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Lightbridge Corporation
11710 Plaza America Drive
Suite 2000
Reston, VA 20190

 

Investor Relations: 1.855.379.9900
Main: 1.571.730.1200
ir@ltbridge.com

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Nov 12, 2018

Lightbridge Reports Financial Results for the Third Quarter of 2018 and Provides Business Update on Enfission and Other Developments

RESTON, Va., Nov. 12, 2018 (GLOBE NEWSWIRE) -- Lightbridge Corporation (NASDAQ: LTBR), a U.S. nuclear fuel technology company, today provided a business update and reported financial results for the third quarter ended September 30, 2018.  The Company also plans to host a third quarter conference call; however, the time and date have not been finalized and will be announced separately.

Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, “Enfission, our joint venture with Framatome, is making tremendous progress towards validation and commercialization of Lightbridge’s metallic nuclear fuel. During the quarter, we announced several key progress updates for Enfission. We announced that we began preparatory work at the Framatome fuel fabrication facility in Richland, Washington, which will be used to manufacture fuel assemblies for nuclear power plants based on our patented metallic fuel. We are also preparing the facility licensing package for review and approval by the U.S. Nuclear Regulatory Commission (NRC). On August 15th, we met with representatives of the NRC, where we discussed the development and regulatory licensing of Lightbridge Fuel for the U.S. market. We look forward to working closely with the NRC staff throughout the licensing process.”

ENFISSION R&D ADVANCEMENTS THIS QUARTER

  1. Fabrication:

    • Completed several studies on key fabrication steps, particularly relating to the co-extrusion process modeling, billet preparation conditions, and material flows
    • Established purchasing process for equipment
    • Continued further refinement of fabrication process steps, material flows, and equipment needs and specifications
    • Researched material properties and prepared material data manual

  2. Fuel Design:
    • Prepared product requirements document and data sheet
    • Initiated next phase of neutronics code modifications to model Lightbridge Fuel™ geometry
    • Developed 3D model for Computational Fluid Dynamics (CFD) analysis
    • Developed fuel assembly CFD model to investigate Critical Heat Flux (CHF) performance
  1. Regulatory Licensing:
    • Established regular interaction with the NRC, with the first Enfission project kickoff meeting held in August 2018
    • Continued development of fuel design limits in support of licensing activities

Balance Sheet Overview

Our balance sheet remains strong and we ended the quarter with approximately $25.3 million of cash and cash equivalents as of September 30, 2018. We had approximately $4.5 million of cash at December 31, 2017. The $20.8 million increase in cash and cash equivalents resulted from the net proceeds from the sale of approximately $27.6 million of common stock and $3.9 million of preferred stock during the nine months ended September 30, 2018. This amount of cash inflow from financing activities was offset by net cash used in operating activities of approximately $5.3 million and our cash used in investing activities, which was primarily capital contributions for our capital investment in Enfission of approximately $5.2 million in 2018. Cash used in operating activities for the nine months ended September 30, 2018 was primarily related to fund our ongoing research and development activities and general and administrative expenses. We had a working capital surplus of approximately $24.6 million. Stockholders' equity at September 30, 2018 was approximately $26.8 million compared to stockholders’ equity of approximately $5.8 million at December 31, 2017.

Operating Results – Third Quarter of Fiscal 2018 Compared to Third Quarter of Fiscal 2017

Net losses incurred for the three months ended September 30, 2018 and 2017 amounted to approximately $4.2 million and $1.7 million respectively. Total operating expenses incurred for the three months ended September 30, 2018 and 2017 amounted to approximately $2.8 million and $1.6 million respectively. For the third quarter ended September 30, 2018, total general and administrative expenses increased by $0.8 million as compared to the three months ended September 30, 2017 and total research and development expenses increased by $0.4 million for the three-months ended September 30, 2018, as compared to the three months ended September 30, 2017. The increase was primarily due to an increase in employee compensation expense and the issuance of performance-based stock options issued in 2018. Total equity in loss from our Enfission joint venture was $1.7 million, which was primarily research and development expenses.

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.

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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 Company's competitive position, the timing of demonstration testing and commercial production, the Company's entry into agreements with nuclear fuel manufacturers and the timing thereof, the potential impact of the U.S. Clean Power Plan and similar regulations, the Company's anticipated financial resources and position, the Company's product and service offerings, 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.

Investor Relations Contact:

David Waldman/Natalya Rudman
Tel. +1 855-379-9900
ir@ltbridge.com

*** tables follow ***

Lightbridge Corporation
Condensed Consolidated Balance Sheets
 
   
    September 30,     December 31,  
    2018     2017  
    (Unaudited)        
ASSETS            
Current Assets            
Cash and cash equivalents   $ 25,328,649     $ 4,515,398  
Accounts receivable - project revenue and reimbursable project costs     -       10,400  
Other receivable from joint venture     521,272       -  
Prepaid expenses and other current assets     121,201       70,067  
Deferred financing costs, net     -       491,168  
Total Current Assets     25,971,122       5,087,033  
                 
Investment in Joint Venture     671,888       -  
Other Assets                
Patent costs     1,539,881       1,367,692  
Deferred financing costs, net     -       491,268  
Total Other Assets     1,539,881       1,858,960  
Total Assets   $ 28,182,891     $ 6,945,993  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current Liabilities                
Accounts payable and accrued liabilities   $ 1,389,124     $ 1,151,210  
Total Current Liabilities     1,389,124       1,151,210  
Total Liabilities     1,389,124       1,151,210  
                 
