Lightbridge Provides Business Update and Announces Second Quarter of 2020 Earnings Results
August 10 2020 - 04:05PM
Lightbridge Corporation (NASDAQ: LTBR), an advanced nuclear fuel
technology company, today announced financial results for the
second quarter ended June 30, 2020, as well as the Company's
corporate progress and other meaningful developments.
Seth Grae, President & Chief Executive Officer
of Lightbridge Corporation, commented, “We continue to execute in
accordance with our strategy and vision for commercializing
Lightbridge Fuel™. In June, we commenced work under the Cooperative
Research and Development Agreement (CRADA) with Battelle Energy
Alliance, LLC, the operating contractor of Idaho National
Laboratory (INL), in collaboration with the U.S. Department of
Energy (DOE). Our focus over the 12 months of this agreement is to
collaborate with the expert team at INL to develop a pathway to
perform critical material irradiation testing in a US test
reactor.
“In addition, we continue to expand our
intellectual property portfolio as we advance towards
commercialization. In the second quarter, we received a Decision to
Grant from the Japan Patent Office (JPO) for a patent related to a
Lightbridge metallic fuel assembly design for use in CANDU-type
reactors. We also received patents from the Australian Patent
Office and the Eurasian Patent Office for our innovative nuclear
fuel assemblies. In addition to the inherent economic and safety
benefits, Lightbridge Fuel™ enables longer refueling cycles, which
is key to extending the life of existing plants. We believe that a
strong patent portfolio will help establish and sustain leadership
in key global markets.
“We continue to take the necessary steps towards
validating our technology, proving that Lightbridge Fuel™ will be
the solution that will significantly improve the economics and
safety profile of both existing reactors and small modular reactors
(SMR). This will generate significant value to our shareholders and
sizable benefit to society, providing economical, clean energy
around the world,” concluded Mr. Grae.
Financial Highlights
The Company maintains a strong working capital
position of $16.4 million at June 30, 2020 and has no debt.
Cash Flows Summary
- The change in the net decrease in cash and cash equivalents was
approximately $2.8 million from the six months ended June 30,
2020 compared to the six months ended June 30, 2019.
Total cash used for the six months ended June 30, 2020 was $0.9
million compared to $3.7 million for the six months ended June
30, 2019. This decrease consisted of the following:
- Cash used in operating activities increased approximately $0.6
million for the six months ended June 30, 2020 compared to the six
months ended June 30, 2019 primarily due to an increase in general
and administrative expenses offset by a decrease in our research
and development expenses, as a result of the decrease in work with
Framatome and Enfission as Lightbridge is no longer conducting
research and development activities with Framatome and
Enfission.
- Cash used in investing activities decreased by approximately
$3.6 million for the six months ended June 30, 2020 compared to the
six months ended June 30, 2019 primarily due to the inactive status
of the Enfission joint venture resulting in no capital
contributions made in 2020.
- Cash provided by financing activities decreased by
approximately $0.2 million for the six months ended June 30, 2020
compared to the six months ended June 30, 2019 primarily due to the
slight decrease in net proceeds from issuance of common stock in
2020, which was $2.7 million for the six months June 30, 2020
compared to $2.9 million proceeds for the six months ended
June 30, 2019.
Balance Sheet Summary
- Cash and cash equivalents were $17.1 million at June 30, 2020,
compared to $18 million at December 31, 2019, a decrease of
$0.9 million in cash and cash equivalents for the six months ended
June 30, 2020.
- Total assets were $19.1 million at June 30, 2020 and total
liabilities were $0.9 million at June 30, 2020. Working
capital was $16.4 million at June 30, 2020 versus
$18.1 million at December 31, 2019. This decrease of $1.7
million in working capital was due primarily to the factors stated
above in the cash flow summary.
- Stockholders’ equity was $18.2 million at June 30, 2020 versus
$19.9 million at December 31, 2019. This decrease was
primarily due to the net loss reported for the six months ended
June 30, 2020, offset by the increase in capital related
to the sale of common stock.
Operations Summary
- General and administrative expenses for the three months ended
June 30, 2020 were $2.0 million compared to $1.2 million for
the three months ended June 30, 2020. This increase of
approximately $0.8 million was due to a total increase in employee
compensation and employee benefits of approximately $0.6 million,
an increase in professional fees of approximately $0.2 million, and
an increase of patent write offs of $0.1 million. These
increases were offset by a decrease in stock-based compensation of
approximately $0.1 million, due to the decrease in stock
option expense for prior stock option awards that have become fully
vested in prior reporting periods.
- Research and development expenses decreased by approximately
$0.4 million for the three months ended June 30, 2020, as compared
to the three months ended June 30, 2019, due to the transitioning
from work relating to Enfission to developing a new fuel
development strategy. Employee compensation and employee benefits
decreased approximately $0.2 million, consulting fees decreased
approximately $0.1 million and stock-based compensation decrease
approximately $0.1 million.
