“We also recently announced that we received a patent grant from the Korean Intellectual Property Office related to one of the embodiments of our fuel assembly design incorporating metallic fuel rods. This new patent is the latest addition to our growing intellectual property portfolio. Our technology is patented in major markets around the world including the U.S.,
“Our fuel is designed for existing and new reactors, improving their economics by increasing power output and enabling longer fuel cycles. The market for pressurized water reactors, boiling water reactors, and pressurized heavy water reactors includes over 350 reactors worldwide. The average annual fuel spend per reactor, per year is approximately
RECENT RESEARCH AND DEVELOPMENT ADVANCEMENTS
- Demonstrated co-extrusion manufacturing process using surrogate materials to full commercial length for large light water reactors (12-ft long), as well as for small modular reactors (6-ft long). The surrogate materials were designed to simulate the flow stresses, temperatures and extrusion pressures expected in the manufacture of the Lightbridge Fuel™ rods utilizing a uranium-zirconium alloy.
- Defined lead test rod (LTR) high-level design requirements. This is key input for the technical scope of an LTR contract with a host utility.
- Completed critical heat flux (CHF) performance evaluation of the LTR. CHF is a critical element of thermal-hydraulic design and safety evaluations.
- Completed neutronics analysis of baseline fuel assembly behavior. This is a necessary step before a neutronics analysis of the entire core can be performed.
- Cash and cash equivalents were
$20.6 millionat September 30, 2019compared to $24.6 millionat December 31, 2018.
- Total assets were
$23.0 millionat September 30, 2019and total liabilities were $1.7 millionat September 30, 2019.
- Total equity offerings raised
$0.8 millionin net proceeds for the three months ended September 30, 2019 compared to net proceeds of $1.7 millionfor the three months ended September 30, 2018.
- Total investment made in the Enfission joint venture, used primarily for research and development work conducted by Enfission for the nine months ended
September 30, 2019, was $3.5 millioncompared to $5.2 million for the nine months ended September 30, 2018. This Enfission joint venture was formed in January 2018.
- Stockholders’ equity was
$21.4 millionat September 30, 2019compared to $25.9 millionat December 31, 2018.
- General and administration expenses for the three months ended September 30, 2019 were
$1.5 million compared to $1.9 million for the three months ended September 30, 2018.
- Other operating expenses were
$0.3 millionfor the three months ended September 30, 2019, consisting of our equity in the loss from the Enfission joint venture of $0.5 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. Other operating expenses were $1.5 million for the three months ended September 30, 2018, consisting of our equity in loss from the Enfission joint venture of $1.7 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 the three months ended September 30, 2019 were $0.8 million compared to $0.9 million for the three months ended September 30, 2018.
- Net loss was
$2.4 millionfor the three months ended September 30, 2019 compared to $4.2 million for the three months ended September 30, 2018.
October 21, 2019, we conducted a one-for-twelve reverse stock split of our issued and outstanding common stock and have retroactively adjusted our common shares outstanding.
2019 Third Quarter Conference Call
Interested parties can access the conference call by calling 844-369-8774 for U.S. callers, or +1-862-298-0844 for international callers. The call will be available on the Company’s website via webcast at http://ir.ltbridge.com/events.cfm. The conference call will be led by
A webcast will also be archived on the Company’s website and a telephone replay of the call will be available approximately one hour following the call, through
Forward Looking Statements
With the exception of historical matters, the matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the timing and outcome of research and development activities and other steps to commercialization of Lightbridge Fuel™, the Company's entry into a commercial utility agreement, and the Company's anticipated financial resources and position. These statements are based on current expectations on the date of this news release and involve a number of risks and uncertainties that may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company's product and service offerings; market competition; dependence on strategic partners; demand for fuel for nuclear reactors; the Company's ability to manage its business effectively in a rapidly evolving market; as well as other factors described in
