Lightbridge Provides Business Update and Announces Fiscal Year 2021 Financial Results
March 24 2022 - 4:05PM
Lightbridge Corporation (Nasdaq: LTBR), an advanced nuclear fuel
technology company, announced its financial results for the year
ended December 31, 2021, and provided an update on the Company's
continued progress.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “We achieved
important milestones in our fuel development work in 2021 and
continue to make excellent progress in executing our strategy
despite war in Europe and continued impacts of the COVID-19
pandemic. Our working relationship with the U.S. government,
including the Department of Energy (DOE), and its national labs,
helps validate our technology in the industry and underscores the
potential economic value of Lightbridge Fuel™. DOE awarded
Lightbridge a second Gateway for Advanced Innovation in Nuclear
(GAIN) voucher before we completed work on our first GAIN voucher,
which is a rare accomplishment.”
“Lightbridge is the only company that is working
to reinvent nuclear fuel for existing types of reactors. Our
innovative nuclear fuel designs are backed by a global patent
portfolio that covers both the design and manufacturing method of
the fuel. We received three key patents from the U.S. Patent and
Trademark Office in the fourth quarter related to our innovative
metallic nuclear fuel assembly. We continue developing new
intellectual property around all aspects of our fuel.”
“Lightbridge aims to play a central role in the
expansion of nuclear power globally. Governments around the world
recognize that if they want to reach the energy and emissions
targets that they've set, they can't even come close to doing it
only with renewables. To have reliable baseload carbon-free energy,
you have to include nuclear in the diversified energy mix. In late
2021, China announced plans to build up to 150 new nuclear reactors
in the next 15 years. In addition, we are seeing broad interest in
small modular reactor (SMR) technology, with several well-funded
companies taking serious steps toward building these reactors. We
are developing our fuel to work in the existing large reactors and
in SMRs. The nuclear power industry has been more vocal about its
role in decarbonization because it is imperative to bring
tremendous amounts of new clean energy onto the system to meet
energy and climate goals and to wean off dependency on fossil
fuels.”
“As we look to 2022, Lightbridge is
well-positioned for a strong year. We are reporting one of the
strongest balance sheets in our history. We remain focused on
leveraging our technical expertise and industry relationships to
advance our fuel development program and position Lightbridge for
long-term growth,” concluded Mr. Grae.
Financial Highlights
The Company strengthened its working capital
position at December 31, 2021 and had no debt.
Cash Flows Summary
- Cash and cash equivalents were
$24.7 million at December 31, 2021, compared to $21.5 million at
December 31, 2020, an increase of $3.2 million, consisting of the
following:
- Cash used in operating activities
increased $2.4 million, from $8.6 million in 2020 to $11.0 million
in 2021. Our 2021 operating cash flows reflect our net loss of $7.8
million, non-cash charges of $1.1 million, and a net decrease from
changes in our working capital accounts of approximately $4.3
million. Decreases in operating cash flows caused by working
capital changes include a net decrease in accounts payable and
accrued expenses of $4.4 million, offset by a decrease in prepaid
expenses and other current assets of $0.1 million. The decrease in
accounts payable and accrued expenses is primarily related to the
payment of the $4.2 million expense accrual recorded in 2020
related to the arbitration settlement.
- Cash used in our investing
activities for the year ended December 31, 2021, as compared to net
cash used in our investing activities in 2020, decreased by
approximately $0.2 million. The decrease was due primarily to a
decrease in trademark costs.
- Cash provided by financing
activities increased $1.8 million from $12.4 million in 2020 to
$14.2 million in 2021. This increase was primarily due to an
increase in the net proceeds from the issuance of common stock by
our at-the-market (ATM) facility in 2021.
Balance Sheet Summary
- Total assets were $25.0 million and
total liabilities were $0.2 million at December 31, 2021. Working
capital was $24.7 million at December 31, 2021 versus $17.1 million
in 2020. This increase of $7.6 million in working capital was due
primarily to the factors stated above in the cash flows
summary.
- Stockholders’ equity was $24.8
million at December 31, 2021 as compared to $17.2 million at
December 31, 2020.