- Total net other operating expenses decreased by approximately
$1.7 million for the three months ended June 30, 2020 as compared
to the three months ended June 30, 2019 due to the inactive status
of the Enfission joint venture for the three months and six months
ended June 30, 2020 and at December 31, 2019.
- There was a net decrease in other income of approximately $0.1
million due to a decrease in interest income generated from the
interest earned from the purchase of treasury bills and from our
bank savings account for the three months ended June 30, 2020, as
compared to the three months ended June 30, 2019.
- Net loss for the three months ended June 30, 2020 was $2.1
million compared to $3.3 million for 2019. This decrease of $1.2
million was primarily due to the factors stated above in the
operations summary.
SECOND QUARTER CONFERENCE CALL &
WEBCAST
Lightbridge will host a conference call on Tuesday,
August 11th at 4:00 p.m. Eastern Time to discuss the Company's
financial results for the second quarter ended June 30, 2020, as
well as the Company's corporate progress and other meaningful
developments.
Interested parties can access the conference call
by calling 877-407-3088 for U.S. callers, or 201-389-0927 for
international callers. The call will be available on the Company’s
website via webcast at
https://www.ltbridge.com/investors/news-events/ir-calendar. 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.
About Lightbridge
Corporation
Lightbridge (NASDAQ: LTBR) is an advanced
nuclear fuel technology development company based in Reston,
Virginia, United States. The Company is developing Lightbridge
Fuel™, a proprietary next-generation nuclear fuel technology for
current and future reactors, which significantly enhances the
economics, safety, and proliferation resistance of nuclear power.
Lightbridge invented, patented, and has independently validated its
technology, with goals of preventing climate change and enhancing
national security. The Company has assembled a world-class
development team. Four large electric utilities that generate about
half of America’s nuclear power have been advising Lightbridge
since 2012 on fuel development and deployment. The Company plans to
operate under a licensing and royalty model and based on the
increased power generated by Lightbridge-designed fuel, expects to
offer high ROI for operators of existing and new reactors. 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 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, 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; 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; 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; the outcome of the arbitration with the Company’s
former joint venture partner and dissolution of the Enfission joint
venture; as well as other factors described in Lightbridge's
filings with the U.S. 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, 2019 and in its subsequent reports
on Form 10-Q, including in the sections thereof captioned “Risk
Factors” and “Forward-Looking Information and Factors That May
Affect Future Results”, as well as in its subsequent reports on
Form 8-K, all of which are filed with the U.S. Securities and
Exchange Commission and available at http://www.sec.gov/ and
www.ltbridge.com.
Investor Relations
Contact:Strategic Investor Relations LLC Matthew
AbenanteTel: (646) 828-8710 ir@ltbridge.com
*** tables follow ***
|
LIGHTBRIDGE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
ASSETS |
|
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
17,056,313 |
|
|
$ |
17,958,989 |
|
Other receivable from joint venture |
|
|
— |
|
|
|
400,000 |
|
Prepaid expenses and other current assets |
|
|
254,652 |
|
|
|
47,371 |
|
Total Current Assets |
|
|
17,310,965 |
|
|
|
18,406,360 |
|
Other Assets |
|
|
|
|
|
|
|
|
Patent costs |
|
|
1,756,506 |
|
|
|
1,798,484 |
|
Total Assets |
|
$ |
19,067,471 |
|
|
$ |
20,204,844 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
893,938 |
|
|
$ |
350,299 |
|
Total Current Liabilities |
|
|
893,938 |
|
|
|
350,299 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares: |
|
|
|
|
|
|
|
|
Convertible Series A preferred shares, 728,816 and 757,770 shares
issued and outstanding at June 30, 2020 and December 31, 2019,
respectively (liquidation preference $2,627,464 and $2,636,764 at
June 30, 2020 and December 31, 2019, respectively) |
|
|
728 |
|
|
|
757 |
|
Convertible Series B preferred shares, 2,666,667 issued and
outstanding at June 30, 2020 and December 31, 2019,
(liquidation preference $4,730,500 and $4,569,180 at June 30, 2020
and December 31, 2019, respectively) |
|
|
2,667 |
|
|
|
2,667 |
|
Common stock, $0.001 par value, 8,333,333 authorized, 3,809,415 and
3,252,371 shares issued and outstanding as of June 30, 2020 and
