Investment in Joint Venture |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 3. Investment in Joint Venture |
Pursuant to the Enfission operating agreement, both partners agreed that Enfission will serve as an exclusive vehicle to develop, license, and sell nuclear fuel assemblies based on Company-designed metallic fuel technology and other advanced nuclear fuel intellectual property licensed to Enfission by the Company and Framatome or their affiliates. The joint venture builds on the joint fuel development and regulatory licensing work under previously signed agreements initiated in March 2016.
The Enfission operating agreement provided that the Company and Framatome each hold 50% of the total issued Class A voting membership units of the joint venture. The Company's investment accounted for under the equity method consisted of the following as of September 30, 2018 (carrying amount rounded in millions):
The Company invested approximately $5.2 million in Enfission as of September 30, 2018. The cash balance in Enfission at September 30, 2018 was approximately $3.2 million. During the nine months ended September 30, 2018, Enfission incurred a loss of approximately $4.5 million, and accordingly, the Company recorded its share of the loss in investment in Enfission, in accordance with the provisions in the joint venture operating agreement, of approximately $4.5 million in the accompanying condensed consolidated statement of operations. The Company’s cash position exceeds the approximate budget for 2018 of $10 million to $12 million that it is presently contractually bound to provide to Enfission. The Company expects to continue providing additional equity contributions in 2018 and for the foreseeable future.
Summarized balance sheet information for the Company’s equity method investee Enfission as of September 30, 2018 is presented in the following table (rounded in millions):
Summarized income statement information for the Company’s equity method investee Enfission is presented in the following table for the nine-months ended September 30, 2018 (rounded in millions):
As of September 30, 2018, the total receivable due from Enfission was approximately $0.5 million, which represents consulting fees charged to Enfission and reimbursable expenses paid by Lightbridge on Enfission’s behalf. |