Lightbridge Provides 2011 Third Quarter Business Update and Announces Financial Results
MCLEAN, Va., Nov. 9, 2011 /PRNewswire/ -- 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 third quarter business update on the progress of its nuclear fuel technology and consulting businesses and reported financial results for the quarter ended September 30, 2011.
"The second half of 2011 has been quite productive for the Company with a number of tangible and measurable developments and other important activities that continue to move forward as planned," said Seth Grae, President and CEO of Lightbridge. "We continue to make progress on our collaborative project with Idaho National Laboratory and Texas A & M University, and we've begun the negotiation process with potential fuel fabrication development partners."
2011 Third Quarter Business Update
The Company had several other tangible developments in the 2011 third quarter, including the following:
- Idaho National Laboratory (INL) completed a preliminary scoping study confirming, in principle, the feasibility of performing loop irradiation of the Company's metallic fuel samples in the Advanced Test Reactor (ATR). As a result, INL is now proceeding with a more detailed design of the loop experiment. This detailed analysis will provide input into a safety analysis report, which is a key prerequisite for the loop irradiation experiment. Lightbridge is pleased to be part of this Texas A&M University-led research project with the Fuel Cycle & Materials Laboratory under the auspices of the U.S. Department of Energy's Idaho National Laboratory Advanced Test Reactor National Scientific User Facility.
- Lightbridge began negotiations with a domestic fuel fabrication partner relating to metal fuel fabrication process development and demonstration work in the U.S. The Company expects negotiations to conclude in the first half of 2012.
- Lightbridge completed a preliminary analysis of the data generated from the thermal-hydraulic and vibration testing results for a VVER-1000 seed and blanket fuel assembly mockup. The results from the preliminary analysis of these tests are quite positive, and reaffirm the thermal-hydraulic performance advantages of the seed-and-blanket fuel assembly compared to standard fuel assembly. More detailed results of this testing will be submitted for publication in a peer- reviewed journal in the coming months.
- Lightbridge received a notice of allowance from the U.S. Patent and Trademark Office for a patent application covering a locking mechanism for a seed-and-blanket fuel assembly. The patent will issue in the next few months and will provide protection for the locking mechanism invention in the U.S. from its issuance until December 2028. Lightbridge has also filed counterpart foreign patent applications for this invention, and will file an additional international Patent Cooperation Treaty patent application for an improved locking mechanism in the coming months.
- Lightbridge prepared a technical review paper of the Company's metallic fuel and its application to Pressurized Water Reactors (PWRs) and submitted it for publication in a peer-reviewed journal. The paper provides a detailed overview of the technical basis behind our metallic fuel technology and discusses, from a technical standpoint, how specific benefits of our fuel technology could improve fuel performance. This paper is the first in a series of peer-reviewed articles we plan to publish in the coming quarters. We will provide further update once the article has been published.
Mr. Grae concluded, "On the consulting side of our business, we continue to work with existing customers and engage in discussions with new potential customers in new markets about our services. Following the events at Fukushima earlier in the year, there's a sharpened focus on studying beyond design basis accident scenarios which take into account the most extreme circumstances."
A more detailed update on Lightbridge's nuclear fuel technology is available as of today in the Fuel Technology section on the Company's website at www.ltbridge.com.
Financial Results
Revenue for the third quarter ended September 30, 2011 was $1.7 million, a decrease from $2.1 million for the third quarter of 2010. Operating loss for the three months ended September 30, 2011 improved to $1.2 million, as compared to an operating loss of $1.7 million in the comparable period a year ago. The Company's operating revenues are derived from its consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants. Revenues are 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. Our consulting projects are primarily being performed pursuant to ongoing requests to work on specific projects.
Balance Sheet Overview
As of September 30, 2011, the Company had approximately $9.3 million in cash and cash equivalents, and approximately $9.7 million of working capital, with no long term debt. Stockholders' equity was $10.4 million on September 30, 2011 compared with $13.1 million on December 31, 2010.
2011 Third Quarter Conference Call
Lightbridge will host a conference call on Wednesday, November 9, 2011 at 11:30 AM EST to discuss the Company's 2011 third 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.
Date: |
Wednesday, November 9, 2011 |
|
Time: |
11:30 AM EST |
|
Call-in (domestic): |
1-800-860-2442 |
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Live Call (international): |
1-412-858-4600 |
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Live Webcast: |
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All participant questions should be submitted in writing to [email protected] prior to and during the conference call. Submitted questions will be read aloud and answered during the call.
About Lightbridge Corporation
Lightbridge is a U.S. nuclear energy company based in McLean, 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 international 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 September 30, 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.