December 31, 2019, respectively |
|
|
3,809 |
|
|
|
3,252 |
|
Additional paid-in capital |
|
|
136,647,267 |
|
|
|
133,932,615 |
|
Accumulated deficit |
|
|
(118,480,938 |
) |
|
|
(114,084,746 |
) |
Total Stockholders’ Equity |
|
|
18,173,533 |
|
|
|
19,854,545 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
19,067,471 |
|
|
$ |
20,204,844 |
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATIONUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2020 |
|
2019 |
|
|
2020 |
|
|
2019 |
Revenue |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
2,028,667 |
|
|
|
1,230,154 |
|
|
|
3,965,421 |
|
|
|
2,587,916 |
|
|
Research and development |
|
|
115,776 |
|
|
|
545,118 |
|
|
|
505,600 |
|
|
|
1,467,353 |
|
Total Operating
Expenses |
|
|
2,144,443 |
|
|
|
1,775,272 |
|
|
|
4,471,021 |
|
|
|
4,055,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Income and (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income from joint venture |
|
|
— |
|
|
|
305,375 |
|
|
|
— |
|
|
|
660,656 |
|
|
Equity in loss from joint venture |
|
|
— |
|
|
|
(1,962,318 |
) |
|
|
— |
|
|
|
(3,257,350 |
) |
Total Other
Operating Income and (Loss) |
|
|
— |
|
|
|
(1,656,943 |
) |
|
|
— |
|
|
|
(2,596,694 |
) |
Operating
Loss |
|
|
(2,144,443 |
) |
|
|
(3,432,215 |
) |
|
|
(4,471,021 |
) |
|
|
(6,651,963 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
12,337 |
|
|
|
125,298 |
|
|
|
74,829 |
|
|
|
234,519 |
|
Total Other
Income |
|
|
12,337 |
|
|
|
125,298 |
|
|
|
74,829 |
|
|
|
234,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
tax |
|
|
(2,132,106 |
) |
|
|
(3,306,917 |
) |
|
|
(4,396,192 |
) |
|
|
(6,417,444 |
) |
Income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(2,132,106 |
) |
|
$ |
(3,306,917 |
) |
|
$ |
(4,396,192 |
) |
|
$ |
(6,417,444 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
preferred stock dividend |
|
|
(128,238 |
) |
|
|
(121,703 |
) |
|
|
(254,149 |
) |
|
|
(242,518 |
) |
Deemed additional
dividend on preferred stock dividend due the beneficial conversion
feature |
|
|
(55,294 |
) |
|
|
(51,814 |
) |
|
|
(109,611 |
) |
|
|
(103,185 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common stockholders |
|
$ |
(2,315,638 |
) |
|
$ |
(3,480,434 |
) |
|
$ |
(4,759,952 |
) |
|
$ |
(6,763,147 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per
Common Share, Basic and Diluted |
|
$ |
(0.66 |
) |
|
$ |
(1.14 |
) |
|
$ |
(1.40 |
) |
|
$ |
(2.27 |
) |
Weighted Average
Number of Common Shares Outstanding |
|
|
3,486,566 |
|
|
|
3,064,548 |
|
|
|
3,390,782 |
|
|
|
2,975,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE CORPORATIONUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
Operating
Activities |
|
|
|
|
|
|
|
Net Loss |
|
$ |
(4,396,192 |
) |
|
$ |
(6,417,444 |
) |
Adjustments to
reconcile net loss from operations to net cash used in operating
activities: |
|
|
|
|
|
|
|
Stock-based compensation |
|
|
12,170 |
|
|
|
572,285 |
|
|
Patent write-off |
|
|
111,850 |
|
|
|
— |
|
|
Equity in loss from joint
venture |
|
|
— |
|
|
|
3,257,350 |
|
Changes in
operating working capital items: |
|
|
|
|
|
|
|
Other receivable from joint
venture |
|
|
400,000 |
|
|
|
(414,021 |
) |
|
Prepaid expenses and other
current assets |
|
|
(207,281 |
) |
|
|
(118,059 |
) |
|
Accounts payable and accrued
liabilities |
|
|
543,639 |
|
|
|
210,650 |
|
Net Cash Used in
Operating Activities |
|
|
(3,535,814 |
) |
|
|
(2,909,239 |
) |
|
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
|
Investment in joint
venture |
|
|
— |
|
|
|
(3,540,000 |
) |
|
Patent costs |
|
|
(69,872 |
) |
|
|
(128,771 |
) |
Net Cash Used in
Investing Activities |
|
|
(69,872 |
) |
|
|
(3,668,771 |
) |
|
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
|
Net proceeds from issuances of
common stock and exercise of stock options |
|
|
2,703,010 |
|
|
|
2,916,399 |
|
Net Cash Provided
by Financing Activities |
|
|
2,703,010 |
|
|
|
2,916,399 |
|
|
|
|
|
|
|
|
|
Net Decrease in
Cash and Cash Equivalents |
|
|
(902,676 |
) |
|
|
(3,661,611 |
) |
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, Beginning of Period |
|
|
17,958,989 |
|
|
|
24,637,295 |
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, End of Period |
|
$ |
17,056,313 |
|
|
$ |
20,975,684 |
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
Cash paid during the
period: |
|
|
|
|
|
|
|
Interest paid |
|
$ |
— |
|
|
$ |
— |
|
|
Income taxes paid |
|
$ |
— |
|
|
$ |
— |
|
|
Non-Cash Financing
Activity: |
|
|
|
|
|
|
|
Accumulated preferred stock
dividend |
|
$ |
363,760 |
|
|
$ |
345,703 |
|
|
Conversion of Series A
convertible preferred stock to common stock and payment of
paid-in-kind dividends to Series A preferred stockholder |
|
$ |
23,032 |
|
|
$ |
91,635 |
|
|
|
|
|
|
|
|
|
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