RESTON, Va., March 15, 2018 (GLOBE NEWSWIRE) -- Lightbridge Corporation (NASDAQ:LTBR), a
nuclear fuel technology company, today provided a business update, including upcoming milestones for Enfission LLC, its joint
venture with Framatome, Inc., a leader in designing, building, servicing, and fueling today's reactor fleet and advancing nuclear
energy. The Company also reported financial results for the year ended December 31, 2017.
Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, “In 2017 we laid the
foundation for what would become the most pivotal event in our corporate history. In January of this year we announced the
launch of Enfission, our 50-50 joint venture with Framatome, to develop, license and sell nuclear fuel assemblies based on
Lightbridge-designed metallic fuel technology and other advanced nuclear fuel intellectual property. I am pleased to report that
with Framatome we are making rapid progress since the formation of Enfission. Specifically, we are working on developing a
regulatory licensing plan for lead test assemblies and we expect to present this plan to the U.S. Nuclear Regulatory Commission
(NRC) later this year. We are also developing analytical models for our metallic fuel technology that can be used for reactor
analysis and regulatory licensing. Our goal is to commence metallic fuel sample fabrication for irradiation in a test reactor
in 2020. We continue to receive valuable feedback on our fuel technology development plan through our Nuclear Utility Fuel
Advisory Board, which is comprised of four leading U.S. nuclear utilities. We expect Enfission to enter into a lead test rod
and/or lead test assembly agreement with at least one of these four companies in 2019-2020, which could result in our first
fuel-related cash contributions from a utility customer.”
“We continue to expand our intellectual property protection. In January, we received a Notice of Allowance in
the U.S. that extends Lightbridge's patent portfolio coverage to an entire metallic fuel assembly design for Western-type
pressurized water reactors, which comprise two-thirds all power reactors in operation worldwide. Our metallic fuel designs can also
be adapted for use in nearly all other power reactors around the world. We were also awarded key patents in Europe and China
related to our innovative metallic fuel design, which extend through 2034. With dozens of patents issued and pending around the
world, we have assembled a strong intellectual property portfolio that, through Enfission, we plan to leverage into commercial
arrangements.”
“There is growing governmental support for nuclear energy in the U.S. and around the world. Nearly all the
nuclear power plants in the U.S. have received license renewals to allow operations to 60 years, and the first applicants for
subsequent license renewals to extend reactor operations to 80 years have announced plans to begin the process with the NRC this
year. Importantly, the White House has placed nuclear energy at the forefront of its energy agenda, including new programs to boost
nuclear power research and development. Importantly, our nuclear fuel designs are attracting attention at both the commercial and
governmental levels, given that our technology holds significant promise to enhance reactor safety, improve nuclear power plants’
economics through increased power output and longer fuel cycles, improve proliferation resistance of spent fuel so bombs can’t be
made from nuclear waste, and reduce the amount of waste per unit of electricity generated.”
“Since the end of 2017, we have significantly enhanced our balance sheet, including a recent capital raise with
European family offices, strategic and accredited American and European investors. As a result, our balance sheet is stronger
than any time in our corporate history and we now have approximately $27 million of cash on hand as of today, which we expect will
help significantly accelerate our commercial efforts.”
Balance Sheet Overview
At December 31, 2017, we had cash and cash equivalents of approximately $4.5 million, as compared to
approximately $3.6 million at December 31, 2016. The $0.9 million increase in cash and cash equivalents resulted from the sale of
approximately $6.0 million of common stock during the twelve months ended December 31, 2017, partially offset by net cash used in
operating activities of approximately $5.0 million and cash used in investing activities of approximately $0.2 million. The Company
used cash during the 12 months ended December 31, 2017 primarily to fund general and administrative expenses and for research and
development. The Company had approximately $3.6 million in working capital at December 31, 2017 as compared to working capital of
approximately $3.4 million at December 31, 2016. Stockholders' equity at December 31, 2017 was approximately $5.8 million compared
to stockholders’ equity of approximately $5.6 million at December 31, 2016.
