FOR IMMEDIATE RELEASE |
LIGHTBRIDGE ANNOUNCES NUCLEAR FUEL DEVELOPMENT
UPDATE
AND 2015 SECOND QUARTER FINANCIAL RESULTS
Conference Call and Webcast Scheduled at 11 a.m. ET Friday,
August 21 at:
http://edge.media-server.com/m/p/bovyns7y
MCLEAN, VA, August 19, 2015 Lightbridge Corporation (NASDAQ: LTBR) today issued a development and commercialization progress report for the quarter and six months ended June 30, 2015 on its next generation nuclear fuel technology that helps existing and new build reactors to enhance safety, increase revenue and improve operating margins.
Lightbridge continues to achieve value-creating strategic milestones, said Seth Grae, President and Chief Executive Officer. At a time of heightened awareness of nuclear energys crucial role in mitigating the negative effects of greenhouse gas emissions from fossil fuels, Lightbridge remains on track to deliver to the world a safer nuclear fuel that helps utilities improve reactor operating economics through increased power output. The Company is well positioned to realize high-margin revenue streams in the coming years from technology licensing fees and royalties from a growing $25 billion annual market for nuclear fuel. We believe Lightbridge metallic fuel offers an unmatched value proposition to operators of both existing and new build reactors.
2015 Second Quarter Business Update
Lightbridge expects increased demand for its advanced metallic nuclear
fuel, due to incentives in the U.S. Environmental Protection Agency Clean Power Plan, which was published in early
August. The plan offers credits to utilities for reducing greenhouse gas
emissions by boosting generation from existing nuclear power plants. The Clean
Power Plan calls for a 32% reduction from 2005 levels in carbon pollution from
the utility power industry by 2030. Depending on fuel cycle length,
Lightbridge's proprietary metallic fuel can provide 10% to 17% more power from
existing pressurized water reactors (PWRs).
"Compared with conventional
nuclear fuel, only Lightbridge metallic fuel can offer meaningful power
uprates and longer fuel cycles that will provide the lowest levelized cost per
megawatt hour on the grid," Grae said.
In April, nuclear fuel managers at Dominion Generation (NYSE: D), Duke
Energy (NYSE: DUK), Exelon Generation (NYSE: EXC) and Southern Company (NYSE:
SO) asked the U.S. Nuclear Regulatory Commission (NRC) to prepare to review
Lightbridges patented fuel design, in advance of an expected application in
2017 to use the Companys fuel in a U.S. commercial reactor as early as 2020
(http://pbadupws.nrc.gov/docs/ML1513/ML15134A092.pdf). The NRC relies on communications from U.S. utilities to adjust
Commission staffing levels and budgets in anticipation of regulatory review of
licensing applications.
The importance of this milestone cannot be
overstated because without support from utility customers, the NRC will not
allocate resources to a regulatory review, Grae said.
During the second quarter, the Company completed negotiations on a binding, 10-year service agreement with the Institute for Energy Technology, operator of the 25MW Halden research reactor, southeast of Oslo, Norway. The agreement was signed in early July. Beginning in 2017, Lightbridge expects its fabricated fuel samples to undergo full irradiation under prototypic commercial reactor operating conditions in a pressurized water loop of the Halden reactor. The projects pre-irradiation scope includes irradiation-rig mechanical design, detailed neutronic and thermal-hydraulic calculations, and safety analyses with necessary regulatory approvals. The initial phase of irradiation testing is expected to continue for about three years to reach the burnup necessary for insertion of lead test assemblies (LTAs) in a commercial power reactor. The final phase of irradiation testing necessary for batch reloads and full cores operating with a 10% power uprate and a 24-month cycle is expected to take an additional two years and be completed while LTAs have begun operating in the core of a commercial power reactor. Post- irradiation examination of Lightbridges partially irradiated fuel samples also is planned to begin at Halden in 2018.
Meetings have been held with large companies that fabricate nuclear fuel for the global market. We planned to have a teaming agreement in place with one of these companies in 2017 or 2018 but current progress may lead to such an arrangement sooner than expected, Grae said. These meetings are an important facet of the Companys market strategy, whereby fuel fabricators prepare to supply Lightbridges fuel to the global market, while utilities continue to validate the demand for our fuel for use in their reactors.
