Lightbridge Provides 2011 First Half
Business Update and Second Quarter Financial Results
Lightbridge Corporation (NASDAQ:
LTBR), a leading innovator of next generation nuclear fuel designs
and provider of nuclear energy consulting services to commercial and
governmental organizations, today provided a 2011 first half business update
on the progress of its nuclear fuel technology and consulting businesses
and reported financial results for the second quarter ended June 30,
2011.
"We continue to make steady
progress executing our fuel development plan, and remain on track.
We're in the midst of important initiatives on the fuel technology
side of our business, including several strategically significant
activities with Idaho National Laboratory," said Seth Grae, President and CEO of Lightbridge.
"Later this year, we're anticipating important updates on these
initiatives, which are being evaluated and financed by the US Department of
Energy."
2011 Business Update
The Company has had several tangible
developments in the 2011 first half on its pathway to commercialization,
including the following:
- In the second quarter,
Lightbridge had a positive development as Idaho National Laboratory
(INL) provided preliminary indication that the Company might be able
to eliminate the capsule irradiation testing phase of the Company's
metallic fuel samples at the Advanced Test Reactor (ATR) at INL, and
go directly to loop irradiation testing at the ATR. Loop
irradiation testing is a critical path item on Lightbridge's fuel
development program schedule, and is one of the more important fuel
qualification steps in test facilities necessary for regulatory
approval of full-scale demonstration of the Company's fuel in a
full-size commercial nuclear power plant, the so-called lead test
assembly (LTA) testing. INL will conduct an initial scoping
study to confirm the technical feasibility of performing loop
irradiation testing at the ATR, followed by a more detailed safety
analysis once technical feasibility has been confirmed in the initial
scoping study. The fund ing for these
studies comes from the US Department of Energy (DOE).
Eliminating capsule irradiations and moving up loop irradiations
to an earlier start date are expected to have a positive impact on
Lightbridge's overall fuel development schedule and offset some of the
costs in the remaining R&D spending requirements as DOE is now
expected to fund the loop irradiation testing in the ATR, provided the
testing is confirmed technically feasible. Other benefits of
eliminating the capsule irradiation phase and moving directly to loop
irradiation testing would be the ability to generate more technical
data sooner that could then be shared with nuclear utilities, fuel
fabricators and nuclear regulatory authorities. Lightbridge
anticipates confirmation from INL and DOE later this year on the feasibility
of going directly to loop irradiations.
- Idaho National Laboratory
(INL) is in the process of completing a comprehensive independent
analysis of the Lightbridge thorium-based seed and blanket technology.
As an independent reviewer, INL is funding and providing the
personnel required to complete the analysis,
which covers the metallic zirconium-uranium seed and the
thorium-uranium dioxide blanket. INL is in the process of
finalizing the report which will be submitted to DOE.
Lightbridge expects the report to be completed in the fourth
quarter of 2011 and the Company will provide an update once it becomes
publicly available.
- Lightbridge completed a
series of thermal-hydraulic and vibration testing on a semi-scale
VVER-1000 seed and blanket fuel assembly mockup in Russia.
A report with the test results is currently being finalized by
the Company's Russian partner. Lightbridge will prepare a
technical article describing the findings and submit it for
publication in a peer-reviewed technical journal later this year.
This testing is important for validation of fuel assembly
behavior under prototypic coolant flow conditions.
- Lightbridge completed a
preliminary core design for LTB17-1718� (all-uranium seed and blanket
fuel for 17% power uprates and 18-month
operating cycles) for an AREVA-designed 1,600-MWe EPR reactor.
Lightbridge is working on a core design for the Seabrook
plant that is currently in operation in New Hampshire
and that Lightbridge has selected as a reference reactor design. This
is a typical 4-loop Westinghouse-type PWR plant that is well
understood by nuclear utilities.
Mr. Grae
concluded, "We continue to expand our patent portfolio. In
April, Lightbridge was granted a Eurasian patent that covers our
thorium-based seed and blanket fuel assembly design for VVER reactors and
extends patent protection for that design in the countries that are signatories
of the Eurasian Patent Convention from 2015 to 2027. We expect to
receive official notification of patent application examination for this
fuel assembly design in the US, Europe and other
key countries later this year. In addition, we have filed new patent
applications covering our seed and blanket, and all-metal fuel technologies
for power uprates and longer fuel cycles.
On the consulting side of our business, which generated some
additional incremental revenue in the second quarter versus the 2010 second
quarter, we continue to work with existing customers and engage in
discussions with new potential customers about our services
. Following the events at Fukushima, there's a sharpened focus
on nuclear plant safety and upgrades, both trends of which will have a
tangible and measurable impact on our business."
A more detailed update on
Lightbridge's nuclear fuel technology is available in the Fuel Technology
section on the Company's web site at www.ltbridge.com.