Operating Results – Year End of Fiscal 2017 Compared to Year End of Fiscal
2016
For the year ended December 31, 2017, Lightbridge’s net loss available to common shareholders was approximately $7.4 million, or a
loss of $0.71 per share, on revenue of $0.2 million. Lightbridge focused its efforts on forming the joint venture with Framatome,
which included Framatome’s due diligence work on our nuclear fuel before entering into the Enfission joint venture. In the same
period of 2016, the net loss available to common shareholders was $7 million, or loss per share of $1.48 per share, on revenue of
$0.8 million. All revenue was generated from consulting services. Stock-based compensation expense was $1.2 million for the year
ended December 31, 2017 compared to $2.0 million for the year ended December 31, 2016. For the year ended December 31, 2017, the
Company’s cash flows used in operating activities were $5.0 million versus $6.0 million used in operating activities for the same
period of 2016. The decrease in cash used in operating activities in 2017 of $1.0 million was primarily due to the decrease in
revenue and operating expenses and the change in working capital items.
2017 Year End Conference Call
Lightbridge will host a conference call on Friday, March 16th at 10:00 a.m. US Eastern Time to discuss the
company's financial results for the year ending December 31, 2017, as well as the Company's corporate progress and other meaningful
developments.
Interested parties can access the conference call by calling 877-407-0778 for U.S. callers, or +1- 201-689-8565
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 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 ir@Ltbridge.com.
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 midnight April 16, 2018, and can be accessed by calling: 877-481-4010 (U.S.
callers) or +1- 919-882-2331 (international callers) and entering conference ID: 26581.
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: www.ltbridge.com.
To receive Lightbridge Corporation updates via e-mail, subscribe at
http://ir.ltbridge.com/alerts.cfm.
Lightbridge is on Twitter. Sign up to follow @LightbridgeCorp at
http://twitter.com/lightbridgecorp.
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,
progress and potential challenges relating to Enfission’s anticipated operations and other developments, the expected timing and
results arising from research and development with respect to Enfission, the possibility of obtaining the Company’s first
fuel-related contributions from a utility customer, the expected market for and the position of the Company's product and service
offerings, and the impact of governmental support for nuclear energy initiatives.
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; the success of our
Enfission joint venture with Framatome; 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. +1 855-379-9900
ir@Ltbridge.com
*** tables follow ***
| |
|
|
|
|
|
|
| Lightbridge Corporation |
| Consolidated Balance Sheets |
| |
| |
|
December 31, |
|
|
December 31, |
|
| |
|
2017 |
|
|
2016 |
|
| ASSETS |
| Current Assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
4,515,398 |
|
|
$ |
3,584,877 |
|
| Restricted cash |
|
|
- |
|
|
|
114,012 |
|
| Accounts receivable - project revenue and
reimbursable project |
|
|
10,400 |
|
|
|
388,434 |
|
| Prepaid expenses and other current assets |