Negotiations have advanced to the final stage on a comprehensive agreement
between Lightbridge and Canadian Nuclear Laboratories (CNL), a wholly
owned subsidiary of Atomic Energy of Canada Limited, for fabrication of
Lightbridge fuel samples at CNLs Chalk River, Ontario facilities. An initial
cooperation agreement was signed with CNL in October 2014. The comprehensive
agreement involves development of a fabrication plan in 2015, fabrication and
characterization in early 2016 of prototype fuel rods using depleted uranium,
to be followed by fabrication in late 2016 of irradiation fuel samples using
enriched uranium.
This agreement is the last key contract for
critical-path work scope relating to research reactor irradiation under
prototypic commercial reactor operating conditions and keeps us on our
development timeline, Grae said.
The Korean Intellectual Property Office approved and issued to Lightbridge a key patent covering the
Company's multi-lobed metallic fuel rod design and fuel assemblies. Patent No.
10-151116 Nuclear Reactor (Variants), Fuel Assembly Consisting of
Driver-Breeding Modules for a Nuclear Reactor (Variants) and a Fuel Cell for a
Fuel Assembly - expands international protection of Lightbridge's proprietary
fuel technology.
The South Korean patent is another important
milestone in the development of our fuel assembly designs for existing and new
build pressurized water reactors," Grae said. "Korea represents a significant
potential market for Lightbridge metallic fuel with 24 operating commercial
reactors and an additional eight reactors either under construction or planned
by 2035. South Korea also is an active exporter of
nuclear power reactors, marketing its units in the
Middle East, North Africa and Southeast Asia. The South Korean Ministry of
Trade, Industry and Energy aims to export 80 reactors worth $400 billion by
2030.
The Company entered into an at-the-market issuance sales agreement (ATM)
with agent MLV & Co. LLC to sell up to $0.5 million of shares of common
stock from time to time.
The ATM program is one element of our
initiative to secure new financing or additional sources of capital, depending
on the capital market conditions, over the next 12 months, Grae said. Other
primary potential sources of cash available to us are strategic investments
through alliances with major fuel vendors, fuel fabricators or other strategic
parties during the next three years.
Financial Results
For the quarter ended June 30,
2015, Lightbridges net loss was $1.5 million, or a loss of $0.08 per share, on
revenue of $0.3 million. In the same quarter of 2014, the net loss was $1.7
million, or a loss of $0.11 per share, on revenue of $0.3 million. All revenue was generated from
consulting services. General and administrative expenses in the 2015 quarter
were $1.1 million, compared to $1.1 million in the same period in 2014. For the
six months ended June 30, 2015, G&A expenses totaled $2.0 million versus
$2.3 million in the same period last year. Research and development expenses for
the quarter and six months ended June 30, 2015 were $0.4 million and $0.6
million, respectively, compared to $0.6 million and $1.1 million in the
respective periods of 2014. For the six months ended June 30, 2015, the
Companys cash flows used in operating activities were $1.8 million versus $2.6
million in the same period of 2014, a decline of approximately 33% due primarily
to reduced overhead expenses.
Over the next 12 to 15 months, we expect to incur approximately $3.0 million in research and development expenses related to the development of our proprietary nuclear fuel designs, Grae said. We are carefully managing our expenses and reducing overhead where appropriate, while maintaining a solid balance sheet with no long-term debt. Our strategy is to minimize dilution through alliances with fuel vendors, fuel fabricators and other strategic partners. Upon commercialization of our technology in the coming years, we believe the license and royalty fees from existing U.S. reactors alone will add significant value for shareholders.
Balance Sheet Overview
At June 30, 2015, the Company
had approximately $2.4 million in cash, cash equivalents and restricted cash,
and approximately $2.7 million of working capital, with no long-term debt.
Stockholders' equity was approximately $3.6 million at June 30, 2015 compared
with $5.4 million on December 31, 2014. Common shares outstanding at June 30,
2015 totaled 18,082,874.