Commitments and Contingencies – Note 5                
                 
Stockholders' Equity                
Preferred stock, $0.001 par value, 10,000,000 authorized shares:                
Convertible Series A preferred shares, 813,624 shares and 1,020,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively (liquidation preference $2,595,441 and $3,088,764 at September 30, 2018 and December 31, 2017, respectively)     813       1,020  
Convertible Series B preferred shares, 2,666,667 and 0 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively (liquidation preference $4,186,667 at September 30, 2018)     2,667       -  
Common stock, $0.001 par value, 100,000,000 authorized, 30,500,935 shares and 12,737,703 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively     30,501       12,738  
Additional paid-in capital     127,034,386       93,602,539  
Accumulated deficit     (100,274,600 )     (87,821,514 )
Total Stockholders' Equity     26,793,767       5,794,783  
Total Liabilities and Stockholders' Equity   $ 28,182,891     $ 6,945,993  
                 


Lightbridge Corporation
Unaudited Condensed Consolidated Statements of Operations
 
   
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2018     2017     2018     2017  
Revenue                        
                         
Consulting Revenue   $ -     $ 15,136     $ -     $ 165,046  
                                 
Cost of Consulting Services Provided     -       9,364       -       99,027  
                                 
Gross Margin     -       5,772       -       66,019  
                                 
Operating Expenses                                
General and administrative     1,889,401       1,149,847       5,566,022       3,329,440  
Research and development     864,060       458,663       2,313,124       1,468,650  
Total Operating Expenses     2,753,461       1,608,510       7,879,146       4,798,090  
                                 
Other Operating Income and (Loss)                                
Other income from joint venture     203,180       -       790,554       -  
Equity in loss from joint venture     (1,743,340 )     -       (4,545,112 )     -  
Total Other Operating Income and (Loss)     (1,540,160 )     -       (3,754,558       -  
                                 
Operating Loss     (4,293,621 )     (1,602,738 )     (11,633,704 )     (4,732,071 )
                                 
Other Income and (Expenses)                                
Interest income     79,035       -       163,054       -  
Financing costs     -       (130,828 )     (982,436 )     (384,509 )
Other income     -       18       -       61  
Total Other Income and (Expenses)     79,035       (130,810 )     (819,382 )     (384,448 )
                                 
Loss Before Income Taxes     (4,214,586 )     (1,733,548 )     (12,453,086 )     (5,116,519 )
                                 
Income Taxes     -       -       -       -  
                                 
Net Loss   $ (4,214,586 )   $ (1,733,548 )   $ (12,453,086 )   $ (5,116,519 )
                                 
Accumulated Preferred Stock Dividend     (119,000 )     (49,000 )     (333,667 )     (147,000 )
Deemed additional dividend on preferred stock dividend due the beneficial conversion feature     (49,373 )     -       (135,053 )     -  
Deemed dividend on issuance on Series B convertible preferred stock due to beneficial conversion feature     -       -       (2,624,836 )     -  
                                 
Net Loss Attributable to Common Stockholders     (4,382,959 )     (1,782,548 )     (15,546,642 )     (5,263,519 )
                                 
Net Loss Per Common Share, Basic and Diluted   $ (0.15 )   $ (0.16 )   $ (0.63     $ (0.53 )
                                 
Weighted Average Number of Common Shares Outstanding     29,506,791       10,836,115       24,851,212       9,968,425  
                                 


Lightbridge Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
 
   
    Nine Months Ended  
    September 30,  
    2018     2017  
Operating Activities            
Net Loss   $ (12,453,086 )   $ (5,116,519 )
Adjustments to reconcile net loss from operations to net cash used in operating activities:                
Stock-based compensation     1,951,394       598,485  
Amortization of deferred financing cost     -       368,414  
Abandonment loss     -       109,752  
Write off of deferred financing costs     982,436       -  
Equity in loss from joint venture     4,545,112       -  
                 
Changes in operating working capital items:                
  Accounts receivable - fees and reimbursable project costs     10,400       373,298  
Other receivable from joint venture     (521,272 )     -  
Prepaid expenses and other assets     (51,134 )     (16,634 )
Accounts payable and accrued liabilities     237,914       164,302  
Deferred lease abandonment liability     -       (68,726 )
Net Cash Used In Operating Activities     (5,298,236 )     (3,587,628 )
                 
Investing Activities                
Investment in joint venture     (5,217,000 )     -  
Patent costs     (172,189 )     (159,253 )
Net Cash Used In Investing Activities     (5,389,189 )     (159,253 )
                 
Financing Activities                
Net proceeds from the issuance of common stock     27,600,675       4,376,455  
Net proceeds from the issuance of preferred stock     3,900,001       -  
Restricted cash     -       (65 )
Net Cash Provided By Financing Activities     31,500,676       4,376,390  
                 
Net Increase In Cash and Cash Equivalents     20,813,251       629,509  
                 
Cash and Cash Equivalents, Beginning of Period     4,515,398       3,584,877  
                 
Cash and Cash Equivalents, End of Period   $ 25,328,649     $ 4,214,386  
                 
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   $ 333,667     $ 147,000  
Conversion of Series A convertible preferred stock to common stock and payment of paid-in-kind dividends to Series A preferred stockholder   $ 207     $ -  
Decrease in accrued liabilities - stock-based compensation   $ -     $ 121,720  
                 

 

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