|
|
70,067 |
|
|
|
80,933 |
|
| Deferred financing costs, net |
|
|
491,168 |
|
|
|
491,168 |
|
| Total Current Assets |
|
|
5,087,033 |
|
|
|
4,659,424 |
|
| Other Assets |
|
|
|
|
|
|
|
|
| Patent costs |
|
|
1,367,692 |
|
|
|
1,160,465 |
|
| Deferred financing costs, net |
|
|
491,268 |
|
|
|
982,486 |
|
| Total Other Assets |
|
|
1,858,960 |
|
|
|
2,142,951 |
|
| Total Assets |
|
$ |
6,945,993 |
|
|
$ |
6,802,375 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY |
| Current Liabilities |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
1,151,210 |
|
|
$ |
1,216,321 |
|
| Total Current Liabilities |
|
|
1,151,210 |
|
|
|
1,216,321 |
|
| |
|
|
|
|
|
|
|
|
| Long-Term Liabilities |
|
|
|
|
|
|
|
|
| Deferred lease abandonment liability |
|
|
- |
|
|
|
28,464 |
|
| Total Liabilities |
|
|
1,151,210 |
|
|
|
1,244,785 |
|
| |
|
|
|
|
|
|
|
|
| Commitments and contingencies - Note 7 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Stockholders' Equity |
|
|
|
|
|
|
|
|
Convertible Preferred stock, $0.001 par value, 10,000,000 authorized
shares, convertible Series A
preferred shares, 1,020,000 shares issued and outstanding at December 31, 2017 and December 31, 2016 |
|
|
1,020 |
|
|
|
1,020 |
|
Common stock, $0.001 par value, 100,000,000 authorized shares, 12,737,703 shares
and 7,112,143
shares issued and outstanding as of December 31, 2017 and 2016, respectively |
|
|
12,738 |
|
|
|
7,112 |
|
| Additional paid-in capital |
|
|
93,602,539 |
|
|
|
86,266,075 |
|
| Accumulated Deficit |
|
|
(87,821,514 |
) |
|
|
(80,716,617 |
) |
| Total Stockholders' Equity |
|
|
5,794,783 |
|
|
|
5,557,590 |
|
| Total Liabilities and Stockholders' Equity |
|
$ |
6,945,993 |
|
|
$ |
6,802,375 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
| Lightbridge Corporation |
Consolidated Statements of Operations
|
| |
| |
|
Years Ended |
|
| |
|
December
31, |
|
| |
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Consulting Revenue |
|
$ |
175,446 |
|
|
$ |
760,577 |
|
| |
|
|
|
|
|
|
|
|
| Cost of Consulting Services Provided |
|
|
107,091 |
|
|
|
456,565 |
|
| |
|
|
|
|
|
|
|
|
| Gross Margin |
|
|
68,355 |
|
|
|
304,012 |
|
| |
|
|
|
|
|
|
|
|
| Operating Expenses |
|
|
|
|
|
|
|
|
| General and administrative |
|
|
4,383,066 |
|
|
|
5,190,549 |
|
| Research and development expenses |
|
|
2,282,938 |
|
|
|
2,748,337 |
|
| Total Operating Expenses |
|
|
6,666,004 |
|
|
|
7,938,886 |
|
| |
|
|
|
|
|
|
|
|
| Operating Loss |
|
|
(6,597,649 |
) |
|
|
(7,634,874 |
) |
| |
|
|
|
|
|
|
|
|
| Other Income and (Expenses) |
|
|
|
|
|
|
|
|
| Warrant revaluation |
|
|
- |
|
|
|
1,672,573 |
|
| Warrant modification expense |
|
|
- |
|
|
|
(162,398 |
) |
| Interest income |
|
|
65 |
|
|
|
316 |
|
| Financing costs |
|
|
(491,218 |
) |
|
|
(191,345 |
) |
| Interest expense |
|
|
(16,095 |
) |
|
|
(29,448 |
) |
| Total Other Income and (Expenses) |
|
|
(507,248 |
) |
|
|
1,289,698 |
|
| |
|
|
|
|
|
|
|
|
| Net loss before income taxes |
|
|
(7,104,897 |
) |
|
|
(6,345,176 |
) |
| |
|
|
|
|
|
|
|
|
| Income taxes |
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Net loss |
|
|
(7,104,897 |
) |
|
$ |
(6,345,176 |
) |
| |
|
|
|
|
|
|
|
|
| Accumulated preferred stock dividend |
|
|
(276,578 |
) |
|
|
(80,578 |
) |
| |
|
|
|
|
|
|
|
|
| Deemed dividend on convertible preferred stock dividend
conversion due to beneficial feature |
|
|
- |
|
|
|
