Lightbridge Provides Business Update and Announces Fiscal Year 2019 Earnings Results
18 March 2020 - 7:05AM
Lightbridge Corporation (NASDAQ: LTBR), an advanced nuclear fuel
technology company, today announced financial results for the
fiscal year ended December 31, 2019, as well as the Company's
corporate progress and other meaningful developments.
Seth Grae, President & Chief Executive
Officer of Lightbridge Corporation, commented, “We finished 2019
poised to enter a new phase of our company's development, being
awarded a voucher from the U.S. Department of Energy’s Gateway for
Accelerated Innovation in Nuclear (GAIN) program to support
development of Lightbridge Fuel™ in collaboration with Idaho
National Laboratory (INL). The scope of the project includes
experiment design for irradiation of Lightbridge metallic fuel
material samples in the Advanced Test Reactor at INL. The new GAIN
voucher helps position Lightbridge well for further research and
development activities within the U.S. national laboratory complex,
which we intend to help us commercialize Lightbridge Fuel™. While
bringing change to the nuclear power industry is difficult, we
remain confident in our ability to succeed.”
“Lightbridge is advancing its development
program, and we expect to achieve important milestones over the
next 12-24 months. In the near-term, our R&D activities are
focused on the development of a fabrication process for prototype
fuel rods with depleted or natural uranium, experiment design and
fabrication of material test samples for irradiation in a research
reactor, and evaluation of our fuel for use in the CANDU reactor
market.
“The US government is making historically large
levels of funding and use of national laboratory facilities
available to the American private sector to develop advanced
nuclear technology. In December 2019, Congress voted to approve
appropriations for fiscal year 2020 that includes
$1.49 billion for nuclear energy programs, an increase of
approximately $167 million over 2019. We believe the timing
couldn’t be better for Lightbridge to benefit from this historic
bipartisan support for nuclear energy from the federal
government.
“The Lightbridge leadership team is dedicated to
creating shareholder value, and we remain focused on our pursuit of
full-scale commercialization of Lightbridge Fuel™ as quickly as
possible,” concluded Mr. Grae.
Financial Highlights
The Company maintains a strong working capital
position at December 31, 2019 and has no debt.
Cash Flows Summary
- Cash and cash equivalents were
$18.0 million at December 31, 2019, compared to $24.6 million
at December 31, 2018, a decrease of $6.6 million in cash and cash
equivalents, consisting of the following:
- Cash used in operating activities decreased $0.7 million, from
$7.4 million in 2018 to $6.7 million in 2019. This decrease was due
primarily to a decrease in our research and development expenses
and general and administrative expenses.
- Cash used in investing activities decreased $2.0 million from
$5.8 million in 2018 to $3.8 million in 2019. This decrease was due
primarily to the decrease in capital contributions made to the
joint venture Enfission LLC.
- Cash provided by financing activities decreased $29.5 million
from $33.3 million in 2018 to $3.8 million in 2019. This decrease
was due to the decrease in equity offerings in 2019.
Balance Sheet Summary
- Total assets were $20.2 million at
December 31, 2019 and total liabilities were $0.4 million at
December 31, 2019. Working capital was $18.0 million at December
31, 2019 versus $24.3 million in 2018. This decrease of $6.3
million in working capital was due primarily to the factors stated
above in the cash flow summary.
- Stockholders’ equity was $19.9
million at December 31, 2019 versus $25.9 million at December 31,
2018.
Operations Summary
- General and administrative expenses
for the year ended December 31, 2019 were $5.7 million compared to
$6.7 million for the prior year. This decrease of approximately
$1.0 million was due to a decrease in stock-based compensation of
approximately $1.0 million, and a decrease in professional fees of
approximately $0.2 million, due to a decrease in legal fees,
accounting fees and other professional fees. These decreases were
offset by an increase in employee compensation and employee
benefits of approximately $0.2 million due to an increase in the
number of employees. Total stock-based compensation included in
general and administrative expenses was approximately $0.4 million
and $1.4 million for the years ended December 31, 2019
and 2018, respectively.
- Lightbridge’s total corporate
research and development costs amounted to $2.7 million for the
year ended December 31, 2019 compared to $3.5 million for the year
ended December 31, 2018. This decrease of $0.8 million
was due to the decrease in corporate research and development
activities supporting the Enfission joint
venture.
- Total net other operating expenses
were $2.6 million for the year ended December 31, 2019 compared to
$4.8 million for the year ended December 31, 2018, a decrease of
$2.2 million. The equity in loss from the Enfission joint venture
decreased by $2.5 million in 2019 due to the decrease in research
and development activities in the joint venture. Other income from
research and development support provided to Enfission decreased by
$0.3 million.
- Total net other income increased by
approximately $1.1 million due to the decrease in financing costs
in 2019.
