Lightbridge Reports Financial Results for the Third Quarter of 2019 and Provides Business Update on Enfission and Other Developments
Lightbridge management to host conference call at 2 PM ET on November 7th
RESTON, Va., Nov. 05, 2019 (GLOBE NEWSWIRE) -- (NASDAQ: LTBR), a nuclear fuel developer, today provided a business update and reported financial results for the third quarter ended September 30, 2019.
Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, “During the third quarter of 2019, we achieved several major milestones. We successfully demonstrated the high temperature co-extrusion of 12-foot, Lightbridge Fuel™ rods using surrogate materials for commercial scale nuclear reactors. In parallel, we also demonstrated the process to produce fuel rods at a length designed for small modular reactors.”
“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., Europe, China, Russia and other key markets.”
“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 $50 million, which we estimate equates to a $20 billion addressable global market. We are encouraged by industry feedback on our fuel, due to the fact that we will uniquely offer nuclear plant operators an advanced fuel that provides a compelling value proposition and addresses key challenges facing the industry. At the same time, our balance sheet remains strong with approximately $20.6 million in cash and no long-term debt.”
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.
Financial Highlights
- Cash and cash equivalents were $20.6 million at September 30, 2019 compared to $24.6 million at December 31, 2018.
- Total assets were $23.0 million at September 30, 2019 and total liabilities were $1.7 million at September 30, 2019.
- Total equity offerings raised $0.8 million in net proceeds for the three months ended September 30, 2019 compared to net proceeds of $1.7 million for 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 million compared 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 million at September 30, 2019 compared to $25.9 million at 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 million for 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 million for the three months ended September 30, 2019 compared to $4.2 million for the three months ended September 30, 2018.
- Effective 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
Lightbridge will host a conference call on November 7, 2019, at 2:00 p.m. Eastern Time to discuss the Company's financial results for the third quarter ending September 30, 2019, as well as the Company's corporate progress and other meaningful developments.
Interested parties can access the conference call by calling 844-369-8774 for U.S. callers, or for international callers. The call will be available on the Company’s website via webcast at . The conference call will be led by Seth Grae, President and Chief Executive Officer, and other Lightbridge executives will also be available to answer questions. Questions may also be submitted in writing before or during the conference call to .
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 2:00 p.m. on December 7, 2019, and can be accessed by calling: 877-481-4010 (U.S. callers) or (international callers) and entering conference ID: 56761.
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:
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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 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 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.
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Lightbridge Corporation
Unaudited Condensed Consolidated Balance Sheets
| September 30, | December 31, | ||||||
| 2019 | 2018 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| 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 | |||||
| Patent costs | 1,725,853 | 1,577,421 | |||||
| Total Assets | $ | 23,038,272 | $ | 26,344,714 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current Liabilities | |||||||
| 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 | |||||||
| Stockholders' Equity | |||||||
| 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 | |||||
| Accumulated deficit | (112,356,480 | ) | (103,497,622 | ) | |||
| Total Stockholders' Equity | 21,351,654 | 25,868,395 | |||||
| Total Liabilities and Stockholders' Equity | $ | 23,038,272 | $ | 26,344,714 | |||
Lightbridge Corporation
Unaudited Condensed Consolidated Statements of Operations
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||
| Revenue | $ | — | $ | — | $ | — | $ | — | |||||||||
| Operating Expenses | |||||||||||||||||
| 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 | ) | |||||||||
| Operating Loss | (2,522,586 | ) | (4,293,621 | ) | (9,174,549 | ) | (11,633,704 | ) | |||||||||
| Other Income and (Expenses) | |||||||||||||||||
| Interest income | 81,172 | 79,035 | 315,691 | 163,054 | |||||||||||||
| Financing costs | — | — | — | (982,436 | ) | ||||||||||||
| 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 | ) | |||||||||
| Income taxes | — | — | — | — | |||||||||||||
| Net loss | $ | (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 | |||||||||||||
Lightbridge Corporation
Unaudited Condensed Consolidated Statements of Cash Flows
| Nine Months Ended | ||||||
| September 30, | ||||||
| 2019 | 2018 | |||||
| Operating Activities | ||||||
| Net Loss | $ | (8,858,858 | ) | $ | (12,453,086 | ) |
| Adjustments to reconcile net loss from operations to net cash used in operating activities | ||||||
| Stock-based compensation | 591,663 | 1,951,394 | ||||
| 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 | ) | ||
| Investing Activities | ||||||
| Investment in joint venture | (3,540,000 | ) | (5,217,000 | ) | ||
| Patent costs | (148,432 | ) | (172,189 | ) | ||
| Net Cash Used in Investing Activities | (3,688,432 | ) | (5,389,189 | ) | ||
| Financing Activities | ||||||
| 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 | ||||||
| Interest paid | $ | — | $ | — | ||
| 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 | ||