(581,300 |
) |
| |
|
|
|
|
|
|
|
|
| Net loss attributable to common shareholders |
|
$ |
(7,381,475 |
) |
|
$ |
(7,007,054 |
) |
| |
|
|
|
|
|
|
|
|
| Net Loss Per Common Share, |
|
|
|
|
|
|
|
|
| Basic and Diluted |
|
$ |
(0.71 |
) |
|
$ |
(1.48 |
) |
| |
|
|
|
|
|
|
|
|
| Weighted Average Number of Shares Outstanding |
|
|
10,424,481 |
|
|
|
4,728,943 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
| Lightbridge Corporation |
Consolidated Statements of Cash Flows
|
| |
| |
|
Years Ended |
|
| |
|
December
31, |
|
| |
|
2017 |
|
|
2016 |
|
| Operating Activities: |
|
|
|
|
|
|
| Net Loss |
|
$ |
(7,104,897 |
) |
|
$ |
(6,345,176 |
) |
| Adjustments to reconcile net loss from operations to net cash
used in operating activities: |
|
|
|
|
|
|
|
|
| Stock-based compensation |
|
|
1,193,306 |
|
|
|
1,984,011 |
|
| Amortization of deferred financing costs |
|
|
491,218 |
|
|
|
191,345 |
|
| Abandonment loss |
|
|
37,780 |
|
|
|
- |
|
| Warrant revaluation |
|
|
- |
|
|
|
(1,672,573 |
) |
| Warrant modification expense |
|
|
- |
|
|
|
162,398 |
|
| Implied interest expense on deferred lease
abandonment liability |
|
|
16,095 |
|
|
|
26,953 |
|
| Changes in operating working capital items: |
|
|
|
|
|
|
|
|
| Accounts receivable - fees and reimbursable project
costs |
|
|
378,034 |
|
|
|
(248,637 |
) |
| Prepaid expenses and other assets |
|
|
10,866 |
|
|
|
87,096 |
|
| Accounts payable and accrued liabilities |
|
|
159,953 |
|
|
|
101,960 |
|
| Deferred lease abandonment liability |
|
|
(185,683 |
) |
|
|
(263,437 |
) |
| Net Cash Used In Operating Activities |
|
|
(5,003,328 |
) |
|
|
(5,976,060 |
) |
| |
|
|
|
|
|
|
|
|
| Investing Activities: |
|
|
|
|
|
|
|
|
| Patent costs |
|
|
(207,227 |
) |
|
|
(209,871 |
) |
| Net Cash Used In Investing Activities |
|
|
(207,227 |
) |
|
|
(209,871 |
) |
| |
|
|
|
|
|
|
|
|
| Financing Activities: |
|
|
|
|
|
|
|
|
| Net proceeds from the issuance of common stock |
|
|
6,027,064 |
|
|
|
6,135,804 |
|
| Net proceeds from the issuance of preferred
stock |
|
|
- |
|
|
|
2,800,000 |
|
| Proceeds from the issuance of note payable |
|
|
- |
|
|
|
135,000 |
|
| Repayment of note payable |
|
|
- |
|
|
|
(135,000 |
) |
| Restricted cash |
|
|
114,012 |
|
|
|
211,820 |
|
| Net Cash Provided by Financing Activities |
|
|
6,141,076 |
|
|
|
9,147,624 |
|
| |
|
|
|
|
|
|
|
|
| Net Increase In Cash and Cash Equivalents |
|
|
930,521 |
|
|
|
2,961,693 |
|
| |
|
|
|
|
|
|
|
|
| Cash and Cash Equivalents, Beginning of Year |
|
|
3,584,877 |
|
|
|
623,184 |
|
| |
|
|
|
|
|
|
|
|
| Cash and Cash Equivalents, End of Year |
|
$ |
4,515,398 |
|
|
$ |
3,584,877 |
|
| |
|
|
|
|
|
|
|
|
| Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
|
| Cash paid during the year: |
|
|
|
|
|
|
|
|
| Interest |
|
$ |
- |
|
|
$ |
2,433 |
|
| Income taxes |
|
$ |
- |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Non-Cash Financing Activities: |
|
|
|
|
|
|
|
|
| Deferred financing costs |
|
$ |
- |
|
|
$ |
1,664,999 |
|
| Warrant liability – reclassification to equity |
|
$ |
- |
|
|
$ |
817,020 |
|
| Deemed dividend on convertible preferred stock due
to beneficial conversion feature |
|
$ |
- |
|
|
$ |
581,300 |
|
| Accumulated preferred stock dividend |
|
$ |
276,578 |
|
|
$ |
80,578 |
|
| Decrease in accrued liabilities - stock-based
compensation |
|
$ |
121,720 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
