Lightbridge Reports Financial Results for the Second Quarter of 2019 and Provides Business Update on Enfission and Other Deve...
August 07 2019 - 4:05PM
Lightbridge Corporation (NASDAQ: LTBR), a nuclear fuel developer,
today provided a business update and reported financial results for
the second quarter ended June 30, 2019.
Seth Grae, President & Chief Executive Officer of
Lightbridge Corporation, commented, “We continue to work towards
major near-term milestones, including production of
commercial-length fuel rods with surrogate materials, as well as a
contract with a major US nuclear utility for a Lead Test Rod
program. While this commercial contract with a utility is taking
longer than expected, we continue to advance the process and
solidify our collaboration goals. Our Enfission GENESIS project
recently received via Framatome, our partner in Enfission, its
first specific funding award from DOE, through a Gateway for
Accelerated Innovation in Nuclear (GAIN) voucher. This voucher
enables Framatome to apply focused attention on key licensing steps
to commercialize Lightbridge Fuel.”
“We are also gaining attention at the strategic level. In May,
we announced that we entered into a Memorandum of Understanding
with NuScale Power, which is developing the country’s first small
modular reactor, to develop research and testing programs in order
to explore the application of our nuclear fuel technology, which is
well suited for NuScale’s natural circulation design. Our advanced
fuel design is expected to increase core performance, extend core
life, reduce refueling outages and offer reduced levelized cost of
electricity. We look forward to finalizing a definitive agreement
with NuScale Power and contributing to optimizing their advanced
nuclear reactor design.”
“We continue to expand our intellectual property portfolio as we
advance towards commercialization. In June, we received a
Notice of Allowance for a new patent related to our innovative
metallic fuel rod and fuel assembly under the Eurasian Patent
Convention, which includes Russia and other territories across
Eurasia. More recently, Europe and Eurasia awarded us patents for a
fuel assembly design incorporating multi-lobe metallic fuel rods
for use in CANDU heavy water reactors, which follow similar patents
the United States and China awarded to us. In addition to inherent
economic and safety benefits, our 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.”
RECENT RESEARCH AND DEVELOPMENT
ADVANCEMENTS
- Completed preliminary U-Zr casting studies to support
fabrication process specifications
- Completed non-destructive examination (NDE) strategy for fuel
rod inspection and quality control
- Completed parametric neutronics studies to optimize Lightbridge
Fuel™ rod geometry
- Completed ANSYS model for fuel rod geometry optimization
studies
Financial Highlights
- Cash and cash equivalents were $21.0 million at June 30, 2019
compared to $24.6 million at December 31, 2018.
- Total assets were $23.4 million at June 30, 2019 and total
liabilities were $0.5 million at June 30, 2019.
- Total equity offerings raised $2.9 million in net proceeds for
Q2 2019 compared to net proceeds of $29.8 million for Q2 2018.
- Total investment made in the Enfission joint venture, used
primarily for research and development work conducted by Enfission
in Q2 2019, was $3.5 million compared to $5.2 million for Q2
2018. This Enfission joint venture was formed in January 2018.
- Stockholders’ equity was $22.9 million at June 30, 2019
compared to $25.9 million at December 31, 2018.
- General and administration expenses for Q2 2019 were $1.2
million compared to $1.4 million for the Q2 2018. There was a
decrease in professional fees of approximately $0.2 million due to
a decrease in accounting and other professional fees.
- Other operating expenses were $1.7 million for Q2 2019,
consisting of our equity in the loss from the Enfission joint
venture of $2.0 million, which consisted primarily of research and
development expenses, offset by our income from the research and
development support we provided to Enfission of $0.3 million. Other
operating expenses were $1.6 million for Q2 2018, consisting of our
equity in loss from the Enfission joint venture of $1.8 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
Q2 2019 were $0.5 million compared to $0.5 million for Q2
2018.
- Net loss was $3.3 million for Q2 2019 compared to $3.5 million
for Q2 2018.