Financial Results
Revenue for the second quarter ended June 30,
2011 increased to $2.3 million,
compared to $2.0
million for the second quarter of 2010. Operating loss
for the three months ended June 30, 2011 improved to $1.2
million, as compared to an operating loss of $2.0
million in the comparable period a year ago. The
Company's operating revenues are derived primarily from its consulting and
strategic advisory services for foreign governments planning to create or
expand electricity generation capabilities using nuclear power plants, and
are used to help fund the continuing development of the Company's nuclear
fuel technologies. Revenues are primarily generated from contracts in place
with government entities in the United Arab Emirates,
the State of Kuwait and the Gulf Cooperation
Council (GCC). The GCC is a political and economic union that
comprises the Gulf States of the Kingdom of Bahrain, State of
Kuwait, Sultanate of Oman, State of
Qatar, Kingdom
of Saudi Arabia and United Arab Emirates.
Balance Sheet Overview
As of June 30, 2011, the
Company had approximately $10.5 million in cash and cash
equivalents and marketable securities, and approximately $10.5
million of working capital, with no long term debt.
Stockholders' equity was $11.1 million on June 30,
2011 compared with $13.1 million on December
31, 2010. The total number of common shares outstanding as of
June
30, 2011 is 12,362,929.
2011 Second Quarter Conference Call
Lightbridge will host a conference
call on Wednesday,
August 10, at 11:00 AM EDT to discuss the Company's
2011 second quarter results and provide an update on recent corporate
developments. Seth
Grae, President and Chief Executive
Officer, will lead the call and additional members of the senior management
team will be available to answer questions.
About Lightbridge Corporation
Lightbridge is a US nuclear energy
company based in Tysons
Corner, Virginia with operations in Abu Dhabi, Moscow
and London.
The Company develops proprietary, proliferation resistant, next generation
nuclear fuel technologies for current and future nuclear reactor systems.
The Company also provides comprehensive advisory services for established
and emerging nuclear programs based on a philosophy of transparency,
non-proliferation, safety and operational excellence. Lightbridge's
breakthrough fuel technology is establishing new global standards for safe
and clean nuclear power and leading the way towards a sustainable energy
future. Lightbridge consultants provide integrated strategic advice and
expertise across a range of disciplines including regulatory affairs,
nuclear reactor procurement and deployment, reactor and fuel technology and
inte rnational
relations. The Company leverages those broad and integrated capabilities by
offering its services to commercial entities and governments with a need to
establish or expand nuclear industry capabilities and infrastructure.
Lightbridge is on Twitter. Sign up to
follow @LightbridgeCorp at http://twitter.com/lightbridgecorp.
Forward Looking Statement
This press release contains statements
that are forward-looking in nature, including statements regarding the
Company's competitive position and product and service offerings. These
statements are based on current expectations on the date of this press release
and involve a number of risks and uncertainties, which 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; and the Company's ability to manage its business effectively in a
rapidly evolving market. Certain of these and other risks are set forth in
more detail in "Item 1A. Risk Factors" in Lightbridge's Quarterly
Report on Form 10-Q for the quarter ended June 30, 2011.
Lightbridge does not assume any obligation to update or revise any
such forward-looking statements, whether as the r esult
of new developments or otherwise.
LIGHTBRIDGE CORPORATION
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2011
|
|
2010
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
1,294,332
|
$
|
2,373,421
|
|
Marketable securities
|
|
8,613,011
|
|
10,461,357
|
|
Restricted cash
|
|
551,190
|
|
550,283
|
|
Accounts receivable - project revenue and
reimbursable project costs
|
|
1,290,392
|
|
990,563
|
|
Prepaid expenses & other current
assets
|
|
812,635
|
|
365,261
|
|
Total Current Assets
|
|
12,561,560
|
|
14,740,885
|
|
|
|
|
|
|
|
Property Plant and Equipment �net
|
|
59,828
|
|
72,179
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
Patent costs � net
|
|
422,141
|
|
377,262
|
|
Security deposits
|
|
120,486
|
|
120,486
|
|
Total Other Assets
|
|
542,627
|
|
497,748
|
|
|
|
|
|
|
|
Total Assets
|
$
|
13,164,015
|
$
|
15,310,812
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