Commercial Nuclear Energy Market Opportunity
The
commercial nuclear energy industry is projected to grow rapidly at a time of
rising global demand for reliable, carbon-free, base load electric power. There
are currently 436 operable civil nuclear reactors in 30 countries around the
world, with 67 reactors under construction and 488 on order, planned or
proposed, according to the World Nuclear
Association. By 2040, the International Energy
Agency projects a 58% increase in nuclear capacity from a combination
of power uprates and reactor construction.
For a detailed description of the value proposition of Lightbridge fuel technology, including projected incremental annual net operating cash flows and return on investment for a nuclear power plant operator using Lightbridge fuel at various wholesale electricity prices, visit http://bit.ly/1jLXpoY. The advantages of Lightbridge's metallic fuel design were confirmed in independent third-party analyses published in 2012 and 2013. These reports, which include a peer-reviewed article published in Nuclear Technology, are available for download at http://ir.ltbridge.com/.
2015 Second Quarter Conference Call
Lightbridge will
hold a conference call and webcast on Friday, August 21, at 11 a.m. ET to
discuss the Company's 2015 second quarter results and to 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. Questions may be asked live, using the telephone
lines below. Questions also may be submitted in writing before or during the
conference call to ir@ltbridge.com. All
written questions will be read and answered during the call.
Lightbridge Corporation Conference Call 2015 Q2 Business Update and Financial Results | ||
Date: | Friday, August 21, 2015 | |
Time: | 11 a.m. ET | |
Conference Passcode: | 8703926# | |
Domestic Toll Free Dial-In: | 888-424-8151 | |
International Dial-In: | http://bit.ly/1JyrmRz Visit this link for a list of country-specific dial-in numbers | |
Live Webcast: | http://edge.media-server.com/m/p/bovyns7y | |
Replay: | Available for one year at the URL above. |
About Lightbridge Corporation
Lightbridge
is a nuclear energy company based in McLean, Virginia. The Company develops
proprietary next generation nuclear fuel technologies for current and future
nuclear reactor systems. Lightbridge's breakthrough fuel technology is
establishing new global standards for safe and clean nuclear power and leading
the way to a sustainable energy future. 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 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.
Important recent milestones achieved by Lightbridge include approval and issuance of key patents by the United States, Australia and South Korea for the Companys multi-lobed metallic fuel rod design and fuel assemblies. In April 2015, nuclear fuel managers at Dominion Generation (NYSE: D), Duke Energy (NYSE: DUK), Exelon Generation (NYSE: EXC) and Southern Company (NYSE: SO) asked the U.S. Nuclear Regulatory Commission (NRC) to prepare to review Lightbridges fuel design, in advance of an expected application in 2017 to use the Companys fuel in a U.S. reactor as early as 2020 (http://pbadupws.nrc.gov/docs/ML1513/ML15134A092.pdf). The NRC relies on communications from U.S. utilities to adjust Commission staffing levels and budgets in anticipation of regulatory review of licensing applications.
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 Company's
competitive position, the timing of demonstration testing and commercial
production, the Companys product and service offerings and the expected market
for the Companys product and service offerings. 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; and 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.
CONTACT:
Gary Sharpe
Investor Relations and
Corporate Communications
Lightbridge Corporation
1-571-730-1213
gsharpe@ltbridge.com
Lightbridge Corporation
Condensed Consolidated
Balance Sheets
June 30, 2015 | December 31, | |||||
(Unaudited) | 2014 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 2,371,266 | $ | 4,220,225 | ||
Restricted cash | 325,505 | 325,181 | ||||