2019 Second Quarter Conference
Call
Lightbridge will host a conference call on
Thursday, August 8th at 3:00 p.m. Eastern Time to discuss the
company's financial results for the second quarter ending June 30,
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 3:00 p.m. on
September 9, 2019, and can be accessed by calling: 877-481-4010
(U.S. callers) or +1-919-882-2331 (international callers) and
entering conference ID: 50549.
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
|
|
June 30, |
|
December 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
20,975,684 |
|
$ |
24,637,295 |
|
Other receivable from joint venture |
|
|
507,274 |
|
|
93,253 |
|
Prepaid expenses and other current assets |
|
|
154,804 |
|
|
36,745 |
|
Total Current Assets |
|
|
21,637,762 |
|
|
24,767,293 |
|
|
|
|
|
|
|
|
Investment in Joint Venture |
|
|
64,387 |
|
|
— |
|
Patent costs |
|
|
1,706,192 |
|
|
1,577,421 |
|
Total Assets |
|
$ |
23,408,341 |
|
$ |
26,344,714 |
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
468,706 |
|
$ |
258,056 |
|
Investee losses in excess of investment |
|
|
— |
|
|
218,263 |
|
Total Current Liabilities |
|
$ |
468,706 |
|
$ |
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, 785,877 shares and 813,624
shares issued and outstanding at June 30, 2019 and December 31,
2018, respectively (liquidation preference $2,641,239 and
$2,640,862 at June 30, 2019 and December 31, 2018,
respectively) |
|
|
785 |
|
|
813 |
|
Convertible Series B preferred shares, 2,666,667 shares issued and
outstanding at June 30, 2019 and December 31, 2018 (liquidation
preference $4,413,361 and $4,262,855 at June 30, 2019 and December
31, 2018, respectively) |
|
|
2,667 |
|
|
2,667 |
|
Common stock, $0.001 par value, 100,000,000 authorized, 37,605,914
shares and 32,862,090 shares issued and outstanding as of June 30,
2019 and December 31, 2018, respectively |
|
|
37,606 |
|
|
32,863 |
|
Additional paid-in capital |
|
|
132,813,643 |
|
|
129,329,674 |
|
Accumulated deficit |
|
|
(109,915,066 |
) |
|
(103,497,622 |
) |
Total Stockholders' Equity |
|
$ |
22,939,635 |
|
$ |
25,868,395 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
23,408,341 |
|
$ |
26,344,714 |
|
Lightbridge
CorporationUnaudited Condensed Consolidated
Statements of Operations
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenue |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
General and administrative |
|
1,230,154 |
|
|
1,453,030 |
|
|
2,587,916 |
|
|
3,676,620 |
|
|
Research and development |
|
545,118 |
|
|
538,031 |
|
|
1,467,353 |
|
|
1,449,065 |
|
Total Operating
Expenses |
|
1,775,272 |
|
|
1,991,061 |
|
|
4,055,269 |
|
|
5,125,685 |
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Income and (Loss) |
|
|
|
|
|
|
|
|
|
Other income from joint
venture |
|
305,375 |
|
|
187,031 |
|
|
660,656 |
|
|
587,374 |
|
|
Equity in loss from joint
venture |
|
(1,962,318 |
) |
|
(1,773,445 |
) |
|
(3,257,350 |
) |
|
(2,801,772 |
) |
Total Other
Operating Income and (Loss) |
|
(1,656,943 |
) |
|
(1,586,414 |
) |
|
(2,596,694 |
) |
|
(2,214,398 |
) |
Operating
Loss |
|
(3,432,215 |
) |
|
(3,577,475 |
) |
|
(6,651,963 |
) |
|
(7,340,083 |
) |
|
|
|
|
|
|
|
|
|
|
Other Income and
(Expenses) |
|
|
|
|
|
|
|
|
|
Interest income |
|
125,298 |
|
|
60,462 |
|
|
234,519 |
|
|
84,019 |
|
|
Financing costs |
|
— |
|
|
— |
|
|
— |
|
|
(982,436 |
) |
Total Other Income
and (Expenses) |
|
125,298 |
|
|
60,462 |
|
|
234,519 |
|
|