- Net loss for the year ended
December 31, 2019 was $10.6 million compared to $15.7 million for
2018. This decrease of $5.1 million was due to decreased research
and development expenses, decreased general and administrative
expenses and a decrease in equity loss from the Enfission joint
venture.
FISCAL YEAR 2019 CONFERENCE CALL &
WEBCAST
Lightbridge will host a conference call on
Wednesday, March 18th at 4:00 p.m. Eastern Time to discuss the
Company's financial results for the fourth quarter and year ended
December 31, 2019, as well as the Company's corporate progress and
other meaningful developments.
Interested parties can access the conference
call by calling 877-407-3138 for U.S. callers, or 201-389-0927 for
international callers. The call will be available on the Company’s
website via webcast at http://ir.ltbridge.com/events.cfm.
A webcast will also be archived on the Company’s
website and a telephone replay of the call will be available
approximately two hours following the call, through April 18, 2020,
and can be accessed by dialing 877-660-6853 from the U.S. or
201-612-7415 for international callers and using the Conference ID#
13699675.
About Lightbridge
Corporation
Lightbridge (NASDAQ: LTBR) is an advanced
nuclear fuel technology company based in Reston, Virginia, USA. The
Company is developing Lightbridge Fuel™, a proprietary next
generation nuclear fuel technology for current and future reactors,
which significantly enhances the economics and safety of nuclear
power, operating about 1000° C cooler than standard fuel. 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 StatementsWith
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
future federal funding and support for nuclear energy, the timing
of future research and development activities, and that the
economic and safety benefits of our fuel will encourage greater use
of nuclear power. 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 Company’s ability to commercialize its nuclear fuel
technology; risks related to the dissolution of the Enfission joint
venture; the degree of market adoption of the Company's product and
service offerings; market competition; public perception of nuclear
energy generally; changes in laws, rules, and regulations governing
the Company’s business; development and utilization of, and
challenges to, the Company’s intellectual property; potential and
contingent liabilities; 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:Porter, LeVay &
Rose, Inc.Matthew AbenanteTel: 212-564-4700 ir@ltbridge.com
*** tables follow ***
LIGHTBRIDGE CORPORATION
CONSOLIDATED BALANCE SHEETS
|
|
December 31, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
ASSETS |
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
17,958,989 |
|
|
$ |
24,637,295 |
|
Other receivable from joint venture |
|
|
400,000 |
|
|
|
93,253 |
|
Prepaid expenses and other current assets |
|
|
47,371 |
|
|
|
36,745 |
|
Total Current Assets |
|
|
18,406,360 |
|
|
|
24,767,293 |
|
Other Assets |
|
|
|
|
|
|
|
|
Patent costs |
|
|
1,798,484 |
|
|
|
1,577,421 |
|
Total Other Assets |
|
|
1,798,484 |
|
|
|
1,577,421 |
|
Total Assets |
|
$ |
20,204,844 |
|
|
$ |
26,344,714 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
350,299 |
|
|
$ |
258,056 |
|
Investee losses in excess of investment |
|
|
— |
|
|
|
218,263 |
|
Total Current Liabilities |
|
|
350,299 |
|
|
|
476,319 |
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 authorized
shares |
|
|
|
|
|
|
|
|
Convertible Series A preferred shares, 757,770 shares and 813,624
shares issued and outstanding at December 31, 2019 and 2018,
respectively (liquidation preference $2,636,764 and $2,640,862 at
December 31, 2019 and 2018, respectively) |
|
|
757 |
|
|
|
813 |
|
Convertible Series B preferred shares, 2,666,667 shares issued and
outstanding at December 31, 2019 and 2018 (liquidation
preference $4,569,180 and $4,262,855 at December 31, 2019
and 2018, respectively) |
|
|
2,667 |
|
|
|
2,667 |
|
Common stock, $0.001 par value, 8,333,333 authorized, 3,252,371
shares and 2,738,508 shares issued and outstanding as of
December 31, 2019 and 2018, respectively |
|
|
3,252 |
|
|
|
2,738 |
|
Additional paid-in capital |
|
|
133,932,615 |
|
|
|
129,359,799 |
|
Accumulated deficit |
|
|
(114,084,746 |
) |
|
|
(103,497,622 |
) |
Total Stockholders' Equity |
|
|
19,854,545 |
|
|
|
25,868,395 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
20,204,844 |
|
|
