Lightbridge Provides Business Update and Announces Third Quarter 2020 Financial Results
November 04 2020 - 4:15PM
Lightbridge Corporation (NASDAQ: LTBR), an advanced nuclear fuel
technology company, today announced financial results for the third
quarter ended September 30, 2020, as well as the Company's
corporate progress and other meaningful developments.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “I’m pleased with
the progress that Lightbridge has made in the third quarter,
particularly in our performance under our CRADA agreement with
Idaho National Laboratory (INL), in collaboration with the U.S.
Department of Energy (DOE). Our team has worked diligently with INL
to navigate this initial process, and we are optimistic about the
prospects for the success of this program. We expect that this GAIN
voucher that provides over $600,000 from DOE is the first of a
series of U.S. government funding opportunities. DOE notes that
funding awards over $500,000, are made ‘in cases with a clear need
and involving a truly exceptional technology or innovation.’
“In addition, Lightbridge continues to be well
positioned financially. Our strong cash position of $17.4 million
as of September 30, 2020 and no debt, provides us the financial
resources to fund our ongoing fuel development efforts throughout
2021, while pursuing additional opportunities towards
commercializing Lightbridge Fuel™.
“This is an exciting time for Lightbridge, as
well as for the U.S. nuclear power industry. We are seeing
increasing bipartisan governmental support for advanced nuclear
technologies. The U.S. government is taking concrete steps to
assure that nuclear innovations being developed by American
companies compete and win in the global market, particularly in
competition with Chinese and Russian state-owned enterprises. We
are working towards being one of the companies that will help
implement these long-term strategic goals.”
Financial Highlights
The Company maintains a strong working capital
position of $15.8 million at September 30, 2020 and has no
debt.
Cash Flows Summary
- Total cash used for the nine months
ended September 30, 2020 was $0.6 million compared to
$4.1 million for the nine months ended September 30, 2019.
This decrease consisted of the following:
- Cash used in operating activities
increased approximately $1.5 million for the nine months ended
September 30, 2020 as compared to the nine months ended September
30, 2019, primarily due to an increase in general and
administrative expenses (see operations summary below) offset by a
decrease in our research and development expenses, as Lightbridge
is no longer conducting its research and development activities
through Enfission.
- Cash used in investing activities
decreased by approximately $3.6 million for the nine months ended
September 30, 2020 as compared to the nine months ended September
30, 2019, primarily due to the inactive status of the Enfission
joint venture resulting in no capital contributions being made to
Enfission in 2020.
- Cash provided by financing
activities increased by approximately $1.4 million for the nine
months ended September 30, 2020 compared to the nine months ended
September 30, 2019, primarily due to the increase in the net
proceeds from issuance of common stock in 2020, which was $5.2
million for the nine months ended September 30, 2020 as compared to
$3.8 million net proceeds for the nine months ended September
30, 2019.
Balance Sheet Summary
- Cash and cash equivalents were
$17.4 million at September 30, 2020, as compared to
$18 million at December 31, 2019, a decrease of $0.6 million
in cash and cash equivalents for the nine months ended September
30, 2020.
- Total assets were $19.4 million and
total liabilities were $1.8 million at
September 30, 2020. Working capital was $15.8 million at
September 30, 2020 versus $18.1 million at December 31, 2019.
This decrease of $2.3 million in working capital was due primarily
to the factors stated above in the cash flows summary.
- Stockholders’ equity was $17.6
million at September 30, 2020 versus $19.9 million at
December 31, 2019. This decrease of $2.3 million was
primarily due to the net loss reported for the nine months ended
September 30, 2020 of $7.5 million, offset by the
increase in capital related to the sale of common stock of
approximately $5.2 million.
Operations Summary
- General and administrative expenses
increased by approximately $1.4 million for the three months ended
September 30, 2020, as compared to the three months ended September
30, 2019. There was an increase in professional fees of
approximately $1.3 million primarily due to legal fees relating to
the Framatome arbitration and a net increase in employee
compensation and employee benefits of approximately $0.1
million.
- Research and development expenses
decreased by approximately $0.5 million for the three months ended
September 30, 2020, as compared to the three months ended September
30, 2019, due to the transitioning from work relating to Enfission
to developing a new fuel development strategy with U.S. Department
of Energy national laboratories. There was a decrease in allocated
employee compensation and employee benefits of approximately $0.4
million and a decrease in consulting fees of $0.1 million.