- On October 29, 2021, the Company
entered into a share exchange agreement with the holder of all of
the outstanding Series A Preferred Stock, pursuant to which all of
the outstanding Series A Preferred Stock was exchanged for 262,910
shares of the Company’s common stock based on the exchange of $2.6
million in accumulated liquidation preference into shares of common
stock at a rate of $10 per share, without any cash payments by
either party. The Series A Preferred Stock outstanding as of
December 31, 2021 and 2020 was 0 and 699,878 shares,
respectively
- On December 3, 2021, the Company
entered into a series of share exchange agreements with all the
holders of the Company’s Series B Preferred Stock. Upon the closing
of the exchange, the Company issued an aggregate of 522,244 shares
of common stock based on the exchange of $5.2 million in
accumulated liquidation preference into shares of common stock at a
rate of $10 per share, without any cash payments by any party. The
Series B Preferred Stock outstanding as of December 31, 2021 and
2020 was 0 and 2,666,667 shares, respectively.
Operations Summary
- General and administrative expenses
for the year ended December 31, 2021 were $7.1 million compared to
$8.3 million for the prior year, a decrease of $1.2 million in
2021. There was a decrease in professional fees of $2.2 million
primarily due to a decrease in the legal and professional fees
relating to the settlement to terminate the Enfission joint
venture, a decrease in amortization expense of $0.1 million and a
decrease in business development expenses of $0.1 million. These
decreases were offset by an increase of $0.6 million in stock-based
compensation expense, an increase of $0.2 million in consulting
fees, an increase of $0.2 million in insurance expense, and an
increase of $0.2 million in director compensation as the result of
an increase in the size of the board of directors.
- Lightbridge’s total research and
development expenses amounted to $1.4 million for the year ended
December 31, 2021 compared to $0.9 million for the year ended
December 31, 2020, an increase of $0.5 million. There was an
increase of $0.5 million in outside research and development work
with the DOE’s national laboratories related to the GAIN voucher
and an increase of $0.2 million in patent expense. These increases
were offset by a decrease in employee compensation and employee
benefits of $0.2 million.
- Total other operating income was
$0.6 million for the year ended December 31, 2021, compared to
other operating income of $0.1 million for the year ended December
31, 2020, an increase of $0.5 million. This increase was due to the
final cash distribution from the dissolved Enfission joint venture
of $0.1 million and an increase in grant income – noncash from the
GAIN voucher of $0.4 million. Grant income – noncash is recorded on
a gross method, with the grant income shown as other operating
income and the related costs as a charge to research and
development expenses.
- Interest income generated from the
interest earned from our treasury bills and our bank savings
account was not significant for either of the years ended December
31, 2021 and 2020.
- Net loss for the year ended
December 31, 2021 was $7.8 million compared to $14.4 million for
2020. This decrease of $6.6 million was primarily due to the
decrease in arbitration settlement costs of $4.2 million, a
decrease in the patent impairment loss of $1.2 million and the
expenses mentioned above.
About Lightbridge
Corporation
Lightbridge (NASDAQ: LTBR) is an advanced
nuclear fuel technology development company positioned to enable
carbon-free energy applications that will be essential in
preventing climate change. The Company is developing Lightbridge
Fuel™, a proprietary next-generation nuclear fuel technology for
Small Modular Reactors, as well as existing light-water reactors,
which significantly enhances reactor safety, economics, and fuel
proliferation resistance. To date, Lightbridge has been awarded
twice by the U.S. Department of Energy’s Gateway for Accelerated
Innovation in Nuclear program to support development of Lightbridge
Fuel™. Lightbridge’s innovative fuel technology is backed by an
extensive worldwide patent portfolio. Lightbridge is included in
the Russell Microcap® Index. For more information, please visit:
www.ltbridge.com.
For an introductory video on Lightbridge, please visit
www.ltbridge.com or click here to watch the video.
