Lightbridge Corporation Reports 2011
First Quarter Results
TYSONS CORNER, Va., May 11, 2011
/PRNewswire/ -- Lightbridge Corporation (NASDAQ: LTBR), the leading
innovator of advanced nuclear fuel designs and provider of nuclear energy
consulting services to commercial and governmental organizations, today
reported financial results for the first quarter ended March 31, 2011.
Revenue for the first quarter ended
March 31, 2011 was $1.6 million, compared to $2.4 million for the first
quarter of 2010. Operating loss for the three months ended March 31,
2011 was $1.7 million, compared to an operating loss of $1.7 million in the
comparable period a year ago. While the Company's customer base has
significantly increased, the phased approach of its work on nuclear
consulting projects resulted in a year-over-year revenue decline.
General and administrative costs decreased by $0.7 million, or 29%,
reflecting lower overhead expense. 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 all-metal and thorium nuclear fuel
design technologies. Revenues are primarily generated from contracts in
place with government ent ities
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.
"On the fuel technology front, we
have been making steady progress over the past quarter executing our fuel
development plan and remain poised to bring our next generation, all-metal
and thorium-based fuel technologies to commercialization as development
timelines remain on track," said Seth Grae,
President and CEO of Lightbridge. "In April, we signed a
memorandum of understanding with the Research Institute of Atomic Reactors
in Dimitrovgrad, Russia where the MIR research
reactor is located and where our fuel will be tested under prototypic PWR
operating conditions. Also, the thermal-hydraulic and vibration
testing on our VVER seed and blanket fuel assembly mockup is currently
underway and is expected to be completed in the next quarter. The
results of this testing will be submitted for publication in a
peer-reviewed journal. Further, Idaho National Laboratory is in the
process of completing a comprehensive independent analysis of the Lightbridge
thorium-based seed an d blanket technology. The results of the study
will be submitted to the US Department of Energy. We will provide an
update when the report is made publicly available by DOE. We also
continue to expand our patent portfolio and have filed new patent
applications over the past quarter covering our all-uranium seed and
blanket fuel technology for power uprates and
longer fuel cycles."
Mr. Grae
added, "The events at Fukushima underscore the continued emphasis on
nuclear plant contingency planning that takes into account all possible
worst-case scenarios. Lightbridge fuel designs contribute to
increased levels of nuclear safety by operating at lower temperatures and
by utilizing metallurgically-bonded cladding.
Lower fuel temperature is a key advantage if an upset condition
within the reactor were to occur. Furthermore, metallurgically-bonded
cladding prevents release of large quantities of radioactive fission
products into the coolant in case of a cladding breach. Complementing the
increased levels of nuclear safety, Lightbridge fuel designs provide
significantly improved economics to existing and new nuclear plants,
generating increased power outputs from 10 to 30 percent and longer
operating cycles."
Mr. Grae
concluded, "We will continue to pursue a commercialization strategy
targeted at generating interest in our nuclear fuel designs from major
nuclear fuel fabricators and utilities. In addition, our consulting
business continues to make important strides with the unique perspective of
delivering value adding services to countries that are most likely poised
for new civil nuclear projects. The significant expansion in
Lightbridge's customer base underscores the worldwide recognition for the
Company's nuclear services expertise."
Balance Sheet Overview
As of March 31, 2011, the Company had
approximately $11.5 million in cash and cash equivalents and marketable
securities, and approximately $11.3 million of working capital, with
no long term debt. Stockholders' equity was $11.9 million on March
31, 2011 compared with $13.1 million on December 31, 2010. The total number
of common shares outstanding as of March 31, 2011 is 12,360,516.
2011 First Quarter Conference Call
Lightbridge will host a conference
call on Wednesday, May 11 at 10 a.m. EDT to discuss the Company's 2011
first 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.
Following the conclusion of the call,
a recorded replay of the call can be accessed by visiting www.ltbridge.com.
About Lightbridge Corporation
Lightbridge is a U.S. nuclear energy
company based in Tysons Corner, VA 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 international
relations. It leverages those broad and integrated capabilities by offering
its services to commercial entities and government s 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 March 31,
2011. Lightbridge does not assume any obligation to update or revise
any such forward-looking statements, whether as the result of new
developments or otherwise.