- There was a decrease in other
operating income (loss) of approximately $0.3 million, due a
decrease in the equity in loss recorded from the Enfission joint
venture of $0.6 million, which consisted primarily of research and
development expenses, offset by no consulting services performed by
Lightbridge on behalf of Enfission for the three months ended
September 30, 2020, as compared to $0.3 million for the three
months ended September 30, 2019.
- There was a 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 September 30, 2020, as compared to the three months
ended September 30, 2019.
- Net loss for the three months ended
September 30, 2020 was $3.1 million compared to $2.4 million for
the three months ended September 30, 2019. This increase of $0.7
million was primarily due to the factors stated above in this
operations summary.
THIRD QUARTER
CONFERENCE CALL & WEBCAST
Lightbridge will host a conference call on
Thursday, November 5th at 4:00 p.m. Eastern Time to discuss the
Company's financial results for the third quarter ended September
30, 2020, as well as the Company's corporate progress and other
meaningful developments.
Interested parties can access the conference
call by calling 833-519-1295 for U.S. callers, or +1-914-800-3866
for international callers. Please reference Conference ID: 8391229.
The call will be available on the Company’s website via webcast at
https://edge.media-server.com/mmc/p/6678p764. 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.
A webcast will also be archived on the Company’s
website and a telephone replay of the call will be available
approximately two hours following the call and can be accessed by
dialing 855-859-2056 from the U.S. or +1-404-537-3406 for
international callers. Please reference Conference ID: 8391229.
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 advise Lightbridge 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:Matthew Abenante,
IRCDirector of Investor Relations Tel: +1 (646) 828-8710
ir@ltbridge.com
*** tables follow ***LIGHTBRIDGE
CORPORATION UNAUDITED
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
September 30, |
|
|
December 31, |
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
Current Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
17,410,899 |
|
|
$ |
17,958,989 |
|
Other receivable from joint venture |
|
— |
|
|
|
400,000 |
|
Prepaid expenses and other current assets |
|
164,652 |
|
|
|
47,371 |
|
Total Current Assets |
|
17,575,551 |
|
|
|
18,406,360 |
|
Other Assets |
|
|
|
|
|
|
|
Patent costs |
|
1,825,326 |
|
|
|
1,798,484 |
|
Total Assets |
$ |
19,400,877 |
|
|
$ |
20,204,844 |
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY |
Current Liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
1,815,791 |
|
|
$ |
350,299 |
|
Total Current Liabilities |
|
1,815,791 |
|
|
|
350,299 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares: |
|
|
|
|
|
|
|
Convertible Series A preferred shares, 712,126 and 757,770 shares
issued and outstanding at September 30, 2020 and December 31, 2019,
respectively (liquidation preference $2,612,802 and $2,636,764 at
September 30, 2020 and December 31, 2019, respectively) |
|
712 |
|
|
|
757 |
|
Convertible Series B preferred shares, 2,666,667 issued and
outstanding at September 30, 2020 and December 31, 2019,
(liquidation preference $4,813,284 and $4,569,180 at September 30,
2020 and December 31, 2019, respectively) |
|
2,667 |
|
|
|
2,667 |
|
Common stock, $0.001 par value, 8,333,333 authorized, 4,416,961 and
3,252,371 shares issued and outstanding as of September 30, 2020
and December 31, 2019, respectively |
|
4,417 |
|
|
|
3,252 |
|
Additional paid-in capital |
|
139,121,290 |
|
|
|
133,932,615 |
|
Accumulated deficit |
|
(121,544,000 |
) |
|
|
(114,084,746 |
) |
Total Stockholders’ Equity |
|
17,585,086 |
|
|
|
19,854,545 |
|
Total Liabilities and
Stockholders’ Equity |
$ |
19,400,877 |
|
|
$ |
20,204,844 |
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATIONUNAUDITED
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
2,835,471 |
|
|
|
1,463,568 |
|
|
|
6,800,892 |
|
|
|
4,051,484 |
|
Research and development |
|
261,898 |
|
|
|
751,473 |
|
|
|
767,498 |