Investor Relations Contact:
Tel. +1 855-379-9900
*** tables follow ***
Unaudited Condensed Consolidated Balance Sheets
|September 30,||December 31,|
|Cash and cash equivalents||$||20,581,978||$||24,637,295|
|Other receivable from joint venture||633,408||93,253|
|Prepaid expenses and other current assets||97,033||36,745|
|Total Current Assets||21,312,419||24,767,293|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued liabilities||$||1,195,892||$||258,056|
|Investee losses in excess of investment||490,726||218,263|
|Total Current Liabilities||1,686,618||476,319|
|Commitments and contingencies|
|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 September 30, 2019 and December 31, 2018, respectively (liquidation preference $2,687,461 and $2,640,862 at September 30, 2019 and December 31, 2018, respectively)||785||813|
|Convertible Series B preferred shares, 2,666,667 shares issued and outstanding at September 30, 2019 and December 31, 2018 (liquidation preference $4,490,594 and $4,262,855 at September 30, 2019 and December 31, 2018, respectively)||2,667||2,667|
|Common stock, $0.001 par value, 8,333,333 authorized, 3,249,353 shares and 2,738,508 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively||3,249||2,738|
|Additional paid-in capital||133,701,433||129,359,799|
|Total Stockholders' Equity||21,351,654||25,868,395|
|Total Liabilities and Stockholders' Equity||$||23,038,272||$||26,344,714|
Unaudited Condensed Consolidated Statements of Operations
|Three Months Ended
|Nine Months Ended
|General and administrative||1,463,568||1,889,401||4,051,484||5,566,022|
|Research and development||751,473||864,060||2,218,826||2,313,124|
|Total Operating Expenses||2,215,041||2,753,461||6,270,310||7,879,146|
|Other Operating Income and (Loss)|
|Other income from joint venture||247,568||203,180||908,224||790,554|
|Equity in loss from joint venture||(555,113||)||(1,743,340||)||(3,812,463||)||(4,545,112||)|
|Total Other Operating Income and (Loss)||(307,545||)||(1,540,160||)||(2,904,239||)||(3,754,558||)|
|Other Income and (Expenses)|
|Total Other Income and (Expenses)||81,172||79,035||315,691||(819,382||)|
|Loss before income taxes||(2,441,414||)||(4,214,586||)||(8,858,858||)||(12,453,086||)|
|Accumulated preferred stock dividend||(123,455||)||(119,000||)||(365,973||)||(333,667||)|
|Deemed additional dividend on preferred stock dividend due to the beneficial conversion feature||(53,047||)||(49,373||)||(156,232||)||(135,053||)|
|Deemed dividend on issuance on Series B convertible preferred stock due to the beneficial conversion feature||—||—||—||(2,624,836||)|
|Net loss attributable to common stockholders||(2,617,916||)||(4,382,959||)||(9,381,063||)||(15,546,642||)|
|Net Loss Per Common Share, Basic and Diluted||$||(0.81||)||$||(1.78||)||$||(3.07||)||$||(7.51||)|
|Weighted Average Number of Common Shares Outstanding||3,222,226||2,458,899||3,058,797||2,070,934|
Unaudited Condensed Consolidated Statements of Cash Flows
|Nine Months Ended|
|Adjustments to reconcile net loss from operations to net cash used in operating activities|
|Write off of deferred financing costs||—||982,436|
|Equity in loss from joint venture||3,812,463||4,545,112|
|Changes in operating working capital items|
|Accounts receivable - fees and reimbursable project costs||—||10,400|
|Other receivable from joint venture||(540,155||)||(521,272||)|
|Prepaid expenses and other current assets||(60,288||)||(51,134||)|
|Accounts payable and accrued liabilities||937,836||237,914|
|Net Cash Used in Operating Activities||(4,117,339||)||(5,298,236||)|
|Investment in joint venture||(3,540,000||)||(5,217,000||)|
|Net Cash Used in Investing Activities||(3,688,432||)||(5,389,189||)|
|Net proceeds from the issuance of common stock||3,750,454||27,600,675|
|Net proceeds from the issuance of preferred stock||—||3,900,001|
|Net Cash Provided by Financing Activities||3,750,454||31,500,676|
|Net (Decrease) Increase in Cash and Cash Equivalents||(4,055,317||)||20,813,251|
|Cash and Cash Equivalents, Beginning of Period||24,637,295||4,515,398|
|Cash and Cash Equivalents, End of Period||$||20,581,978||$||25,328,649|
|Supplemental Disclosure of Cash Flow Information|
|Cash paid during the period|
|Income taxes paid||$||—||$||—|
|Non-Cash Financing Activity|
|Deemed dividend on issuance Series B convertible preferred stock due to the beneficial conversion feature||$||—||$||2,624,836|
|Accumulated preferred stock dividend||$||522,205||$||333,667|
|Conversion of Series A convertible preferred stock to common stock and payment of paid-in-kind dividends to Series A preferred stockholder||$||91,635||$||207|
Source: Lightbridge Corporation