Lightbridge Corporation
(NASDAQ:LTBR), a U.S. nuclear fuel technology company, today
provided a business update and reported financial results for the
second quarter ended June 30, 2017.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “We are making
continued progress towards establishing a formal joint venture
agreement with AREVA to develop, manufacture and commercialize fuel
assemblies based on our innovative fuel technology. Due to
international legal and regulatory complexities of this
transaction, finalizing this agreement has taken longer than
expected. However, over the past six months, we have successfully
resolved the most difficult and complex issues and the remaining
steps should be fairly straightforward. Our current plan is to sign
the JV Operating Agreement in Q-4 2017 and launch the JV in early
January 2018. As the leading nuclear supplier company in the world,
AREVA brings unparalleled technical and manufacturing expertise, as
well an established global customer base.”
“We also continue to expand our intellectual
property protection. Most recently, we announced a Notice of
Allowance in South Korea from the Korean Intellectual Property
Office for a key divisional patent covering Lightbridge’s
innovative metallic fuel assembly design for Western-type
pressurized water reactors incorporating four-lobe, helically
twisted metallic fuel rods and a proprietary manufacturing method
for metallic fuel rods using powder metallurgy. In May, we received
another key patent covering a tri-lobe variant of our extruded
metallic fuel rods used in Russian-type VVER reactors, which are
the dominant type of reactors currently under construction
worldwide.”
“Finally, we continue to work closely with a
leading U.S. nuclear utility toward formalizing an end-user
agreement for the first use of Lightbridge-designed nuclear fuel in
a commercial reactor in the United States. Overall, feedback from
the industry has been extremely positive, due to a unique
combination of both the economic and safety benefits of our fuel
for existing or new-build reactors, which cannot be matched by any
fuels currently in use or under consideration. Moreover, we have
advanced our fuel without government subsidies, which reinforces
the standalone commercial potential and industry support for our
fuel.”
Highlights
Balance Sheet Overview
At June 30, 2017, we had approximately $4.1
million in cash and restricted cash compared to approximately $3.7
million in cash and restricted cash at December 31, 2016. The $0.4
million increase in cash and equivalents resulted from the sale of
approximately $3.0 million of our common stock during the six
months ended June 30, 2017, offset by net cash used in operating
activities of $2.5 million and cash used in investing activities of
approximately $0.1 million. We used cash during the six months
ended June 30, 2017 primarily to fund our general and
administrative expenses and for research and development. We had
approximately $3.7 million in working capital at June 30, 2017 as
compared to working capital of approximately $3.4 million at
December 31, 2016. Stockholders' equity at June 30, 2017 was
approximately $5.7 million compared to stockholders’ equity of
approximately $5.6 million at December 31, 2016.
Operating Results – Second Quarter of
Fiscal 2017 Compared to Second Quarter of Fiscal 2016For
the second quarter ended June 30, 2017, net loss attributable to
common shareholders was approximately $1.7 million, or a loss of
$0.17 per share, on revenue of $0.01 million. In the same quarter
of 2016, the net loss attributable to common shareholders was $1.3
million, or loss of $0.30 per share, on revenue of $0.1 million.
All revenue was generated from consulting services. Stock-based
compensation expense was $0.4 million for the six
months ended June 30, 2017 compared to $0.6 million for the
six months ended June 30, 2016. For the six months ended June 30,
2017, the Company’s cash flows used in operating activities were
$2.5 million versus $2.4 million used in operating activities for
the same period of 2016. The cash was used primarily to fund
general and administrative expenses and for research and
development.
2017 Second Quarter Conference
Call
Lightbridge will host a conference call on
Wednesday, August 9, 2017 at 11:00 a.m. Eastern Time to discuss the
company's financial results for the second quarter ending June 30,
2017, as well as the Company's corporate progress and other
meaningful developments. Interested parties can access the
conference call by calling 866-682-6100 for U.S. callers, or
+1-862-255-5401 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
midnight September 9, 2017, and can be accessed by calling:
877-481-4010 (U.S. callers) or +1-919-882-2331 (international
callers) and entering conference ID: 19144.
About Non-GAAP Financial
Measures
This press release contains non-GAAP financial
measures for earnings that exclude warrant revaluation income. Net
income excluding warrant revaluation income is not a measure of
performance calculated in accordance with generally accepted
accounting principles in the United States (“GAAP”). The Company
believes the presentation of net loss excluding warrant revaluation
income is relevant and useful by enhancing the readers’ ability to
understand the Company’s operating performance. The Company’s
management utilizes net loss excluding warrant revaluation income
as a means to measure operating performance. The table below
reconciles net (loss) excluding revaluation income, a non-GAAP
measure, to net loss for the three months ended June 30, 2017 and
2016.