(898,417 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes |
|
(3,306,917 |
) |
|
(3,517,013 |
) |
|
(6,417,444 |
) |
|
(8,238,500 |
) |
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net loss |
$ |
(3,306,917 |
) |
$ |
(3,517,013 |
) |
$ |
(6,417 ,444 |
) |
$ |
(8,238,500 |
) |
|
|
|
|
|
|
|
|
|
|
Accumulated preferred
stock dividend |
|
(121,703 |
) |
|
(119,000 |
) |
|
(242,518 |
) |
|
(214,667 |
) |
Deemed additional
dividend on preferred stock dividend due the beneficial conversion
feature |
|
(51,814 |
) |
|
(49,373 |
) |
|
(103,185 |
) |
|
(85,680 |
) |
Deemed dividend on
issuance on Series B convertible preferred stock due to beneficial
conversion feature |
|
— |
|
|
— |
|
|
— |
|
|
(2,624,836 |
) |
Net loss attributable
to common stockholders |
|
(3,480,434 |
) |
|
(3,685,386 |
) |
|
(6,763,147 |
) |
|
(11,163,683 |
) |
Net Loss Per
Common Share, Basic and Diluted |
$ |
(0.09 |
) |
$ |
(0.14 |
) |
$ |
(0.19 |
) |
$ |
(0.50 |
) |
Weighted Average
Number of Common Shares Outstanding |
|
36,774,571 |
|
|
25,702,352 |
|
|
35,708,731 |
|
|
22,484,840 |
|
|
|
|
|
|
|
|
|
|
|
Lightbridge
CorporationUnaudited Condensed Consolidated
Statements of Cash Flows
|
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
|
|
|
2019 |
|
|
2018 |
|
|
Operating
Activities |
|
|
|
|
|
|
Net Loss |
$ |
(6,417,444 |
) |
$ |
(8,238,500 |
) |
|
Adjustments to
reconcile net loss from operations to net cash used in operating
activities: |
|
|
|
|
|
|
Stock-based compensation |
|
572,285 |
|
|
1,421,745 |
|
|
|
Write off of deferred
financing costs |
|
— |
|
|
982,436 |
|
|
|
Equity in loss from joint
venture |
|
3,257,350 |
|
|
2,801,772 |
|
|
Changes in
operating working capital items: |
|
|
|
|
|
|
Accounts receivable - fees and
reimbursable project costs |
|
— |
|
|
10,400 |
|
|
|
Other receivable from joint
venture |
|
(414,021 |
) |
|
(414,957 |
) |
|
|
Prepaid expenses and other
current assets |
|
(118,059 |
) |
|
(37,794 |
) |
|
|
Accounts payable and accrued
liabilities |
|
210,650 |
|
|
254,131 |
|
|
Net Cash Used in
Operating Activities |
|
(2,909,239 |
) |
|
(3,220,767 |
) |
|
|
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
|
|
Investment in joint
venture |
|
(3,540,000 |
) |
|
(5,217,000 |
) |
|
|
Patent costs |
|
(128,771 |
) |
|
(138,980 |
) |
|
Net Cash Used in
Investing Activities |
|
(3,668,771 |
) |
|
(5,355,980 |
) |
|
|
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
|
|
Net proceeds from the issuance
of common stock |
|
2,916,399 |
|
|
25,868,716 |
|
|
|
Net proceeds from the issuance
of preferred stock |
|
— |
|
|
3,900,001 |
|
|
Net Cash Provided
by Financing Activities |
|
2,916,399 |
|
|
29,768,717 |
|
|
|
|
|
|
|
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents |
|
(3,661,611 |
) |
|
21,191,970 |
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, Beginning of Period |
|
24,637,295 |
|
|
4,515,398 |
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents, End of Period |
$ |
20,975,684 |
|
$ |
25,707,368 |
|
|
|
|
|
|
|
|
|
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 beneficial conversion
feature |
$ |
— |
|
$ |
2,624,836 |
|
|
|
Accumulated preferred stock
dividend |
$ |
345,703 |
|
$ |
214,667 |
|
|
|
Conversion of Series A
convertible preferred stock to common stock and payment of
paid-in-kind dividends to Series A preferred stockholder |
$ |
91,635 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
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