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 herein 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; the Company’s ability to fund general corporate overhead
and outside research and development costs; market competition; our
ability to attract and retain qualified employees; dependence on
strategic partners; demand for fuel for nuclear reactors, including
small modular reactors; the Company's ability to manage its
business effectively in a rapidly evolving market; the availability
of nuclear test reactors and the risks associated with unexpected
changes in the Company’s fuel development timeline; the increased
costs associated with metallization of our nuclear fuel; public
perception of nuclear energy generally; changes in the political
environment; risks associated with war in Europe and 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; changes in the laws, rules and
regulations governing the Company’s business; development and
utilization of, and challenges to, our intellectual property; risks
associated with potential shareholder activism; potential and
contingent liabilities; 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, 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, 2020 and in its other filings with
the Securities and Exchange Commission, including in the sections
thereof captioned “Risk Factors” and “Forward-Looking Statements”,
all of which are available at 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 CONSOLIDATED BALANCE
SHEETS
|
|
December 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
ASSETS |
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
24,747,613 |
|
|
$ |
21,531,665 |
|
Prepaid expenses and other current assets |
|
|
113,452 |
|
|
|
172,460 |
|
Total Current Assets |
|
|
24,861,065 |
|
|
|
21,704,125 |
|
Other Assets |
|
|
|
|
|
|
|
|
Trademarks |
|
|
101,583 |
|
|
|
85,562 |
|
Total Assets |
|
$ |
24,962,648 |
|
|
$ |
21,789,687 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
171,521 |
|
|
$ |
382,130 |
|
Accrued legal settlement costs |
|
|
— |
|
|
|
4,200,000 |
|
Total Current Liabilities |
|
|
171,521 |
|
|
|
4,582,130 |
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares |
|
|
|
|
|
|
|
|
Convertible Series A preferred shares, 0 and 699,878 shares issued
and outstanding at December 31, 2021 and 2020, respectively
(liquidation preference $0 and $2,613,025 at December 31, 2021 and
2020, respectively) |
|
|
— |
|
|
|
699 |
|
Convertible Series B preferred shares, 0 and 2,666,667 shares
issued and outstanding at December 31, 2021 and 2020 (liquidation
preference $0 and $4,897,517 at December 31, 2021 and 2020,
respectively) |
|
|
— |
|
|
|
2,667 |
|
Common stock, $0.001 par value, 13,500,000 authorized, 9,759,223
shares and 6,567,110 shares issued and outstanding at December 31,
2021 and 2020, respectively |
|
|
9,759 |
|
|
|
6,567 |
|
Additional paid-in capital |
|
|
161,772,641 |
|
|
|
146,353,232 |
|
Accumulated deficit |
|
|
(136,991,273 |
) |
|
|
(129,155,608 |
) |
Total Stockholders'
Equity |
|
|
24,791,127 |
|
|
|
17,207,557 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
24,962,648 |
|
|
$ |
21,789,687 |
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Years Ended |
|
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
General and administrative |
|
|
7,133,618 |
|
|
|
8,312,583 |
|
Research and development |
|
|
1,366,496 |
|
|
|
891,626 |
|
Legal settlement costs |
|
|
24,940 |
|
|
|
4,200,000 |
|
Patent write-off and impairment loss |
|
|
— |
|
|
|
1,169,644 |
|
Total Operating Expenses |
|
|
8,525,054 |
|
|
|
14,573,853 |
|
|
|
|
|
|
|
|
|
|
Other Operating Income |
|
|
|
|
|
|
|
|
Distribution from joint venture |
|
|
119,641 |
|
|
|
— |
|
Grant income -noncash |
|
|
527,927 |
|
|
|
72,709 |
|
Total Other Operating
Income |
|
|
647,568 |
|
|
|
72,709 |
|
|
|
|
|
|
|
|
|
|
Total Operating Loss |
|
$ |