(in millions)
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2017 |
|
|
2016 |
|
Net
loss attributable to common stockholders |
|
$ |
(1.7 |
) |
|
$ |
(1.3 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Warrant revaluation income |
|
|
0 |
|
|
|
0.3 |
|
Net
Loss attributable to common stockholders, excluding warrant
revaluation income |
|
$ |
(1.7 |
) |
|
$ |
(1.6 |
) |
About Lightbridge
Corporation
Lightbridge (NASDAQ:LTBR) is a nuclear fuel
technology company based in Reston, Virginia, USA. The Company
develops proprietary next generation nuclear fuel technologies for
current and future reactors. The technology significantly enhances
the economics and safety of nuclear power, operating about 1000° C
cooler than standard fuel. Lightbridge invented, patented and has
independently validated the technology, including successful
demonstration of the fuel in a research reactor with near-term
plans to demonstrate the fuel under commercial reactor conditions.
The Company has assembled a world class development team including
veterans of leading global fuel manufacturers. Four large electric
utilities that generate about half the nuclear power in the US
already advise Lightbridge on fuel development and deployment. The
Company operates under a licensing and royalty model, independently
validated and based on the increased power generated by
Lightbridge-designed fuel and high ROI for operators of existing
and new reactors. The economic benefits are further enhanced by
anticipated carbon credits available under the Clean Power Plan.
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 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,
progress and potential challenges relating to the Company’s entry
into a formal joint venture agreement with AREVA, Company’s entry
into an end-user agreement with a leading U.S. nuclear utility and
the timing thereof, and the expected market for the Company's
product and service offerings.
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.
Lightbridge Corporation
Condensed Consolidated Balance Sheets |
|
|
June 30, |
|
|
|
|
|
|
2017 |
|
|
December 31, |
|
|
|
(Unaudited) |
|
|
2016 |
|
ASSETS |
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,992,160 |
|
|
$ |
3,584,877 |
|
Restricted cash |
|
|
114,059 |
|
|
|
114,012 |
|
Accounts receivable - project revenue and reimbursable project
costs |
|
|
10,889 |
|
|
|
388,434 |
|
Prepaid expenses and other current assets |
|
|
131,317 |
|
|
|
80,933 |
|
Deferred financing costs, net |
|
|
491,168 |
|
|
|
491,168 |
|
Total Current Assets |
|
|
4,739,593 |
|
|
|
4,659,424 |
|
Other Assets |
|
|
|
|
|
|
|
|
Patent costs |
|
|
1,275,637 |
|
|
|
1,160,465 |
|
Deferred financing costs, net |
|
|
736,877 |
|
|
|
982,486 |
|
Total Other Assets |
|
|
2,012,514 |
|
|
|
2,142,951 |
|
Total Assets |
|
$ |
6,752,107 |
|
|
$ |
6,802,375 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
1,002,339 |
|
|
$ |
1,216,321 |
|
Total Current Liabilities |
|
|
1,002,339 |
|
|
|
1,216,321 |
|
Long-Term Liabilities |
|
|
|
|
|
|
|
|
Deferred lease abandonment liability |
|
|
- |
|
|
|
28,464 |
|
Total Liabilities |
|
|
1,002,339 |
|
|
|
1,244,785 |
|
Commitments and Contingencies - Note 4 |
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares, convertible Series A preferred shares, 1,020,000
shares issued and outstanding at June 30, 2017 and December 31,
2016. |
|
|
1,020 |
|
|
|
1,020 |
|
Common stock, $0.001 par value, 100,000,000
authorized, 9,911,864 shares and 7,112,143 shares issued and
outstanding as of June 30, 2017 and December 31, 2016,
respectively |
|
|
9,912 |
|
|
|
7,112 |
|
Additional paid-in capital |
|
|
89,838,423 |
|
|
|
86,266,075 |
|
Accumulated deficit |
|
|
(84,099,587 |
) |
|
|
(80,716,617 |
) |
Total Stockholders' Equity |
|
|
5,749,768 |
|
|
|
5,557,590 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
6,752,107 |
|
|
$ |
6,802,375 |
|
Lightbridge CorporationUnaudited
Condensed Consolidated Statements of Operations |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Consulting Revenue |
|
$ |
14,425 |
|
|
$ |
122,377 |
|
|
$ |
149,910 |
|
|
$ |
288,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of Consulting Services Provided |
|
|
4,300 |
|
|
|
62,137 |
|
|
|
89,663 |
|
|
|
130,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin |
|
|
10,125 |
|
|
|
60,240 |
|
|
|
60,247 |