$
|
1,477,010
|
$
|
2,088,362
|
|
Deferred revenue
|
|
578,400
|
|
98,110
|
|
Total Liabilities
|
|
2,055,410
|
|
2,186,472
|
|
|
|
|
|
|
|
Commitments
and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000
authorized shares, no shares issued and outstanding
|
|
-
|
|
-
|
|
Common stock, $0.001 par value, 500,000,000
authorized, 12,432,588 shares issued, 12,362,929 shares outstanding and
12,430,058 shares issued, 12,345,840 shares outstanding at June 30,
2011 and December 31, 2010, respectively
|
|
12,363
|
|
12,346
|
|
Additional paid in capital - stock and stock
equivalents
|
|
70,098,180
|
|
69,370,261
|
|
Deficit
|
|
(59,087,438)
|
|
(56,286,767)
|
|
Common stock reserved for issuance, 19,226
shares and 6,451 shares at June 30, 2011 and December 31, 2010,
respectively
|
|
85,500
|
|
28,500
|
|
Total Stockholders' Equity
|
|
11,108,605
|
|
13,124,340
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
$
|
13,164,015
|
$
|
15,310,812
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
Three
Months Ended
June
30,
|
|
Six
Months Ended
June
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consulting
Revenue
|
$
|
2,292,549
|
$
|
1,962,295
|
$
|
3,870,643
|
$
|
4,361,427
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Consulting Services Provided
|
|
1,575,624
|
|
1,262,908
|
|
2,668,643
|
|
2,768,398
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
716,925
|
|
699,387
|
|
1,202,000
|
|
1,593,029
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
1,480,471
|
|
2,543,647
|
|
3,120,657
|
|
4,915,910
|
|
Research
and development expenses
|
|
539,155
|
|
158,237
|
|
1,125,795
|
|
362,980
|
|
Total Operating Expenses
|
|
2,019,626
|
|
2,701,884
|
|
4,246,452
|
|
5,278,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,302,701)
|
|
(2,002,497)
|
|
(3,044,452)
|
|
(3,685,861)
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income and (Expenses)
|
|
|
|
|
|
|
|
|
|
Investment
income
|
|
140,478
|
|
896
|
|
246,300
|
|
1,048
|
|
Other
income (expenses)
|
|
291
|
|
(1,984)
|
|
(2,519)
|
|
(2,530)
|
|
Total Other Income and Expenses
|
|
140,769
|
|
(1,088)
|
|
243,781
|
|
(1,482)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before income taxes
|
|
(1,161,932)
|
|
(2,003,585)
|
|
(2,800,671)
|
|
(3,687,343)
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
0
|
|
0
|
|
0
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(1,161,932)
|
$
|
(2,003,585)
|
$
|
(2,800,671)
|
$
|
(3,687,343)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share, Basic and diluted
|
$
|
(0.09)
|
$
|
(0.19)
|
$
|
(0.23)
|
$
|
(0.36)
|
|
Weighted Average Number of shares outstanding
|
|
12,362,929
|
|
10,296,694
|
|
12,358,117
|
|
10,232,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
June
30
|
|
|
|
2011
|
|
2010
|
|
Operating Activities:
|
|
|
|
|
|
Net Loss
|
$
|
(2,800,671)
|
$
|
(3,687,343)
|
|
Adjustments to reconcile net loss from
operations to net cash used in operating activities:
|
|
|
|
|
|
Stock based compensation
|
|
784,936
|
|
1,582,092
|
|
Depreciation
and amortization
|
|
13,914
|
|
13,416
|
|
Unrealized loss on marketable securities
|
|
(85,521)
|
|
0
|
|
Changes in non-cash operating working capital
items:
|
|
|
|
|
|
Accounts receivable - fees and reimbursable
project costs
|
|
(299,829)
|
|
1,288,432
|
|
Prepaid expenses, deferred project costs and
other assets
|
|
(447,374)
|
|
184,994
|
|
Accounts payable, accrued liabilities and other
current liabilities
|
|
(611,353)
|
|
87,766
|
|
Deferred
revenue
|
|
480,290
|
|
213,300
|
|
Net Cash Used In Operating Activities
|
|
(2,965,608)
|
|
(317,343)
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
Sales of marketable securities
|
|
1,933,867
|
|
0
|
|
Property
and equipment
|
|
(1,563)
|
|
0
|
|
Patent costs
|
|
(44,879)
|
|
(22,871)
|
|
Net Cash Provided By Investing Activities
|
|
1,887,425
|
|
(22,871)
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
Restricted
cash
|
|
(906)
|
|
388,874
|
|
Net Cash Provided by (Used In) Financing
Activities
|
|
(906)
|
|
388,874
|
|
|
|
|
|
|
|
Net Increase (Decrease) In Cash and Cash
Equivalents
|
|
(1,079,089)
|
|
48,660
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, Beginning of Period
|
|
2,373,421
|
|
3,028,791
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Period
|
$
|
1,294,332
|
$
|
3,077,451
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
|
Cash paid during the year:
|
|
|
|
|
|
Interest
paid
|
$
|
0
|
$
|
0
|
|
Income
taxes paid
|
$
|
0
|
$
|
0
|
|
|
|
|
|
|
|
Non-Cash Financing Activity
|
|
|
|
|
|
|
|
|
|
|
|
Grant of Common Stock for Payment of Accrued
Liabilities
|
$
|
0
|
$
|
703,652
|
|
|
|
|
|
|
|
|
|
SOURCE Lightbridge Corporation
|