|
|
|
2,218,826 |
|
Total Operating Expenses |
|
3,097,369 |
|
|
|
2,215,041 |
|
|
|
7,568,390 |
|
|
|
6,270,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Income and
(Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant income |
|
29,662 |
|
|
|
— |
|
|
|
29,662 |
|
|
|
— |
|
Other income from joint venture |
|
— |
|
|
|
247,568 |
|
|
|
— |
|
|
|
908,224 |
|
Equity in loss from joint venture |
|
— |
|
|
|
(555,113 |
) |
|
|
— |
|
|
|
(3,812,463 |
) |
Total Other Operating Income and
(Loss) |
|
29,662 |
|
|
|
(307,545 |
) |
|
|
29,662 |
|
|
|
(2,904,239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(3,067,707 |
) |
|
|
(2,522,586 |
) |
|
|
(7,538,728 |
) |
|
|
(9,174,549 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
4,645 |
|
|
|
81,172 |
|
|
|
79,474 |
|
|
|
315,691 |
|
Total Other Income |
|
4,645 |
|
|
|
81,172 |
|
|
|
79,474 |
|
|
|
315,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(3,063,062 |
) |
|
|
(2,441,414 |
) |
|
|
(7,459,254 |
) |
|
|
(8,858,858 |
) |
Income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net Loss |
$ |
(3,063,062 |
) |
|
$ |
(2,441,414 |
) |
|
$ |
(7,459,254 |
) |
|
$ |
(8,858,858 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated preferred stock
dividend |
|
(128,937 |
) |
|
|
(123,455 |
) |
|
|
(383,086 |
) |
|
|
(365,973 |
) |
Deemed additional dividend on
preferred stock dividend due the beneficial conversion feature |
|
(55,940 |
) |
|
|
(53,047 |
) |
|
|
(165,551 |
) |
|
|
(156,232 |
) |
Net loss attributable to common
stockholders |
$ |
(3,247,939 |
) |
|
$ |
(2,617,916 |
) |
|
$ |
(8,007,891 |
) |
|
$ |
(9,381,063 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
$ |
(0.80 |
) |
|
$ |
(0.81 |
) |
|
$ |
(2.22 |
) |
|
$ |
(3.07 |
) |
Weighted Average Number of Common
Shares Outstanding |
|
4,053,644 |
|
|
|
3,222,226 |
|
|
|
3,613,349 |
|
|
|
3,058,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATIONUNAUDITED
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Nine Months Ended |
|
|
September 30, |
|
|
2020 |
|
|
2019 |
|
Operating Activities |
|
|
|
|
|
Net Loss |
$ |
(7,459,254 |
) |
|
$ |
(8,858,858 |
) |
Adjustments to reconcile net loss from operations to net cash used
in operating activities |
|
|
|
|
|
|
|
Common stock issued for services and stock-based compensation |
|
25,110 |
|
|
|
591,663 |
|
Patent write-off |
|
111,850 |
|
|
|
— |
|
Equity in loss from joint venture |
|
— |
|
|
|
3,812,463 |
|
Changes in operating working capital items: |
|
|
|
|
|
|
|
Other receivable from joint venture |
|
400,000 |
|
|
|
(540,155 |
) |
Prepaid expenses and other current assets |
|
(117,281 |
) |
|
|
(60,288 |
) |
Accounts payable and accrued liabilities |
|
1,465,492 |
|
|
|
937,836 |
|
Net Cash Used in Operating Activities |
|
(5,574,083 |
) |
|
|
(4,117,339 |
) |
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
Investment in joint venture |
|
— |
|
|
|
(3,540,000 |
) |
Patent costs |
|
(138,692 |
) |
|
|
(148,432 |
) |
Net Cash Used in Investing Activities |
|
(138,692 |
) |
|
|
(3,688,432 |
) |
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
Net proceeds from issuances of common stock and exercise of stock
options |
|
5,164,685 |
|
|
|
3,750,454 |
|
Net Cash Provided by Financing Activities |
|
5,164,685 |
|
|
|
3,750,454 |
|
|
|
|
|
|
|
|
|
Net Decrease in Cash and Cash Equivalents |
|
(548,090 |
) |
|
|
(4,055,317 |
) |
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, Beginning of Period |
|
17,958,989 |
|
|
|
24,637,295 |
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Period |
$ |
17,410,899 |
|
|
$ |
20,581,978 |
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
Cash paid during the period |
|
|
|
|
|
|
|
Interest paid |
$ |
— |
|
|
$ |
— |
|
Income taxes paid |
$ |
— |
|
|
$ |
— |
|
Non-Cash Financing Activities |
|
|
|
|
|
|
|
Accumulated preferred stock dividend |
$ |
548,637 |
|
|
$ |
522,205 |
|
Conversion of Series A convertible preferred stock to common stock
and payment of paid-in-kind dividends to Series A preferred
stockholder |
$ |
38,071 |
|
|
$ |
91,635 |
|
Common stock issued for services |
$ |
17,000 |
|
|
$ |
— |
|
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