|
|
|
158,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
971,290 |
|
|
|
1,112,582 |
|
|
|
2,179,592 |
|
|
|
2,208,694 |
|
Research and development |
|
|
545,644 |
|
|
|
419,498 |
|
|
|
1,009,987 |
|
|
|
1,005,748 |
|
Total
Operating Expenses |
|
|
1,516,934 |
|
|
|
1,532,080 |
|
|
|
3,189,579 |
|
|
|
3,214,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
(1,506,809 |
) |
|
|
(1,471,840 |
) |
|
|
(3,129,332 |
) |
|
|
(3,055,881 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income and (Expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant revaluation |
|
|
- |
|
|
|
311,645 |
|
|
|
- |
|
|
|
1,565,499 |
|
Warrant modification expense |
|
|
- |
|
|
|
(129,369 |
) |
|
|
- |
|
|
|
(129,369 |
) |
Financing costs |
|
|
(130,877 |
) |
|
|
- |
|
|
|
(253,681 |
) |
|
|
- |
|
Investment income |
|
|
23 |
|
|
|
274 |
|
|
|
47 |
|
|
|
274 |
|
Other income (expenses) |
|
|
- |
|
|
|
(7,915 |
) |
|
|
- |
|
|
|
(12,434 |
) |
Total
Other Income and (Expenses) |
|
|
(130,854 |
) |
|
|
174,635 |
|
|
|
(253,634 |
) |
|
|
1,423,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss before income taxes |
|
|
(1,637,663 |
) |
|
|
(1,297,205 |
) |
|
|
(3,382,966 |
) |
|
|
(1,631,911 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(1,637,663 |
) |
|
$ |
(1,297,205 |
) |
|
$ |
(3,382,966 |
) |
|
$ |
(1,631,911 |
) |
Accumulated preferred stock dividend |
|
|
(49,000 |
) |
|
|
- |
|
|
|
(98,000 |
) |
|
|
- |
|
Net loss attributable to common stockholders |
|
|
(1,686,663 |
) |
|
|
(1,297,205 |
) |
|
|
(3,480,966 |
) |
|
|
(1,631,911 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss Per Common Share, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Common Shares Outstanding |
|
|
9,911,864 |
|
|
|
4,273,031 |
|
|
|
9,524,939 |
|
|
|
4,074,104 |
|
Lightbridge CorporationUnaudited
Condensed Consolidated Statements of Cash Flows |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
|
2017 |
|
|
2016 |
|
Operating Activities: |
|
|
|
|
|
|
Net Loss |
|
$ |
(3,382,966 |
) |
|
$ |
(1,631,911 |
) |
Adjustments to reconcile net loss from operations to net cash used
in operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
427,880 |
|
|
|
550,552 |
|
Amortization of deferred financing costs |
|
|
245,609 |
|
|
|
- |
|
Warrant revaluation |
|
|
- |
|
|
|
(1,565,499 |
) |
Warrant modification expense |
|
|
- |
|
|
|
129,369 |
|
Changes in operating working capital items: |
|
|
|
|
|
|
|
|
Accounts receivable - fees and reimbursable project costs |
|
|
377,545 |
|
|
|
70,101 |
|
Prepaid expenses and other assets |
|
|
(50,384 |
) |
|
|
(21,482 |
) |
Accounts payable and accrued liabilities |
|
|
(48,540 |
) |
|
|
231,516 |
|
Deferred lease abandonment liability |
|
|
(72,186 |
) |
|
|
(154,141 |
) |
Net
Cash Used in Operating Activities |
|
|
(2,503,042 |
) |
|
|
(2,391,495 |
) |
|
|
|
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Patent costs |
|
|
(115,172 |
) |
|
|
(97,924 |
) |
Net
Cash Used in Investing Activities |
|
|
(115,172 |
) |
|
|
(97,924 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
|
Net proceeds from the issuance of common stock |
|
|
3,025,544 |
|
|
|
2,991,487 |
|
Proceeds from the issuance of note payable |
|
|
- |
|
|
|
135,000 |
|
Repayment of note payable |
|
|
- |
|
|
|
(66,964 |
) |
Restricted cash |
|
|
(47 |
) |
|
|
290,811 |
|
Net
Cash Provided by Financing Activities |
|
|
3,025,497 |
|
|
|
3,350,334 |
|
|
|
|
|
|
|
|
|
|
Net
Increase in Cash and Cash Equivalents |
|
|
407,283 |
|
|
|
860,915 |
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents, Beginning of Period |
|
|
3,584,877 |
|
|
|
623,184 |
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents, End of Period |
|
$ |
3,992,160 |
|
|
$ |
1,484,099 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
|
Cash paid during the period: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
- |
|
|
$ |
1,618 |
|
Income taxes paid |
|
$ |
- |
|
|
$ |
- |
|
Non-Cash Financing Activity: |
|
|
|
|
|
|
|
|
Warrant liability |
|
$ |
- |
|
|
$ |
692,110 |
|
Accumulated preferred stock dividend |
|
$ |
98,000 |
|
|
$ |
- |
|
Decrease in accrued liabilities - stock-based compensation |
|
$ |
121,720 |
|
|
$ |
- |
|
Investor Relations Contact:
David Waldman/Natalya Rudman
Crescendo Communications, LLC
Tel. +1 855-379-9900
ltbr@crescendo-ir.com
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