Contact:
Lightbridge Corporation:
Gerry Pascale
(571) 730-1213
[email protected]
Lightbridge Corporation |
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September 30, |
December 31, |
||||
2011 |
2010 |
||||
(Unaudited) |
|||||
ASSETS |
|||||
Current Assets |
|||||
Cash and cash equivalents |
$ |
9,284,584 |
$ |
2,373,421 |
|
Marketable securities |
-- |
10,461,357 |
|||
Restricted cash |
551,607 |
550,283 |
|||
Accounts receivable - project revenue and reimbursable project costs |
837,496 |
990,563 |
|||
Prepaid expenses & other current assets |
396,425 |
365,261 |
|||
Total Current Assets |
11,070,112 |
14,740,885 |
|||
Property Plant and Equipment -net |
53,892 |
72,179 |
|||
Other Assets |
|||||
Patent costs - net |
482,936 |
377,262 |
|||
Security deposits |
120,486 |
120,486 |
|||
Total Other Assets |
603,422 |
497,748 |
|||
Total Assets |
$ |
11,727,426 |
$ |
15,310,812 |
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|||||
Current Liabilities |
|||||
Accounts payable and accrued liabilities |
$ |
1,354,873 |
$ |
2,088,362 |
|
Deferred revenue |
-- |
98,110 |
|||
Total Liabilities |
1,354,873 |
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, 12,449,958 shares issued, 12,399,883 shares outstanding and 12,430,058 shares issued, 12,345,840 shares outstanding at September 30, 2011 and December 31, 2010, respectively |
12,400 |
12,346 |
|||
Additional paid in capital - stock and stock equivalents |
70,581,626 |
69,370,261 |
|||
Deficit |
(60,256,223) |
(56,286,767) |
|||
Common stock reserved for issuance, 13,578 shares and 6,451 shares at September 30, 2011 and December 31, 2010, respectively |
34,750 |
28,500 |
|||
Total Stockholders' Equity |
10,372,553 |
13,124,340 |
|||
Total Liabilities and Stockholders' Equity |
$ |
11,727,426 |
$ |
15,310,812 |
|
Lightbridge Corporation |
|||||||||
Three Months Ended |
Nine Months Ended |
||||||||
September 30, |
September 30, |
||||||||
2011 |
2010 |
2011 |
2010 |
||||||
Revenue: |
|||||||||
Consulting Revenue |
$ |
1,652,538 |
$ |
2,050,456 |
$ |
5,523,181 |
$ |
6,411,883 |
|
Cost of Consulting Services Provided |
848,065 |
1,255,877 |
3,516,708 |
4,024,275 |
|||||
Gross Margin |
804,473 |
794,579 |
2,006,473 |
2,387,608 |
|||||
Operating Expenses |
|||||||||
General and administrative |
1,438,660 |
1,942,132 |
4,559,317 |
6,642,487 |
|||||
Research and development expenses |
591,089 |
562,783 |
1,716,884 |
1,142,043 |
|||||
Total Operating Expenses |
2,029,749 |
2,504,915 |
6,276,201 |
7,784,530 |
|||||
Operating Loss |
(1,225,276) |
(1,710,336) |
(4,269,728) |
(5,396,922) |
|||||
Other Income and (Expenses) |
|||||||||
Investment income |
73,145 |
3,809 |
319,445 |
4,857 |
|||||
Other income (expenses) |
(16,654) |
35,563 |
(19,173) |
33,033 |
|||||
Total Other Income and Expenses |
56,491 |
39,372 |
300,272 |
37,890 |
|||||
Net loss before income taxes |
(1,168,785) |
(1,670,964) |
(3,969,456) |
(5,359,032) |
|||||
Income taxes |
-- |
-- |
-- |
-- |
|||||
Net loss |
$ |
(1,168,785) |
$ |
(1,670,964) |
$ |
(3,969,456) |
$ |
(5,359,032) |
|
Net Loss Per Common Share, Basic and diluted |
$ |
(0.09) |
$ |
(0.14) |
$ |
(0.32) |
$ |
(0.50) |
|
Weighted Average Number of shares outstanding |
12,364,628 |
11,703,932 |
12,360,312 |
10,730,225 |
|||||
Lightbridge Corporation |
|||||
Nine Months Ended |
|||||
September 30, |
|||||
2011 |
2010 |
||||
Operating Activities: |
|||||
Net Loss |
$ |
(3,969,456) |
$ |
(5,359,032) |
|
Adjustments to reconcile net loss from operations to net cash used in operating activities: |
|||||
Stock-based compensation |
1,147,669 |
2,259,348 |
|||
Depreciation and amortization |
19,515 |
18,216 |
|||
Gain on marketable securities |
(108,226) |
(38,638) |
|||
Changes in non-cash operating working capital items: |
|||||
Accounts receivable - fees and reimbursable project costs |
153,067 |
1,149,728 |
|||
Prepaid expenses and other assets |
(31,164) |
45,460 |
|||
Accounts payable, accrued liabilities and other current liabilities |
(663,489) |
176,405 |
|||
Deferred revenue |
(98,110) |
-- |
|||
Net Cash Used In Operating Activities |
(3,550,194) |
(1,748,513) |
|||
Investing Activities: |
|||||
Proceeds from (Purchases of) Marketable securities |
10,569,583 |
(10,390,614) |
|||
Property and equipment |
(1,228) |
-- |
|||
Patent costs |
(105,674) |
(47,716) |
|||
Net Cash Provided By (Used In) Investing Activities |
10,462,681 |
(10,438,330) |
|||
Financing Activities: |
|||||
Proceeds from the issuance of common stock - net of offering costs |
-- |
12,582,575 |
|||
Redemption of common stock into treasury stock |
-- |
(243,552) |
|||
Restricted cash |
(1,324) |
388,555 |
|||
Net Cash Provided by (Used In) Financing Activities |
(1,324) |
12,727,578 |
|||
Net Increase In Cash and Cash Equivalents |
6,911,163 |
540,735 |
|||
Cash and Cash Equivalents, Beginning of Period |
2,373,421 |
3,028,791 |
|||
Cash and Cash Equivalents, End of Period |
$ |
9,284,584 |
$ |
3,569,526 |
|
Supplemental Disclosure of Cash Flow Information: |
|||||
Cash paid during the year: |
|||||
Interest paid |
$ |
-- |
$ |
-- |
|
Income taxes paid |
$ |
-- |
$ |
-- |
|
Non-Cash Financing Activity: |
|||||
Retirement of Treasury Stock |
$ |
-- |
$ |
243,552 |
|
Grant of Common Stock for Payment of Accrued Liabilities |
$ |
70,000 |
$ |
703,737 |
|
SOURCE Lightbridge Corporation
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