LIGHTBRIDGE
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
March
31
|
|
|
|
|
|
2011
|
|
December 31,
|
|
|
|
(Unaudited)
|
|
2010
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
3,014,361
|
$
|
2,373,421
|
|
Marketable
securities
|
|
8,473,708
|
|
10,461,357
|
|
Restricted
cash
|
|
550,566
|
|
550,283
|
|
Accounts receivable - project
revenue and reimbursable project costs
|
|
904,966
|
|
990,563
|
|
Deferred
project costs
|
|
393,692
|
|
36,700
|
|
Prepaid expenses & other
current assets
|
|
802,179
|
|
328,561
|
|
Total Current Assets
|
|
14,139,472
|
|
14,740,885
|
|
|
|
|
|
|
|
Property Plant and Equipment �net
|
|
66,422
|
|
72,179
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
Patent costs � net
|
|
399,139
|
|
377,262
|
|
Security deposits
|
|
120,486
|
|
120,486
|
|
Total Other Assets
|
|
519,625
|
|
497,748
|
|
|
|
|
|
|
|
Total Assets
|
$
|
14,725,519
|
$
|
15,310,812
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
|
1,900,301
|
$
|
2,088,362
|
|
Deferred
revenue
|
|
935,240
|
|
98,110
|
|
Total Liabilities
|
|
2,835,541
|
|
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, 12,360,516 shares outstanding and 12,430,058 shares
issued, 12,345,840 shares outstanding at March 31,
2011 and
December 31, 2010, respectively
|
|
12,361
|
|
12,346
|
|
Additional paid in capital - stock and
stock equivalents
|
|
69,746,123
|
|
69,370,261
|
|
Deficit
|
|
(57,925,506)
|
|
(56,286,767)
|
|
Common stock reserved for issuance,
11,350 shares and 6,451 shares at
March 31, 2011 and December 31, 2010, respectively
|
|
57,000
|
|
28,500
|
|
Total Stockholders'
Equity
|
|
11,889,978
|
|
13,124,340
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity
|
$
|
14,725,519
|
$
|
15,310,812
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATION
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Three Months Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Consulting Revenue
|
$
|
1,578,094
|
$
|
2,399,132
|
|
|
|
|
|
|
|
Cost of Consulting Services
Provided
|
|
1,093,019
|
|
1,505,490
|
|
|
|
|
|
|
|
Gross Margin
|
|
485,075
|
|
893,642
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
|
General and administrative
|
|
1,727,186
|
|
2,372,263
|
|
Research and development expenses
|
|
499,640
|
|
204,743
|
|
Total Operating Expenses
|
|
2,226,826
|
|
2,577,006
|
|
|
|
|
|
|
|
Operating loss
|
|
(1,741,751)
|
|
(1,683,364)
|
|
|
|
|
|
|
|
Other
Income and (Expenses)
|
|
|
|
|
|
Investment income
|
|
105,822
|
|
152
|
|
Other expenses
|
|
(2,810)
|
|
(546)
|
|
Total Other Income and Expenses
|
|
103,012
|
|
(394)
|
|
|
|
|
|
|
|
Net loss before income taxes
|
|
(1,638,739)
|
|
(1,683,758)
|
|
|
|
|
|
|
|
Income
taxes
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Net loss
|
$
|
(1,638,739)
|
$
|
(1,683,758)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share, Basic and
diluted
|
$
|
(0.13)
|
$
|
(0.17)
|
|
Weighted Average Number of shares
outstanding
|
|
12,353,251
|
|
10,168,412
|
|
|
|
|
|
|
|
|
|
LIGHTBRIDGE
CORPORATION
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Three Months Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
Operating Activities:
|
|
|
|
|
|
Net Loss
|
$
|
(1,638,739)
|
$
|
(1,683,758)
|
|
Adjustments to reconcile net loss from
operations to net cash used in
operating activities:
|
|
|
|
|
|
Stock based
compensation
|
|
404,377
|
|
859,576
|
|
Depreciation
and amortization
|
|
7,297
|
|
6,951
|
|
Unrealized loss on marketable securities
|
|
37,756
|
|
-
|
|
Changes in non-cash operating working
capital items:
|
|
|
|
|
|
Accounts receivable - fees and
reimbursable project costs
|
|
85,597
|
|
(226,145)
|
|
Prepaid expenses, deferred project costs
and other assets
|
|
(830,610)
|
|
(101,428)
|
|
Accounts payable, accrued liabilities and
other current liabilities
|
|
(188,061)
|
|
116,147
|
|
Deferred
revenue
|
|
837,130
|
|
-
|
|
Net Cash Used In Operating Activities
|
|
(1,285,253)
|
|
(1,028,657)
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
Sales of marketable
securities
|
|
1,949,893
|
|
-
|
|
Property
and equipment
|
|
(1,540)
|
|
-
|
|
Patent costs
|
|
(21,877)
|
|
-
|
|
Net Cash Provided By Investing Activities
|
|
1,926,476
|
|
-
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
Restricted
cash
|
|
(283)
|
|
-
|
|
Net Cash Provided by (Used In) Financing
Activities
|
|
(283)
|
|
-
|
|
|
|
|
|
|
|
Net Increase (Decrease) In Cash and Cash
Equivalents
|
|
640,940
|
|
(1,028,657)
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, Beginning of
Period
|
|
2,373,421
|
|
3,028,791
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Period
|
$
|
3,014,361
|
$
|
2,000,134
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow
Information
|
|
|
|
|
|
Cash paid during the year:
|
|
|
|
|
|
Interest
paid
|
$
|
-
|
$
|
-
|
|
Income
taxes paid
|
$
|
-
|
$
|
-
|
|
|
|
|
|
|
|
Non-Cash Financing
Activity
|
|
|
|
|
|
|
|
|
|
|
|
Grant of Common Stock for Payment of
Accrued Liabilities
|
$
|
-
|
$
|
702,651
|
|
|
|
|
|
|
|
|
|
SOURCE Lightbridge Corporation
|