$ |
26,344,714 |
|
LIGHTBRIDGE
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Years Ended |
|
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
General and administrative |
|
|
5,697,469 |
|
|
|
6,715,378 |
|
Research and development expenses |
|
|
2,676,156 |
|
|
|
3,458,377 |
|
Total Operating Expenses |
|
|
8,373,625 |
|
|
|
10,173,755 |
|
|
|
|
|
|
|
|
|
|
Other Operating Income and (Loss) |
|
|
|
|
|
|
|
|
Other income from joint venture |
|
|
715,126 |
|
|
|
1,056,551 |
|
Equity in loss from joint venture |
|
|
(3,321,737 |
) |
|
|
(5,835,263 |
) |
Total Other Operating Income and (Loss) |
|
|
(2,606,611 |
) |
|
|
(4,778,712 |
) |
Total Operating Loss |
|
|
(10,980,236 |
) |
|
|
(14,952,467 |
) |
|
|
|
|
|
|
|
|
|
Other Income and (Expenses) |
|
|
|
|
|
|
|
|
Interest income |
|
|
393,112 |
|
|
|
258,795 |
|
Financing costs |
|
|
— |
|
|
|
(982,436 |
) |
Total Other Income and (Expenses) |
|
|
393,112 |
|
|
|
(723,641 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Before Income Taxes |
|
|
(10,587,124 |
) |
|
|
(15,676,108 |
) |
Income Taxes |
|
|
— |
|
|
|
— |
|
Net Loss |
|
$ |
(10,587,124 |
) |
|
$ |
(15,676,108 |
) |
|
|
|
|
|
|
|
|
|
Accumulated Preferred Stock Dividend |
|
|
(490,117 |
) |
|
|
(461,187 |
) |
Deemed additional dividend on
preferred stock dividend due to the beneficial conversion
feature |
|
|
(209,698 |
) |
|
|
(187,892 |
) |
Deemed dividend on issuance on
Series B convertible preferred stock due to the beneficial
conversion feature |
|
|
— |
|
|
|
(2,624,836 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Attributable to Common Shareholders |
|
$ |
(11,286,939 |
) |
|
$ |
(18,950,023 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
$ |
(3.63 |
) |
|
$ |
(8.54 |
) |
|
|
|
|
|
|
|
|
|
Weighted
Average Number of Common Shares Outstanding |
|
|
3,107,580 |
|
|
|
2,219,687 |
|
LIGHTBRIDGE
CORPORATIONCONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
Years Ended |
|
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
Operating Activities |
|
|
|
|
|
|
Net Loss |
|
$ |
(10,587,124 |
) |
|
$ |
(15,676,108 |
) |
Adjustments to reconcile net loss from operations to net cash used
in operating activities |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
822,820 |
|
|
|
2,379,905 |
|
Write off of deferred financing costs |
|
|
— |
|
|
|
982,436 |
|
Equity in loss from joint venture |
|
|
3,321,737 |
|
|
|
5,835,263 |
|
Changes in operating working capital items: |
|
|
|
|
|
|
|
|
Accounts receivable - fees and reimbursable project costs |
|
|
— |
|
|
|
10,400 |
|
Other receivable from joint venture |
|
|
(306,747 |
) |
|
|
(93,253 |
) |
Prepaid expenses and other assets |
|
|
(10,626 |
) |
|
|
33,322 |
|
Accounts payable and accrued liabilities |
|
|
92,243 |
|
|
|
(893,154 |
) |
|
|
|
|
|
|
|
|
|
Net Cash Used in Operating Activities |
|
|
(6,667,697 |
) |
|
|
(7,421,189 |
) |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Investment in joint venture |
|
|
(3,540,000 |
) |
|
|
(5,617,000 |
) |
Patent costs |
|
|
(221,063 |
) |
|
|
(209,729 |
) |
Net Cash Used in Investing Activities |
|
|
(3,761,063 |
) |
|
|
(5,826,729 |
) |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Net proceeds from the issuance of common stock |
|
|
3,750,454 |
|
|
|
29,469,814 |
|
Net proceeds from the issuance of preferred stock |
|
|
— |
|
|
|
3,900,001 |
|
Net Cash Provided by Financing Activities |
|
|
3,750,454 |
|
|
|
33,369,815 |
|
|
|
|
|
|
|
|
|
|
Net (Decrease) Increase in Cash and Cash Equivalents |
|
|
(6,678,306 |
) |
|
|
20,121,897 |
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, Beginning of Year |
|
|
24,637,295 |
|
|
|
4,515,398 |
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Year |
|
$ |
17,958,989 |
|
|
$ |
24,637,295 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
|
Cash paid during the year |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
— |
|
|
$ |
— |
|
Income taxes paid |
|
$ |
— |
|
|
$ |
— |
|
Non-Cash Financing Activities |
|
|
|
|
|
|
|
|
Deemed dividend on issuance Series B convertible preferred stock
due to beneficial conversion feature |
|
$ |
— |
|
|
$ |
2,624,836 |
|
Accumulated preferred stock dividend |
|
$ |
699,815 |
|
|
$ |
649,079 |
|
Conversion of Series A convertible preferred stock to common stock
and payment of paid-in-kind dividends to Series A preferred
stockholder |
|
$ |
187,890 |
|
|
$ |
206,376 |
|
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