Accounts receivable - project revenue and reimbursable project costs | 247,144 | 469,086 | ||||
Prepaid expenses and other current assets | 203,795 | 205,184 | ||||
Total Current Assets | 3,147,710 | 5,219,676 | ||||
Property Plant and Equipment -net | - | - | ||||
Other Assets | ||||||
Patent costs | 883,775 | 833,560 | ||||
Total Assets | $ | 4,031,485 | $ | 6,053,236 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities | ||||||
Accounts payable and accrued liabilities | $ | 452,571 | $ | 653,668 | ||
Total Current Liabilities | 452,571 | 653,668 | ||||
Commitments and contingencies - note 5 | ||||||
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,
18,082,874 shares outstanding at June 30, 2015 and December 31, 2014 |
18,083 | 18,083 | ||||
Additional paid-in capital - stock and stock equivalents | 82,016,278 | 81,276,339 | ||||
Accumulated Deficit | (78,455,447 | ) | (75,894,854 | ) | ||
Total Stockholders' Equity | 3,578,914 | 5,399,568 | ||||
Total Liabilities and Stockholders' Equity | $ | 4,031,485 | $ | 6,053,236 |
Lightbridge Corporation
Unaudited Condensed
Consolidated Statements of Operations
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Revenue: | ||||||||||||
Consulting Revenue | $ | 298,162 | $ | 349,131 | $ | 422,057 | $ | 603,238 | ||||
Cost of Consulting Services Provided | 275,662 | 230,974 | 333,054 | 355,986 | ||||||||
Gross Margin | 22,500 | 118,157 | 89,003 | 247,252 | ||||||||
Operating Expenses | ||||||||||||
General and administrative | 1,108,807 | 1,149,420 | 2,039,100 | 2,280,839 | ||||||||
Research and development expenses | 394,715 | 624,448 | 607,545 | 1,056,434 | ||||||||
Total Operating Expenses | 1,503,522 | 1,773,868 | 2,646,645 | 3,337,273 | ||||||||
Operating Loss | (1,481,022 | ) | (1,655,711 | ) | (2,557,642 | ) | (3,090,021 | ) | ||||
Other Income and (Expenses) | ||||||||||||
Investment income | 163 | 603 | 323 | 991 | ||||||||
Other income (expenses) | (762 | ) | - | (3,274 | ) | - | ||||||
Total Other Income and (Expenses) | (599 | ) | 603 | (2,951 | ) | 991 | ||||||
Net loss before income taxes | (1,481,621 | ) | (1,655,108 | ) | (2,560,593 | ) | (3,089,030 | ) | ||||
Income taxes | - | - | - | - | ||||||||
Net loss | $ | (1,481,621 | ) | $ | (1,655,108 | ) | $ | (2,560,593 | ) | $ | (3,089,030 | ) |
Net Loss Per Common Share, | ||||||||||||
Basic and Diluted | $ | (0.08 | ) | $ | (0.11 | ) | $ | (0.14 | ) | $ | (0.21 | ) |
Weighted Average Number of Shares Outstanding | 18,082,874 | 15,067,885 | 18,082,874 | 15,063,052 |
Lightbridge Corporation
Unaudited Condensed
Consolidated Statements of Cash Flows
Six Months Ended | ||||||
June 30, | ||||||
2015 | 2014 | |||||
Cash Flows from Operating Activities: | ||||||
Net Loss | $ | (2,560,593 | ) | $ | (3,089,030 | ) |
Adjustments to reconcile net loss from operations to net cash used | ||||||
in operating activities: | ||||||
Stock-based compensation | 782,036 | 125,297 | ||||
Loss on marketable securities | - | (792 | ) | |||
Changes in non-cash operating working capital items: | ||||||
Accounts receivable - fees and reimbursable project costs | 221,942 | 17,685 | ||||
Prepaid expenses and other assets | 1,389 | (50,203 | ) | |||
Accounts payable and accrued liabilities | (201,097 | ) | 378,220 | |||
Net Cash Used In Operating Activities | (1,756,323 | ) | (2,618,823 | ) | ||
Cash Flows from Investing Activities: | ||||||
Payments for Patent costs | (50,215 | ) | (65,546 | ) | ||
Net Cash Used In Investing Activities | (50,215 | ) | (65,546 | ) | ||
Cash Flows from Financing Activities: | ||||||
Payments for Stock offering costs | (42,097 | ) | - | |||
Restricted cash | (324 | ) | (554 | ) | ||
Net Cash Used In Financing Activities | (42,421 | ) | (554 | ) | ||
Net Decrease In Cash and Cash Equivalents | (1,848,959 | ) | (2,684,923 | ) | ||
Cash and Cash Equivalents, Beginning of Period | 4,220,225 | 3,672,877 | ||||
Cash and Cash Equivalents, End of Period | $ | 2,371,266 | $ | 987,954 | ||
Supplemental Disclosure of Cash Flow Information: | ||||||
Cash paid during the year: | ||||||
Interest | $ | - | $ | - | ||
Income taxes | $ | - | $ | - |