
|
|
|
|
|
|
Convertible Series A preferred shares, 785,877 shares and 813,624
shares issued and outstanding at September 30, 2019 and December
31, 2018, respectively (liquidation preference $2,687,461 and
$2,640,862 at September 30, 2019 and December 31, 2018,
respectively) |
|
|
785 |
|
|
813 |
|
Convertible Series B preferred shares, 2,666,667 shares issued and
outstanding at September 30, 2019 and December 31, 2018
(liquidation preference $4,490,594 and $4,262,855 at September 30,
2019 and December 31, 2018, respectively) |
|
|
2,667 |
|
|
2,667 |
|
Common stock, $0.001 par value, 8,333,333 authorized, 3,249,353
shares and 2,738,508 shares issued and outstanding as of September
30, 2019 and December 31, 2018, respectively |
|
|
3,249 |
|
|
2,738 |
|
Additional paid-in capital |
|
|
133,701,433 |
|
|
129,359,799 |
|
Accumulated deficit |
|
|
(112,356,480 |
) |
|
(103,497,622 |
) |
Total Stockholders' Equity |
|
|
21,351,654 |
|
|
25,868,395 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
23,038,272 |
|
$ |
26,344,714 |
|
|
|
|
|
|
|
|
|
Lightbridge
CorporationUnaudited Condensed Consolidated
Statements of Operations
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember 30, |
|
|
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
Revenue |
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
General and administrative |
|
1,463,568 |
|
|
1,889,401 |
|
|
|
4,051,484 |
|
|
5,566,022 |
|
Research and development |
|
751,473 |
|
|
864,060 |
|
|
|
2,218,826 |
|
|
2,313,124 |
|
Total Operating Expenses |
|
2,215,041 |
|
|
2,753,461 |
|
|
|
6,270,310 |
|
|
7,879,146 |
|
|
|
|
|
|
|
|
|
|
|
Other Operating Income and
(Loss) |
|
|
|
|
|
|
|
|
|
Other income from joint venture |
|
247,568 |
|
|
203,180 |
|
|
|
908,224 |
|
|
790,554 |
|
Equity in loss from joint venture |
|
(555,113 |
) |
|
(1,743,340 |
) |
|
|
(3,812,463 |
) |
|
(4,545,112 |
) |
Total Other Operating Income
and (Loss) |
|
(307,545 |
) |
|
(1,540,160 |
) |
|
|
(2,904,239 |
) |
|
(3,754,558 |
) |
Operating Loss |
|
(2,522,586 |
) |
|
(4,293,621 |
) |
|
|
(9,174,549 |
) |
|
(11,633,704 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income and
(Expenses) |
|
|
|
|
|
|
|
|
|
Interest income |
|
81,172 |
|
|
79,035 |
|
|
|
315,691 |
|
|
163,054 |
|
Financing costs |
|
— |
|
|
— |
|
|
|
— |
|
|
(982,436 |
) |
Total Other Income and
(Expenses) |
|
81,172 |
|
|
79,035 |
|
|
|
315,691 |
|
|
(819,382 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(2,441,414 |
) |
|
(4,214,586 |
) |
|
|
(8,858,858 |
) |
|
(12,453,086 |
) |
Income taxes |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Net loss |
$ |
(2,441,414 |
) |
$ |
(4,214,586 |
) |
|
$ |
(8,858,858 |
) |
$ |
(12,453,086 |
) |
|
|
|
|
|
|
|
|
|
|
Accumulated preferred stock
dividend |
|
(123,455 |
) |
|
(119,000 |
) |
|
|
(365,973 |
) |
|
(333,667 |
) |
Deemed additional dividend on
preferred stock dividend due to the beneficial conversion
feature |
|
(53,047 |
) |
|
(49,373 |
) |
|
|
(156,232 |
) |
|
(135,053 |
) |
Deemed dividend on issuance on
Series B convertible preferred stock due to the beneficial
conversion feature |
|
— |
|
|
— |
|
|
|
— |
|
|
(2,624,836 |
) |
Net loss attributable to
common stockholders |
|
(2,617,916 |
) |
|
(4,382,959 |
) |
|
|
(9,381,063 |
) |
|
(15,546,642 |
) |
Net Loss Per Common Share,
Basic and Diluted |
$ |
(0.81 |
) |
$ |
(1.78 |
) |
|
$ |
(3.07 |
) |
$ |
(7.51 |
) |
Weighted Average Number of
Common Shares Outstanding |
|
3,222,226 |
|
|
2,458,899 |
|
|
|
3,058,797 |
|
|
2,070,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lightbridge
CorporationUnaudited Condensed Consolidated
Statements of Cash Flows
|
|
Nine Months Ended |
|
|
September 30, |
|
|
2019 |
|
2018 |
Operating Activities |
|
|
|
|
Net Loss |
$ |
(8,858,858 |
) |
$ |
(12,453,086 |
) |
Adjustments to reconcile net
loss from operations to net cash used in operating activities |
|
|
|
|
Stock-based compensation |
|
591,663 |
|
|
1,951,394 |
|
Write off of deferred financing costs |
|
— |
|
|
982,436 |
|
Equity in loss from joint venture |
|
3,812,463 |
|
|
4,545,112 |
|
Changes in operating working
capital items |
|
|
|
|
Accounts receivable - fees and reimbursable project costs |
|
— |
|
|
10,400 |
|
Other receivable from joint venture |
|
(540,155 |
) |
|
(521,272 |
) |
Prepaid expenses and other current assets |
|
(60,288 |
) |
|
(51,134 |
) |
Accounts payable and accrued liabilities |
|
937,836 |
|
|
237,914 |
|
Net Cash Used in Operating
Activities |
|
(4,117,339 |
) |
|
(5,298,236 |
) |
|
|
|
|
|
Investing Activities |
|
|
|
|
Investment in joint venture |
|
(3,540,000 |
) |
|
(5,217,000 |
) |
Patent costs |
|
(148,432 |
) |
|
(172,189 |
) |
Net Cash Used in Investing
Activities |
|
(3,688,432 |
) |
|
(5,389,189 |
) |
|
|
|
|
|
Financing Activities |
|
|
|
|
Net proceeds from the issuance of common stock |
|
3,750,454 |
|
|
27,600,675 |
|
Net proceeds from the issuance of preferred stock |
|
— |
|
|
3,900,001 |
|
Net Cash Provided by Financing
Activities |
|
3,750,454 |
|
|
31,500,676 |
|
|
|
|
|
|
Net (Decrease) Increase in
Cash and Cash Equivalents |
|
(4,055,317 |
) |
|
20,813,251 |
|
|
|
|
|
|
Cash and Cash Equivalents,
Beginning of Period |
|
24,637,295 |
|
|
4,515,398 |
|
|
|
|
|
|
Cash and Cash Equivalents, End
of Period |
$ |
20,581,978 |
|
$ |
25,328,649 |
|
|
|
|
|
|
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 the beneficial conversion feature |
$ |
— |
|
$ |
2,624,836 |
|
Accumulated preferred stock dividend |
$ |
522,205 |
|
$ |
333,667 |
|
Conversion of Series A convertible preferred stock to common stock
and payment of paid-in-kind dividends to Series A preferred
stockholder |
$ |
91,635 |
|
$ |
207 |
|
|
|
|
|
|
|
|
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