(7,877,486 |
) |
|
$ |
(14,501,144 |
) |
|
|
|
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
|
|
Interest income |
|
|
8,127 |
|
|
|
83,878 |
|
Foreign currency transaction gain |
|
|
33,694 |
|
|
|
— |
|
Total Other Income |
|
|
41,821 |
|
|
|
83,878 |
|
|
|
|
|
|
|
|
|
|
Net Loss Before Income
Taxes |
|
|
(7,835,665 |
) |
|
|
(14,417,266 |
) |
Income taxes |
|
|
— |
|
|
|
— |
|
Net Loss |
|
$ |
(7,835,665 |
) |
|
$ |
(14,417,266 |
) |
|
|
|
|
|
|
|
|
|
Accumulated Preferred Stock
Dividend |
|
|
(477,991 |
) |
|
|
(512,953 |
) |
Deemed additional dividend on
preferred stock due to the beneficial conversion feature |
|
|
(213,720 |
) |
|
|
(222,196 |
) |
Deemed dividend upon induced
conversions of Series A and Series B Preferred Stock to common
stock |
|
|
(3,509,328 |
) |
|
|
— |
|
Net Loss Attributable to
Common Shareholders |
|
$ |
(12,036,704 |
) |
|
$ |
(15,152,415 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(1.71 |
) |
|
$ |
(3.59 |
) |
Weighted Average Number of
Common Shares Outstanding |
|
|
7,035,510 |
|
|
|
4,216,568 |
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
Years Ended |
|
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
Operating Activities |
|
|
|
|
|
|
Net Loss |
|
$ |
(7,835,665 |
) |
|
$ |
(14,417,266 |
) |
Adjustments to reconcile net
loss from operations to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Common stock issued for services |
|
|
254,994 |
|
|
|
17,000 |
|
Stock-based compensation |
|
|
826,493 |
|
|
|
53,341 |
|
Patent write-off and impairment loss |
|
|
— |
|
|
|
1,169,645 |
|
Amortization of patents |
|
|
— |
|
|
|
100,117 |
|
|
|
|
|
|
|
|
|
|
Changes in operating working
capital items: |
|
|
|
|
|
|
|
|
Other receivable from joint venture |
|
|
— |
|
|
|
400,000 |
|
Prepaid expenses and other current assets |
|
|
59,008 |
|
|
|
(125,089 |
) |
Accounts payable and accrued liabilities |
|
|
(140,919 |
) |
|
|
31,831 |
|
Accrued legal settlement costs |
|
|
(4,200,000 |
) |
|
|
4,200,000 |
|
Net Cash Used in Operating
Activities |
|
|
(11,036,089 |
) |
|
|
(8,570,421 |
) |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Trademarks |
|
|
(16,021 |
) |
|
|
(210,436 |
) |
Net Cash Used in Investing
Activities |
|
|
(16,021 |
) |
|
|
(210,436 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Net proceeds from the issuances of common stock |
|
|
14,821,354 |
|
|
|
12,328,520 |
|
Net proceeds from the exercise of stock options |
|
|
270,857 |
|
|
|
25,013 |
|
Payments for taxes related to net share settlement of equity
awards |
|
|
(824,153 |
) |
|
|
— |
|
Net Cash Provided by Financing
Activities |
|
|
14,268,058 |
|
|
|
12,353,533 |
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash and Cash
Equivalents |
|
|
3,215,948 |
|
|
|
3,572,676 |
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents,
Beginning of Year |
|
|
21,531,665 |
|
|
|
17,958,989 |
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End
of Year |
|
$ |
24,747,613 |
|
|
$ |
21,531,665 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of
Cash Flow Information |
|
|
|
|
|
|
|
|
Cash paid during the
year: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
— |
|
|
$ |
— |
|
Income taxes paid |
|
$ |
— |
|
|
$ |
— |
|
Non-Cash Financing
Activities: |
|
|
|
|
|
|
|
|
Accumulated preferred stock dividend |
|
$ |
691,711 |
|
|
$ |
735,149 |
|
Conversion of Series A preferred stock to common stock and common
stock issued for payment of Series A dividend |
|
$ |
36 |
|
|
$ |
— |
|
Common stock issued pursuant to RSUs |
|
$ |
188 |
|
|
$ |
— |
|
Common stock issued to directors and consultants for services |
|
$ |
44 |
|
|
$ |
— |
|
Exchanges of preferred stock Series A and B to common stock |
|
$ |
3,330 |
|
|
$ |
— |
|
Payment of accrued liabilities with common stock |
|
$ |
69,690 |
|
|
$ |
17,000 |
|
|
|
|
|
|
|
|
|
|
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